The purpose of this policy is to define the limits and scope of liability for which MVRMA would be financially responsible for its members’ auto physical damage claims occurring after December 31, 2004.

COVERAGE STATEMENT

As of December 31, 2004 and thereafter, MVRMA’s obligation to pay auto physical damage claims shall be subject to the same terms and conditions as defined in the Property Policy issued to MVRMA by PEPIP USA.  Vehicles will be covered for stated value, which is the amount shown on the policy vehicle schedule as the original cost of the vehicle, or cost of repair, whichever is less.  For these claims, MVRMA’s limit of liability will be subject to the self-insured retention amount as provided in the PEPIP USA policy.  All costs associated with the investigation, defense and indemnity payment to resolve any such claim shall be included within this limit.