1. HLDI Casualty Actuarial Society 1999 Seminar on Ratemaking Kim L. Hazelbaker Senior Vice President Nashville, TN  March 11-12, 1999

2. HLDI

6. Light Truck Sales By Model Year Percent of New Vehicle Sales 47.5%

7. HLDI Percent of Passenger Vehicle Registrations By Vehicle Type, Weight, and Model Year Vehicle type Weight(lb)19751985199519961997 Cars<2,5001228151312 2,500-2737394037 3,500+418978 Passenger vans 02886 Total 8176716964 Pickups<3,500112455 3,500-92533 4,000+326811 Total1316161619 Utility<3,50014223 vehicles 3,500-10555 4,000+11568 Total25111315

8. HLDI 1998 Model Ford Passenger Vehicles Escort2,585 lbs Explorer 4,325 lbs Expedition 5,290 lbs curb weight

9. HLDI Metro2,065 lbs Blazer4,225 lbs Suburban5,640 lbs curb weight 1998 Model GM Passenger Vehicles

10. HLDI 1997 Ford Escort1997 Ford Expedition

11. HLDI 1997 Ford Escort 1997 Ford Expedition

12. HLDI 1997 Ford Escort1997 Ford Expedition

13. HLDI Ford Excursion - 2000 Model Year

14. HLDI Ford Super Concept Truck

15. HLDI vehicle weight (lb) Occupant Death Rates 1990-95 Passenger Vehicles Deaths per Million Vehicles per Year

16. HLDI Occupant Death Rates in Single-Vehicle Crashes 1990-95 Passenger Vehicles Deaths per Million Vehicles per Year vehicle weight (lb)

17. HLDI Occupant Death Rates in Two-Vehicle Crashes 1990-95 Passenger Vehicles Deaths per Million Vehicles per Year vehicle weight (lb)

18. HLDI Occupant Death Rates in Other Vehicles in Two-Vehicle Crashes, 1990-95 Passenger Vehicles Deaths per Million Vehicles per Year vehicle weight (lb)

19. HLDI Mix of Other Vehicles in Two-Vehicle Fatal Crashes 1990-95 Passenger Vehicles deaths in cars OTHER MEDIUM/ HEAVY TRUCK UTILITIES CARS 3500- CARS 2500- CARS <2500 PICKUPS vehicle weight (lb) deaths in pickups OTHER MEDIUM/ HEAVY TRUCK UTILITIES CARS 3500- CARS 2500- CARS <2500 PICKUPS deaths in utility vehicles OTHER MEDIUM/ HEAVY TRUCK UTILITIES CARS 3500- CARS 2500- CARS <2500 PICKUPS 100 80 60 40 20 100 80 60 40 20 100 80 60 40 20

20. HLDI Characteristics That Influence Compatibility/Aggressivity in Crashes Between Two Passenger Vehicles  Weight Differences decrease risk in the heavier vehicles and increase risk in the lighter vehicles  Structural Mismatches contribute to override/underride  Stiffness Differences can decrease the risk if the heavier vehicles are less stiff than the lighter vehicles  High Performance is associated with increased crash severity

21. HLDI Crash compatibility

22. HLDI Companies that Supply Data to HLDI  Aetna/Travelers  Allstate  American Family  Auto Club of Michigan  Farmers  GEICO  The Hartford  Kemper  Liberty Mutual  Mass. CAR  Motors  Nationwide  Progressive  Prudential  SAFECO  State Farm  USAA

23. HLDI VINDICATOR Information Decoded from Vehicle Identification Numbers VIN Positions12345678910 11 12- 17 World Manufacturer Identification Vehicle Attributes: Car Line Series Body Type Engine Restraints Check Digit Model Year Plant Code Sequential Number also: antilock brakes, antitheft devices, daytime running lights

24. HLDI Size of HLDI Database Number of Vehicles in Files, December 1997 Model YearNumber of Vehicles 199012,906,089 199112,649,043 199212,104,987 199312,856,615 199412,517,661 199512,129,475 19968,898,263 19977,759,490 19981,319,290 Total93,139,913

25. HLDI Collision Losses vs. Property Damage Losses 1995-97 Models Average Loss Payment Per Insured Vehicle Year Average Loss Payment Per Claim collisionproperty damage Claim Frequency (claims per 100 insured vehicle years) collisionproperty damage 9.0 6.0 3.0 collisionproperty damage $270 $180 $90 $3,000 $2,000 $1,000 passenger cars, and passenger vans pickups, utility vehicle, and large vans

26. HLDI Collision and Property Damage Liability Losses By Vehicle Type and Size Class, 1995-97 Models Average Loss Payment per Insured Vehicle Year $relative$relative Cars small $268120$7998 midsize $250112$7390 large$20692$6277 Passenger Vans $16574$6479 Pickupssmall $20089$101125 standard $16875$95117 Utilitysmall$21194$94116 Vehiclesmidsize$21295$98121 large$13560$107132 All passenger vehicles$224100$81100 Collision Property Damage Liability

27. HLDI Collision vs. Property Damage Liability Average Loss Payment Per Insured Vehicle Year, 1995-97 Models property damage liability High Collision Low Property Damage Low Collision Low Property Damage Low Collision High Property Damage High Collision High Property Damage collision small sports mdsize sports mdsize luxury mini sports large luxury very lg luxury mdsize 2-dr mdsize 4-dr very lg sw 2-dr and 4-dr cars, station wagons, & passenger vans sports and luxury cars pickups, utility vehicles and large vans all vehicle average very lg 4-dr large 4-dr pass vans small 4-dr mini 4-dr mini 2-dr small 2-dr small utility std pickup midsize utility large van large utility small pickup mdsize sw large 2-dr

28. HLDI The Washington Post — January 24, 1999

29. HLDI New Yorker — March 9, 1998

30. HLDI Miami Herald — February 14, 1998

31. HLDI Nissan SUT - 2000 Model Year

32. HLDI Ford Explorer SportTrac - 2001 Model Year

33. HLDI Lincoln Blackwood - 2001 Model Year

34. HLDI