Chapter 3 | Business Auto Coverage Form - Public Automobiles

Educational Objectives
Upon completion of this section, you should be able to:
  1. Define the term public automobiles.
  2. Describe the types of autos classified as special type vehicles.
  3. Explain the two methods used to determine rates for physical damage coverage.

FOUR-DIGIT CLASSIFICATIONS

This category includes all of the autos not being classified by the 5-digit class codes. Broadly, it includes the following:
  1. Public Transportation Automobiles
  2. Special Types Autos
  3. Garages (other than autos operated by auto service stations)
  4. Non-Owned Autos
Public Automobiles
These autos are registered or used for the transportation of members of the public. The following vehicles are considered public automobiles: taxicabs, limousines, school buses, church buses, urban buses, van pools, and other buses (airport buses and limousines, inter-city buses, charter buses, sightseeing buses, used in transportation of athletes and entertainers, social service autos - employee operated, social service autos - all other, and buses N.O.C.).

A complete listing of the fleet and non-fleet Primary Classifications is contained in Rule 40. If an auto has more than one use, assign the highest-rated classification unless 80% of the use is in a lower-rated activity. The following is a list of primary use classifications with respective classification requirements.

Taxicabs or Similar Passenger Carrying Service - Metered or unmetered auto with seating capacity of 8 or less that is operated for hire but do not pick up, transport or discharge passengers along a route.

The primary and secondary classification codes are indicated below. Note, the complete 4-digit (3 Primary Digits and 1 Secondary Digit) classification code numbers are shown. Here the secondary classification code is always 9.

Radius in Miles Non-Fleet Codes Fleet Codes
0 — 50 (Local)
51 — 200 (Intermediate)
Over 200 (Long Distance)
4159
4169
4179
4189
4199
4109

»back to top

Example:
A taxicab belonging to a fleet of yellow cabs in NYC and traveling at a radius of 70 miles is classified as 4199.

Limousines - Unmarked autos with a seating capacity of 8 or less that are operated for hire by the named insured or an employee and used on a prearranged basis for special or business functions, weddings, funerals or similar purposes.

The primary and secondary classification codes are indicated below. Again the complete 4-digit (3 Primary Digits and 1 Secondary Digit) classification code numbers are shown. The secondary classification code is always 9.

Radius in Miles Non-Fleet Codes Fleet Codes
0 — 50 (Local)
51 — 200 (Intermediate) Over 200 (Long Distance)
4259
4269
4279
4289
4299
4209


Example:
A company owning 4 limousines and renting them for weddings within a 50-mile radius is classified as 4259.

School Buses - Autos carrying students or other persons to and from school, or in any school activity including games, outings and similar school trips.

For classification purposes the school buses are separated into two groups:

1. School Buses Owned by Political Subdivisions or School Districts. The 3-digit primary classifications are determined as follows:
Radius in Miles Non-Fleet Codes Fleet Codes
0 — 50 (Local)
51 — 200 (Intermediate)
Over 200 (Long Distance)
615
616
617
618
619
610

»back to top

2. All Other School Buses, including independent contractors, private schools and church-owned school buses. The 3-digit primary classifications are determined as follows:
Radius in Miles Non-Fleet Codes Fleet Codes
0 — 50 (Local)
51 — 200 (Intermediate)
Over 200 (Long Distance)
625
626
627
628
629
620


Additionally, all school buses are assigned a 1-digit secondary classification code based on the seating capacity. The seating capacity is specified by the manufacturer and excludes the driver's seat. If a public authority determines its own seating capacities, use the public authority's specification.

Seating Capacity Secondary Class Codes
1 — 8
9 — 20
21 — 60
Over 60
1
2
3
4


Example:
A medium-sized school district has its own fleet of school buses. The classification for a school bus which travels 40 miles in radius and seats 32 students as 6183.

A policy covering a school bus may be written on an annual term for liability and collision coverages with premium prorated to reflect the actual school term. However, do not give credit for Saturdays, Sundays or holidays or for any other periods of lay-up during the school term.

Church Buses - Autos used by churches to transport persons to or from services and other church-related activities. This classification does not apply to public autos used primarily for daily school activities. The 3-digit primary classifications are determined as follows:

Radius in Miles Non-Fleet Codes Fleet Codes
0 — 50 (Local)
51 — 200 (Intermediate)
Over 200 (Long Distance)
635
636
637
638
639
630


All church buses are assigned a 1-digit secondary classification code based on the seating capacity.

Seating Capacity Secondary Class Codes
1 — 8
9 — 20
21 — 60
Over 60
1
2
3
4

»back to top

Example:
The only church-owned bus seating 40 adults and used in taking church members twice a week to revival meetings held 60 miles away is classified as 6363.

If the same bus would be used to carry children to church school about 90% of the time, classify it as a school bus instead of a church bus.

Urban Buses - Autos pick up, transport and discharge passengers at frequent local stops along prescribed routes. This classification applies only to vehicles operated principally within the limits of a city or town and communities contiguous to such city or town, and including scheduled express service between points on these routes. The urban buses are the most familiar buses seen on city streets every day. The 3-digit primary classifications are determined as follows:

Radius in Miles Non-Fleet Codes Fleet Codes
0 — 50 (Local)
51 — 200 (Intermediate)
515
516
518
519


A 1-digit secondary classification code based on the seating capacity is assigned to each Urban Bus.

Seating Capacity Secondary Class Codes
1 — 8
9 — 20
21 — 60
Over 60
1
2
3
4

»back to top

Example:
A fleet bus seating 50 people is leased long-term to a city which uses it as a city bus around a 30-mile radius is classified as 5183.

Van Pools - Autos of the station wagon, van, truck or bus type used to provide prearranged commuter transportation for employees to and from work and is not otherwise used to transport passengers for a charge. For classification purposes the van pool vehicles are separated into:

1. Employer Furnished Transportation - The mode of transportation being held out by the employer as an inducement to employment, a condition of employment or is incident to employment. This transportation can be furnished in two ways. Autos may be owned, or leased for one year or more, by an employer and used to provide transportation only for his employees, or autos may be owned, or leased for one year or more by individual employees and used to provide transportation only for fellow employees. The primary and secondary classification codes are indicated below. Both are based on the seating capacity regardless of radius.

Seating Capacity Non-Fleet/Fleet Codes
1 — 8
9 — 20
21 — 60
Over 60
4111
4112
4113
4114


Note that complete 4-digit (3 primary digits and 1 secondary digit) classification code numbers are shown. Here the secondary classification code is the same as for school buses, church buses, etc. Also non-fleets and fleets take similar primary class codes.

2. All Others - The primary and secondary classification codes are indicated below. Both are based on the seating capacity regardless of radius.

Seating Capacity Non-Fleet/Fleet Codes
1 — 8
9 — 20
21 — 60
Over 60
4121
4122
4123
4124


Again the complete 4-digit (3 primary digits and 1 secondary digit) classification code numbers are shown. Here the secondary classification code is the same as for school buses, church buses, etc. Also non-fleets and fleets take similar class codes.

Example:
A van owned by a large insurance company is assigned to an individual employee. This employee has to pick up fellow employees within a prescribed territory. The van is used within a 20-mile radius and seats 8 passengers. The proper class is 4111.

Autos of any type, other than vans which are used to transport employees and are either owned by an employer or leased for one year or more are classified as 5851, Buses NOC.

Other Buses - The following use classifications are to be zone classified if regularly operated beyond a 200-mile radius from the street address of principal garaging. That means that in addition to primary and secondary classifications, you are to determine the 2-digit zone for the point of principal garaging and the 3-digit zone included in the auto's operations farthest from that point. Follow the zone classification procedures as described under the "The 5-Digit Class Coded Commercial Autos" section in this manual.

1. Airport Buses or Airport Limousines - Autos for hire which transport passengers between airports and other passenger stations, or motels. The 3-digit primary classifications are determined as follows:

Radius in Miles Non-Fleet Codes Fleet Codes
0 — 50 (Local)
51 — 200 (Intermediate)
Over 200 (Long Distance)
525
526
5279
528
529
5209


Note that the complete 4-digit class code is given for vehicles with radius over 200 miles, and the secondary class code for these is always 9.

All airport buses and limousines with local and intermediate Radius are assigned a 1-digit secondary classification code based on the seating capacity.

Seating Capacity Secondary Class Codes
1 — 8
9 — 20
21 — 60
Over 60
1
2
3
4

»back to top

Example:
A limousine seating 9 passengers providing livery service between the local airport and a pick-up station in a city 25 miles away. There are 4 similar vehicles in the business. The class is 5252.

2. Inter-City Buses - Autos that pick up and transport passengers on a published schedule of stops between stations located in two or more towns or cities. These are the type of the buses belonging to a concern such as Greyhound. The 3-digit primary classifications are determined as follows:

Radius in Miles Non-Fleet Codes Fleet Codes
0 — 50 (Local)
51 — 200 (Intermediate)
Over 200 (Long Distance)
535
536
5379
538
539
5309


Note that the complete 4-digit class code is given for vehicles with radius over 200 miles, and the secondary class code for these is always 9.

All Inter-City Buses with local and intermediate Radius are assigned a 1-digit secondary classification code based on the seating capacity.

Seating Capacity Secondary Class Codes
1 — 8
9 — 20
21 — 60
Over 60
1
2
3
4


Example:
A bus seating 60 passengers and belonging to a large fleet of buses is used to carry passengers between Albany, NY and Boston, MA, a distance of 170 miles. The bus is scheduled to make 2 trips a day. The class is 5393.

3. Charter Buses - Autos which may be chartered for special trips, touring, picnics, outings, games and similar uses. The 3-digit primary classifications are determined as follows:

Radius in Miles Non-Fleet Codes Fleet Codes
0 — 50 (Local)
51 — 200 (Intermediate)
Over 200 (Long Distance)
545
546
5479
548
549
5409


Note that the complete 4-digit class code is given for vehicles with radius over 200 miles, and the secondary class code for these is always 9.

All charter buses with local and intermediate Radius are assigned a 1-digit secondary classification code based on the seating capacity.

Seating Capacity Secondary Class Codes
1 — 8
9 — 20
21 — 60
Over 60
1
2
3
4

»back to top

Example:
A bus belonging to a large fleet of a charter company is being hired to various groups to take them to hockey games, shopping trips to outlet stores, etc. The usual radius of this bus is 170 miles and the seating capacity is for 65 people. The class is 5494.

4. Sightseeing Buses - Autos accepting individual passengers for a fare for sightseeing or guided tours, making occasional stops at certain points of interest and returning the passengers to the point of origin. The 3-digit primary classifications are determined as follows:

Radius in Miles Non-Fleet Codes Fleet Codes
0 — 50 (Local)
51 — 200 (Intermediate)
Over 200 (Long Distance)
555
556
5579
558
559
5509


Note that the complete 4-digit class code is given for vehicles with radius over 200 miles, and the secondary class code for these is always 9.

All sightseeing buses with local and intermediate Radius are assigned a 1-digit secondary classification code based on the seating capacity.

Seating Capacity Secondary Class Codes
1 — 8
9 — 20
21 — 60
Over 60
1
2
3
4

»back to top

Example:
The only 3 buses owned by a concern which provides sightseeing tours over Gettysburg Battlefield seating 12 persons each and operating a 10-mile radius are classified as 5552 each.

5. Transportation of Athletes and Entertainers - Autos owned by a group, firm or organization that transports its own professional athletes, musicians or other entertainers. The 3-digit classifications are determined as follows:

Radius in Miles Non-Fleet Codes Fleet Codes
0 — 50 (Local)
51 — 200 (Intermediate)
Over 200 (Long Distance)
565
566
5679
568
569
5609


Note that the complete 4-digit class code is given for vehicles with a radius over 200 miles, and the secondary class code for these is always 9.

All buses transporting their own athletes or entertainers within the local and intermediate Radius are assigned a 1-digit secondary classification code based on the seating capacity.

Seating Capacity Secondary Class Codes
1 — 8
9 — 20
21 — 60
Over 60
1
2
3
4
Example:
A musical group owns a bus seating 40 people and traveling approximately a radius of 500 miles. The group lives in Los Angeles, California and has had regular jobs in Salt Lake City, Utah, which is the farthest point from the location of principal garaging. The class is 5679.

If the bus were to be used to transport other professional athletes, musicians or entertainers, classify as a Charter Bus. If this bus were to be used to transport its own non-professional athletes, musicians or entertainers, classify as a Buses NOC.

6. Social Service Agency Autos - Autos used by the government entity, civic, charitable or social service organization to provide transportation to clients incidental to the social services sponsored by the organization, including special trips and outings. This classification includes uses such as the transportation of:
  • Senior citizens or other clients to meal centers, medical facilities, social functions, shopping centers
  • Handicapped persons to work or rehabilitative programs
  • Children to day-care centers, Head Start programs
  • Boy Scout or Girl Scout groups to planned activities
These autos could be owned or lease for one year or more by the social service agency, or these could be donated to the social service agency without drivers, or these could be hired under contract by the social service agency. For classification purposes the Social Service Autos are separated into:

a) Social Service Autos - Employee Operated - Autos operated by employees of the social service agency. The 3-digit primary classifications are determined as follows:
Radius in Miles Non-Fleet Codes Fleet Codes
0 — 50 (Local)
51 — 200 (Intermediate)
Over 200 (Long Distance)
645
646
6479
648
649
6409


Note that the complete 4-digit class code is given for vehicles with radius over 200 miles, and the secondary class code for these is always 9.

b) Social Service Autos - All Other - This class includes autos operated by volunteer drivers or other nonagency employees. The 3-digit primary classifications are determined as follows:

Radius in Miles Non-Fleet Codes Fleet Codes
0 — 50 (Local)
51 — 200 (Intermediate)
Over 200 (Long Distance)
655
656
6579
658
659
6509

»back to top

Note that the complete 4-digit class code is given for vehicles with radius over 200 miles, and the secondary class code for these is always 9.

All Social Service Agency Autos with local and Intermediate Radius are assigned a 1-digit secondary classification code based on the seating capacity.

Seating Capacity Secondary Class Codes
1 — 8
9 — 20
21 — 60
Over 60
1
2
3
4

»back to top

Example:
A single van seating 8 people owned by a Community Center is used to transport elderly people to and from the Community Center where day-care facilities are available. The van operates within a 30-mile radius and is driven by an employee of the Community Center's social services branch. The van is classified as 6451.

7. Buses NOC - This classification includes, but is not limited to autos such as country club buses, cemetery buses, real-estate development buses, and courtesy buses run by hotels. The 3-digit primary classifications are determined as follows:

Radius in Miles Non-Fleet Codes Fleet Codes
0 — 50 (Local)
51 — 200 (Intermediate)
Over 200 (Long Distance)
585
586
5879
588
589
5809


Note that the complete 4-digit class code is given for vehicles with radius over 200 miles, and the secondary class code for these is always 9.

All Buses NOC with local and intermediate Radius are assigned a 1-digit secondary classification code based on the seating capacity.

Seating Capacity Secondary Class Codes
1 — 8
9 — 20
21 — 60
Over 60
1
2
3
4


Example:
A hotel owns one van which is uses to take its customers to a nearby airport 15 miles away without an additional fee. The van seats 12 people and is classified as 5852.

The following exhibits show the Non-fleet and Fleet Primary Classification factors for local, intermediate and long distance Radius.

COMMERCIAL LINES MANUAL
DIVISION ONE
AUTOMOBILE

Rule 40
Public Auto Classifications
3. Non-Fleet Primary Classifications - Rating Factors and Statistical Codes
a. Local


 
 
Taxicabs and Limousines

 

Local
Up to 50 Miles
Liab. Phys. Dam.
 

Taxicab or Similar Passenger-Carrying Service

Factor
Code
1.00
4159
2.70
4159
 

Limousine

Factor
Code
.50
4259
1.35
4259
School Buses and Church Buses

 

School Bus Owned by Political Subdivision or School

District

Factor
Code
.95
615--
.40
615--
 

Other School Bus

Factor
Code
1.00
625--
.40
625--
 

Church Bus

Factor
Code
1.00
635--
1.00
635--
Other Buses

 

Urban Bus

Factor
Code
.75
515--
1.00
515--

 

 

Airport Bus or Airport Limousine

Factor
Code
.60
525--
1.00
525--
 

Inter-City Bus

Factor
Code
1.00
535--
1.00
535--
 

Charter Bus

Factor
Code
1.00
545--
1.00
545--
 

Sightseeing Bus

Factor
Code
.90
555--
1.00
555--
 

Trans. of Athletes and Entertainers

Factor
Code
.55
565--
1.00
565--
 

Social Service Auto Employee-Operated

Factor
Code
.50
645--
1.00
645--
 

Social Service Auto All Other

Factor
Code
.50
655--
1.00
655--
 

Bus Not Otherwise Classified

Factor
Code
.50
585--
1.00
585--

»back to top

COMMERCIAL LINES MANUAL
DIVISION ONE
AUTOMOBILE


Rule 40
Public Auto Classifications
3. Non-Fleet Primary Classifications - Rating Factors and Statistical Codes
b. Intermediate

 
Taxicabs and Limousines

 

Intermediate
50 to 200 Miles
Liab. Phys. Dam.
 

Taxicab or Similar Passenger-Carrying Service

Factor
Code
1.10
4169
3.00
4169
 

Limousine

Factor
Code
.55
4269
1.50
4269
School Buses and Church Buses

 

School Bus Owned by Political Subdivision or School

District

Factor
Code
1.00
616--
.45
616--
 

Other School Bus

Factor
Code
1.05
626--
.45
626--
 

Church Bus

Factor
Code
1.30
636--
1.25
636--
Other Buses

 

Urban Bus

Factor
Code
1.00
516--
1.25
516--

 

 

Airport Bus or Airport Limousine

Factor
Code
.90
526--
1.25
526--
 

Inter-City Bus

Factor
Code
1.25
536--
1.25
536--
 

Charter Bus

Factor
Code
1.25
546--
1.25
546--
 

Sightseeing Bus

Factor
Code
1.25
556--
1.25
556--
 

Trans. of Athletes and Entertainers

Factor
Code
.80
566--
1.25
566--
 

Social Service Auto Employee-Operated

Factor
Code
.75
646--
1.25
646--
 

Social Service Auto All Other

Factor
Code
.75
656--
1.25
656--
 

Bus Not Otherwise Classified

Factor
Code
.75
586--
1.25
586--

»back to top

COMMERCIAL LINES MANUAL
DIVISION ONE
AUTOMOBILE


Rule 40
Public Auto Classifications
3. Non-Fleet Primary Classifications - Rating Factors and Statistical Codes
c. Long Distance


 
Taxicabs and Limousines

 

Long Distance
Over 200 Miles
Liab. Phys. Dam.
 

Taxicab or Similar Passenger-Carrying Service

Factor
Code
1.20
4179
3.30
4179
 

Limousine

Factor
Code
.60
4279
1.65
4279
School Buses and Church Buses

 

School Bus Owned by Political Subdivision or School

District

Factor
Code
1.05
617--
.50
617--
 

Other School Bus

Factor
Code
1.10
627--
.50
627--
 

Church Bus

Factor
Code
1.35
637--
1.50
637--
Other Buses

 

Urban Bus

 

 

 

Airport Bus or Airport Limousine

Factor
Code
1.10
5279
1.00
5279
 

Inter-City Bus

Factor
Code
1.85
5379
1.00
5379
 

Charter Bus

Factor
Code
1.85
5479
1.00
5479
 

Sightseeing Bus

Factor
Code
1.65
5579
1.00
5579
 

Trans. of Athletes and Entertainers

Factor
Code
1.00
5679
1.00
5679
 

Social Service Auto Employee-Operated

Factor
Code
.95
6479
1.00
6479
 

Social Service Auto All Other

Factor
Code
.95
6579
1.00
6579
 

Bus Not Otherwise Classified

Factor
Code
.95
5879
1.00
5879

»back to top

COMMERCIAL LINES MANUAL
DIVISION ONE
AUTOMOBILE

Rule 40
Public Auto Classifications
3. Non-Fleet Primary Classifications - Rating Factors and Statistical Codes
d. Van Pools

    Seating Capacity
    1 to 8 9 to 20
Van Pools   Liab. Phys. Dam. Liab. Phys.Dam
Employer-Furnished Factor
Code
1.00
4111
1.00
4111
1.05
4112
1.00
4112
All Other Factor
Code
1.10
4121
1.00
4121
1.25
4122
1.00
4122


Table 40.D.3.d.#1 Seating Capacity - 1 to 20

    Seating Capacity
    21 to 60 Over 60
Van Pools   Liab. Phys. Dam. Liab. Phys.Dam
Employer-Furnished Factor
Code
1.40
4113
1.00
4113
1.90
4114
1.00
4114
All Other Factor
Code
1.80
4123
1.00
4123
2.30
4124
1.00
4124


Table 40.D.3.d.#2 Seating Capacity - Over 20


COMMERCIAL LINES MANUAL
DIVISION ONE
AUTOMOBILE



Rule 40
Public Auto Classifications
4. Fleet Primary Classifications - Rating Factors and Statistical Codes
a. Local



 
Taxicabs and Limousines

 

Local
Up To 50 Miles
Liab. Phys. Dam.
 

Taxicab or Similar Passenger-Carrying Service

Factor
Code
1.00
4189
2.70
4189
 

Limousine

Factor
Code
.50
4289
1.35
4289
School Buses and Church Buses

 

School Bus Owned by Political Subdivision or School

District

Factor
Code
.95
618--
.40
618--
 

Other School Bus

Factor
Code
1.00
628--
.40
628--
 

Church Bus

Factor
Code
1.00
638--
1.00
638--
Other Buses

 

Urban Bus

Factor
Code
.75
518--
1.00
518--

 

 

Airport Bus or Airport Limousine

Factor
Code
.60
528--
1.00
528--
 

Inter-City Bus

Factor
Code
1.00
538--
1.00
538--
 

Charter Bus

Factor
Code
1.00
548--
1.00
548--
 

Sightseeing Bus

Factor
Code
.90
558--
1.00
558--
 

Trans. of Athletes and Entertainers

Factor
Code
.55
568--
1.00
568--
 

Social Service Auto Employee-Operated

Factor
Code
.50
648--
1.00
648--
 

Social Service Auto All Other

Factor
Code
.50
658--
1.00
658--
 

Bus Not Otherwise Classified

Factor
Code
.50
588--
1.00
588--

»back to top

COMMERCIAL LINES MANUAL
DIVISION ONE
AUTOMOBILE



Rule 40
Public Auto Classifications
4. Fleet Primary Classifications - Rating Factors and Statistical Codes
b. Intermediate



 
Taxicabs and Limousines

 

Intermediate
50 to 200 Miles
Liab. Phys. Dam.
 

Taxicab or Similar Passenger-Carrying Service

Factor
Code
1.10
4199
3.00
4199
 

Limousine

Factor
Code
.55
4299
1.50
4299
School Buses and Church Buses

 

School Bus Owned by Political Subdivision or School

District

Factor
Code
1.00
619--
.45
619--
 

Other School Bus

Factor
Code
1.05
629--
.45
629--
 

Church Bus

Factor
Code
1.30
639--
1.25
639--
Other Buses

 

Urban Bus

Factor
Code
1.00
519--
1.25
519--

 

 

Airport Bus or Airport Limousine

Factor
Code
.90
529--
1.25
529--
 

Inter-City Bus

Factor
Code
1.25
539--
1.25
539--
 

Charter Bus

Factor
Code
1.25
549--
1.25
549--
 

Sightseeing Bus

Factor
Code
1.25
559--
1.25
559--
 

Trans. of Athletes and Entertainers

Factor
Code
.80
569--
1.25
569--
 

Social Service Auto Employee-Operated

Factor
Code
.75
649--
1.25
649--
 

Social Service Auto All Other

Factor
Code
.75
659--
1.25
659--
 

Bus Not Otherwise Classified

Factor
Code
.75
589--
1.25
589--

»back to top


COMMERCIAL LINES MANUAL
DIVISION ONE
AUTOMOBILE



Rule 40
Public Auto Classifications
4. Fleet Primary Classifications - Rating Factors and Statistical Codes
c. Long Distance


 
Taxicabs and Limousines

 

Long Distance
Over 200 Miles
Liab. Phys. Dam.
 

Taxicab or Similar Passenger-Carrying Service

Factor
Code
1.20
4109
3.30
4109
 

Limousine

Factor
Code
.60
4209
1.65
4209
School Buses and Church Buses

 

School Bus Owned by Political Subdivision or School

District

Factor
Code
1.05
610--
.50
610--
 

Other School Bus

Factor
Code
1.10
620--
.50
620--
 

Church Bus

Factor
Code
1.35
630--
1.50
630--
Other Buses

 

Urban Bus

 

 

 

Airport Bus or Airport Limousine

Factor
Code
1.10
5209
1.00
5209
 

Inter-City Bus

Factor
Code
1.85
5309
1.00
5309
 

Charter Bus

Factor
Code
1.85
5409
1.00
5409
 

Sightseeing Bus

Factor
Code
1.65
5509
1.00
5509
 

Trans. of Athletes and Entertainers

Factor
Code
1.00
5609
1.00
5609
 

Social Service Auto Employee-Operated

Factor
Code
.95
6409
1.00
6409
 

Social Service Auto All Other

Factor
Code
.95
6509
1.00
6509
 

Bus Not Otherwise Classified

Factor
Code
.95
5809
1.00
5809

»back to top

COMMERCIAL LINES MANUAL
DIVISION ONE
AUTOMOBILE



Rule 40
Public Auto Classifications
4. Fleet Primary Classifications - Rating Factors and Statistical Codes
d. Van Pools

    Seating Capacity
    1 to 8 9 to 20
Van Pools   Liab. Phys. Dam. Liab. Phys.Dam
Employer-Furnished Factor
Code
1.00
4111
1.00
4111
1.05
4112
1.00
4112
All Other Factor
Code
1.10
4121
1.00
4121
1.25
4122
1.00
4122
 

Table 40.D.4.d.#1 Seating Capacity — 1 to 20

    Seating Capacity
    21 to 60 Over 60
Van Pools   Liab. Phys. Dam. Liab. Phys.Dam
Employer-Furnished Factor
Code
1.00
4113
1.00
4113
1.05
4114
1.00
4114
All Other Factor
Code
1.10
4123
1.00
4123
1.25
4124
1.00
4124

Table 40.D.4.d.#2 Seating Capacity — Over 20

COMMERCIAL LINES MANUAL
DIVISION ONE
AUTOMOBILE



Rule 40
Public Auto Classifications
E. Secondary Classifications

These classifications do not apply to taxicabs, limousines (except airport limousines), van pools and zone-rated autos.

 

 

 
 

Secondary Factor to Be
Combined With Primary
Factor

 
 
Code to Be
Inserted in
4th Digit of
Classification Code

Liability Factor

Physical Damage Factor
Seating Capacity School Buses and Church Buses Other Buses All Buses
1 to 8 .00 -.30 .00 1
9 to 20 +.10 -.25 .00 2
21 to 60 +.25 +.20 .00 3
Over 60 +.50 +.50 .00 4

All Other — Not Secondary Rated

9

»back to top



Special Types Classifications

The Special Types autos are vehicles which cannot be properly classified from the Trucks, Tractors and Trailers Section (Rules 21-30), Private Passenger Types Section (Rule 31-37), Public Transportation Section (Rules 38-47), or the Garages Section (Rules 48-61). These vehicles take their own distinctive 4-digit class codes, and appear on the policy less frequently than their 5-digit counterparts.

The following Special Types appear in the Commercial Auto manual:

Ambulance Services (Rule 64) - This class includes ambulances owned by professional ambulance service companies and hospitals as well as ambulances maintained by various other concerns such as fire departments, businesses, industrial plants, etc. The class code is 7919.

Amphibious Equipment (Rule 65) - This type of vehicle is to be classified according to its use on land. The land use classification could be either a 5 or a 4-digit classification.

Antique Autos (Rule 66) - These vehicles must meet both of the following requirements in order to be classified as Antique Autos: 1) Be 25 years old or older and,
2) Maintained primarily for use in exhibitions, club activities, parades and other functions of public interest.
3) Occasionally used for other purposes.

The vehicles may be used occasionally for other purposes. The class code is 9620.

Auto Body Manufacturers and Installers (Rule 67) - This classification applies to the automobile exposure generated by the testing and delivery of automobiles it manufactures, assembles, rebuilds or repairs. The underwriter, agent or auditor should refer this type of risk to its company for the proper rating procedure.

Driver Training Programs and Auto Repair Training (Rule 68) -
1) Driver Training Programs in Educational Institutions - Private-Passenger Autos used for driver training as part of a school curriculum. Separate these autos into: a) Autos equipped with dual controls. There must be dual brakes to qualify as dual control.
b) Autos not equipped with dual controls.
The class code is 7926.

2) Commercial Driving Schools - Autos used by driving schools to give driving instruction. These autos are divided into two categories:
a) Owned Private Passenger Autos - these in turn are separated into: ™ Autos equipped with dual controls. There must be dual brakes to qualify as dual controls.
-Autos not equipped with dual controls.
-All other types of owned Autos - refer to company for rating.
The class code is 7927.

3) Auto Repair Training - For autos used by schools in auto repair training, the 5 or 4-digited classifications apply for owned autos, non-owned autos, and Rule 90 for Hired Autos.

Drive - Away Contractors (Rule 69) - Persons, firms or corporations which drive away auto under their own power for factories or auto dealers. The underwriter, agent and auditor should refer to the company.

Financed Autos (Rule 70) - Financed automobiles, as covered in this rule, have reference to the single interest of the finance institution for fire and theft, collision and/or conversion, embezzlement or secretion. Premium is determined from the original unpaid balance of contract selling price including carrying charges. Auditors are rarely required to adjust this type of insurance unless their company adjusts Reporting Forms.

»back to top

Fire Departments (Rule 71) - Includes autos used for fire-fighting purposes.
  1. Private passenger autos are classified as 7908.
  2. Trailer types are classified with the 5-digit class from the truck, tractors and trailer rule (Rule 23).
  3. All other types are classified as 7909.
Funeral Directors (Rule 72) - Autos owned or used by a funeral director. These autos are separated into the following classes according to use:
  1. Limousines take class code 7915. These vehicles are used to transport mourners.
  2. Hearses and flower cars take class code 7922.
  3. Combination hearses and ambulances - these vehicles are classified according to ambulance services rule (Rule 64).
  4. Autos used for other purposes. Classify these vehicles according to their actual use.
Golfmobiles (Rule 73) - Motorized carts used to carry golfers and their equipment over a golf course. The liability portion comes under the General Liability coverage for the golf course. The class code for physical damage is 9460. Classify golfmobiles used for commercial purposes as motorcycles (See Rule 77).

Law Enforcement Agencies (Rule 74) -Autos used by government law enforcement agencies or police departments. These autos are separated into the following classes according to use:
  1. Private passenger autos are assigned a class code of 7911.
  2. Motorcycles are classified as 7942.
  3. Trailer Types are classified with the 5-digit class from the truck, tractor, and trailer rule (Rule 23).
  4. All other types are classified as 7912.
Leasing or Rental Concerns (Rule 75) -Concerns which lease or rent autos to others without drivers. For autos leased or rented with drivers refer to the Truckers Rule (Rule 24) or the Public Automobile Rule (Rule 40). The following classification categories apply. Consult the underwriter for possible additional classifications.

1) Specified Car Basis

Long Term - Autos leased for one year or more. Full coverage for owner and lessee. Classify the auto with the 5 and 4-digit classification applicable to the lessee. Contingent Coverage takes a class code of 7219; Second Level Coverage takes a class code of 7040.

Short Term - Autos rented by the hour, day or week. Commercial Autos: Trucks take a class of 7211; Tractors take a class code of 7212; Trailers, semi-trailers and service trailers take a class code of 7213; Private Passenger Autos take a class code of 7214; Special Types take a class code of 7216. (Special types include motorcycles, motorbikes, snowmobiles and other similar motor vehicles.)

Non-Dealer Garage risks-customer rental. These are Private-Passenger autos rented to customers while their autos are temporarily left with named Insured for service, repair or sale. The class code is 7216.

Motor Homes take a class code of 7215.

2) Gross Receipts or Mileage Basis - A risk made up of 3 or more autos which has been in business for at least 15 months immediately preceding the effective date of the policy may be written on the gross receipts or mileage basis.

"Gross Receipts" means the total amount earned by the named insured for the leasing or renting of autos to others without drivers. "Mileage" means the total live and dead mileage of all autos leased or rented to others without drivers.

»back to top

Mobile Homes (Rule 76) - The following classification categories apply:
  1. Trailers equipped as living quarters take a class code of 7963.
  2. Pick-Up trucks used solely to transport camper bodies take a class code of 7962.
  3. Motor Homes - Self-propelled vehicles equipped as living quarters. If overall length is:
    Not more than 22 feet takes a class a class code of 7960.
    More than 22 feet takes a class code of 7961.
Motorcycles (Rule 77) - Motorcycles, motor scooters, motorbikes and any other similar autos used for commercial purposes. Since the final rate is dependent upon the size of the engine, the underwriter, agent and auditor is responsible for obtaining this size in cubic centimeters (CC).

The class code is 7942.

Registration Plates Not Issued for a Specific Auto (Rule 78) - This classification is for those concerns, other than automobile dealers, that have registration plates not issued to be attached to any one automobile. The premium base and audit "target" is the number of sets of plates. A "set" is the number of plates required to legally operate an automobile on public roads. Endorsement CA 20 27 is used to list these plates. The class code is 7929.

Classify each set of plates assigned by the insured for an exclusive use with a specific auto according to the regular use of the auto, i.e., by the applicable 5- or 4-digited classifications.

»back to top

Repossessed Autos (Rule 79) -Autos repossessed by finance companies and banks and which are in the process of being resold are to be classified under this rule. Endorsement CA 20 19 provides this coverage, and since it is basically a reporting form function, the auditors may rarely come in contact with it. The class code is 7925. Autos owned by finance companies and banks or operated for their own business or pleasure purposes are to be classified according to the regular use of the auto, i.e., by the applicable 5- or 4-digited classifications.

Snowmobiles (Rule 80) - This rule applies to snowmobiles and similar autos used for commercial purposes designed for travel over ice and snow and used principally off public roads. For autos of this type which are used as public or livery conveyances for passengers and also for similar equipment which may be propeller driven, refer to the company for rating. Endorsement CA 20 21 specifies snowmobiles to be covered. The class code is 7964.

Special or Mobile Equipment (Rule 81) -
1) Land Motor Vehicles Other Than Farm Equipment - This section applies to the vehicles described in g. below, which must be covered on an auto policy. If there is no general liability insurance available, this section also applies to vehicles fitting into any of the categories listed in a. through f. below:
  1. Bulldozers, forklifts, and other vehicles designed for use principally off public roads;
  2. Vehicles maintained for use solely on or next to premises the insured owns or rents;
  3. Vehicles that travel on crawler treads;
  4. Vehicles maintained primarily to provide mobility to permanently mounted:
    1. Power cranes, shovels, loaders, diggers or drills; or
    2. Road construction or resurfacing equipment such as graders, scrapers, and rollers;
  5. Vehicles not described in a., b., c. or d. above that are not self-propelled and are maintained primarily to provide mobility to permanently attached equipment of the following types:
    1. Air compressors, pumps and generators, including spraying, welding, building cleanings, geophysical exploration, lighting and well servicing equipment; or
    2. Cherry pickers and similar devices used to raise or lower workers;
  6. Vehicles not described in a., b., c., d. or e. above or g. below maintained primarily for purposes other than the transportation of persons or cargo;
  7. Self-propelled vehicles not described in a., b., c. or d. above with the following types of permanently attached equipment:
      1. Equipment designed primarily for:
        1. Snow removal;
        2. Road maintenance, but not construction or resurfacing;
        3. Street cleaning;
      2. Cherry pickers and similar devices mounted on auto or truck chassis and used to raise or lower workers; and
      3. Air compressors, pumps and generators, including spraying, welding, building cleaning, geophysical exploration, lighting and well servicing equipment.
2. Farm Equipment - This class applies to farm tractors, harvesting combines, power driven lawn mowers and other self-propelled farm equipment used for farming purposes. These units should be covered by the Commercial Automobile Coverage Form for liability and physical damage.

»back to top

SPECIAL PHYSICAL DAMAGE REQUIREMENTS (Rule 101)
The owner or operator of a vehicle can purchase several types of insurance protection against direct damage to the vehicle. These insurance protections are grouped under a common heading called physical damage coverage. Physical damage refers to damage to a vehicle as a result of fire, theft or any of the losses listed under the broad headings of comprehensive or collision coverages.

Comprehensive Coverage
This is a broad coverage which pays for loss to the automobile caused by an accident. It is an all-risks coverage, applying to all losses except those specifically excluded. The principal exclusion is collision. In fact, the easiest means of defining these coverages is to describe collision coverage first, and then state that all other losses are covered under comprehensive coverage. However, comprehensive coverage is traditionally placed before collision coverage in the policies.

Comprehensive car damage coverage has a few other exclusions. Most of them are obvious, such as war, radioactivity, wear and tear, freezing and mechanical breakdown. Glass breakage and loss caused by such perils as falling objects, earthquake, or colliding with a bird or animal are usually specified as not being caused by collision.

Collision Coverage
Damage to the automobile caused by collision with another object or vehicle.

Physical Damage coverages usually take the same class codes as apply to auto liability.

There are two methods used to determine premium for physical damage coverage. These are:

1. Actual Cash Value (ACV) Basis - The premium here is based on original cost new which in turn is modified by the age group of the vehicle.

Original Cost New is the retail cost the original purchaser paid for the auto and its equipment. This includes the value of any trade-in auto and federal, state and local sales taxes or any other taxes charged in place of sales taxes.

The Age Groups are:
1 - current model year
2 - first preceding model year
3 - second preceding model year
4 - third preceding model year
5 - fourth preceding model year
6 - all other autos

The current model year changes October 1, regardless of the actual date the models are introduced.

For rebuilt or structurally altered autos, the age of the chassis determines the age of the autos.

For trucks, tractors, trailers, and semi-trailers the ACV rates are the same for all territories. Therefore, the point of principal garaging does not affect the basic rate as it does for liability.

However, for Private-Passenger Types the respective territories have different basic rates which may vary with the point of principal garaging. This basis applies to comprehensive, collision, and combined physical damages coverages.

2. Stated Amount Basis - the present value of the auto. The rates apply to $100 of the present value, but are determine by the territory of the point of principal garaging as well as by the Original Cost New.

Age Groups are not used under this method.

The Stated Amount Basis is provided by Endorsement CA 99 28, and is mostly applicable to the Private-Passenger Type autos.

back to top