INDIANA
Private Passenger Automobile
Underwriting Guidelines
Effective:
April 15, 2024 New Business
April 15, 2024 Renewal Business
EFFECTIVE DATE: 4/15/2024 New, 4/15/2024 Renewal 2
Table of Contents
TABLE OF CONTENTS.............................................................................................................................................................................................................. 2
COMPANY CONTACT INFORMATION................................................................................................................................................................................. 3
AGENT INFORMATION ............................................................................................................................................................................................................ 4
BINDING AUTHORITY – NEW BUSINESS ...................................................................................................................................................................................... 4
BINDING AUTHORITY – ENDORSEMENTS..................................................................................................................................................................................... 4
SEVERE WEATHER PROCEDURES ................................................................................................................................................................................................ 5
AGENT DUTIES ............................................................................................................................................................................................................................ 5
VEHICLE INSPECTIONS ................................................................................................................................................................................................................ 6
COMMISSION ............................................................................................................................................................................................................................... 6
PRODUCT INFORMATION ...................................................................................................................................................................................................... 7
COVERAGES & LIMITS................................................................................................................................................................................................................. 7
Coverage Rules ....................................................................................................................................................................................................................... 7
UNACCEPTABLE RISKS ................................................................................................................................................................................................................ 8
VEHICLES .................................................................................................................................................................................................................................... 8
Unacceptable Vehicles ............................................................................................................................................................................................................ 8
DRIVERS ...................................................................................................................................................................................................................................... 9
Excluded Drivers .................................................................................................................................................................................................................. 10
Unacceptable Drivers ........................................................................................................................................................................................................... 10
License State Matrix.............................................................................................................................................................................................................. 10
DISCOUNTS ............................................................................................................................................................................................................................... 11
Discounts Requiring Documentation .................................................................................................................................................................................... 11
Additional Discounts ............................................................................................................................................................................................................. 12
SURCHARGES ............................................................................................................................................................................................................................ 12
Policy Activity ....................................................................................................................................................................................................................... 12
Additional Surcharges ........................................................................................................................................................................................................... 13
NON-OWNER ............................................................................................................................................................................................................................. 13
CERTIFIED FINANCIAL RESPONSIBILITY FILINGS (SR-22) ......................................................................................................................................................... 13
CANCELLATIONS ....................................................................................................................................................................................................................... 13
RENEWALS ................................................................................................................................................................................................................................ 14
REINSTATEMENTS ..................................................................................................................................................................................................................... 14
REWRITES ................................................................................................................................................................................................................................. 14
PREMIUM INSTALLMENT PLANS ................................................................................................................................................................................................ 14
PREMIUM DETERMINATION ............................................................................................................................................................................................... 15
DRIVER CLASSIFICATION .......................................................................................................................................................................................................... 15
DRIVER AVERAGING ................................................................................................................................................................................................................. 15
PHYSICAL DAMAGE ................................................................................................................................................................................................................... 15
REPORTS USED FOR UNDERWRITING ......................................................................................................................................................................................... 15
INSURANCE SCORING ................................................................................................................................................................................................................ 15
REPORT DATA CORRECTIONS .................................................................................................................................................................................................... 16
VEHICLE CHARACTERISTICS ..................................................................................................................................................................................................... 16
FEES ............................................................................................................................................................................................................................................ 16
CLAIMS ...................................................................................................................................................................................................................................... 16
MATERIAL MISREPRESENTATION ................................................................................................................................................................................... 16
EFFECTIVE DATE: 4/15/2024 New, 4/15/2024 Renewal 3
Company Contact Information
Customer Service
Phone 866-GAINSCO (424-6726)
Fax 800-532-3522
Claims/First Notice of Loss
Website GAINSCO.com
Phone 800-699-1561
Fax 800-699-1560
Marketing/Agent Support
Phone 866-424-6726
Agent Portal Website GAINSCOconnect.com
Help Desk/Technical Support 866-GAINSCO
Mailing Address
GAINSCO Auto Insurance®
PO Box 199023
Dallas, TX 75219
EFFECTIVE DATE: 4/15/2024 New, 4/15/2024 Renewal 4
Agent Information
This manual is designed to provide our Agents with the necessary qualification and rating
requirements for GAINSCO Auto Insurance® applicants. All submissions may be reviewed and
underwritten based on their individual merits. This manual addresses minimum requirements and
has been designed to provide information for the majority of eligibility and classification decisions
encountered. For situations not addressed within these pages, or IF IN DOUBT, PLEASE CALL
CUSTOMER SERVICE BEFORE BINDING.
BINDING AUTHORITY – NEW BUSINESS
Agents have immediate binding authority in accordance with all the rules and procedures set forth in this
manual. Agent must be a duly authorized Agent of MGA Insurance Company, Inc. (“Company”).
The following conditions must be met :
• All of the information entered into GAINSCOconnect.com must be submitted to the Company
using the GAINSCOconnect.com website. Any ACORD Applications or other paper applications
submitted by any other means will not be accepted.
• The application is completed in its entirety and all required documentation is obtained from the
applicant, including but not limited to: a signed and completed application with exclusions and
rejections as appropriate, documentation for any discounts, and vehicle inspection form(s) if
applicable.
• The risk is not defined as being unacceptable in this manual.
• The appropriate down payment or full premium and any applicable fees are collected from the
applicant and submitted to the Company.
Coverage is not bound and is considered null and void if the applicant’s down payment is returned by the
bank or financial institution. Please notify the Company immediately upon receipt of notice of returned
payment from the applicant’s bank or financial institution.
If an application is submitted with an incorrect driver class, surcharge, discount, etc. or without the required
proof for a specific discount, the policy will be adjusted to reflect the appropriate rate level according to the
rules set forth in this Personal Auto Program Rule Manual. Such adjustment will be applied as of the
effective date of the policy.
BINDING AUTHORITY – ENDORSEMENTS
Endorsements shall be processed online at GAINSCOconnect.com. Endorsements processed online will
detail any additional premium and any amount to collect, and will generate an endorsement confirmation
page that may be e-signed by the named insured. Otherwise, an endorsement form signed by the named
insured must be maintained in the agency’s file. If an endorsement results in a return premium, the insured
will be credited and remaining payments will be lowered.
Agents must process endorsements the same day the Agent is notified by the named insured. AGENTS
MAY NOT BACK DATE COVERAGE. However, Agents do have 72 hours binding authority (3 calendar
days) from the time that the insured notifies the Agents. In these cases, the Agent is to send the
endorsement to the Company for processing as soon as possible. If more than 72 hours has elapsed, the
endorsement becomes effective the date and time of the phone call or fax, or day after postmark when
the Agent notified the Company.
EFFECTIVE DATE: 4/15/2024 New, 4/15/2024 Renewal 5
SEVERE WEATHER PROCEDURES
All submissions for new business and endorsements on existing policies that have an effect of increasing
the company's exposure are suspended from the time the Company places this restriction on
GAINSCOconnect.com.
Binding restrictions will not be lifted until notification is received from the Company.
AGENT DUTIES
The Agent must assure compliance with all the Company’s underwriting guidelines, procedures and
requirements. The Agent is responsible that the entire application package, including exclusions and
rejections as appropriate, are reviewed with the Applicant and approved by the Applicant. The Agent is
also required to verify the Applicant is the named insured prior to submitting any documents.
All applications must be submitted online using the GAINSCOconnect.com website. If you are unable to
rate or bind an application through GAINSCOconnect.com please contact Customer Service or the Help
Desk for assistance.
If the premium quoted to any applicant changes as a result of a consumer report, we will generate a letter
pursuant to the provisions of the Fair Credit Reporting Act (FCRA). A copy of the FCRA letter(s) must be
printed and provided to the applicant.
Agents must obtain the named insured signatures on our Indiana Automobile Application,
Selection/Rejection of Uninsured Motorist Insurance Form, policy forms or statements, and any other
documents. Where available, electronic signature is recommended using the GAINSCOconnect.com e-
signature process. Other electronic signature services are permissible (e.g. services offered by DocuSign,
EchoSign or other electronic signature service providers). The Agent is responsible for providing the
Applicant the opportunity to consent to electronic signature. The Agent is responsible for complying with
all applicable state and federal e-signature laws. Only the named insured can complete their e-
Signature; the Agent or Agent’s representative cannot complete the process for the named insured.
Agents must follow all documentation requirements provided by the Company or as required by Indiana
laws and/or regulations. As such, Agents must keep all documentation that generates at point-of-sale as
well as documents that are not Company generated for a minimum of seven (7) years after policy expiration
or cancellation, or for the amount of time prescribed by all applicable laws and regulations, whichever is
greater. The Agent must make each of the following, where applicable, available for Company review as
requested:
• Completed and signed Automobile Application, if e-signature is not used on GAINSCOconnect.com
• Vehicle Inspection Form and/or photos
• Proof of Prior Insurance
• Copy of the foreign ID for any listed driver rated with license status of Foreign.
• Copy of Military ID (for Military Discount)
• Proof of Military Deployment (for Military Discount)
• Proof of Homeownership
• Copy of Student Transcript (for Good Student discount)
• Any document proving accidents were not-at-fault
• Certificate of accident prevention course (for Senior Defensive Driver discount)
• Any other documentation not generated by the Company but required by Indiana laws or
regulations.
Agents may scan documentation and retain electronic copies to satisfy the documentation requirements.
Agents must notify the Company before destroying documentation, and allow the Company the opportunity
EFFECTIVE DATE: 4/15/2024 New, 4/15/2024 Renewal 6
to obtain copies before destruction. The Company reserves the right at any time to inspect all applicant
files and/or require Agent to submit copies of documentation to us for audit/review purposes.
In the event of a claim being filed regarding an application submitted by an Agency, the Agent is required
to comply with all requests for documentation. Agents must also comply with requests for recorded
statements or other assistance required for evaluating and processing the claim.
Failure to fulfill any or all of the Agents Duties may result in changes to the Agent’s status with the
Company, including suspension or termination.
VEHICLE INSPECTIONS
For all vehicles that are to be insured with Comprehensive and Collision coverages, a pre-
insurance vehicle inspection must be submitted with the application or endorsement requesting
such coverages if there is pre-existing damage to the vehicle.
Such vehicles are required to be inspected as follows:
• Verify that the VIN on the dashboard matches the VIN of the registration and application.
• Walk around the vehicle to check for existing damage. For all areas with existing damage, the
damage must be clearly described on the inspection form and photos must be taken and
maintained with the application.
• Odometer reading must be completed.
In lieu of a completed vehicle inspection form, the following photographs may be obtained and retained
with the application:
• Four corner photos: A photograph should be taken of each corner of the vehicle which in total will
show the entire exterior of the vehicle.
• VIN: One clear photograph of the VIN plate located on the dash or door.
• Mileage: One clear, legible photograph of the vehicle odometer showing current mileage.
• Damaged Areas: Clear photographs of any existing damage on the vehicle must be obtained.
If a covered loss occurs to a vehicle with existing damage and it is determined that the producer did not
inspect the vehicle and prior damages are paid for by the Company, the Company reserves the right to
make a claim for these previous damages from the Agent.
COMMISSION
Refer to the Agency Agreement for the exact commission schedule. The Company reserves the right to
alter commission schedules with due notice to agency.
EFFECTIVE DATE: 4/15/2024 New, 4/15/2024 Renewal 7
Product Information
COVERAGES & LIMITS
Bodily Injury Liability $25,000/person $50,000/accident
Property Damage Liability $25,000/accident
Uninsured Motorist Bodily Injury $25,000/person $50,000/accident
Underinsured Motorist Bodily Injury $50,000/person $50,000/accident
Uninsured Motorist Property Damage $25,000/accident
Deductible options: $0 or $300
Medical Payments $500, $1,000, $2,000 or $5,000/person
Comprehensive & Collision Deductible options: $250, $500, $750, $1000 or
$2000
Towing & Labor $50, $75, or $100/disablement
Rental Reimbursement $20/day $600 maximum total benefit or
$30/day $900 maximum total benefit or
$40/day $1,200 maximum total benefit.
Custom or Additional Equipment Up to $5,000
COVERAGE RULES
Uninsured and Underinsured Motorist Coverages:
• Uninsured Motorist Bodily Injury and Underinsured Motorist Bodily Injury must be selected together, or
both may be rejected. One may not be selected without the other.
• Uninsured Motorist Property Damage may be selected along with Uninsured Motorist Bodily Injury and
Underinsured Motorist Bodily Injury coverages, or may be rejected.
• The Uninsured and Underinsured Motorists Coverage Selection/Rejection form must be completed in
its entirety and signed by the named insured.
Comprehensive & Collision Coverages:
• Cannot be selected on any vehicle over 30 years old.
• Must be written together, or both may be rejected.
• Deductible amounts are not required to be the same.
Towing & Labor and Rental Reimbursement Coverages:
• May be selected for a vehicle regardless of whether Comprehensive and Collision apply.
Custom or Additional Equipment Coverage:
• Coverage on vehicles will only be covered if the custom or additional equipment is listed on the
application and additional premium is paid on the cost new of the equipment.
• Coverage will only be available on vehicles where comprehensive and collision coverage is written.
EFFECTIVE DATE: 4/15/2024 New, 4/15/2024 Renewal 8
• Includes coverage for: custom paint, custom wheels, phone equipment, stereo/sound equipment,
video equipment, and navigation/GPS. Photos and receipts are required for Custom or Additional
Equipment coverage and should be maintained with the application.
UNACCEPTABLE RISKS
The Company reserves the right to make final underwriting decisions on all applications. The following is
a general listing of requirements for risks that are acceptable in this program; however, a combination of
factors may cause some applications to be unacceptable even if not specifically mentioned in the following
information. An Unacceptable Risk surcharge may apply to the policy if after inception an endorsement is
processed that makes the risk unacceptable, and the policy may be cancelled or non-renewed in
accordance with state law.
VEHICLES
All vehicles must be registered/titled to the named insured and/or his/her spouse, if living in the same
household. Otherwise, the holder of the registration/title must be listed as a rated or excluded driver on the
policy.
All vehicles must be garaged at the address(es) listed on the application and within the state of Indiana.
UNACCEPTABLE VEHICLES
Make
ASTON MARTIN
AVANTI
BENTLEY
BERTONE
BLUE BIRD
BRICKLIN
BUGATTI
CODA
DAEWOO
DAIHATSU
DELOREAN
DINAN
FERRARI
FISKER
GEM
JENSEN
LADA
LAFORZA
LAMBORGHINI
LOTUS
MASERATI
MAYBACH
MCLAREN
MORGAN
PANTERA
PINANFARINA
PORSCHE
RENAULT
ROLLS-ROYCE
RUF
SHELBY
SMART
STERLING
TESLA
THINK
TRIUMPH
TVR
VPG
WHEEGO
YUGO
Commercial
Type
LIMO, MILITARY, FUNERAL, INCOMPLETE, CARGO VAN
Gross Weight
Above 10,000 LB
Horsepower
Above 400 HP
Model Age
Above 30 years, if physical damage is requested
• More than six vehicles insured under one policy
• More than two excess vehicles over the number of rated drivers on the policy
• Conversion vans/pickups for physical damage. Conversion vehicles may be issued for liability only,
unless the vehicles have plumbing, cooking or refrigerator packages.
• Dune buggies, Baja bugs and/or any other type of ATV or off-road vehicle or any vehicle not
licensed for road use
• Motorcycles
• Hearses and limousines
• Gray market, rare, antique, classic, vintage, custom, electric, kit, low production, limited edition,
race replica, or show vehicles
EFFECTIVE DATE: 4/15/2024 New, 4/15/2024 Renewal 9
• Motor Homes, RVs, Campers, Travel Trailers, or any vehicles with plumbing, cooking, or
refrigerator packages
• Vehicles built/designed for, or used in, speed contests
• Flatbed vehicles
• Vehicles designed to carry more than eight people, including the driver
• Open air vehicles, including those with detachable roofs (except convertibles) not otherwise listed.
• Saleen Models
• For Physical Damage, any vehicle with a depreciated base price greater than $55,000
• For Physical Damage, any vehicle identified as having the following severe problem indicators (as
determined by findings of prior events on the vehicle history report):
o Stolen Vehicle, Reported as Stolen, Recycled Vehicle, Recovered from Theft, Police Severe
Accident, Lemon Title, Junk Title, Hail Title, Flood Title, Fire Damage, Dismantled Title,
Damage Disclosed, Crash Test Vehicle, Airbag Deployment
• Any vehicle which has been substantially modified in appearance or performance, or mechanically
altered; i.e. high suspension or lift kits
• Any pickup, van or utility vehicle that does not have bumpers
• Vehicles that do not have Vehicle Inspections where physical damage coverage has been
requested.
• Vehicles not garaged at the address for which the vehicles are rated, unless the vehicle is away at
school in the state of Indiana
• Vehicles garaged in Indiana less than 10 months per year
• Vehicles used for business or artisan use
o Vehicles used for messenger service, livery service, delivery service, wholesale or retail
delivery, hauling merchandise for others, newspaper or retail food delivery, including but
not limited to pizza delivery.
▪ Livery service includes any form of transporting people for compensation, including
but not limited to carpool service for a fee. This does not apply to “share the
expense” carpools.
o Vehicles used in connection with a transportation network company, such as Uber or Lyft
o Vehicles used in connection with a delivery network company, such as UberEATS,
UberRUSH, or Postmates
• Vehicles used to carry tools or supplies to or from a work site as a job or service.
• Vehicles titled to a legal entity, DBA, or LLC
• Vehicles used as a residence or premises.
• Vehicles operated by a driver who would be considered an Unacceptable Driver
• Vehicles which, at the time of application, were involved in an accident on the same day the policy
is to become effective. A future effective date must be used.
DRIVERS
The following drivers must be listed on the application. If there are changes during the policy term, an
endorsement must be processed reflecting these changes within 14 days of the change.
• List all persons 15 years or older residing with the applicant(s), whether or not they are licensed
and/or drive/operate the listed vehicle(s).
• List all regular or occasional operators, and all registered owners/co-owners, of the listed
vehicle(s).
• List all children or dependents age 15-20 of the applicant or applicant’s spouse, regardless of
whether they reside with the applicant(s).
o Children or dependents in the Armed Services are not required to be listed if a document
showing their assignment away from home is submitted.
• Each person must be listed as a rated or excluded driver.
• The most recent license information must be entered for each licensed driver.
EFFECTIVE DATE: 4/15/2024 New, 4/15/2024 Renewal 10
o A learner’s permit is treated as a license, and such drivers must be listed.
• If the applicant(s) is legally Married or legally Separated, such legal status must be listed as their
Marital Status, and their spouse must be listed.
FAILURE TO LIST ALL SUCH PERSONS AS DESCRIBED ABOVE MAY CONSTITUTE A MATERIAL
MISREPRESENTATION, WHICH MAY RESULT IN ALL INSURANCE COVERAGES BEING VOID.
Should drivers be discovered that have not been disclosed on the policy, we may add them as drivers on
the policy and adjust the rate accordingly, including any surcharges or discounts for which they qualify.
EXCLUDED DRIVERS
Any drivers who are excluded on the Named Driver Exclusion Endorsement must be acknowledged by
the signature of the named insured. Drivers may be added as rated or excluded drivers on the policy if
they become residents of the named insured’s household during the policy term. A driver may not be
excluded if they drive/operate the listed vehicle(s).
UNACCEPTABLE DRIVERS
The following drivers are considered unacceptable:
• More than 8 rated drivers per policy
• Any student residing and/or attending school in a state other than Indiana
• Any operator who is not a resident of the state of Indiana, and/or does not live in Indiana for 10
months per year
o This rule does not apply to operators other than the Named Insured who are in the military
and stationed out-of-state
• Any operator under the age of 14
• Any named insured under the age of 18
• Any operator with a revoked or cancelled license, unless the driver requires an SR-22 filing in the
state of Indiana.
• Risks with a mailing address outside of Indiana
• All entertainers, athletes, and celebrities, or any professional individual who is nationally or locally
well known to a large segment of the population relative to where the individual resides. This does
not apply to public officials.
• Operators with more than two at fault accidents in the 36 months immediately preceding the original
effective date of the policy with the Company.
• Operators with more than one alcohol or drug related charge in the 36 months immediately
preceding the original effective date of the policy with the Company.
• Operators with more than one major violation in the 36 months immediately preceding the original
effective date of the policy with the Company.
• Operators with more than two intermediate violations in the 36 months immediately preceding the
original effective date of the policy with the Company.
• Total number of at fault accidents for all operators listed on a policy cannot exceed two in the 36
months immediately preceding the original effective date of the policy with the Company.
• Total number of major violations for all operators listed on a policy cannot exceed two in the 36
months immediately preceding the original effective date of the policy with the Company.
• Total number of intermediate violations for all operators listed on the policy cannot exceed three in
the 36 months immediately preceding the original effective date of the policy with the Company.
LICENSE STATE MATRIX
License State/Status
Driver with a US License
Foreign Driver without a US license
EFFECTIVE DATE: 4/15/2024 New, 4/15/2024 Renewal 11
US Domestic Driver without a US license
DISCOUNTS
DISCOUNTS REQUIRING DOCUMENTATION
If a discount applies, proof of eligibility must be uploaded to the policy when the policy is bound. If the proof
of eligibility for a discount is received after the policy is issued, the discount may be applied on a pro-rata
basis.
• Prior Coverage – A Prior Coverage Discount may apply to the policy when the named insured
provides proof of at least 120 days of insurance coverage during the last 180 days immediately
prior to their policy effective date.
o Proof of the prior insurance coverage is required with the application and the binding of
coverage unless automatically verified at point of sale.
o Acceptable proof of prior insurance includes a letter of experience on prior carrier
letterhead, Company issued Declaration page, applicable renewal offer or ID card.
o The Prior Coverage discount may be applied for applicants who did not require automobile
insurance during military deployment and would have qualified for this discount prior to
deployment. Agent must submit proof of the applicant’s policy prior to deployment along
with proof of their deployment during the time of lapse.
• Agency Internal Transfer – This classification of Prior Coverage Discount may apply to the policy
when the named insured provides proof of 180 days of insurance coverage immediately prior to
their policy effective date, and the prior coverage was written by the same agency submitting the
application to the Company. Proof of the prior insurance coverage and proof that the prior coverage
was written by the agency are required with the application and the binding of coverage. The prior
policy must have expired on the GAINSCO Auto Insurance® policy effective date with no lapse;
midterm cancellations are not acceptable for this discount.
o Acceptable proof includes those forms of proof available for the prior coverage discount
when the agency’s name is shown on the document, and will need to be supplemented with
additional documentation when the agency’s name is not shown. Prior GAINSCO Auto
Insurance® policies do not qualify for the Agency Internal Transfer Discount.
• Compliant Without Insurance - This classification of Prior Coverage may apply to the policy when
the named insured does not qualify for the Prior Coverage Discount, and has not operated a motor
vehicle in violation of any financial responsibility or compulsory insurance requirement within the
prior 12 months. The named insured must have three years verified driving history to qualify for
this discount.
o Acceptable proof includes documentation showing that, for the 12 months prior to the
effective date, military orders including dates and locations, the named insured was living
outside the United States, or any other documentation that proves the named insured was
not in violation of coverage requirements.
• Military Discount – A discount may apply to the policy when the named insured submits proof of
military service for a rated driver on the policy for the agent to retain on file.
o Active In-State – for Active Duty drivers stationed in Indiana
o Active Out-of-State – for Active Duty drivers stationed outside of Indiana
▪ The Named Insured must reside in Indiana, and therefore this discount will not apply
to the Named Insured
o Prior Service – for drivers who previously served in the military
• Homeowner Discount – A discount may apply to the policy when the named insured submits
acceptable proof of homeownership for a home, townhome, condominium, or mobile home for the
agent to retain on file. The individual identified as the named insured on the auto application must
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also appear as the owner on the homeowner’s proof. Acceptable forms of proof include a
homeowner’s insurance policy declaration page, mortgage statement, property tax records or
property deed.
• Good Student Discount – A discount may apply to the policy for drivers who are single, age of
24 or younger, with a “B” grade average or higher and a 3.0 average or higher on a 4 point scale.
Drivers must provide a copy of the transcript.
• Senior Defensive Driver Discount – A discount may apply to the policy for drivers ages 55 or
older who have completed an appropriate Motor Vehicle Accident Prevention course approved by
the Indiana Bureau of Motor Vehicles. Drivers must provide course certificate dated within the
most recent three-year period.
ADDITIONAL DISCOUNTS
• Auto-Pay Discount – A discount may apply when an Auto-Pay Payment Plan is selected.
• Paid in Full Discount – A discount may apply to all policies where the insured pays the premium in
full at the inception of the policy period. Premium Financed policies are not considered Paid in Full.
• Renewal Discount – A discount may apply, based on the length of time the policy has renewed with
GAINSCO Auto Insurance®.
• Advance Purchase Discount – A discount may apply to policies based on the type of prior insurance
coverage and the number of days in the future the effective date is from the date the policy is
bound.
• Safe Driver Discount – A discount may apply based on: 1) the number of years for which we have
a verified driving record for a driver without a chargeable violation or at fault accident (e.g. 1, 2, 3,
or none); and 2) the driver’s license state/status. If a driver has experienced a chargeable violation
or at fault accident within the last year, he/she is classified with a Safe Driver class of 0. Otherwise,
a discount is applied based on the number of years the driver has gone without a chargeable
violation or at fault accident (e.g. 1, 2, or 3). This discount only applies to drivers for whom the
insurer has obtained a driving record of three or more years
SURCHARGES
Driver points are based on all occurrences and/or violations with a conviction date in the thirty-six months
immediately preceding the policy effective date. Any accidents listed on a motor vehicle report, application,
or other underwriting report will be considered at fault unless a police report or written explanation is
provided establishing facts demonstrating lack of fault which are not rebutted by information in the insurer’s
file from which the insurer in good faith determines that the insured was substantially at fault.
If multiple incidents occurred on the same day, the highest incident will be charged. If one or more serious
violations occurred on the same day as an at-fault accident, such violations may be charged in addition to
the at-fault accident.
POLICY ACTIVITY
The following surcharge may apply to a renewal or replacement policy based on activity during the prior
policy’s term(s). If the activity is solely to correct an error, no surcharge will apply.
• Prior Endorsement Activity: A surcharge may apply based on the number of times any of the
following are added, changed or deleted for the policy within 12 months prior to the renewal or
replacement policy: Coverages, Deductibles, Vehicles, Drivers, Address, Garaging Location.
Changes made at the same time will be considered one Endorsement.
• Prior Vehicle Cancellation: A surcharge may apply based on the number of times a vehicle was re-
added to the policy after having been deleted within 36 months prior to the renewal or replacement
policy
EFFECTIVE DATE: 4/15/2024 New, 4/15/2024 Renewal 13
• Prior Cancellation for Non-Payment of Premium: A surcharge may apply based on the number of
times the policy has been cancelled and reinstated for non-payment of premium within 36 months
prior to the renewal or replacement policy.
ADDITIONAL SURCHARGES
• Any driver added to the policy that is defined as being unacceptable in the underwriting
rules/guidelines may be surcharged in addition to any other surcharges that may apply.
• If the garaging address or primary area of operation of any listed vehicle on the policy is moved
outside of Indiana or if the insured moves their residence outside of Indiana a surcharge may apply.
• Any vehicle or coverage added that is defined as being unacceptable in the underwriting
rules/guidelines may be surcharged in addition to any other surcharges that may apply.
• An unacceptable surcharge may apply to the policy if an endorsement is processed that makes the
risk unacceptable.
• A surcharge may apply to policies that do not have proof of prior insurance.
• A surcharge may apply to vehicles with a title indicating a Severe Problem.
• A surcharge may apply to drivers with a certificate insurance (SR-22) filing.
• A surcharge may apply to Premium Financed policies.
Note: Within the first 60 days following the effective date of coverage, the addition of any driver, vehicle,
or coverage, or a change that otherwise results in a risk that is unacceptable under our underwriting
guidelines, may result in cancellation of the policy in lieu of the application of an additional Unacceptable
Surcharge.
NON-OWNER
Non-owner policies are available to provide liability coverage for the named insured only or the named
insured and spouse. Coverage is offered only while the named insured, or spouse if not excluded, is using
a vehicle with permission, that is not available for their regular or frequent use, and is not owned by the
named insured or spouse or a relative or resident of the named insured’s household. A non-owner rating
discount factor may apply.
CERTIFIED FINANCIAL RESPONSIBILITY FILINGS (SR-22)
For a risk on which a certificate of insurance (SR-22) is filed to comply with the requirements of an
automobile financial responsibility law, a flat charge shall be made for each filing. The charge is fully earned
and shall not be subject to modifications under the provisions of any other rule in this manual. An SR-22
will be filed only for the state of Indiana. A SR-22 surcharge may also be applied.
CANCELLATIONS
The Company may void the policy if the down payment is returned by the bank or financial institution.
Agents must notify the Company immediately upon receiving notice of an insufficient payment for an
amount due to the Company.
A request to cancel the policy must be made by the named insured, affirmed by the named insured’s
signature or recorded statement. The requested effective date of the cancellation cannot be earlier than
the earliest of:
• the date the cancellation request was provided by the named insured to the Agent or Company
• the effective date of duplicate insurance coverage for the listed vehicle(s)
• the date shown on proof the vehicle is no longer owned by the insured person(s)
• the date the listed vehicle(s) license plate(s) were returned to the Indiana Bureau of Motor Vehicles
Upon cancellation, earned premium will be calculated on a pro rata basis. Any premium collected but
unearned will be refunded.
EFFECTIVE DATE: 4/15/2024 New, 4/15/2024 Renewal 14
RENEWALS
A renewal policy will be issued after the expiration of the current policy period if all premiums owed on the
current policy have been paid and the first payment of the renewal policy has been received prior to the
expiration of the current policy term.
If the appropriate renewal payment is not paid or mailed (U.S. Postal Postmark) by the expiration date of
the policy term, coverage will expire on the final day (expiration date) of the current policy term. There is
no grace period.
REINSTATEMENTS
Reinstatements for nonpayment cancellations are permitted. Reinstatements can be processed for up to
30 days from the cancellation date either online or by contacting the Company’s Customer Service
Department.
Policies may be reinstated without a lapse in coverage. An inspection form may also be requested at the
underwriter’s discretion.
REWRITES
Rewrites can be processed online. A policy that cancels for non-payment may be eligible for the rewrite
option after 30 days.
PREMIUM INSTALLMENT PLANS
The Company offers optional premium payment installment plans. The installment plans that are available
to a policy will be displayed during the quoting process. The down payment must be collected from the
insured at the time the policy is bound.
If a payment plan is selected, an Installment Fee may apply to each installment billed. If any installment
payment is late, a Late Fee may apply. Unsuccessful payments or payments returned by the bank or
financial institution may incur an NSF Fee.
EFFECTIVE DATE: 4/15/2024 New, 4/15/2024 Renewal 15
Premium Determination
If an application is submitted with an improper driver class, discount, surcharge, etc. the policy will be
issued at the appropriate rate level according to the rules as set forth in this manual.
DRIVER CLASSIFICATION
Age refers to the driver’s age at policy effective date. A marital status of “single” in the rating pages refers
to an unmarried, widowed or divorced. A marital status of “married” means a legally married person or a
separated driver. If a driver is “married” and their spouse is not a ratable driver on the policy, classification
“X” will apply.
DRIVER AVERAGING
The highest-rated (based on Property Damage) drivers are selected, up to the number of vehicles. If
there are fewer drivers than vehicles, all drivers are selected. For non-owner policies, just the highest-
rated (based on Property Damage) driver is selected.
PHYSICAL DAMAGE
For vehicles with physical damage, an Initial Model Age adjustment factor may apply to the liability
coverages. The Initial Model Age of the vehicle represents the Model Age at the time the vehicle is added,
and will remain until the vehicle is removed or the policy expires.
REPORTS USED FOR UNDERWRITING
During the quote and bind process on the Company website GAINSCOconnect.com, reports are ordered
as a part of our underwriting process. Data returned from these reports identifies information specific to
the vehicle(s) and driver(s), such as length of ownership, incidents, license status, etc., which is used for
underwriting and rating.
The Length of Ownership at the time the vehicle is added will apply to that vehicle until it is removed or the
policy expires. If the application indicates the vehicle has been owned less than three months, this will
override the Length of Ownership report results.
INSURANCE SCORING
An Insurance Score based upon credit history information may be ordered for the named insured as part
of the quote process. This score will be used to determine the Insurance Score Tier.
Please read the disclosure on the website to the customer and verify their permission to obtain the score.
Select “Agree” only if the applicant gives permission to obtain the score.
Include the full name, address, date of birth, and last 4 digits of the applicant’s Social Security Number in
order to obtain the Insurance Score. An applicant has the right to not provide the last 4 digits of their Social
Security Number, but this may result in a No Hit result.
If a score is ordered and results in an applicant not receiving the maximum rate benefit, or a No Hit or “thin
file” result is returned, provide the applicant with the FCRA notification that is generated by the website. If
a customer suspects inaccuracies in their credit information, they may request a copy of their report by
contacting the vendor as instructed in the notice provided.
EFFECTIVE DATE: 4/15/2024 New, 4/15/2024 Renewal 16
The Company will re-order the score at least once every three years. At the request of the named insured,
we will re-order the score up to once annually. When there is a new score, the new score will be used to
determine the Insurance Score Tier beginning with the upcoming renewal policy period.
REPORT DATA CORRECTIONS
The insured may provide information to the agent correcting or supplementing any data received via an
Underwriting Report, Insurance Score report, or any other report utilized in calculating premium. The forms
the agent may use to assist the insured in submitting this information to us will be available on our website.
All requests to update information will be reviewed, and any appropriate policy data corrections will be
applied and the premium will be recalculated.
VEHICLE CHARACTERISTICS
Rating factors apply to each vehicle based on the vehicle’s characteristics. New vehicle characteristics that are
substantially similar to previous characteristics shall be classified according to that similarity.
Fees
Policy Fee: $10 for each 6-month policy term, $10 for each 12-month policy term
Installment Fee: $10/installment for Bill by Mail, $5/installment for Auto Pay
SR-22 Fee: $15 for each filing
Late Fee: $10 each occurrence
NSF Fee: $20 each occurrence
All fees are fully earned and non-refundable.
Claims
All claims should be reported to MGA Insurance Company, Inc. as promptly as possible either by telephone
or by having the customer report the loss online at GAINSCO.com. The phone number to report a loss is:
800-699-1561.
Material Misrepresentation
It is important that agents ask all questions directly to the applicant and clearly explain the consequences
of providing false information. Complete and accurate information on the application is required in order to
bind coverage. MATERIAL MISREPRESENTATION MAY RESULT IN THE POLICY BEING DECLARED
NULL AND VOID FROM THE INCEPTION AND WILL IMPACT THE INSURED’S RIGHTS TO POLICY
BENEFITS. It is important that agents explain that a claim may not be paid if false or misleading information
is provided to us.
Misrepresentation includes, but is not limited to the following:
• Failure to disclose all drivers as described in this manual.
• Use of an incorrect garaging address.
EFFECTIVE DATE: 4/15/2024 New, 4/15/2024 Renewal 17
• Failure to report all prior accidents or violations on the application.
• Failure to accurately report vehicle usage or vehicles available for use.