DEFINITIONS

• "Commercial Use" means a vehicle that is registered to a business and/or for business purposes. The following vehicles are not eligible for the "Commercial Use" option and are excluded from coverage under this service contract: tow trucks; snowplows; taxis; police vehicles; and vehicles that are used in excess of manufacturer’s g.v.w. or for excessive hauling and pulling.

• "Contract Holder" means the purchaser or holder of this service contract.

• "Covered Part" means any part of the vehicle covered by this service contract that is not excluded from coverage under the section of this service contract entitled "What is Not a Covered Part."

• "Mechanical Breakdown" means the event caused by the total failure of any Covered Part to work as it was designed to work in normal service. Please refer to the wording under exclusions for a listing of conditions under which the failure of a Covered Part is not considered a Mechanical Breakdown.

• "Participating Lender" means any financial institution providing financing for the purchase of the vehicle and/or this service contract.

• "Repair Facility" means any automotive repair facility at which the Contract Holder seeks to have service performed under this service contract.

• "Administrator" or "ACSC" means Automobile Consumer Service Corporation, which will administer this service contract, process and pay claims and process cancellations.

CONTRACT HOLDER OBLIGATIONS

• The Contract Holder hereby authorizes the Participating Lender to: (1) be listed as joint payee and receive any refund in the event this service contract is canceled, or (2) to cancel this service contract in the event the Contract Holder defaults in his/her obligations to such lender.

• In order for this service contract to remain in force, the Contract Holder is required to follow the vehicle manufacturer’s required maintenance schedule, including oil and filter changes. Failure to follow the vehicle manufacturer’s maintenance guidelines may result in denial of a claim. Some vehicle manufacturers require that the timing belt be changed at specific intervals. The Contract Holder must keep and make available if requested verifiable signed service/purchase receipts that show that the vehicle manufacturer’s required maintenance has been performed within the time and mileage limit requirements.

• The Contract Holder and the Repair Facility are required to obtain from ACSC an authorization number prior to beginning any repair covered by this service contract.

• The Contract Holder is responsible for paying a $100 deductible for each visit to a Repair Facility.

• The Contract Holder is responsible for authorizing and paying for any tear down or diagnosis time needed to determine if the vehicle has a covered Mechanical Breakdown. If it is determined that the repair is needed due to a covered Mechanical Breakdown, then the Provider will pay for such tear down or diagnosis. If it is determined that part of the vehicle requiring repair is not a Covered Part or that the failure of a Covered Part is not a covered Mechanical Breakdown, then the Contract Holder is responsible for payment of such tear down or diagnosis.

• The Contract Holder agrees not to modify the vehicle in a manner not recommended by the vehicle manufacturer.


PROVIDER OBLIGATIONS

• If a covered Mechanical Breakdown of the vehicle occurs during the term of this service contract and within the United States or Canada, the Provider will pay the Contract Holder or the Repair Facility for repair or replacement, as ACSC deems appropriate, of the Covered Part(s) that caused the Mechanical Breakdown, but only if the Contract Holder has met his/her obligations as described in this service contract and if the Mechanical Breakdown is not excluded under the exclusions section of this service contract. Replacement parts can be of like kind and quality. This may include the use of new, used or remanufactured parts, as determined by ACSC.

• If, at the time of payment of any claim under this service contract, there remains an outstanding balance on the purchase price of this service contract, ACSC may, in its sole discretion, withhold all or a portion of the payment and apply it to reduce the outstanding balance of the purchase price.

• The aggregate total of all benefits paid under this service contract will not exceed the lesser of $6500 ($8400 for Enhanced Coverage) or the Actual Cash Value of the vehicle, as determined by ACSC at the time of the Mechanical Breakdown, taking age, mileage and condition into consideration and excluding tag, tax and license fees. The Contract Holder will be responsible for the cost of any repairs that exceed the maximum liability of ACSC under this service contract.

• For the $6,500 Limit of Liability , the aggregate limit of liability per covered vehicle is as follows:

- $3000 in Engine, Turbo/Supercharger and Water Pump claims
- $2000 in Transmission and Transfer Case claims.

- $1500 in Differential claims.
- $800 in Heating and A/C claims.
- $600 in Fuel Claims.
- $500 in Electrical Claims

• Provider will reimburse the Contract Holder for the cost of renting a replacement vehicle while covered repairs are being performed, subject to the following limitations: (1) the limit on reimbursement is $25 per day for a maximum of six (6) days per Mechanical Breakdown or series of Mechanical Breakdowns related in time or cause; (2) rental reimbursement will not be authorized until the repairs have been authorized by ACSC; and (3) to receive rental reimbursement, the Contract Holder must supply ACSC with a receipt from a licensed rental agency. The number of days for which rental reimbursement is provided will be based on labor time charged to do the repair(s). One day rental will be authorized for parts delay, inspection of breakdown, and/or four (4) hours to do repairs. An additional day of rental will be authorized for every additional eight (8) hours of labor time charged to do the repairs.


COVERED PARTS

The following is a list of Covered Parts under this Contract (Taxes and fluids needed for authorized repairs are also included):

Engine: All internally lubricated parts including: pistons, piston rings, piston pins, crankshaft and main bearings, connecting rods and bearings, camshaft and bearings, timing chain or belt, timing gears, engine block, cylinder heads, intake and exhaust valves, valve springs, valve guides, oil pump, push rods, rocker arms, rocker arm shafts, hydraulic and solid lifters.

Transmission: Transmission case and all internally lubricated parts; torque converter; vacuum modulator and mounts. Does not include clutch assembly; pressure plate; flywheel; throw out bearing; worn synchronizers; cable or electrical items.

Driver Axle(s): Differential house, transaxle housing and final drive housing, if damaged by the failure of an internal, lubricated part. All internal, lubricated contained within the housings.

Use of non-original manufacturer’s parts in covered repairs is allowed.


EXCLUSIONS – WHAT THIS VEHICLE SERVICE CONTRACT DOES NOT COVER

This Contract does not cover the following: (1) Repair or replacement of a covered component/part to correct conditions that may reasonably be assumed to have existed at the inception date of the coverage provided by this contract (Pre-existing conditions); (2) A Breakdown caused by lack of manufacturer’s specified maintenance; (3) A Breakdown caused by contamination of or lack of proper fuels, fluids, coolants or lubricants, including a Breakdown caused by a failure to replace seals or gaskets in a timely manner; Repair of any parts used, added or replaced during a covered repair which are not necessary to the completion of covered repair or were not damaged by the failure of a Covered Part (Such replacement is considered betterment and is not covered by this Contract); (4) Any cost covered by a repairer’s or supplier’s guarantee, or any cost which would normally be covered by a manufacturer’s warranty; (5) Any or other benefits for which the manufacturer has announced its responsibility through any means including public recalls or factory service bulletins; (6) Cost or other damages caused by continued vehicle operation after the failure of a Covered Part or the failure to replace a worn part that has not failed; (7) Any liability, cost or damages the Contract Holder may incur to the benefit of any third parties other than ACSC approved repair or replacement of Covered Parts which caused a Mechanical Breakdown; (8) A Breakdown caused by overheating, rust or corrosion; (9) A Breakdown caused by collision, fire, electrical fire or meltdown, theft, freezing, vandalism, flood, or for any hazard insurable under standard physical damage insurance policies whether or not such insurance is in force with respect to the vehicle; (10) Loss of use, loss of time, loss profits or savings, inconvenience, commercial loss, or other incidental or consequential damages or loss that results from a Breakdown; (11)Liability for damage to property, or for injury to or death of any person arising out of the operation, maintenance or use of the vehicle, whether or not related to Breakdown; (12) Any part not covered by, or excluded by the original manufacturer’s warranty; (13) Vehicles that have been modified in a manner that increases the likelihood of a breakdown; (14) Consequential damage of a covered component by a non-covered component is not covered, failure of a non-covered component caused by a covered component is not covered; (15) Continued operation of an impaired vehicle which causes further damage is not covered; (16) A gradual reduction in operating performance due to normal wear and tear, such as valve guides, valves, rings, and transmission clutch pack discs and bands; (17) Frame or structural separation; (18) Service adjustments and cleaning; (19) Any repairs to a vehicle with a title indication of salvage or junk or other designation indicating that the vehicle had been stolen, wrecked, destroyed, water damaged, or otherwise to the extent that it was considered to be uneconomical to repair, total mileage is unknown, or lemon law buyback; (20) Any repositioning, refitting, realignments, or body adjustments.

ROADSIDE ASSISTANCE

Your emergency road service begins on the effective date of your extended service agreement and will continue until the expiration or termination of your contract, whichever occurs first. Your emergency road service is available throughout the United States 24 hours a day, 365 days a year.

Concierge Service: The customer is responsible for payment of any services arranged (i.e. the cost of the hotel room, rental car, etc.) directly to the provider of the service.

Emergency Roadside Towing Service: $50 limit for such services as fuel delivery, tire changes (customer supplied), jump-starts, lockout, mechanical first-aid, and towing.

DEDUCTIBLE

The Contract Holder is responsible for paying a $100 deductible for each visit to a Repair Facility unless another deductible option has been purchased and noted on the Contract's Dec page.