Indie NY UDPC 2017-09.Xlsm

SERFF Tracking #: UNTR-131292631 State Tracking #: R2017004467,R2017004467 Company Tracking #: UDP_20180209

State: New York Filing Company: Unitrin Direct Property & Casualty Company TOI/Sub-TOI: 19.0 Personal Auto/19.0001 Private Passenger Auto (PPA) Product Name: Old Kemper Project Name/Number: Base Rates/UDP_20180209

Filing at a Glance Company: Unitrin Direct Property & Casualty Company Product Name: Old Kemper State: New York TOI: 19.0 Personal Auto Sub-TOI: 19.0001 Private Passenger Auto (PPA) Filing Type: Rate Date Submitted: 12/05/2017 SERFF Tr Num: UNTR-131292631 SERFF Status: Closed-Company initiated File & Use State Tr Num: R2017004467,R2017004467 State Status: Assigned Co Tr Num: UDP_20180209

Effective Date Requested (New): Effective Date 04/01/2018 Requested (Renewal): Author(s): Linsey Mansfield Reviewer(s): David Schwartz (primary), Harold Marcelin Disposition Date: 12/27/2017 Disposition Status: Company initiated File & Use Effective Date (New): Effective Date (Renewal): 04/01/2018

This filing was provided as part of The New York Insurance ADVISOR Subscribe @ www.martincompanyus.com or call 800-896-8000

PDF Pipeline for SERFF Tracking Number UNTR-131292631 Generated 12/27/2017 04:01 PM SERFF Tracking #: UNTR-131292631 State Tracking #: R2017004467,R2017004467 Company Tracking #: UDP_20180209

General Information Project Name: Base Rates Status of Filing in Domicile: Not Filed Project Number: UDP_20180209 Domicile Status Comments: Reference Organization: Reference Number: Reference Title: Advisory Org. Circular: Filing Status Changed: 12/27/2017 State Status Changed: 12/05/2017 Deemer Date: Created By: Linsey Mansfield Submitted By: Linsey Mansfield

Corresponding Filing Tracking Number: Filing Description: Unitrin Direct Property & Casualty Company (UDPC) is proposing a revision to its Private Passenger Automobile Insurance program. UDPC proposes to implement the revisions effective April 1, 2018 for renewal business.

The proposed revision to the UDPC program is submitted as a Flex-Rating filing with a requested overall rate revision of +5.0% that includes the following coverage level adjustments:

Bodily Injury +6.0% Property Damage +6.0% Personal Injury Protection+17.5% Uninsured Motorist +13.0% Comprehensive -5.0% Collision -5.0% Rental Reimbursement 0.0%

Company and Contact Filing Contact Information Linsey Mansfield, Director of Product [email protected] Management One East Wacker Drive 312-661-4715 [Phone] Suite 3700 Chicago, IL 60601

Filing Company Information Unitrin Direct Property & Casualty CoCode: 10915 State of Domicile: Illinois Company Group Code: 215 Company Type: Stock One East Wacker Drive Group Name: State ID Number: Suite 3700 FEIN Number: 36-4230008 Chicago, IL 60601 (312) 661-4700 ext. [Phone]

Filing Fees Fee Required? No Retaliatory? No

PDF Pipeline for SERFF Tracking Number UNTR-131292631 Generated 12/27/2017 04:01 PM SERFF Tracking #: UNTR-131292631 State Tracking #: R2017004467,R2017004467 Company Tracking #: UDP_20180209

Fee Explanation: State Specific Speed-To-Market Field: enter code "98" for Speed-To-Market filings. Enter "0" for N/A.: N/A Terrorism Exclusion Field: enter code "46-01" for filings which includes forms, rates or rules for the Terrorism Exclusion. Enter "0" for N/A.: N/A Mold (Fungi, Bacteria, Virus) Exclusion Field: enter code "46-02" for filings which includes forms, rates or rules for the Mold Exclusion. Enter "0" for N/A.: N/A On the Rate/Rule Schedule Tab, the "Add Rate Data" button must be changed to "yes" for all rating rules and rate filings in order for the appropriate fields to be completed. Please enter "Yes" for filings with the rate data fields completed and "No" for all other filings.: OK

PDF Pipeline for SERFF Tracking Number UNTR-131292631 Generated 12/27/2017 04:01 PM SERFF Tracking #: UNTR-131292631 State Tracking #: R2017004467,R2017004467 Company Tracking #: UDP_20180209

Correspondence Summary Dispositions Status Created By Created On Date Submitted Company initiated David Schwartz 12/27/2017 12/27/2017 File & Use

PDF Pipeline for SERFF Tracking Number UNTR-131292631 Generated 12/27/2017 04:01 PM SERFF Tracking #: UNTR-131292631 State Tracking #: R2017004467,R2017004467 Company Tracking #: UDP_20180209

Disposition

Disposition Date: 12/27/2017 Effective Date (New): Effective Date (Renewal): 04/01/2018 Status: Company initiated File & Use Comment:

Overall % Overall % Written Premium Number of Policy Written Maximum % Minimum % Company Indicated Rate Change for Holders Affected Premium for Change Change Name: Change: Impact: this Program: for this Program: this Program: (where req'd): (where req'd): Unitrin Direct Property & 6.300% 5.000% $14,482 93 $291,695 10.900% 0.300% Casualty Company

Schedule Schedule Item Schedule Item Status Public Access Supporting Document Explanatory Memorandum Yes Supporting Document Private Passenger Automobile Review Standards Yes Checklist Supporting Document Personal Auto Multi-Tier Filing Compliance Questionnaire Yes Supporting Document (revised) Rates and/or Rating Plans Yes Supporting Document Rates and/or Rating Plans Yes Supporting Document (revised) Side-By-Side Comparisons Yes Supporting Document Side-By-Side Comparisons Yes Supporting Document (revised) Actuarial Support Yes Supporting Document Actuarial Support Yes Supporting Document Indication Support Yes Rate (revised) Rate Manual Yes Rate Rate Manual Yes

PDF Pipeline for SERFF Tracking Number UNTR-131292631 Generated 12/27/2017 04:01 PM SERFF Tracking #: UNTR-131292631 State Tracking #: R2017004467,R2017004467 Company Tracking #: UDP_20180209

Rate Information Rate data applies to filing.

Filing Method: Flex Rate Change Type: Increase Overall Percentage of Last Rate Revision: 4.800% Effective Date of Last Rate Revision: 01/17/2014 Filing Method of Last Filing: Flex SERFF Tracking Number of Last Filing: UNTR-129247758

Company Rate Information Overall % Overall % Written Premium Number of Policy Written Maximum % Minimum % Company Indicated Rate Change for Holders Affected Premium for Change Change Name: Change: Impact: this Program: for this Program: this Program: (where req'd): (where req'd): Unitrin Direct Property & 6.300% 5.000% $14,482 93 $291,695 10.900% 0.300% Casualty Company

PDF Pipeline for SERFF Tracking Number UNTR-131292631 Generated 12/27/2017 04:01 PM SERFF Tracking #: UNTR-131292631 State Tracking #: R2017004467,R2017004467 Company Tracking #: UDP_20180209

Rate/Rule Schedule

Item Schedule Item Previous State No. Status Exhibit Name Rule # or Page # Rate Action Filing Number Attachments 1 Rate Manual Base Rates Replacement NY UDPC Rate Manual - Base Rates.pdf

PDF Pipeline for SERFF Tracking Number UNTR-131292631 Generated 12/27/2017 04:01 PM UNITRIN DIRECT PROPERTY & CASUALTY COMPANY NEW YORK PERSONAL AUTO RATES Base Rates (Annual)

EXCESS MED COLL $100 COMP $50 Territory BI 25/50 PD $10,000 $1,000 BASIC PIP Ded. Ded. UM 25/50 1 1218 361 3 1103 811 156 57 3 840 314 3 1113 701 152 57 4 1031 330 3 1018 721 142 57 5 790 392 3 1382 618 149 57 6 251 310 3 462 295 28 21 7 444 417 3 813 409 65 21 8 224 385 3 437 295 33 21 9 199 361 3 470 299 21 21 10 260 317 3 510 260 29 21 11 128 330 3 262 285 27 21 13 208 355 3 423 311 27 21 14 260 317 3 510 260 29 21 15 311 392 3 557 326 42 21 16 267 317 3 521 296 21 21 17 1180 394 3 1857 766 264 57 18 732 285 3 750 591 160 57 19 831 314 3 1033 696 166 57 21 631 463 3 780 535 94 32 24 268 334 3 470 294 33 20 25 181 269 3 328 241 35 20 27 139 240 3 363 270 34 21 28 161 265 3 408 258 27 21 29 206 265 3 317 276 26 20 30 271 320 3 533 299 22 21 31 142 240 3 323 270 39 21 32 411 351 3 932 424 46 21 33 333 351 3 709 375 35 21 34 209 296 3 411 298 27 17 35 206 286 3 432 295 30 17 36 219 286 3 461 299 23 21 37 219 272 3 333 271 26 20 39 127 320 3 257 276 27 21 40 146 242 3 384 270 34 21 41 303 320 3 515 299 35 21 42 224 341 3 470 315 33 21 43 261 281 3 510 286 31 21 44 161 264 3 401 257 27 21 46 334 370 3 604 482 48 21 47 265 289 3 483 272 39 21 48 128 321 3 257 278 27 21 49 244 269 3 503 292 31 21 51 161 261 3 278 238 35 21 52 215 298 3 444 295 30 17 53 1046 416 3 1164 666 204 50 54 174 269 3 371 280 31 21 55 1078 404 3 1284 701 200 57

Revision Date: 02/2018 Effective Date ‐ New: n/a Effective Date ‐ Renewal: 04/01/18 Page R‐1 UNITRIN DIRECT PROPERTY & CASUALTY COMPANY NEW YORK PERSONAL AUTO RATES Base Rates (Annual)

EXCESS MED COLL $100 COMP $50 Territory BI 25/50 PD $10,000 $1,000 BASIC PIP Ded. Ded. UM 25/50 56 260 307 3 504 290 21 21 57 382 330 3 804 375 35 17 58 382 330 3 804 375 35 17 59 334 334 3 651 401 53 21 60 265 289 3 483 284 39 21 61 240 314 3 510 344 35 21 62 354 337 3 821 386 44 21 64 352 321 3 929 409 50 21 65 346 342 3 536 490 50 21 67 207 264 3 277 270 23 21 68 455 404 3 744 501 46 21 69 665 439 3 833 523 82 32 70 686 453 3 865 539 78 32 71 208 296 3 331 264 21 21 72 230 269 3 455 327 39 21 73 188 293 3 416 299 27 17 74 187 276 3 372 295 29 21 76 667 416 3 1029 497 60 32 77 790 466 3 1043 572 99 32 78 779 466 3 969 560 98 32 79 761 451 3 996 554 95 32 80 358 207 3 549 260 33 17 81 467 334 3 1082 445 74 17 82 487 334 3 1183 485 78 21 83 449 312 3 1030 415 70 17 84 149 244 3 389 270 34 21 86 199 288 3 419 284 32 21 87 119 310 3 237 257 23 17 89 1378 351 3 2015 890 193 57 90 1378 351 3 2015 890 193 57 91 726 432 3 1056 488 65 32 92 744 418 3 1106 535 69 32 93 382 330 3 804 375 35 17 94 532 370 3 774 646 92 32 95 464 355 3 589 507 48 32 97 403 367 3 521 523 72 21 102 119 310 3 237 257 23 17 121 251 310 3 462 295 28 21 128 237 319 3 483 296 23 21 129 354 351 3 529 315 23 21

The financial responsibility limits are: BI $25,000/$50,000 PD $10,000

Revision Date: 02/2018 Effective Date ‐ New: n/a Effective Date ‐ Renewal: 04/01/18 Page R‐2 SERFF Tracking #: UNTR-131292631 State Tracking #: R2017004467,R2017004467 Company Tracking #: UDP_20180209

Supporting Document Schedules Satisfied - Item: Explanatory Memorandum Comments: Attachment(s): NY UDPC Exhibit RF-1.pdf Item Status: Status Date:

Satisfied - Item: Private Passenger Automobile Review Standards Checklist Comments: Attachment(s): NY UDPC Rate Filing Sequence Checklist.pdf Item Status: Status Date:

Bypassed - Item: Personal Auto Multi-Tier Filing Compliance Questionnaire Bypass Reason: We are not requesting any changes to our currently filed and approved tiering structure. Attachment(s): Item Status: Status Date:

Satisfied - Item: Rates and/or Rating Plans Comments: Attachment(s): NY UDPC Rate Filing Sequence Checklist.pdf NY UDPC Rate Manual - Base Rates.pdf Item Status: Status Date:

Satisfied - Item: Side-By-Side Comparisons Comments: Attachment(s): NY UDPC Exhibit RT1.pdf Item Status: Status Date:

Satisfied - Item: Actuarial Support Comments:

PDF Pipeline for SERFF Tracking Number UNTR-131292631 Generated 12/27/2017 04:01 PM SERFF Tracking #: UNTR-131292631 State Tracking #: R2017004467,R2017004467 Company Tracking #: UDP_20180209

NY UDPC Exhibit RF-2.pdf NY UDPC Exhibit RF-3.pdf NY UDPC Exhibit RF-4.pdf Attachment(s): NY UDPC Exhibit RT3.pdf NY UDPC Exhibit RT4.pdf NY UDPC Exhibit RT5.pdf NY UDPC Exhibit RT2.pdf Item Status: Status Date:

Satisfied - Item: Indication Support Comments: Attachment(s): NY UDPC Indication.pdf Item Status: Status Date:

PDF Pipeline for SERFF Tracking Number UNTR-131292631 Generated 12/27/2017 04:01 PM Unitrin Direct Property & Casualty Company New York Private Passenger Automobile: Flex Filing

FILING MEMORANDUM

Unitrin Direct Property & Casualty Company (UDPC) is proposing a revision to its Private Passenger Automobile Insurance program. UDPC proposes to implement the revisions effective April 1, 2018 for renewal business.

The proposed revision to the UDPC program is submitted as a Flex-Rating filing with a requested overall rate revision of +5.0% that includes the following coverage level adjustments:

Bodily Injury +6.0% Property Damage +6.0% Personal Injury Protection +17.5% Uninsured Motorist +13.0% Comprehensive -5.0% Collision -5.0% Rental Reimbursement 0.0%

Page 1 of 1

New York Insurance Department Rate Filing Sequence Checklist Insurer Name: Unitrin Direct Insurer File No.: UDP_20180209 Property & Casualty Company TOI: Sub-TOI: 19.001 19.0 Exhibit Name Exhibit Description Included Exhibits (all must be checked yes or no) Master List of Compliance Checklists Exhibit STM-1 YES NO (Not a speed-to-market filing) PDF Rate and/or Rating Plan Compliance Exhibit STM-2 YES NO (Not a speed-to-market filing) Certification PDF Supplemental Explanatory YES NO (General filing information on Transmittal Exhibit RF-1 Memorandum Document is complete) Exhibit RF-2 Actuarial Memorandum YES NO (Filing contains no actuarial data) YES NO (Filing pertains only to rating plans as defined by Exhibit RF-3 Expenses Section 161.1 of Regulation 129) Exhibit RF-4 Investment Income YES NO (Exhibit RF-3 not required) YES NO (Filing pertains only to rating plans as defined by Exhibit RT-1 Side-By-Side Comparison Section 161.1 of Regulation 129) Exhibit RT-2 Policyholder Rate Level Changes YES NO (No existing policyholders for this program) Exhibit RT-3 Policyholder Counts YES NO (No existing policyholders for this program) Exhibit RT-4 Insurer & Program Information YES NO (Exempt per detailed instructions) Exhibit RT-5 Flex-Rating Information YES NO (Filing not subject to flex-rating) Exhibit RSO-1 Rate Service Organization Adoptions YES NO (Independent rates or no RSO adoption) Exhibit RSO-2 Loss Cost Modification Support YES NO (Filing does not contain loss costs) YES NO (Filing support is based exclusively on judgment Exhibit EXP-1 Overall Rate Indications and/or competition) Exhibit EXP-2 Earned Premium Adjustments YES NO (Exhibit EXP-1 not required) Exhibit EXP-3 Incurred Loss Adjustments YES NO (Exhibit EXP-1 not required) Exhibit EXP-4 Credibility YES NO (Exhibit EXP-1 not required) Exhibit EXP-5 Class & Territory Indications YES NO (Exhibit EXP-1 not required) Rating Factor, Debit, Credit or Other Exhibit EXP-6 YES NO (Exhibit EXP-1 not required) Rating Charge Indications YES NO (Filing does not propose or modify a multi-tier Exhibit SUPP-1 Multi-Tier Programs program) Personal Lines Catastrophe YES NO (Filing is not a personal lines property filing or no Exhibit SUPP-2 Reinsurance Loads catastrophe reinsurance load applies) Homeowners Catastrophe & Hurricane YES NO (Filing does not propose or modify homeowners Exhibit SUPP-3 Deductibles catastrophe or hurricane deductibles) YES NO (Filing support is based exclusively on experience Exhibit JDG-1 Explanation of Key Areas of Judgment and/or competition) Exhibit JDG-2 Raw Loss Experience YES NO (No NY experience to provide) YES NO (Filing support is based exclusively on experience Exhibit CMP-1 Company Analysis and/or judgment) Exhibit CMP-2 Base Rate & Rating Factor Comparison YES NO (Exhibit CMP-1 does not apply) Exhibit CMP-3 Rate Analysis YES NO (Exhibit CMP-1 does not apply) Exhibit CMP-4 Raw Loss Experience YES NO (No NY experience to provide) YES NO (Filing does not include rating plans as defined by Exhibit RP-1 Rating Plans Section 161.1 of Regulation 129) YES NO (Filing does not include Experience, Retrospective Exhibit RP-2 Rating Plan Expected Loss Ratios or Composite Rating Plans of an RSO) Supplemental Experience Rating Plan YES NO (Filing does not include an independent Exhibit RP-3 Requirements Experience Rating Plan) YES NO (Filing only includes rating plans as defined by Exhibit MRP-1 Manual Rate Pages Section 161.1 of Regulation 129)

www.ins.state.ny.us Form Number NEWRATE (Ed. 03/2009) UNITRIN DIRECT PROPERTY & CASUALTY COMPANY NEW YORK PERSONAL AUTO RATES Base Rates (Annual)

Revision Date: 02/2018 Effective Date ‐ New: n/a Effective Date ‐ Renewal: 04/01/18 Page R‐1 UNITRIN DIRECT PROPERTY & CASUALTY COMPANY NEW YORK PERSONAL AUTO RATES Base Rates (Annual)

The financial responsibility limits are: BI $25,000/$50,000 PD $10,000

Revision Date: 02/2018 Effective Date ‐ New: n/a Effective Date ‐ Renewal: 04/01/18 Page R‐2 Unitrin Direct Property & Casualty Company New York Exhibit RT-1 (Base Rate)

Base Rate - Current Base Rate - Proposed Base Rate - % Difference Base Rate Base Rate Base Rate Territory 25/50 BI 10 PD Excess MED BASIC PIP $100 COLL $50 COMP UM/UIM Territory 25/50 BI 10 PD Excess MED BASIC PIP $100 COLL $50 COMP UM/UIM Territory 25/50 BI 10 PD Excess MED BASIC PIP $100 COLL $50 COMP UM/UIM 1 $1,149.00 $341.00 $3.00 $939.00 $854.00 $164.00 $50.00 1 $1,218.00 $361.00 $3.00 $1,103.00 $811.00 $156.00 $57.00 1 6.0% 5.9% 0.0% 17.5% -5.0% -4.9% 14.0% 3 $792.00 $296.00 $3.00 $947.00 $738.00 $160.00 $50.00 3 $840.00 $314.00 $3.00 $1,113.00 $701.00 $152.00 $57.00 3 6.1% 6.1% 0.0% 17.5% -5.0% -5.0% 14.0% 4 $973.00 $311.00 $3.00 $866.00 $759.00 $149.00 $50.00 4 $1,031.00 $330.00 $3.00 $1,018.00 $721.00 $142.00 $57.00 4 6.0% 6.1% 0.0% 17.6% -5.0% -4.7% 14.0% 5 $745.00 $370.00 $3.00 $1,176.00 $650.00 $157.00 $50.00 5 $790.00 $392.00 $3.00 $1,382.00 $618.00 $149.00 $57.00 5 6.0% 5.9% 0.0% 17.5% -4.9% -5.1% 14.0% 6 $237.00 $292.00 $3.00 $393.00 $311.00 $29.00 $19.00 6 $251.00 $310.00 $3.00 $462.00 $295.00 $28.00 $21.00 6 5.9% 6.2% 0.0% 17.6% -5.1% -3.4% 10.5% 7 $419.00 $393.00 $3.00 $692.00 $431.00 $68.00 $19.00 7 $444.00 $417.00 $3.00 $813.00 $409.00 $65.00 $21.00 7 6.0% 6.1% 0.0% 17.5% -5.1% -4.4% 10.5% 8 $211.00 $363.00 $3.00 $372.00 $311.00 $35.00 $19.00 8 $224.00 $385.00 $3.00 $437.00 $295.00 $33.00 $21.00 8 6.2% 6.1% 0.0% 17.5% -5.1% -5.7% 10.5% 9 $188.00 $341.00 $3.00 $400.00 $315.00 $22.00 $19.00 9 $199.00 $361.00 $3.00 $470.00 $299.00 $21.00 $21.00 9 5.9% 5.9% 0.0% 17.5% -5.1% -4.5% 10.5% 10 $245.00 $299.00 $3.00 $434.00 $274.00 $30.00 $19.00 10 $260.00 $317.00 $3.00 $510.00 $260.00 $29.00 $21.00 10 6.1% 6.0% 0.0% 17.5% -5.1% -3.3% 10.5% 11 $121.00 $311.00 $3.00 $223.00 $300.00 $28.00 $19.00 11 $128.00 $330.00 $3.00 $262.00 $285.00 $27.00 $21.00 11 5.8% 6.1% 0.0% 17.5% -5.0% -3.6% 10.5% 13 $196.00 $335.00 $3.00 $360.00 $327.00 $28.00 $19.00 13 $208.00 $355.00 $3.00 $423.00 $311.00 $27.00 $21.00 13 6.1% 6.0% 0.0% 17.5% -4.9% -3.6% 10.5% 14 $245.00 $299.00 $3.00 $434.00 $274.00 $30.00 $19.00 14 $260.00 $317.00 $3.00 $510.00 $260.00 $29.00 $21.00 14 6.1% 6.0% 0.0% 17.5% -5.1% -3.3% 10.5% 15 $293.00 $370.00 $3.00 $474.00 $343.00 $44.00 $19.00 15 $311.00 $392.00 $3.00 $557.00 $326.00 $42.00 $21.00 15 6.1% 5.9% 0.0% 17.5% -5.0% -4.5% 10.5% 16 $252.00 $299.00 $3.00 $443.00 $312.00 $22.00 $19.00 16 $267.00 $317.00 $3.00 $521.00 $296.00 $21.00 $21.00 16 6.0% 6.0% 0.0% 17.6% -5.1% -4.5% 10.5% 17 $1,113.00 $372.00 $3.00 $1,580.00 $806.00 $278.00 $50.00 17 $1,180.00 $394.00 $3.00 $1,857.00 $766.00 $264.00 $57.00 17 6.0% 5.9% 0.0% 17.5% -5.0% -5.0% 14.0% 18 $691.00 $269.00 $3.00 $638.00 $622.00 $168.00 $50.00 18 $732.00 $285.00 $3.00 $750.00 $591.00 $160.00 $57.00 18 5.9% 5.9% 0.0% 17.6% -5.0% -4.8% 14.0% 19 $784.00 $296.00 $3.00 $879.00 $733.00 $175.00 $50.00 19 $831.00 $314.00 $3.00 $1,033.00 $696.00 $166.00 $57.00 19 6.0% 6.1% 0.0% 17.5% -5.0% -5.1% 14.0% 21 $595.00 $437.00 $3.00 $664.00 $563.00 $99.00 $28.00 21 $631.00 $463.00 $3.00 $780.00 $535.00 $94.00 $32.00 21 6.1% 5.9% 0.0% 17.5% -5.0% -5.1% 14.3% 24 $253.00 $315.00 $3.00 $400.00 $309.00 $35.00 $18.00 24 $268.00 $334.00 $3.00 $470.00 $294.00 $33.00 $20.00 24 5.9% 6.0% 0.0% 17.5% -4.9% -5.7% 11.1% 25 $171.00 $254.00 $3.00 $279.00 $254.00 $37.00 $18.00 25 $181.00 $269.00 $3.00 $328.00 $241.00 $35.00 $20.00 25 5.8% 5.9% 0.0% 17.6% -5.1% -5.4% 11.1% 27 $131.00 $226.00 $3.00 $309.00 $284.00 $36.00 $19.00 27 $139.00 $240.00 $3.00 $363.00 $270.00 $34.00 $21.00 27 6.1% 6.2% 0.0% 17.5% -4.9% -5.6% 10.5% 28 $152.00 $250.00 $3.00 $347.00 $272.00 $28.00 $19.00 28 $161.00 $265.00 $3.00 $408.00 $258.00 $27.00 $21.00 28 5.9% 6.0% 0.0% 17.6% -5.1% -3.6% 10.5% 29 $194.00 $250.00 $3.00 $270.00 $290.00 $27.00 $18.00 29 $206.00 $265.00 $3.00 $317.00 $276.00 $26.00 $20.00 29 6.2% 6.0% 0.0% 17.4% -4.8% -3.7% 11.1% 30 $256.00 $302.00 $3.00 $454.00 $315.00 $23.00 $19.00 30 $271.00 $320.00 $3.00 $533.00 $299.00 $22.00 $21.00 30 5.9% 6.0% 0.0% 17.4% -5.1% -4.3% 10.5% 31 $134.00 $226.00 $3.00 $275.00 $284.00 $41.00 $19.00 31 $142.00 $240.00 $3.00 $323.00 $270.00 $39.00 $21.00 31 6.0% 6.2% 0.0% 17.5% -4.9% -4.9% 10.5% 32 $388.00 $331.00 $3.00 $793.00 $446.00 $48.00 $19.00 32 $411.00 $351.00 $3.00 $932.00 $424.00 $46.00 $21.00 32 5.9% 6.0% 0.0% 17.5% -4.9% -4.2% 10.5% 33 $314.00 $331.00 $3.00 $603.00 $395.00 $37.00 $19.00 33 $333.00 $351.00 $3.00 $709.00 $375.00 $35.00 $21.00 33 6.1% 6.0% 0.0% 17.6% -5.1% -5.4% 10.5% 34 $197.00 $279.00 $3.00 $350.00 $314.00 $28.00 $15.00 34 $209.00 $296.00 $3.00 $411.00 $298.00 $27.00 $17.00 34 6.1% 6.1% 0.0% 17.4% -5.1% -3.6% 13.3% 35 $194.00 $270.00 $3.00 $368.00 $311.00 $32.00 $15.00 35 $206.00 $286.00 $3.00 $432.00 $295.00 $30.00 $17.00 35 6.2% 5.9% 0.0% 17.4% -5.1% -6.3% 13.3% 36 $207.00 $270.00 $3.00 $392.00 $315.00 $24.00 $19.00 36 $219.00 $286.00 $3.00 $461.00 $299.00 $23.00 $21.00 36 5.8% 5.9% 0.0% 17.6% -5.1% -4.2% 10.5% 37 $207.00 $257.00 $3.00 $283.00 $285.00 $27.00 $18.00 37 $219.00 $272.00 $3.00 $333.00 $271.00 $26.00 $20.00 37 5.8% 5.8% 0.0% 17.7% -4.9% -3.7% 11.1% 39 $120.00 $302.00 $3.00 $219.00 $290.00 $28.00 $19.00 39 $127.00 $320.00 $3.00 $257.00 $276.00 $27.00 $21.00 39 5.8% 6.0% 0.0% 17.4% -4.8% -3.6% 10.5% 40 $138.00 $228.00 $3.00 $327.00 $284.00 $36.00 $19.00 40 $146.00 $242.00 $3.00 $384.00 $270.00 $34.00 $21.00 40 5.8% 6.1% 0.0% 17.4% -4.9% -5.6% 10.5% 41 $286.00 $302.00 $3.00 $438.00 $315.00 $37.00 $19.00 41 $303.00 $320.00 $3.00 $515.00 $299.00 $35.00 $21.00 41 5.9% 6.0% 0.0% 17.6% -5.1% -5.4% 10.5% 42 $211.00 $322.00 $3.00 $400.00 $332.00 $35.00 $19.00 42 $224.00 $341.00 $3.00 $470.00 $315.00 $33.00 $21.00 42 6.2% 5.9% 0.0% 17.5% -5.1% -5.7% 10.5% 43 $246.00 $265.00 $3.00 $434.00 $301.00 $33.00 $19.00 43 $261.00 $281.00 $3.00 $510.00 $286.00 $31.00 $21.00 43 6.1% 6.0% 0.0% 17.5% -5.0% -6.1% 10.5% 44 $152.00 $249.00 $3.00 $341.00 $270.00 $28.00 $19.00 44 $161.00 $264.00 $3.00 $401.00 $257.00 $27.00 $21.00 44 5.9% 6.0% 0.0% 17.6% -4.8% -3.6% 10.5% 46 $315.00 $349.00 $3.00 $514.00 $507.00 $50.00 $19.00 46 $334.00 $370.00 $3.00 $604.00 $482.00 $48.00 $21.00 46 6.0% 6.0% 0.0% 17.5% -4.9% -4.0% 10.5% 47 $250.00 $273.00 $3.00 $411.00 $286.00 $41.00 $19.00 47 $265.00 $289.00 $3.00 $483.00 $272.00 $39.00 $21.00 47 6.0% 5.9% 0.0% 17.5% -4.9% -4.9% 10.5% 48 $121.00 $303.00 $3.00 $219.00 $293.00 $28.00 $19.00 48 $128.00 $321.00 $3.00 $257.00 $278.00 $27.00 $21.00 48 5.8% 5.9% 0.0% 17.4% -5.1% -3.6% 10.5% 49 $230.00 $254.00 $3.00 $428.00 $307.00 $33.00 $19.00 49 $244.00 $269.00 $3.00 $503.00 $292.00 $31.00 $21.00 49 6.1% 5.9% 0.0% 17.5% -4.9% -6.1% 10.5% 51 $152.00 $246.00 $3.00 $237.00 $251.00 $37.00 $19.00 51 $161.00 $261.00 $3.00 $278.00 $238.00 $35.00 $21.00 51 5.9% 6.1% 0.0% 17.3% -5.2% -5.4% 10.5% 52 $203.00 $281.00 $3.00 $378.00 $311.00 $32.00 $15.00 52 $215.00 $298.00 $3.00 $444.00 $295.00 $30.00 $17.00 52 5.9% 6.0% 0.0% 17.5% -5.1% -6.3% 13.3% 53 $987.00 $392.00 $3.00 $991.00 $701.00 $215.00 $44.00 53 $1,046.00 $416.00 $3.00 $1,164.00 $666.00 $204.00 $50.00 53 6.0% 6.1% 0.0% 17.5% -5.0% -5.1% 13.6% 54 $164.00 $254.00 $3.00 $316.00 $295.00 $33.00 $19.00 54 $174.00 $269.00 $3.00 $371.00 $280.00 $31.00 $21.00 54 6.1% 5.9% 0.0% 17.4% -5.1% -6.1% 10.5% 55 $1,017.00 $381.00 $3.00 $1,093.00 $738.00 $210.00 $50.00 55 $1,078.00 $404.00 $3.00 $1,284.00 $701.00 $200.00 $57.00 55 6.0% 6.0% 0.0% 17.5% -5.0% -4.8% 14.0% 56 $245.00 $290.00 $3.00 $429.00 $305.00 $22.00 $19.00 56 $260.00 $307.00 $3.00 $504.00 $290.00 $21.00 $21.00 56 6.1% 5.9% 0.0% 17.5% -4.9% -4.5% 10.5% 57 $360.00 $311.00 $3.00 $684.00 $395.00 $37.00 $15.00 57 $382.00 $330.00 $3.00 $804.00 $375.00 $35.00 $17.00 57 6.1% 6.1% 0.0% 17.5% -5.1% -5.4% 13.3% 58 $360.00 $311.00 $3.00 $684.00 $395.00 $37.00 $15.00 58 $382.00 $330.00 $3.00 $804.00 $375.00 $35.00 $17.00 58 6.1% 6.1% 0.0% 17.5% -5.1% -5.4% 13.3% 59 $315.00 $315.00 $3.00 $554.00 $422.00 $56.00 $19.00 59 $334.00 $334.00 $3.00 $651.00 $401.00 $53.00 $21.00 59 6.0% 6.0% 0.0% 17.5% -5.0% -5.4% 10.5% 60 $250.00 $273.00 $3.00 $411.00 $299.00 $41.00 $19.00 60 $265.00 $289.00 $3.00 $483.00 $284.00 $39.00 $21.00 60 6.0% 5.9% 0.0% 17.5% -5.0% -4.9% 10.5% 61 $226.00 $296.00 $3.00 $434.00 $362.00 $37.00 $19.00 61 $240.00 $314.00 $3.00 $510.00 $344.00 $35.00 $21.00 61 6.2% 6.1% 0.0% 17.5% -5.0% -5.4% 10.5% 62 $334.00 $318.00 $3.00 $699.00 $406.00 $46.00 $19.00 62 $354.00 $337.00 $3.00 $821.00 $386.00 $44.00 $21.00 62 6.0% 6.0% 0.0% 17.5% -4.9% -4.3% 10.5% 64 $332.00 $303.00 $3.00 $791.00 $430.00 $53.00 $19.00 64 $352.00 $321.00 $3.00 $929.00 $409.00 $50.00 $21.00 64 6.0% 5.9% 0.0% 17.4% -4.9% -5.7% 10.5% 65 $326.00 $323.00 $3.00 $456.00 $516.00 $53.00 $19.00 65 $346.00 $342.00 $3.00 $536.00 $490.00 $50.00 $21.00 65 6.1% 5.9% 0.0% 17.5% -5.0% -5.7% 10.5% 67 $195.00 $249.00 $3.00 $236.00 $284.00 $24.00 $19.00 67 $207.00 $264.00 $3.00 $277.00 $270.00 $23.00 $21.00 67 6.2% 6.0% 0.0% 17.4% -4.9% -4.2% 10.5% 68 $429.00 $381.00 $3.00 $633.00 $527.00 $48.00 $19.00 68 $455.00 $404.00 $3.00 $744.00 $501.00 $46.00 $21.00 68 6.1% 6.0% 0.0% 17.5% -4.9% -4.2% 10.5% 69 $627.00 $414.00 $3.00 $709.00 $550.00 $86.00 $28.00 69 $665.00 $439.00 $3.00 $833.00 $523.00 $82.00 $32.00 69 6.1% 6.0% 0.0% 17.5% -4.9% -4.7% 14.3% 70 $647.00 $427.00 $3.00 $736.00 $567.00 $82.00 $28.00 70 $686.00 $453.00 $3.00 $865.00 $539.00 $78.00 $32.00 70 6.0% 6.1% 0.0% 17.5% -4.9% -4.9% 14.3% 71 $196.00 $279.00 $3.00 $282.00 $278.00 $22.00 $19.00 71 $208.00 $296.00 $3.00 $331.00 $264.00 $21.00 $21.00 71 6.1% 6.1% 0.0% 17.4% -5.0% -4.5% 10.5% 72 $217.00 $254.00 $3.00 $387.00 $344.00 $41.00 $19.00 72 $230.00 $269.00 $3.00 $455.00 $327.00 $39.00 $21.00 72 6.0% 5.9% 0.0% 17.6% -4.9% -4.9% 10.5% 73 $177.00 $276.00 $3.00 $354.00 $315.00 $28.00 $15.00 73 $188.00 $293.00 $3.00 $416.00 $299.00 $27.00 $17.00 73 6.2% 6.2% 0.0% 17.5% -5.1% -3.6% 13.3% 74 $176.00 $260.00 $3.00 $317.00 $311.00 $30.00 $19.00 74 $187.00 $276.00 $3.00 $372.00 $295.00 $29.00 $21.00 74 6.3% 6.2% 0.0% 17.4% -5.1% -3.3% 10.5% 76 $629.00 $392.00 $3.00 $876.00 $523.00 $63.00 $28.00 76 $667.00 $416.00 $3.00 $1,029.00 $497.00 $60.00 $32.00 76 6.0% 6.1% 0.0% 17.5% -5.0% -4.8% 14.3% 77 $745.00 $440.00 $3.00 $888.00 $602.00 $104.00 $28.00 77 $790.00 $466.00 $3.00 $1,043.00 $572.00 $99.00 $32.00 77 6.0% 5.9% 0.0% 17.5% -5.0% -4.8% 14.3% 78 $735.00 $440.00 $3.00 $825.00 $589.00 $103.00 $28.00 78 $779.00 $466.00 $3.00 $969.00 $560.00 $98.00 $32.00 78 6.0% 5.9% 0.0% 17.5% -4.9% -4.9% 14.3% 79 $718.00 $425.00 $3.00 $848.00 $583.00 $100.00 $28.00 79 $761.00 $451.00 $3.00 $996.00 $554.00 $95.00 $32.00 79 6.0% 6.1% 0.0% 17.5% -5.0% -5.0% 14.3% 80 $338.00 $195.00 $3.00 $467.00 $274.00 $35.00 $15.00 80 $358.00 $207.00 $3.00 $549.00 $260.00 $33.00 $17.00 80 5.9% 6.2% 0.0% 17.6% -5.1% -5.7% 13.3% 81 $441.00 $315.00 $3.00 $921.00 $468.00 $78.00 $15.00 81 $467.00 $334.00 $3.00 $1,082.00 $445.00 $74.00 $17.00 81 5.9% 6.0% 0.0% 17.5% -4.9% -5.1% 13.3% 82 $459.00 $315.00 $3.00 $1,007.00 $510.00 $82.00 $19.00 82 $487.00 $334.00 $3.00 $1,183.00 $485.00 $78.00 $21.00 82 6.1% 6.0% 0.0% 17.5% -4.9% -4.9% 10.5% 83 $424.00 $294.00 $3.00 $877.00 $437.00 $74.00 $15.00 83 $449.00 $312.00 $3.00 $1,030.00 $415.00 $70.00 $17.00 83 5.9% 6.1% 0.0% 17.4% -5.0% -5.4% 13.3% 84 $141.00 $230.00 $3.00 $331.00 $284.00 $36.00 $19.00 84 $149.00 $244.00 $3.00 $389.00 $270.00 $34.00 $21.00 84 5.7% 6.1% 0.0% 17.5% -4.9% -5.6% 10.5% 86 $188.00 $272.00 $3.00 $357.00 $299.00 $34.00 $19.00 86 $199.00 $288.00 $3.00 $419.00 $284.00 $32.00 $21.00 86 5.9% 5.9% 0.0% 17.4% -5.0% -5.9% 10.5% 87 $112.00 $292.00 $3.00 $202.00 $270.00 $24.00 $15.00 87 $119.00 $310.00 $3.00 $237.00 $257.00 $23.00 $17.00 87 6.3% 6.2% 0.0% 17.3% -4.8% -4.2% 13.3% 89 $1,300.00 $331.00 $3.00 $1,715.00 $937.00 $203.00 $50.00 89 $1,378.00 $351.00 $3.00 $2,015.00 $890.00 $193.00 $57.00 89 6.0% 6.0% 0.0% 17.5% -5.0% -4.9% 14.0% 90 $1,300.00 $331.00 $3.00 $1,715.00 $937.00 $203.00 $50.00 90 $1,378.00 $351.00 $3.00 $2,015.00 $890.00 $193.00 $57.00 90 6.0% 6.0% 0.0% 17.5% -5.0% -4.9% 14.0% 91 $685.00 $408.00 $3.00 $899.00 $514.00 $68.00 $28.00 91 $726.00 $432.00 $3.00 $1,056.00 $488.00 $65.00 $32.00 91 6.0% 5.9% 0.0% 17.5% -5.1% -4.4% 14.3% 92 $702.00 $394.00 $3.00 $941.00 $563.00 $73.00 $28.00 92 $744.00 $418.00 $3.00 $1,106.00 $535.00 $69.00 $32.00 92 6.0% 6.1% 0.0% 17.5% -5.0% -5.5% 14.3% 93 $360.00 $311.00 $3.00 $684.00 $395.00 $37.00 $15.00 93 $382.00 $330.00 $3.00 $804.00 $375.00 $35.00 $17.00 93 6.1% 6.1% 0.0% 17.5% -5.1% -5.4% 13.3% 94 $502.00 $349.00 $3.00 $659.00 $680.00 $97.00 $28.00 94 $532.00 $370.00 $3.00 $774.00 $646.00 $92.00 $32.00 94 6.0% 6.0% 0.0% 17.5% -5.0% -5.2% 14.3% 95 $438.00 $335.00 $3.00 $501.00 $534.00 $51.00 $28.00 95 $464.00 $355.00 $3.00 $589.00 $507.00 $48.00 $32.00 95 5.9% 6.0% 0.0% 17.6% -5.1% -5.9% 14.3% 97 $380.00 $346.00 $3.00 $443.00 $551.00 $76.00 $19.00 97 $403.00 $367.00 $3.00 $521.00 $523.00 $72.00 $21.00 97 6.1% 6.1% 0.0% 17.6% -5.1% -5.3% 10.5% 102 $112.00 $292.00 $3.00 $202.00 $270.00 $24.00 $15.00 102 $119.00 $310.00 $3.00 $237.00 $257.00 $23.00 $17.00 102 6.3% 6.2% 0.0% 17.3% -4.8% -4.2% 13.3% 121 $237.00 $292.00 $3.00 $393.00 $311.00 $29.00 $19.00 121 $251.00 $310.00 $3.00 $462.00 $295.00 $28.00 $21.00 121 5.9% 6.2% 0.0% 17.6% -5.1% -3.4% 10.5% 128 $224.00 $301.00 $3.00 $411.00 $312.00 $24.00 $19.00 128 $237.00 $319.00 $3.00 $483.00 $296.00 $23.00 $21.00 128 5.8% 6.0% 0.0% 17.5% -5.1% -4.2% 10.5% 129 $334.00 $331.00 $3.00 $450.00 $332.00 $24.00 $19.00 129 $354.00 $351.00 $3.00 $529.00 $315.00 $23.00 $21.00 129 6.0% 6.0% 0.0% 17.6% -5.1% -4.2% 10.5% Unitrin Direct Property & Casualty Company Private Passenger Automobile Program Rate Filing for New York Exhibit 2.1

Calculation of Indications

This exhibit contains 3 sections: I. An explanation of our indication methodology II. The Indication Summary Table III. The calculation of the indications by coverage

I. Explanation of Indication Methodology

* Formulaic Indications Our indications are entirely formulaic; that is, they use formulas to select loss development factors, loss trends, premium trends, and so forth. The benefits to this approach, as compared to judgmental selections, are as follows: * accuracy - our backtesting guides us to use and refine the best available statistical and actuarial methods. * consistency - our methods are consistent from state to state and program to program. * objectivity - our methods do not depend on human subjectivity (i.e. whether the analyst is in a particularly optimistic or pessimistic mood that day). * efficiency - formulaic indications allow us to run approximately 300 indications a year with a small staff.

* Backtesting of Methods Most industry-standard indication models are static and use traditional, but untested methodologies. For our indication model, we have extensively backtested several competing methods to select those that perform best on actual data. Our test results and selected actuarial methodologies are described in the introduction to each filing exhibit. We backtested methods according to statistical principles as described in "The Elements of Statistical Learning - Data Mining, Inference and Prediction", Hastie, Tibshirani and Friedman, 2nd edition (2009).

* Data We use total limits experience for liability coverages, and all deductible experience for physical damage. (However, to increase credibility and reduce variability of the indication, we cap UM/UIM losses and PIP losses for Michigan and New Jersey. Please see Exhibit 2.6-2.7 for an explanation of the rationale and methodology.)

* Indication Formula -- Our indication formula accounts separately for fixed and variable expenses, which moderates the indication as compared to an indication that assumes all expenses are premium variable. The formula is described in "Foundations of Casualty Actuarial Science", 4th edition, Chapter 3 ("Ratemaking"), p.89. -- Our indication formula is as follows: Indication =(L + F) / (1 - V - P) - 1 where: L = loss ratio F = fixed expense ratio V = variable expense ratio P = profit ratio Unitrin Direct Property & Casualty Company Private Passenger Automobile Program Rate Filing for New York Exhibit 2.2

* Accident Year Indication Weights To calculate the total indication for each coverage, we calculate a weighted average of the indications by accident year using one of the two methods discussed below. The two methods were derived from extensive backtesting on historical data for each coverage.

1. For Property Damage, PIP, Comprehensive, Collision and Rental We weight each accident year by its share of total claim count, and in addition, we apply a second set of progressively declining weights to each accident year as it gets older, to reflect its relative recency and predictiveness. Lastly, we apply a credibility criterion so that, if the first two years are fully credible, we ignore the third (oldest) year. If the first year is fully credible, we apply a maximum weight of 70% to that year, and 30% to the middle year.

2. For Bodily Injury, UM/UIM, UMPD and Medical Payments We weight each accident year simply according to its share of total earned premium. -- For the long-tailed coverages of BI and UM/UIM, our backtesting showed that the most recent year is not necessarily the most predictive of future loss experience, because the value of its recency is approximately offset by the higher chance variation created by the larger percentage of claims that are reserved (not paid). -- Though UMPD and Medical Payments are short-tailed and not subject to significant development the claim counts are typically so low as to introduce excessive instability to a method that relies on them.

* Earned Premium at Current Rate Level We calculate premiums at current rate level using a three dimensional parallelogram method that accounts for exposure growth during the experience period as described in "A Refined Model for Premium Adjustment", David Miller and George Davis, PCAS 1976.

* Acquisition Charges -- Acquisition Charges are intended to defray the costs associated with acquiring policies; these costs include the costs of MVR, CLUE and credit reports, and policy processing costs. These costs are assumed to be fixed per policy, rather than premium variable. Consequently, we charge our customers a fixed premium amount per policy which we refer to as Fixed Acquisition Expense (FAE) in our older-generation programs, and Direct Acquisition Expense (DAE) and Flat Acquisition Charge (FAC) in our newer-generation programs. -- In our indications, we allocate FAE or DAE & FAC premium to all coverages in proportion to each coverage's percent of overall premium. Unitrin Direct Property & Casualty Company Private Passenger Automobile Program Rate Filing for New York Exhibit 2.3

* Credibility We apply credibility-weighting in order to ensure that our indications do not fluctuate excessively due to chance variation of the loss experience. We use a form of credibility theory called "limited fluctuation credibility" (also known as "classical credibility"), as described in "Foundations of Casualty Actuarial Science", 4th edition, chapter 8, pp 488-516.

The application of credibility uses 4 steps: 1. Select an error tolerance k and Probability level P. 2. Calculate coefficients of variation for each coverage. 3. Calculate Standards of Full Credibility (SFCs) using the results of steps (1) and (2) above. 4. Select a complement of credibility.

1. Select an error tolerance k and Probability level P We have selected standards of full credibility corresponding to:

error tolerance k = 0.11, Probability level P = 90%

Our selection of these standards is based on the results of a series of backtests of our previous indications. These backtests were extensive - covering 3 years, 7 coverages, 25 states and several companies in our Direct, Merastar and Response businesses - approximately 1,260 tests in total. The tests indicated that the selected parameters produce standards of full credibility that most accurately balance the twin requirements of responsiveness to loss experience and stability of the indication.

2. Calculate coefficients of variation for each coverage We calculated coefficients of variation for each coverage using our size of loss data for the 3 accident year period from 1/1/2004 through 12/31/2006, evaluated at 4/30/2009. We used older experience periods to allow time for most losses to be paid, since we are interested in the variability of the ultimate paid amounts, not of the case-incurred losses that would include a significant percentage of case reserves. The table on the following page displays the calculated coefficients of variation.

3. Calculate Standards of Full Credibility (SFCs) using the results of steps (1) and (2) above For each coverage, we calculate the standard of full credibility using the following formula: SFC = a * ( 1 + cv2 ) where: SFC = standard of full credibility based on variability of total loss cost a = standard of full credibility based on variability of claim count only cv = coefficient of variation for claim size distribution Unitrin Direct Property & Casualty Company Private Passenger Automobile Program Rate Filing for New York Exhibit 2.4

The following table displays the calculated coefficients of variation and standards of full credibility for our selected error tolerance k=0.11 and probability level P=90%:

Coverage / State CV SFC BI - Med States 1.79 942 BI - PIP States 1.53 748 PD 1.15 520 UM/UIM 1.60 797 UM/UIM - capped 1.15 520 UMPD 1.27 585 Med Pay 1.08 485 PIP - Low Limit 1.03 462 PIP - MN 1.54 755 PIP - NY 1.54 755 PIP - NJ 2.16 1,269 PIP - NJ - capped 1.62 812 PIP - MI 2.84 2,031 PIP - MI - capped 2.03 1,147 Comp 2.11 1,221 Collision 1.31 608 Rental 0.61 307

Note: For UM in all states, and PIP in Michigan and New Jersey, we cap losses and apply an excess loss factor as described in Exhibit 2.5. Loss capping reduces the variability of loss size and the coefficients of variation, and consequently reduces the standards of full credibility, as shown in the table above.

A note on the definition of claim count 1. We define 'claim' to be 'coverage-claimant'. This means that if an accident injures two individuals and damages two vehicles, we count this as two BI claims and two PD claims. 2. We use incurred claim count, which is defined as follows: incurred claim count = # closed claims + # open claims with payment + # open claims without payment Incurred claim count does not include # closed without payment; this is consistent with the way we define claims for the calculation of the mean, standard deviation and coefficient of variation of our claim size distribution. Unitrin Direct Property & Casualty Company Private Passenger Automobile Program Rate Filing for New York Exhibit 2.5

4. Select a complement of credibility The alternate data source is Net Trend, which reflects the amount of trend that has occurred since the last rate change.

* The formula for Net Trend, calculated separately by coverage, is as follows: Net Trend = [(1 + Annual Loss Trend) / (1 + Annual Premium Trend)]exp(Trend Span) - 1

* The formula for Trend Span, which is identical for all coverages, is as follows: Trend Span = Proposed Revision Date - Current Revision Date (We do not allow Trend Span to exceed 2 years.)

Proposed Revision Date: 27-Feb-18 Current Revision Date: 17-Jan-14 Trend Span (in years): 2.00

Annual Annual Loss Premium Coverage Trend Trend Net Trend BI 4.6% 0.0% 9.4% PD 5.7% 0.0% 11.7% UM/UIM 4.6% 0.0% 9.4% UMPD 5.7% 0.0% 11.7% Med Pay 4.6% 0.0% 9.4% PIP 5.5% 0.0% 11.2% Comp 4.2% 4.8% -1.2% Coll 5.6% 4.9% 1.5% Rental 3.0% 0.0% 6.1% Unitrin Direct Property & Casualty Company Private Passenger Automobile Program Rate Filing for New York Exhibit 2.6

* Loss Capping For UM/UIM coverage in all states and PIP coverage in Michigan and New Jersey, we cap losses and apply an excess loss factor (ELF) to the capped losses. The purpose of loss capping is to increase the accuracy and decrease the variability of our estimate of ultimate loss that is caused by the presence (or absence) of large losses.

We cap losses at the levels shown below, on a per-claimant basis: -- UM/UIM in all states: $50,000 -- PIP in Michigan and New Jersey: $100,000

Loss capping is generally recognized to be beneficial for coverages whose distribution of losses is heavy-tailed, particularly if that coverage also has low claim frequency. In these cases, the law of large numbers does not sufficiently take effect, and the uncapped estimate of ultimate losses is quite variable and may lead to inaccurate and volatile rate indications.

Loss capping is commonly used in indications for insurance lines with large liability limits, such as Commercial Auto and Med Mal. For Private Passenger Auto insurance, loss capping appears beneficial in the two specific instances described below: 1. For UM/UIM coverage because of its heavy-tailed severity distribution, and its low claim frequency. 2. For PIP coverage, which has very heavy-tailed distributions in the two states that provide generous benefit levels - Michigan (unlimited insured benefits with the insurer subject to maximum loss of $480,000 per injured person) and New Jersey ($250,000 maximum medical benefit, plus limited wage loss benefit).

Although loss capping decreases the variability of the estimate of ultimate loss, it comes at a price (there is no free lunch!), which is that it introduces bias in the estimate, because the excess loss factor (ELF) is not known a priori and must be estimated using older historical data. (This is akin to the procedure in Comprehensive coverage of eliminating Catastrophe losses and applying a Catastrophe factor that is based on a longer experience period.)

To determine whether loss capping creates a beneficial variance-bias tradeoff, we employed monte carlo simulation to test whether capped losses with an ELF produced a better estimate of ultimate loss than the standard uncapped estimate. We simulated thousands of samples from the empirical distribution of historic losses, with three sample sizes for UM/UIM, and one sample size for PIP. For UM/UIM, the sample sizes were 25, 75 and 225 claims, reflecting typical claim counts from a 3-year experience period for our small, medium and large programs. For PIP, the sample size was 600 claims, reflecting the approximate size of our Michigan and New Jersey programs.

We also introduced random error into our estimate of the ELF, to reflect the fact that the ELF is not known a priori and consequently must be estimated.

Our tests showed that the capped loss + ELF method reduced prediction error as follows: -- for UM, 33%, 26% and 21% for small, medium and large programs -- for MI PIP, approximately 12% -- for NJ PIP, approximately 25%

We also tested various cap levels, and found that the selected cap levels ($50,000 for UM/UIM in all states, and $100,000 for Michigan and New Jersey PIP) best balance the variance-bias tradeoff and produces the lowest prediction error. Unitrin Direct Property & Casualty Company Private Passenger Automobile Program Rate Filing for New York Exhibit 2.7

Calculation of Excess Loss Factors We used data from the four accident year period of 2004-07 through 2008-06, evaluated at 2010-08. (We did not use newer accident years in order to restrict ourselves to losses that have been paid, and avoid losses that are reserved.) Losses were trended at approximately 5% per year, to an estimated future payment date of 2011-12. For UM, we grouped states into one of four categories regarding state law (Tort v. No-Fault, UM Stacking v. No Stacking), which our data suggests materially affects the likelihood of large loss: -- Tort, UM stacking = no; lowest risk -- Tort, UM stacking = yes; low risk -- No Fault, UM stacking = no; medium risk -- No Fault, UM stacking = yes; higher risk

The table below displays our calculated ELFs from the data described above.

($50k cap) ($100k cap) UM/UIM PIP Alabama 1.27 N/A Arizona 1.21 N/A Arkansas 1.40 N/A California 1.21 N/A Colorado 1.27 N/A Connecticut 1.21 N/A Countrywide 1.27 N/A Delaware 1.21 N/A Florida 1.40 N/A Georgia 1.21 N/A Illinois 1.21 N/A Indiana 1.27 N/A Iowa 1.21 N/A Kentucky 1.40 N/A Louisiana 1.21 N/A Maryland 1.21 N/A Michigan 1.33 1.76 Minnesota 1.33 N/A Mississippi 1.27 N/A Missouri 1.21 N/A Nevada 1.27 N/A New Jersey 1.33 1.15 New York 1.33 N/A North Carolina 1.21 N/A Ohio 1.27 N/A Oregon 1.21 N/A Pennsylvania 1.40 N/A South Carolina 1.27 N/A Tennessee 1.21 N/A Texas 1.21 N/A Virginia 1.21 N/A Washington 1.21 N/A Wisconsin 1.27 N/A

Unitrin Direct Property & Casualty Company Private Passenger Automobile Program Rate Filing for New York Exhibit 2.8

II. Indication Summary Table

Indication Incurred Standard Complement Credibility Trailing 3 Month Before Claimant Of Full of Credibility Weighted Earned Premium Coverage Cred. Weighting Count Credibility Credibility Net Trend Indication Distribution

Bodily Injury 2.4% 7 748 0.10 9.4% 8.7% 26.0% Prop. Damage -4.1% 21 520 0.20 11.7% 8.6% 13.2%

UM/UIM 104.8% 2 520 0.06 9.4% 15.3% 3.2% PIP 65.2% 21 755 0.17 11.2% 20.2% 22.1%

Comprehensive -52.4% 15 1,221 0.11 -1.2% -6.9% 10.2% Collision -28.0% 35 608 0.24 1.5% -5.6% 24.8% Rental 13.9% 13 307 0.21 6.1% 7.7% 0.6%

Total Coverages 5.6% 6.3% 100.0%

A Note on Experience Periods Our indication experience period consists of three accident years evaluated as of the last day of the last month of the most recent accident year. The three accident years are shown below:

Accident Year 12 Months Ending 25-36 30-Sep-15 13-24 30-Sep-16 1-12 30-Sep-17 Unitrin Direct Property & Casualty Company Private Passenger Automobile Program Rate Filing for New York Exhibit 2.9

III. Indications by Coverage (Before Credibility Weighting)

<------Accident Years ------> Bodily Injury 25-36 13-24 1-12 Total (1) Earned Premium 163,219 120,121 93,311 376,652 (2) Current Rate Level Factor 1.00 1.00 1.00 1.00 (3) Premium Trend Factor 1.00 1.00 1.00 1.00 (4) EP @ CRL (including premium trend) 163,219 120,121 93,311 376,652 (5) Allocated FAE premium @ CRL 93 90 88 271 (6) EP @ CRL (including FAE premium) 163,313 120,211 93,399 376,923 (7) Developed Incurred Loss+ALAE 156,920 1,669 25,793 184,382 (8) Loss Trend Factor 1.16 1.12 1.07 (9) Developed & Trended Loss+ALAE 181,487 1,862 27,697 211,045 (10) Dev. & Trended Loss+ALAE Ratio @CRL 111.1% 1.5% 29.7% 56.0% (11) Target Loss+ALAE Ratio 54.2% 54.2% 54.2% 54.2% G = Fixed Expense Ratio 17.8% 17.8% 17.8% 17.8% V = Variable Expense Ratio 23.0% 23.0% 23.0% 23.0% Q = Profit Load 4.9% 4.9% 4.9% 4.9% (12) Indication by Year 78.9% -73.1% -34.1% (13) Accident Year Weights 0.43 0.32 0.25 1.00 (14) Total Indication 2.4%

<------Accident Years ------> Property Damage 25-36 13-24 1-12 Total Earned Premium 75,477 57,974 46,614 180,065 Current Rate Level Factor 1.00 1.00 1.00 1.00 Premium Trend Factor 1.00 1.00 1.00 1.00 EP @ CRL (including premium trend) 75,477 57,974 46,614 180,065 Allocated FAE premium @ CRL 43 43 44 131 EP @ CRL (including FAE premium) 75,520 58,018 46,658 180,196 Developed Incurred Loss+ALAE 21,495 21,550 28,708 71,754 Loss Trend Factor 1.22 1.16 1.09 Developed & Trended Loss+ALAE 26,278 24,920 31,410 82,608 Dev. & Trended Loss+ALAE Ratio @CRL 34.8% 43.0% 67.3% 45.8% Target Loss+ALAE Ratio 54.2% 54.2% 54.2% 54.2% G = Fixed Expense Ratio 17.8% 17.8% 17.8% 17.8% V = Variable Expense Ratio 23.0% 23.0% 23.0% 23.0% Q = Profit Load 4.9% 4.9% 4.9% 4.9% Indication by Year -27.0% -15.7% 18.1% Accident Year Weights 0.29 0.27 0.44 1.00 Total Indication -4.1%

Explanatory Notes (4) = (1) * (2) * (3) (6) = (4) + (5) (9) = (7) * (8) (10) = (9) / (6) (12) = ((10) + G) / (1 - V - Q) (14) = weighted average of (12) using (13) as weights Unitrin Direct Property & Casualty Company Private Passenger Automobile Program Rate Filing for New York Exhibit 2.10

<------Accident Years ------> UM / UIM 25-36 13-24 1-12 Total Earned Premium 21,668 15,606 11,556 48,829 Current Rate Level Factor 1.00 1.00 1.00 1.00 Premium Trend Factor 1.00 1.00 1.00 1.00 EP @ CRL (including premium trend) 21,668 15,606 11,556 48,829 Allocated FAE premium @ CRL 12 12 11 35 EP @ CRL (including FAE premium) 21,680 15,617 11,567 48,864 Developed Incurred Loss+ALAE 116 100 44,188 44,404 Excess Loss Factor 1.33 1.33 1.33 Loss Trend Factor 1.16 1.12 1.07 Developed & Trended Loss+ALAE 178 148 63,109 63,435 Devel. & Trended Loss+ALAE Ratio 0.8% 0.9% 545.6% 129.8% Target Loss+ALAE Ratio 54.2% 54.2% 54.2% 54.2% G = Fixed Expense Ratio 17.8% 17.8% 17.8% 17.8% V = Variable Expense Ratio 23.0% 23.0% 23.0% 23.0% Q = Profit Load 4.9% 4.9% 4.9% 4.9% Indication by Year -74.1% -73.9% 681.6% Accident Year Weights 0.44 0.32 0.24 1.00 Total Indication 104.8% Unitrin Direct Property & Casualty Company Private Passenger Automobile Program Rate Filing for New York Exhibit 2.11

<------Accident Years ------> Personal Injury Protection 25-36 13-24 1-12 Total Earned Premium 129,957 97,950 78,509 306,417 Current Rate Level Factor 1.00 1.00 1.00 1.00 Premium Trend Factor 1.00 1.00 1.00 1.00 EP @ CRL (including premium trend) 129,957 97,950 78,509 306,417 Allocated FAE premium @ CRL 75 73 74 222 EP @ CRL (including FAE premium) 130,032 98,023 78,583 306,638 Developed Incurred Loss+ALAE 45,816 94,728 86,314 226,858 Excess Loss Factor 1.00 1.00 1.00 Loss Trend Factor 1.25 1.17 1.09 Developed & Trended Loss+ALAE 57,430 110,712 94,381 262,524 Devel. & Trended Loss+ALAE Ratio 44.2% 112.9% 120.1% 85.6% Target Loss+ALAE Ratio 54.2% 54.2% 54.2% 54.2% G = Fixed Expense Ratio 17.8% 17.8% 17.8% 17.8% V = Variable Expense Ratio 23.0% 23.0% 23.0% 23.0% Q = Profit Load 4.9% 4.9% 4.9% 4.9% Indication by Year -14.0% 81.4% 91.4% Accident Year Weights 0.21 0.45 0.34 1.00 Total Indication 65.2% Unitrin Direct Property & Casualty Company Private Passenger Automobile Program Rate Filing for New York Exhibit 2.12

<------Accident Years ------> Comprehensive 25-36 13-24 1-12 Total Earned Premium 56,318 45,827 35,880 138,026 Current Rate Level Factor 1.00 1.00 1.00 1.00 Premium Trend Factor 1.19 1.13 1.08 1.14 EP @ CRL (including premium trend) 66,841 51,870 38,740 157,451 Allocated FAE premium @ CRL 32 34 34 100 EP @ CRL (including FAE premium) 66,873 51,904 38,774 157,551 Developed Incurred Loss+ALAE (ex-CAT 14,298 1,155 6,666 22,119 Catastrophe Factor 1.03 1.03 1.03 Loss Trend Factor 1.17 1.12 1.07 Developed & Trended Loss+ALAE 17,257 1,331 7,346 25,935 Devel. & Trended Loss+ALAE Ratio 25.8% 2.6% 18.9% 16.5% Target Loss+ALAE Ratio 54.1% 54.1% 54.1% 54.1% G = Fixed Expense Ratio 17.8% 17.8% 17.8% 17.8% V = Variable Expense Ratio 23.0% 23.0% 23.0% 23.0% Q = Profit Load 5.1% 5.1% 5.1% 5.1% Indication by Year -39.3% -71.6% -48.8% Accident Year Weights 0.41 0.33 0.25 1.00 Total Indication -52.4%

<------Accident Years ------> Collision 25-36 13-24 1-12 Total Earned Premium 125,125 100,276 82,924 308,324 Current Rate Level Factor 1.00 1.00 1.00 1.00 Premium Trend Factor 1.19 1.13 1.08 1.14 EP @ CRL (including premium trend) 148,538 113,517 89,542 351,597 Allocated FAE premium @ CRL 72 75 78 225 EP @ CRL (including FAE premium) 148,610 113,592 89,620 351,822 Developed Incurred Loss+ALAE 31,360 33,170 35,537 100,067 Loss Trend Factor 1.22 1.15 1.09 Developed & Trended Loss+ALAE 38,187 38,260 38,832 115,279 Dev. & Trended Loss+ALAE Ratio @CRL 25.7% 33.7% 43.3% 32.8% Target Loss+ALAE Ratio 54.1% 54.1% 54.1% 54.1% G = Fixed Expense Ratio 17.8% 17.8% 17.8% 17.8% V = Variable Expense Ratio 23.0% 23.0% 23.0% 23.0% Q = Profit Load 5.1% 5.1% 5.1% 5.1% Indication by Year -39.4% -28.3% -14.9% Accident Year Weights 0.35 0.33 0.32 1.00 Total Indication -28.0% Unitrin Direct Property & Casualty Company Private Passenger Automobile Program Rate Filing for New York Exhibit 2.13

<------Accident Years ------> Rental Reimbursement 25-36 13-24 1-12 Total Earned Premium 3,483 2,546 1,994 8,024 Current Rate Level Factor 1.00 1.00 1.00 1.00 Premium Trend Factor 1.00 1.00 1.00 1.00 EP @ CRL (including premium trend) 3,483 2,546 1,994 8,024 Allocated FAE premium @ CRL 2 2 2 6 EP @ CRL (including FAE premium) 3,485 2,548 1,996 8,030 Developed Incurred Loss+ALAE 1,271 1,614 1,462 4,347 Loss Trend Factor 1.11 1.08 1.05 Developed & Trended Loss+ALAE 1,415 1,743 1,534 4,692 Dev. & Trended Loss+ALAE Ratio @CRL 40.6% 68.4% 76.8% 0.0% Target Loss+ALAE Ratio 54.1% 54.1% 54.1% 54.1% G = Fixed Expense Ratio 17.8% 17.8% 17.8% 17.8% V = Variable Expense Ratio 23.0% 23.0% 23.0% 23.0% Q = Profit Load 5.1% 5.1% 5.1% 5.1% Indication by Year -18.7% 20.0% 31.7% Accident Year Weights 0.27 0.36 0.37 1.00 Total Indication 13.9% Unitrin Direct Property & Casualty Company Private Passenger Automobile Program Rate Filing for New York Exhibit 3

Expenses, ULAE, Profit and Target Loss & ALAE Ratio

-- Our selections for all expense categories equals the three-year average. -- Our selected underwriting profit provision produces a 12.0% ROE. (Please see Exhibit 8.)

Selected Expense Category 2014 2015 2016 3-Year Avg. Liability Phys Dam Marketing & Distribution 2.3% 2.6% 2.9% 2.6% 2.6% 2.6% Other Acquisition 6.6% 6.6% 7.5% 6.9% 6.9% 6.9% General Expense 16.7% 14.7% 16.3% 15.9% 15.9% 15.9% Premium Tax 2.0% 2.0% 2.0% 2.0% 2.0% 2.0%

Underwriting Expense Ratio 27.7% 25.8% 28.8% 27.4% 27.4% 27.4%

ULAE 14.2% 13.0% 13.0% 13.4% 13.4% 13.4%

Underwriting Profit 4.9% 5.1%

Target Loss+ALAE Ratio 54.2% 54.1%

Data source: Kemper Direct Income Statements for 2014, 2015 and 2016. Unitrin Direct Property & Casualty Company Private Passenger Automobile Program Rate Filing for New York Exhibit 8.1

Underwriting Profit Provision Based on ROE Model

This exhibit details the calculation of our underwriting profit provision based on a target Return on Equity (ROE) model, and is divided into 4 sections: I. Explanation of our methodology II. Derivation of the target ROE III. Description and calculation of variables needed to calculate ROE IV. Calculation of ROE based on the assumed underwriting profit (Note that our method begins by deriving our company's target ROE, and then solves for the target underwriting profit that achieves that ROE.)

I. Explanation of our methodology Traditionally, insurers have set underwriting profit targets judgmentally - typically selecting 2% - 5% for Auto and 5% - 10% for Home, intending to achieve some level of underwriting profitability. This method, however, ignores investment income on policyholder funds, which can be substantial for long-tailed lines, especially in periods of elevated interest rates. Consequently, over time, regulators have prodded insurers to develop target underwriting profit using return on equity (aka cost of capital) methods, which accounts for this investment income. Although the Auto and Home lines that Kemper writes are relatively short-tailed and consequently produce only limited investment income, we nevertheless favor these target ROE methods for two reasons: 1. They account for investment income. 2. They recognize the riskiness of each line, by specifically accounting for the capital required to support that line.

Our method is designed to be as clear and simple as possible. We begin by noting that insurers derive profit from 3 sources: 1. From investment income on equity (IIE) 2. From investment income on policyholder supplied funds (primarily loss reserves) (IIPSF) 3. From underwriting profit (UP)

The math to translate these 3 elements into ROE is straightforward: ROE = IIE + Premium/Equity Ratio * (IIPSF + UP)

Notes: 1. Since IIPSF and UP are usually considered as a percent of premium, we must translate these to a percent of equity by applying the premium/equity ratio. 2. IIE, IIPSF and UP must be considered on an after-tax basis to develop an after-tax ROE.

II. Derivation of the target ROE David Cummins and Richard Phillips have estimated the cost of capital for Property-Liability insurers to be 12.0% ("Estimating the Cost of Equity Capital for Property Liability Insurers", Journal of Risk and Insurance, September, 2005, p. 452-453), using the CAPM sum-beta approach. As a result, we have selected a target after-tax return on equity of 12.0%. Target After-Tax Return on Equity: 12.0% Unitrin Direct Property & Casualty Company Private Passenger Automobile Program Rate Filing for New York Exhibit 8.2

III. Description and calculation of variables needed to calculate ROE This section describes and calculates values of 4 variables needed to calculate ROE: A. Kemper P&C Pre-Tax Investment Yield B. Kemper P&C Income Tax Rate and After-Tax Investment Yield C. Premium/Equity Ratio D. Investment Income on Policyholder Supplied Funds

A. Kemper P&C Pre-Tax Investment Yield We begin by noting that our model calculates the currently-available returns on investment, as opposed to returns that were previously available, but that are not relevant today. We do this in two ways: 1. We employ only the "new money" rates of interest - rates that are currently available (as of the calculation date of Dec. 31, 2016). 2. We ignore historical realized and unrealized capital gains, because these are not predictive of future realized and unrealized gains, whose expectation at any given time is zero. This is because each bond issue sold today is priced above or below par value to reflect the difference between the bond's coupon rate and the currently available interest rate. Thus, by definition, the expected capital gain or loss at the time of purchase of the bond is zero.

The tables below show the calculation of the before-tax yield for Kemper's investment portfolio. * Table 1 shows the Kemper P&C bond portfolio at December 31, 2016, in dollars. (Source: Combined Annual Statement of the Trinity Universal Ins. Co. and its Affiliates for 2016, Schedule D - Part IA - Section I.) * Table 2 shows the Kemper P&C bond portfolio at December 31, 2016, in percent of total. * Table 3 shows the investment yields available on classes of maturities on December 31, 2016. (Sources: Treasury.gov; Markit iBoxx) * Next, we calculate the weighted average bond yield using the data from these tables. * In addition, we calculate a weighted average federal income tax rate, using the data from Table 2 and the federal income tax rate applied to interest earned for type of bond. Unitrin Direct Property & Casualty Company Private Passenger Automobile Program Rate Filing for New York Exhibit 8.3

Table 1 - Kemper P&C Bonds by Major Type, NAIC Designation and Maturity at Dec. 31, 2016 (in '000 dollars) <= 1 Yr 1-5 Yrs 5-10 Yrs > 10 Yrs Total U.S. Gov't and Gov't Agencies 695.2 126.7 3,227.1 25,110.0 29,159.0 States and Municipalities 20,651.5 152,493.7 325,297.1 76,620.9 575,063.2 Corporate Securities - NAIC 1 15,076.6 40,749.5 37,111.7 1,671.6 94,609.4 Corporate Securities - NAIC 2+ 3,047.9 80,624.6 45,712.9 57,354.0 186,739.4 Total 39,471.2 273,994.6 411,348.8 160,756.6 885,571.1

Table 2 - Kemper P&C Bonds by Major Type, NAIC Designation and Maturity at Dec. 31, 2016 (in percent of total) <= 1 Yr 1-5 Yrs 5-10 Yrs > 10 Yrs Total U.S. Gov't and Gov't Agencies 0.1% 0.0% 0.4% 2.8% 3.3% States and Municipalities 2.3% 17.2% 36.7% 8.7% 64.9% Corporate Securities - NAIC 1 1.7% 4.6% 4.2% 0.2% 10.7% Corporate Securities - NAIC 2+ 0.3% 9.1% 5.2% 6.5% 21.1% Total 4.5% 30.9% 46.5% 18.2% 100.0%

Table 3 - Investment yields available on classes of maturities on December 31, 2016 < 1 Yr 1-5 Yrs 5-10 Yrs* > 10 Yrs** U.S. Gov't and Gov't Agencies 0.62% 1.20% 2.25% 2.45% States and Municipalities 1.44% 1.74% 2.77% 3.96% Corporate Securities - NAIC 1 1.76% 2.11% 2.99% 4.09% Corporate Securities - NAIC 2+ 2.23% 2.69% 3.82% 4.88%

Notes * 7 Year rate for Treasuries ** 30 Year yield listed for U.S. Gov't and Gov't Agencies. Markit 10Y+ indices used for others. NAIC 1 refers to Corporate bonds with any S&P rating of A- or better. We retrieved yields for AA bonds. NAIC 2 refers to bonds with any S&P rating of BBB+ or worse. We retrieved yields for BBB bonds.

Next, we calculate Kemper P&C's estimated weighted-average pre-tax investment yield as the product of tables 3 and 4. Estimated Kemper P&C Weighted-Average Pre-Tax Investment Yield: 2.80%

Finally, we select Kemper P&C's weighted-Average pre-tax investment yield. Although Kemper's estimated weighted-average yield is 2.80%, we have judgmentally increased this yield to 3.0% based on our belief that interest rates will continue to rise in the coming year as the economy improves. Selected Kemper P&C Weighted-Average Pre-Tax Investment Yield: 3.0% Unitrin Direct Property & Casualty Company Private Passenger Automobile Program Rate Filing for New York Exhibit 8.4

B. Kemper P&C Income Tax Rate and After-Tax Investment Yield The following table shows the federal income tax rates by class of investment and calculates the weighted-average tax rate on investments.

Kemper P&C Federal Income Tax Rate ($ millions) Federal Income Class Interest Earned Tax Rate U.S. Gov't and Gov't Agencies 693.6 35.0% States and Municipalities 14,995.7 5.3% Corporate Securities 2,303.2 35.0% Total 17,992.5 10.2%

Kemper P&C's After-Tax Investment Yield equals the Weighted-Average Pre-Tax Investment Yield (3.00%) reduced by Kemper P&C's Federal Income Tax Rate (10.2% from the table above). This equals 2.7%. Kemper P&C After-Tax Investment Yield: 2.7%

C. Premium-to-Equity Ratio Data from A.M. Best show that P/C companies premium-to-surplus ratios have averaged approximately 1.50 for the period 1970-2007. We have selected ratios of 1.80 for liability and 2.70 for physical damage, reflecting the somewhat lower risk characteristics of private passenger auto insurance in general, and of PPA physical damage insurance in particular. Liability Physical Damage Selected Premium-Equity Ratios: 1.80 2.70 Unitrin Direct Property & Casualty Company Private Passenger Automobile Program Rate Filing for New York Exhibit 8.5

D. Investment Income on Policyholder Supplied Funds The two tables on the following pages display the calculations of investment income on policyholder supplied funds (IIPSF). These funds come from 3 sources - loss and LAE reserves and underwriting expenses, offset by delayed collection of premiums earned (because of payment plans). To calculate IIPSF, we require the loss and expense ratios, since investment income will depend on the amounts of loss reserves and delayed underwriting expenses available to invest. These ratios are shown in the table below:

Loss and Expense Provisions Liability Phys Dam Data Source Loss + LAE 67.6% 67.4% Exhibit 3 Underwriting Expense 27.4% 27.4% Exhibit 3

We now describe the contents of the columns in the two tables on the following pages: (1) Shows the calendar quarter from Time 0. (2) Displays the incremental payout pattern for Loss+LAE. It sums to 100% in the Total row at the bottom. The data are obtained by looking at the payment stream from countrywide liability and physical damage paid-loss triangles. (3) Displays the Loss + LAE payout as a percent of earned premium. This equals the Loss + LAE Ratio shown in the table above times column (2) and sums to the Loss + LAE Ratio in the table above. (4) Displays the underwriting expense as a percent of premium earned. Since most of our policies are semi-annual, we assume a uniform payout of these expenses over the 2-quarter policy term. (5) Displays the premium collection as a percent of premium earned. Most of our policies are semi-annual, and about 2/3rds are on payment plans of some kind. Given these elements, we calculate that approximately 65% of premiums will be collected in the quarter in which policies are written, with the remaining one-third collected in the following quarter. (6) Net Flow equals (5) - (3) - (4) and represents the flow of funds as a percent of premium earned. (7) This represents the factor by which flows must be discounted to account for the time value of money. This equals [1 /(1 + IY)] exp(Time/4), where IY = Kemper Corp. After-Tax Investment Yield from section II, and Time = column (1). (Note that Time is in quarters, which is why the formula divides Time by 4.) (8) This equals (6) * (7), and represents the discounted net flow.

Finally, the Total Investment Income on Policyholder Supplied Funds equals the difference between the Total Discounted Net Flow (8) and the Net Flow (6). Unitrin Direct Property & Casualty Company Private Passenger Automobile Program Rate Filing for New York Exhibit 8.6

D. Investment Income on Policyholder Supplied Funds

Liability

(1) (2) (3) (4) (5) (6) (7) (8) Quarter Incremental Underwriting Discounted from Loss + LAE Loss + LAE Expense Premium Net Discount Net Time 0 Pattern Payout Payout Collection Flow Factor Flow 1 0.077 0.052 0.137 0.650 0.461 0.997 0.459 2 0.186 0.126 0.137 0.350 0.087 0.990 0.087 3 0.174 0.118 0.000 0.000 (0.118) 0.984 (0.116) 4 0.109 0.074 0.000 0.000 (0.074) 0.977 (0.072) 5 0.075 0.051 0.000 0.000 (0.051) 0.971 (0.049) 6 0.059 0.040 0.000 0.000 (0.040) 0.964 (0.038) 7 0.049 0.033 0.000 0.000 (0.033) 0.958 (0.032) 8 0.041 0.028 0.000 0.000 (0.028) 0.951 (0.026) 9 0.034 0.023 0.000 0.000 (0.023) 0.945 (0.022) 10 0.029 0.019 0.000 0.000 (0.019) 0.939 (0.018) 11 0.024 0.017 0.000 0.000 (0.017) 0.933 (0.015) 12 0.024 0.016 0.000 0.000 (0.016) 0.926 (0.015) 13 0.026 0.018 0.000 0.000 (0.018) 0.920 (0.016) 14 0.021 0.014 0.000 0.000 (0.014) 0.914 (0.013) 15 0.014 0.009 0.000 0.000 (0.009) 0.908 (0.009) 16 0.012 0.008 0.000 0.000 (0.008) 0.902 (0.007) 17 0.011 0.007 0.000 0.000 (0.007) 0.896 (0.007) 18 0.010 0.007 0.000 0.000 (0.007) 0.890 (0.006) 19 0.008 0.005 0.000 0.000 (0.005) 0.884 (0.005) 20 0.006 0.004 0.000 0.000 (0.004) 0.878 (0.004) 21 0.005 0.003 0.000 0.000 (0.003) 0.873 (0.003) 22 0.003 0.002 0.000 0.000 (0.002) 0.867 (0.002) 23 0.002 0.001 0.000 0.000 (0.001) 0.861 (0.001) 24 0.001 0.001 0.000 0.000 (0.001) 0.855 (0.001) 25 0.001 0.001 0.000 0.000 (0.001) 0.850 (0.001) 26 0.000 0.000 0.000 0.000 0.000 0.844 0.000 27 0.000 0.000 0.000 0.000 0.000 0.839 0.000 28 0.000 0.000 0.000 0.000 0.000 0.833 0.000 29 0.000 0.000 0.000 0.000 0.000 0.827 0.000 30 0.000 0.000 0.000 0.000 0.000 0.822 0.000 31 0.000 0.000 0.000 0.000 0.000 0.817 0.000 32 0.000 0.000 0.000 0.000 0.000 0.811 0.000

Total 1.000 0.677 0.274 1.000 0.049 0.069

Total Investment Income on Policyholder Supplied Funds: 2.0% Unitrin Direct Property & Casualty Company Private Passenger Automobile Program Rate Filing for New York Exhibit 8.7

D. Investment Income on Policyholder Supplied Funds

Physical Damage

(1) (2) (3) (4) (5) (6) (7) (8) Quarter Incremental Underwriting from Loss Loss Expense Premium Net Discount Discount Time 0 Pattern Payout Payout Collection Flow Factor Flow 1 0.388 0.262 0.137 0.650 0.251 0.997 0.250 2 0.518 0.349 0.137 0.350 (0.136) 0.990 (0.135) 3 0.127 0.085 0.000 0.000 (0.085) 0.984 (0.084) 4 (0.007) (0.005) 0.000 0.000 0.005 0.977 0.005 5 (0.008) (0.006) 0.000 0.000 0.006 0.971 0.005 6 (0.006) (0.004) 0.000 0.000 0.004 0.964 0.004 7 (0.004) (0.002) 0.000 0.000 0.002 0.958 0.002 8 (0.002) (0.001) 0.000 0.000 0.001 0.951 0.001 9 (0.001) (0.001) 0.000 0.000 0.001 0.945 0.001 10 (0.001) (0.001) 0.000 0.000 0.001 0.939 0.001 11 (0.000) (0.000) 0.000 0.000 0.000 0.933 0.000 12 (0.000) (0.000) 0.000 0.000 0.000 0.926 0.000 13 (0.000) (0.000) 0.000 0.000 0.000 0.920 0.000 14 (0.000) (0.000) 0.000 0.000 0.000 0.914 0.000 15 (0.000) (0.000) 0.000 0.000 0.000 0.908 0.000 16 (0.000) (0.000) 0.000 0.000 0.000 0.902 0.000 17 (0.000) (0.000) 0.000 0.000 0.000 0.896 0.000 18 0.000 0.000 0.000 0.000 (0.000) 0.890 (0.000) 19 (0.000) (0.000) 0.000 0.000 0.000 0.884 0.000 20 (0.000) (0.000) 0.000 0.000 0.000 0.878 0.000 21 (0.000) (0.000) 0.000 0.000 0.000 0.873 0.000 22 (0.000) (0.000) 0.000 0.000 0.000 0.867 0.000 23 (0.000) (0.000) 0.000 0.000 0.000 0.861 0.000 24 (0.000) (0.000) 0.000 0.000 0.000 0.855 0.000 25 0.000 0.000 0.000 0.000 0.000 0.850 0.000 26 0.000 0.000 0.000 0.000 0.000 0.844 0.000 27 0.000 0.000 0.000 0.000 0.000 0.839 0.000 28 0.000 0.000 0.000 0.000 0.000 0.833 0.000 29 0.000 0.000 0.000 0.000 0.000 0.827 0.000 30 0.000 0.000 0.000 0.000 0.000 0.822 0.000 31 0.000 0.000 0.000 0.000 0.000 0.817 0.000 32 0.000 0.000 0.000 0.000 0.000 0.811 0.000

Total 1.000 0.674 0.274 1.000 0.051 0.052

Total Investment Income on Policyholder Supplied Funds: 0.1% Unitrin Direct Property & Casualty Company Private Passenger Automobile Program Rate Filing for New York Exhibit 8.8

IV. Calculation of ROE based on the assumed target underwriting profit Finally, we have all the pieces necessary to calculate ROE and solve for the underwriting profit that achieves our target ROE.

Recall the formula for ROE from section (I): ROE = IIE + Premium/Equity Ratio * (IIPSF + UP)

Item Liability Phys Dam Source IIE * 2.7% 2.7% Section IIIB Premium/Equity Ratio 1.80 2.70 Section IIIC After-Tax UP 3.2% 3.3% Selected to achieve Target ROE IIPSF 2.0% 0.1% Section IIID ROE 12.0% 12.0%

* - Investment Income on Equity equals the After-Tax Investment Yield.

Lastly, we translate the After-Tax Underwriting Profit into a Before-Tax Underwriting Profit, using the 35% Corporate Income Tax Rate that applies to underwriting profit. Liability Phys Dam After-Tax Underwriting Profit: 3.2% 3.3% Before-Tax Underwriting Profit: 4.9% 5.1% Unitrin Direct Property & Casualty Com New York Exhibit RT‐3

Territory PIF Dist % 3 4 4.3% 4 3 3.2% 5 1 1.1% 7 2 2.2% 8 1 1.1% 13 1 1.1% 16 1 1.1% 17 2 2.2% 18 7 7.5% 19 2 2.2% 21 1 1.1% 32 1 1.1% 34 1 1.1% 43 2 2.2% 46 3 3.2% 48 2 2.2% 53 2 2.2% 54 1 1.1% 55 2 2.2% 57 1 1.1% 58 2 2.2% 61 5 5.4% 62 1 1.1% 64 5 5.4% 65 5 5.4% 67 2 2.2% 68 7 7.5% 76 2 2.2% 77 5 5.4% 78 1 1.1% 79 2 2.2% 87 1 1.1% 89 2 2.2% 90 1 1.1% 91 1 1.1% 92 2 2.2% 94 6 6.5% 95 1 1.1% 97 2 2.2% Grand Total 93 100.0% Unitrin Direct Property & Casualty Company New York Exhibit RT‐4

This filing supports the company’s overall business plan by adjusting rate levels to maintain adequate margin levels.

Market Share: No Overall < 0.2% 5.0%

“Bread‐and‐Butter” Product: Yes ‐ this program serves the overall broad market.

“Niche” Market: Yes ‐ this program focuses on consumers who shop directly with the insurance company (Internet or Call Center).

“Under‐Served” or “Substandard Risks”: Yes ‐ this program serves "sub‐standard risks."

Reinsurance Agreements: Yes, there are reinsurance agreements applicable to this program. Reinsurance costs/recoverables have no impact on the proposed rates or the overall product pricing.

Distribution Channel: Direct ‐ Internet and Call Center operations (direct mail).

Producer Force: Direct Call Center Agents.

Claim Offices: 1408 North Westshore Blvd, Suite 200 Tampa, FL 33607

Marketing Geography: State

Profitability: Loss Ratio performance as a measure of profitability is below direct competitors.

Prospective Outlook: With rate revisions quickly approved, outlook is positive.

Four Last Rate Revisions: Eff New Eff Renew Subject Overall Change 1) 8/15/2010 10/5/2010 Base Rate 5.0% 2) 12/25/2011 2/14/2012 Base Rate 5.0% 3) 1/11/2013 3/3/2013 Base Rate 5.8% 4) 1/17/2014 3/9/2014 Base Rate ‐ Flex Filing 4.8% Unitrin Direct Insurance Company New York Exhibit RT‐5

What percentage of Flex‐Band applies to the market affected by this filing 5.0% (private passenger auto)?

Does this revision result in rate level changes that would exceed the flex band No applicable to this market? Overall 5.0%

Does any individual policyholder renewal impact exceed +30%? No

Have there been any rate filings within the preceding twelve months? No

Does the filing include any new or revised classification definitions? No Unitrin Direct Property & Casualty Company New York Exhibit RT‐2

Summary of Proposed Changes Flex Filing

Overall Proposed Change Coverage Current Premium Proposed Premium Base Rate Total BI $75,295 $79,813 6.0% 6.0% PD $39,320 $41,680 6.0% 6.0% UMBI $9,496 $10,731 13.0% 13.0% MP $0 $0 0.0% 0.0% PIP $65,134 $76,532 17.5% 17.5% OTC $28,487 $27,063 ‐5.0% ‐5.0% COLL $71,872 $68,279 ‐5.0% ‐5.0% RENT $1,870 $1,870 0.0% 0.0% TOW $220 $220 0.0% 0.0% ALL $291,695 $306,187 5.0% 5.0% Note: Impact calculated by rerating the current in‐force book using proposed revisions.

Minimum Policyholder Change: ‐ Percent (%) 0.3% 0.3% ‐ Dollar ($) $11 $16

Minimum % Change Policyholder Characteristics: ‐ 1 driver, 1 vehicle policy with 100/300/50 BI/PD limits, territory 67 ‐ 2015 Dodge Dart with $200 COLL Deductible ‐ 87 yr old single female

Minimum $ Change Policyholder Characteristics: ‐ 2 drivers, 2 vehicles policy with 250/500/100 BI/PD limits, territory 46 ‐ 2014 & 2015 Mercedes Benz all with COLL coverage ‐ 53 yr old single male, 58 yr old single female

Maximum Policyholder Change: ‐ Percent (%) 10.9% 10.9% ‐ Dollar ($) $203 $117

Maximum % Change Policyholder Characteristics: ‐ 1 driver, 1 vehicle policy with 25/50/10 BI/PD limits, territory 19 ‐ 1996 Nissan no OTC or COLL ‐ 72 yr old single female

Maximum $ Change Policyholder Characteristics: ‐ 1 driver, 2 vehicles policy with 50/100/50 BI/PD limits, territory 61 ‐ 1991 Peugeot and 2013 Subaru with no OTC or COLL coverage ‐ 65 yr old male married NY UDPC Percent Impact

% Impact # distribution % distribution 0% - 1.9% 10 10.8% 2% - 3.9% 26 28.0% 4% - 5.9% 24 25.8% 6% - 7.9% 11 11.8% 8% - 9.9% 6 6.5% 10% - 10.9% 16 17.2% 93

% impacts 30 26 24 25

20 16 15 10 11 10 6 5

0 1.9% 3.9% 5.9% 7.9% 9.9% 10.9% ‐ ‐ ‐ ‐ ‐ ‐ 2% 4% 6% 8% 0% 10% NY UDPC Dollar Impact

$ Impact # distribution % distribution $0 - $50 13 14.0% $51 - $100 23 24.7% $101 - $150 21 22.6% $151 - $200 14 15.1% $201 - $250 11 11.8% $251 - $300 5 5.4% $301 - $962 6 6.5% 93

$ impacts 25 23 21 20

14 15 13 11 10 6 5 5

0 $50 $150 $200 $250 $300 $962 $100 ‐ ‐ ‐ ‐ ‐ ‐ ‐ $0 $51 $101 $151 $201 $251 $301 Unitrin Direct Property & Casualty Company Private Passenger Automobile Program Rate Filing for New York

The following pages provide actuarial justification for rate changes to the Unitrin Direct Property & Casualty Company Private Passenger Automobile Program in New York.

Table of Contents

Item Exhibit Number Proposed Rate Changes 1 Indicated Rate Changes 2 Expenses and Target Loss & ALAE Ratio 3 Loss Trend 4 Premium Trend 5 Current Rate Level 6 Loss Development 7 Profit and Return on Equity 8 Unitrin Direct Property & Casualty Company Private Passenger Automobile Program Rate Filing for New York Exhibit 1

Summary of Proposed Changes

Indicated Proposed Trailing Quarter In-Force Coverage Change Change Earned Premium Premium Bodily Injury 8.7% 6.0% 21,491 75,295 Property Damage 8.6% 6.0% 10,902 39,320

UM / UIM 15.3% 13.0% 2,638 9,496

Medical Payments 0.0% 0.0% 0 0 Personal Injury Protection 20.2% 17.5% 18,322 65,134

Comprehensive -6.9% -5.0% 8,425 28,487 Collision -5.6% -5.0% 20,543 71,872 Rental Reimbursement 7.7% 0.0% 484 1,870 Towing and Labor N/A 0.0% N/A 220

Total Coverages 6.3% 5.0% 82,805 291,695

Notes: 1. Trailing Quarter Earned Premium is used to calculate the Indicated Change for Total Coverages. 2. For our indications, we allocate Acquisition Charge premium to all coverages in proportion to each coverage's percent of overall premium. Please see Exhibit 2.2 for a description of the Acquisition Charges. 3. In-force premium is used to calculate the Proposed Change for Total Coverages. Unitrin Direct Property & Casualty Company Private Passenger Automobile Program Rate Filing for New York Exhibit 2.1