Checking Slip—Important Florida Automobile Joint Underwriting .

AUTOMOBILE INSURANCE PLAN MANUALARTICLES OF ASSOCIATIONits office address according to the records of theAssociation, except that notice of a meeting to amend theArticles of Association shall be given in the mannerprovided above at least 30 days prior to the date of themeeting. Notices of meetings to amend the Articles ofAssociation shall include the proposed amendments. Thetime of all notices shall run from the date of mailing thenotice.5.the Professional Insurance Agents, or any other agents’association.6.Members present in person or by proxy, and representing51% or more of the direct written premiums of allmembers, shall constitute a quorum at any meeting of theAssociation except as otherwise provided in Section 2hereof, and in Article XIII. When a quorum is present, aproposition shall be carried by a majority of the votes castin person and by proxy.Article VII. ADMINISTRATIONArticle VI. BOARD OF GOVERNORS1.The affairs and businesses of the Association shall bemanaged and controlled by a Board of Governorscomposed of 11 individuals, including one who shall beelected as chairman. Five members shall be appointed bythe Insurance Commissioner, two of whom shall bechosen from the insurance industry. Six members shallbe appointed by participating insurers, two of whom shallbe from the insurance agents, associations.2.Board members, other than those appointed by theInsurance Commissioner, shall be chosen according tothe following procedure:1.The Board shall appoint a general manager and suchCommittees composed of members of the Association asit deems appropriate. The Board shall also appoint anOperating Committee comprised of one representativefrom each servicing carrier, one Producer representativeand one representative each from three other membercarriers approved by the Board of Governors.2.The chairman of the Board of Governors is authorized toappoint other committees as needed (a) to establish andmaintain the standards required of servicing carriers inproviding policy, claim, and underwriting servicesequivalent to that provided non-Association business, (b)to audit servicing carriers for adherence to suchstandards and the Rules of Practice, and (c) for suchother functions and purposes as the chairman of theBoard of Governors deems appropriate.Article VIII.Four members shall represent participating companyinsurers and shall be selected on a weighted vote basisby all participating company insurers. Except asauthorized by the Department, no member companyserving as a board member shall be eligible forappointment as a servicing carrier. Each participatingcompany insurer shall cast a proportionate vote based onthe total Florida Automobile Insurance Liability andPhysical Damage Gross Voluntary Direct premiums forthe calendar year ending December 31 of the mostimmediate available prior year. The four companies soelected shall then appoint two associations fromapplicants submitted by the Insurance Agents Associations.3.1.All Board members shall serve for a term of two years oruntil such time as a successor is chosen. The membersterms shall begin immediately following the closing of ameeting in which such individuals are selected orappointed.4.Any members appointed by the Insurance Commissionermay be removed and replaced by him at any time withoutcause. All other vacancies occurring in the membershipof the Board shall be filled for the unexpired term by thesame procedure of selection and appointment as thatapplicable to initial selection and appointment.5.With respect to members of the Board selected byparticipating company insurers, no more than onecompany shall represent an insured member of theAmerican Insurance Association, the Alliance ofAmerican Insurers, the National Association ofIndependent Insurers, or companies unaffiliated with theforegoing. With respect to representatives of theinsurance agents’ association, no more than one membershall represent the Florida Association of InsuranceAgents, and no more than one member shall representFL 2007 Revision 002Each member of the Board shall have one vote, and sixmembers shall constitute a quorum. The affirmative voteof a majority of the entire Board shall be required to carrya proposition.APPOINTMENT OF SERVICINGCARRIERS AND AGENTSThe Board of Governors from those eligible membersvolunteering shall, pursuant to the Operating Principles,and whatever bid or application process the Board hasapproved, designate, subject to ratification of theInsurance Commissioner of the State of Florida, one ormore members authorized to act as servicing carriers. Inselecting servicing carriers the preferred policy is for theBoard of Governors to use a competitive bid or requestfor proposals procedure. The Board shall designate andcontract with such member or members so designated forsuch periods as determined by the Board of Governors.The designation of a member or members to act as aservicing carrier for the Association shall be deemed tobe ratified by the Insurance Commissioner of the State ofFlorida unless within 30 days the Insurance Commissioner notifies the Board of Governors in writing that amember so designated is not ratified.Additional servicing carriers may be designated asnecessary at any time by the Board of Governors asdescribed above. The Board of Governors shall providefor the establishment of the scope, terms, standards, andcompensation applicable to the services to be provided.Any member acting as a servicing carrier must be amultiline automobile insurer and must meet the eligibilityrequirements for servicing carriers described in the Planof Operation and established from time to time by theBoard of Governors.2.The assignment of agents to servicing carriers shall bemade pursuant to the Operating Principles. Evidence ofviolations of the rules shall be reported to the InsuranceCommissioner for appropriate action.A–4All rights reserved. This Manual or any part thereof may NOT be reproduced in any form or by any means without the written permission of AIPSO. 1988–2007 AIPSO

FLORIDA AUTOMOBILE JOINT UNDERWRITING ASSOCIATIONARTICLES OF ASSOCIATIONArticle XI. INSURANCE POLICIESArticle XII.1. All automobile insurance policies issued to qualifiedapplicants shall be issued in the name of the Association,and appropriate language shall be used to reflect theliability thereunder of the Association.2.1.Any person or member made a party to any action, suit,or proceeding because such person or member servedon the Board of Governors or a committee of theAssociation or was an officer or employee of theAssociation shall be indemnified by the Associationagainst all costs (including the amounts of judgments,settlements, fines, or penalties) and expenses incurred inconnection with such action, suit, or proceeding;provided, however, such indemnification shall not beprovided on any matter in which the person or membershall be finally adjudged in any such action, suit, orproceeding to have committed a breach of duty involvinggross negligence, bad faith, dishonesty, willfulmisfeasance, or reckless disregard of the responsibilitiesof his office. In the event of settlement of a matter beforefinal adjudication, indemnification shall be provided only ifthe Association is advised by independent counsel thatthe person or member to be indemnified did not incounsel’s opinion commit such a breach of duty.2.The costs and expenses of such indemnification shall beprorated and paid for by the members, each contributingin accordance with Article IV.All such policies shall be standard policies as prescribedby the Board of Governors and approved by theInsurance Commissioner. No policy shall be issued inexcess of the limitations established in the Rules ofPractice of the Association.Article X. OPERATING PRINCIPLES ANDRULES OF PRACTICE1.2.3.The Board of Governors shall propose initially theOperating Principles of the Association. Thereafter theBoard of Governors shall propose such additions oramendments for adoption after due notice to members asprovided in the Operating Principles or for approval at aregular or special meeting of the members. Any membermay propose operating principles or rules of practice oradditions or amendments to either for approval by themembers at such a meeting, provided appropriate noticethereof shall have been given to the extent deemedreasonable or necessary by the majority of the membersvoting in person or by proxy at such meeting.Article XIII.The Rules of Practice of the Association shall includeprovisions establishing the coverage to be afforded, thelimits of liability to be made available, the deductibleoptions to be offered, the manual of rules, rates, ratingplans, and classifications to be used for automobileinsurance placed with the Association, premium paymentrequirements, and commissions to be paid agents onAssociation business. The Rules of Practice may includesuch other provisions as the Board or members mayapprove as appropriate.1.In the event of the failure of any member, throughinsolvency or otherwise, to pay promptly its portion of anyloss or expense after the Board of Governors shall havemade written demand upon it to pay such loss orexpense, the Board of Governors shall report thedelinquency to the Insurance Commissioner forappropriate action.2.If the loss or expense remains unpaid beyond areasonable period, all of the other members, uponnotification by the Board of Governors shall promptly paytheir respective shares, each contributing its respectiveshare as provided in Article IV with the basis of sharingadjusted to exclude the exposure units, or premiumswritten of the member in default. Members which shallhave made contributions shall have the right of recoverytherefor against the member in default, provided,however, the Board of Governors may enter into anagreement with any such member in default, or with thelegal representative thereof, upon an amount which shallconstitute a full settlement of all of the obligations of saidmember to the remaining members.RECORDS AND REPORTS1.The books of account, records, reports, and otherdocuments of the Association shall be open and free forexamination to the Insurance Commissioner at allreasonable hours.2.The books of account, records, reports, and otherdocuments of the Association shall be open to inspectionby all other persons including members only at suchtimes and under such conditions and regulations as theBoard of Governors shall determine.3.The Association shall provide for the making of detailedreports of liability assumed or cancelled, for the drawingup of annual budgets of the Association and for therendering of accounts to each member at least every 12months during the continuance of membership.4.The books of account of the Association shall be auditedat least every 12 months by a firm of independent publicaccountants designated by the Board of Governors.5.The books of account of servicing carriers shall beaudited by a firm of independent auditors designated bythe Board of Governors.The Operating Principles shall provide for a take-outprogram and a keep-out program.Article XI. JOINT LIABILITY FORASSOCIATION BUSINESSINDEMNIFICATIONArticle XIV.AUDITING OF MEMBERSThe Association may audit the records of any member relatingto the subject matter of the Plan of Operation and may by ruleestablish what policies, records, books of account,documents, and related material it deems necessary to carryout its functions. Such material shall be provided by themembers in the form and with the frequency reasonablyrequired by the Association.Article XV.1.A–5APPEALSAny agent or agency aggrieved with respect to his or itsappointment to a servicing carrier, and any servicingFL 2007 Revision 002All rights reserved. This Manual or any part thereof may NOT be reproduced in any form or by any means without the written permission of AIPSO. 1988–2007 AIPSO

AUTOMOBILE INSURANCE PLAN MANUALARTICLES OF ASSOCIATIONcarrier aggrieved with respect to the appointment to it ofan agent, may make written request of the Board ofGovernors for specific relief. If the request is not grantedwithin 30 days after it is made, the requester may treat itas rejected. An agent or servicing carrier aggrieved bythe refusal of the Board to grant the relief requested mayappeal to the Insurance Commissioner in the mannerprovided under and subject to the provisions of Section627.371, Florida Statutes.2.2.PLAN OF OPERATIONThe Plan of Operation, consisting of these Articles ofAssociation and the Operating Principles adopted pursuantthereto (hereinafter called the Plan), shall become effectivewhen, after written approval of the Commissioner, all insurersauthorized to write automobile insurance in this state on adirect basis have, in writing, subscribed thereto and agreed toparticipate in the Association in accordance therewith.The Rules of Practice of the Association consisting of themanuals of rules, rates, forms, and procedures adopted andapproved in accordance with the Plan and any laws applicablethereto (hereinafter called the Rules) shall not be effectivewith respect to any Association business prior to October 1,1973 or such later date adopted by the Board of Governorsand approved by the Commissioner of Insurance.AMENDMENTSAmendment of these Articles of Association may bemade at any meeting of the members by a majority voteFL 2007 Revision 002The members shall, within two years from inception of theAssociation, review and evaluate alternate plans.Article XVII.Any member or servicing carrier aggrieved with respect toany action or decision of the Board of Governors, or theAssociation, or any Committee thereof, may make writtenrequest of the Board for specific relief. If the request isnot granted within 30 days after it is made, the requestermay treat it as rejected. The member or servicing carrieraggrieved by the refusal of the Board to grant the reliefrequested may appeal to the Insurance Commissioner inthe manner provided under and subject to the provisionsof Section 627.371, Florida Statutes.Article XVI.1.of the membership, provided proper notice is given to themembers pursuant to Article V, and subject to theapproval of the Insurance Commissioner.A–6All rights reserved. This Manual or any part thereof may NOT be reproduced in any form or by any means without the written permission of AIPSO. 1988–2007 AIPSO

FLORIDA AUTOMOBILE JOINT UNDERWRITING ASSOCIATIONPLAN OF OPERATIONB. OPERATING PRINCIPLESPART I—Operating Principles—GeneralPART II—Operating Principles—Servicing CarriersPART III—Operating Principles—ProducersB–1All rights reserved. This Manual or any part thereof may NOT be reproduced in any form or by any means without the written permission of AIPSO. 1988–2009 AIPSO

NOTESB–2All rights reserved. This Manual or any part thereof may NOT be reproduced in any form or by any means without the written permission of AIPSO. 1988–2009 AIPSO

FLORIDA AUTOMOBILE JOINT UNDERWRITING ASSOCIATIONOPERATING PRINCIPLESPART IOperating Principles—GeneralUnless specifically identified otherwise, the sections of these Operating Principles apply to bodily injury, property damage liability,medical payments, uninsured motorists, and physical damage coverages and such additional insurance coverages as are requiredby the Florida law.B–3FL 2009 Revision 001All rights reserved. This Manual or any part thereof may NOT be reproduced in any form or by any means without the written permission of AIPSO. 1988–2009 AIPSO

NOTESB–4All rights reserved. This Manual or any part thereof may NOT be reproduced in any form or by any means without the written permission of AIPSO. 1988–2009 AIPSO

FLORIDA AUTOMOBILE JOINT UNDERWRITING ASSOCIATIONI–OPERATING PRINCIPLESSec.1.nonfleet under the statistical plan in use by thestatistical agent designated by the member company.ELIGIBILITYÌInsurance with the FAJUA is available pursuant to FloridaStatutes. Sec. 2.A.B.(b) “Voluntary Private Passenger Pip Net Direct WrittenCar Years” shall be the number of private passengerPIP car years written by the company in the state forthe calendar year ending December 31 of the specific policy year’s experience being distributed, excluding Florida Automobile Joint Underwriting Association car years, which are coded as private passengernonfleet under the statistical plan in use by thestatistical agent designated by the member company.PARTICIPATION RATIOSFor purposes of establishing a basis for allocation of JointUnderwriting Association expenses plus losses or minusprofits, each company licensed to write automobileinsurance in Florida shall report statistical informationrequired by the Rules of Practice to the FloridaAutomobile Joint Underwriting Association or permit itsstatistical agencies, designated by the company, to reportthe statistical information to the Florida Automobile JointUnderwriting Association.(c) “Voluntary Private Passenger Physical Damage NetDirect Written Car Years” shall be the total of onequarter of the total of Private Passenger NonfleetPhysical Damage Excluding Collision, Net DirectWritten Car Years and three quarters of the numberof Private Passenger Nonfleet Collision Net DirectWritten Car Years written by the company in thestate for the calendar year ending December 31 ofthe specific policy year’s experience being distributed, regardless of the type of private passengerphysical damage policy under which such car yearsare written, excluding private passenger InsuranceFacility or Florida Automobile Joint UnderwritingAssociation car years, which are coded as privatepassenger nonfleet under the automobile physicaldamage statistical plan in use by the statistical agentdesignated by the member company.Each member company will be liable for that proportion ofthe (a) private passenger nonfleet liability (excluding PIPand property damage) experience that its respectiveVoluntary Private Passenger Bodily Injury Net DirectWritten Car Years bear to the statewide total of VoluntaryPrivate Passenger Bodily Injury Net Direct Written CarYears of all member companies in the state, and (b)private passenger nonfleet PIP and property damageexperience that its respective Voluntary PrivatePassenger Pip Net Direct Written Car Years bear to thestatewide total of Voluntary Private Passenger PIP NetDirect Written Car Years of all member companies in thestate, and (c) private passenger nonfleet physicaldamage experience that its respective Voluntary PrivatePassenger Physical Damage Net Direct Written CarYears bear to the statewide total of Voluntary PrivatePassenger Physical Damage Net Direct Written CarYears of all member companies in the state, and (d) allother automobile liability (excluding PIP) experience thatits respective Voluntary All Other Automobile Liability(excluding PIP) premiums bear to the statewide total ofVoluntary All Other Automobile Liability (excluding PIP)premiums of all member companies in the state, and (e)all other PIP experience that its respective Voluntary AllOther PIP premiums bear to the statewide total ofVoluntary All Other PIP premiums of all membercompanies in the state, and (f) all other automobilephysical damage experience that its respective VoluntaryAll Other Automobile Physical Damage Direct Writtenpremiums bear to the statewide total of Voluntary AllOther Automobile Physical Damage Direct Writtenpremiums of all member companies in the state.(d) “Voluntary All Other Automobile Liability (excludingPIP) premiums” shall be the automobile liabilitypremiums shown on page 14 of each membercompany’s annual statement minus the total privatepassenger nonfleet automobile bodily injury, propertydamage, medical payments, and family protectionagainst uninsured motorists voluntary premiumwritten by the company in the state during the calendar year ending December 31 of the specific policyyear’s experience being distributed and minus thetotal FAJUA liability (excluding PIP) written premiumsallocated to the company for the fiscal year endingSeptember 30 of the corresponding calendar year.Such voluntary all other shall exclude the totalpremiums for death and disability coverage writtenby the company. Such premium shall be gross directpremiums, including policy and membership feesless return premium and premium on policies nottaken, without including reinsurance assumed andwithout deducting reinsurance ceded, but includingpremiums for other than private passenger excess ofloss policies except in the case of a company whichwrites no basic limits automobile liability insurance.For the purposes of such allocation as described above(a) Voluntary Private Passenger Bodily Injury Net DirectWritten Car Years, (b) Voluntary Private Passenger PIPNet Direct Written Car Years, (c) Voluntary PrivatePassenger Physical Damage Net Direct Written CarYears, (d) Voluntary All Other Automobile Liability(ex

The Association shall be the Florida Automobile Joint Underwriting Association created pursuant to Sections 627.311 and 627.351, Florida Statutes, by order of the Insurance Commissioner dated February 9, 1973, in Case No. 73-RR-03H, for the purpose of establishing and carrying out a program for providing automobile insurance to qualified