Delaware Private Passenger Automobile

Insurance

Farm Family Insurance Company

Robert Penick ACAS, MAAA

Actuarial Services

Summary

Private Passenger Automobile Program Currently have 2,909 policies Filing

Originally filed 14.3% rate increase Amended filing to 9.9% rate increase Base rates and model year factors Annual premium per vehicle - $856 Annual premium change per vehicle - $85

Prior Rate Changes 9.9% 02/2011 10.4% 02/2007 Prior change 12/2002

Losses and Expenses per $1 of Premium

2007 $1.20 2008 $1.17 2009 $1.15 2010 $1.01 2011 $1.20 Past 5 years $1.15 Past 3 years $1.12

Discounts

Defensive Driving Discount (10-15% for Liability premiums) Safe Driver Discount (5-10% for Liability and Collision premiums) Package Account Discount (10%) Good Student Discount (10-12%) Driver Training Discount (10%) Full Coverage Discount (5%) Renewal Discount (2%) Passive Restraint Discount (Up to 30% on PIP premiums) Anti-Theft Device Discount (5-15% for Comprehensive premiums) Multi-Car Discount (5-30%) Anti-Lock Brake Discount (5% for BI and PD premiums)

Discounts

Defensive Driving Discount (10-15% for Liability premiums) Applies when an operator receives a certificate certifying voluntary

attendance and successful completion of an accident prevention course or motorcycle rider course approved by the Insurance Commissioner.

Safe Driver Discount (5-10% for Liability and Collision premiums) Applies when a policy has been continuously insured with Farm Family and

all drivers have been licensed for 5 years or more claim-free and conviction-free.

Package Account Discount (10%) Applies when an owner-occupied residence is insured with Farm Family.

Good Student Discount (10-12%) Applies when a youth under 21 years of age is a full time student and is in

the top 20% of their class or maintains a “B” average. Driver Training Discount (10%)

Applies when a youth under 21 years of age successfully completes a qualifying driver education course.