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Glossary

Alternative Fuel Vehicle: A dedicated fuel vehicle designed to use an alternative fuel as defined in the Federal Energy Policy Act (�EPact�) of 1992 or an electric and gasoline hybrid vehicle

Anti-Lock Brakes: An anti-lock braking system provides your car with added protection through braking technology in many types of driving conditions.

Anti-theft Device: An authorized anti-theft protection device provided by the manufacturer of a vehicle as original equipment or an authorized dealer. The device must be self-activating upon locking the vehicle�s doors.

Bodily Injury: Bodily injury liability applies if, as an insured person, you are legally obligated to pay damages due to bodily injury to others arising from a covered loss. If you are sued because of a covered automobile loss, the cost of your legal defense is also covered. The limits chosen are the most the company will pay for any one occurrence. The limits chosen will be per policy.

Collision: Collision provides physical damage coverage to an insured’s vehicle for damages caused by collision with another vehicle, object, etc. or upset. Comprehensive coverage is required with this coverage.

Comprehensive: Comprehensive coverage provides physical damage coverage to an insured�s vehicle that suffers damage, whether direct or accidental. Physical damage coverage is provided to an insured’s vehicle for damages other than collision.

Full-time Student: The driver must be a student in high school, or enrolled as a full-time student in academic courses in a college or university.

Good Student Discount: To qualify for the good student discount, the driver must be 16 to 24 years of age and a full-time high school student, or enrolled as a full-time college or university student. The driver will have to provide documentation that they are:

1. A full time student, and

2. The school academic records for the immediately preceding school semester or quarter (or comparable segment) show the student:

* Ranked scholastically in the upper 20% of his or her class, or

* Had a grade average of “B” or better in schools designating grades by letters (no grade below “B” if such systems cannot be averaged), or

* Had an average of at least a 3.0 for all subjects combined in a school using numerical (4, 3, 2 and 1) grade points, or

* Was included in the “Dean’s List”, the “Honor Roll” or similar list in a school maintaining such a list designating scholastic achievement.
Marital Status: Select your marital status and the status of any licensed driver residing in your household or employed as a chauffeur by the named insured.

* Never Married - means a single person who has never been married

* Married - means a married person living with his or her spouse

* Divorced - means the applicant and/or spouse have legally dissolved their marriage

* Separated - husband and wife not living in the same residence, but not legally divorced.

* Widowed - single because of death of the spouse
Medical Coverage: Medical payments coverage covers reasonable expenses incurred within three years from the date of accident for necessary medical services and funeral expenses because of bodily injury sustained by an insured person. Medical payment coverage is afforded regardless of fault.

Passive Restraint System: Passive restraint systems require no action on the part of the vehicle occupants. Automatic Seat Belts wrap around the passenger when they sit in the car. Air bags are loss-reduction devices stored in the dash and/or steering column which are designed to inflate in moderate and severe front end crashes.

Policy Payment Options: EFT: Insureds who elect to use a Farmers Easy Pay� Electronic Funds Transfer (EFT) account as their method of payment. Paid-in-Full: Insureds who elect to pay 100% of their full-term policy premium by the due date. Direct Bill: Customers billed by direct mail. Direct Bill customers can receive a bill based on the length of time for their selected payment plan or pay the bill in full.

Property Damage: Property damage liability will pay for accidental property damage caused by you or the driver of your car to someone else’s property, when you are found legally responsible. This coverage will pay for the repairs to that property up to the limit of coverage chosen by you. If you are sued because of the accident, this coverage also covers the cost of your legal defense. The limits chosen will be per policy.

Rental Reimbursement Coverage: Rental Reimbursement Coverage is designed to reimburse the named insured for the actual expenses incurred for the daily rental rate and associated taxes resulting from a rental used as a substitute car for the insured car. Expenses for gasoline, maintenance, and Collision Damage Waiver Insurance charges are not included with this coverage.

Towing: This coverage provides reimbursements to the insured for the cost of towing a disabled vehicle. The coverage is also applicable for non-claims related road service, e.g., running out of gas, flat tires, locksmith service and towing for mechanical failure. This coverage is only available with Comprehensive coverage.

Uninsured Motorist: Uninsured motorist coverage will pay the insured the amount he/she is legally entitled to recover as damages for bodily injury, up to the limit of liability, when an insured is struck by an uninsured motorist vehicle (no insurance), or an unidentified motor vehicle (e.g. hit and run where no identifying information is obtained). Uninsured motorist limits cannot be higher than Bodily Injury limits.

Vehicle Primary Usage: Commuting to work: The car is driven all or part way to and from any driver’s principal place of work. This includes the use of the car in a car pool or other “share-the-ride” arrangement. No business use.

School: An automobile used for driving to or from school shall be considered as used for driving to or from work. No business use.

Business: Use of the car is required by or involved in the duties of any driver in his/her business, occupation, or profession other than in going to and from his/her principal place of work.

Pleasure/none of the above: Defined as vehicles which are used for personal and social purposes but which are not required for, nor customarily involved in, any business, occupation or profession. Vehicles driven to work or school may be classified as pleasure use provided the vehicle averages no more than 30 miles a week or 5,000 miles a year.

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