UNDERWRITING GUIDELINES

COVERAGES
Workers' Compensation and Employers Liability

UNDERWRITING PHILOSOPHY
Our goal is to insure those accounts that demonstrate an active concern for workplace safety and an average to above average ability to control losses and loss exposures. Each account is underwritten with these concerns and abilities in mind.

MINIMUM PREMIUM: $1,000

ELIGIBILITY

• Insured must be engaged as its primary operation as a "non-profit" tax-exempt organization with an IRS designation of "501(c) 3".
• Insured must be in business for a minimum of three years; however, we will entertain an account if it has been in business less than three years but more than one year, provided we receive documented evidence of prior management experience.
• Risk Management must be: Stable for the past three years with no material change in operations, Experienced in operation's industry and Safety-conscious and compliant with any and all loss control recommendations.
• Written description of any individual loss greater than $15,000, including nature of injury, cause, and current status must be provided. Loss data provided should be valued within the last ninety- (90) days.
• Insured must have an Experience Rating Modification less than 1.20 but greater than .65.
• Insured's with modified premiums in excess of $50,000 must be loss control inspected upon binding. Insured's under $50,000 are to be inspected on an "as needed" basis.
• Insured's may have no more than two (2) cancellations in a single policy term for non-payment of premium. A second non-pay cancellation will require the full annual balance as payment for reinstatement.

TARGETED NONPROFIT ORGINIZATIONS
Community First will entertain a wide cross section of nonprofit organizations. Outlined below is a sampling of the type of nonprofits we will quote. Because the operations of nonprofits can be so varied, it is impossible to list every type of nonprofit. Therefore, if it's not listed below it does not necessarily mean we won't take a look at it.

Boys and Girls Clubs
Clubs-Social/Civic/Service/Fraternal
Community Action Agencies
Community Centers
Day Care Centers
Family Counseling Centers
Food Banks/Distribution Programs
Foundations
Headstart Programs
Humane Societies
Monasteries and Convents
Museums and Art Galleries
Outpatient Clinics
Schools
Religious Institutions
Research Labs
Senior Housing
Symphony/Opera/Ballet/Theater
Theological Seminaries
Vocational/Adult Schools

More Challenging Operations...
Alcohol and Drug Halfway Houses
Group Home and/or Residential Care Facilities

INELIGIBLE EXPOSURES
Sheltered Workshops
Regional Centers
Home Health Care
Skilled Nursing Care
Hospitals
Mentally Ill Residential Facilities
Criminal or Parole Halfway Houses

Any insured requesting coverage under the following type rating plans:

1) Retrospective Rating Plan, or
2) Retention Plan, or
3) Large or Small Deductible Programs.

• Any insured with height exposures over two stories.
• Any Hazard Group IV (NCCI or California designation) Exceptions for insureds rated Hazard Group IV in California but Hazard Group I, II, or III by NCCI may be referred for consideration prior to quoting or binding.
• Any insured which is not engaged as its primary operation as a "non profit" tax exempt organization with an IRS designation of "501(c) 3."

MAXIMUM LIMITS
COVERAGE A: Statutory
COVERAGE B: $1,000,000 each accident/each employee
$1,000,000 aggregate

VOLUNTEER COVERAGE
It is our desire to avoid adding coverage for volunteer workers. This is because it is very difficult to determine the correct premium charge for these workers as well as determining the correct figures at audit. In addition, injuries to volunteer workers can impact the insured's experience modifier more severely than employees due to the payroll and premium inadequacies of insuring volunteers.

We recommend that coverage for volunteers be provided through the insured's general liability policy in combination with a volunteer accident policy. Coverage for volunteers must be referred to our underwriters with the following information:

• Total number of volunteers.
• Description of work performed by volunteers.
• Equivalent payroll (volunteer hours X equivalent hourly wage).
• Class code that bests matches the work done by the volunteers.

WAIVER OF SUBROGATION ENDORSEMENTS
Waiver of subrogation endorsements must be referred to our underwriters with the following information:

• Total payroll associated with the contract requiring the waiver.
• Class codes associated with the contract requiring the waiver.
• Description of the work the insured is performing.
• Contract or Project number.
• Term or length of project.

Premium: 5% of the premium associated with the contract or project requiring the waiver.