Tier One Direct Ultimate Contract
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| TIER ONE DIRECT
ULTIMATE CONTRACT |
TERMS & CONDITIONS
A. DEFINITIONS
ADMINISTRATOR: refers
to Tier One Warranty, LLC, P.O. Box 680144, Houston,
TX 77268; 800-497-5633.
BREAKDOWN: means any
COVERED PART(S) that fails to perform
the function it was intended to perform due to a mechanical
or electrical defect or fails to perform within manufacturer’s
specifications.
CONTRACT: means this
Vehicle Service Contract.
COVERED PART(S): means
individual items specifically listed under Section E
for the Coverage plan selected on the Declaration Page.
DEDUCTIBLE: means the
amount indicated on the Declaration Page that YOU must
pay per visit for covered repairs. The DEDUCTIBLE does
not apply to Supplementary Coverages (Section G) and
manufacturer’s deductible coverage (Section C).
NEW VEHICLE TERMS: means
the years/mileage indicated during which this CONTRACT
is in-force, whichever comes first, and includes the
time period and mileage of the manufacturer's warranty.
Coverage begins on the later of thirty (30) days after
the CONTRACT purchase date and one thousand (1,000)
miles after the odometer reading shown on the Declaration
Page. The mileage indicates the total odometer mileage
in thousands that the Contract is in-force.
USED VEHICLE TERMS: means
the months/mileage during which this CONTRACT is in-force,
whichever comes first and includes the time period and
mileage of the manufacturer's warranty. Coverage begins
on the later of thirty (30) days after the CONTRACT
purchase date or one thousand (1,000) miles after the
odometer reading shown on the Declaration Page. The
mileage is the number of miles in thousands for which
this CONTRACT is in-force and is in addition to the
mileage on the CONTRACT’S purchase date.
VEHICLE: means the VEHICLE
covered by this CONTRACT.
WE, US, or OUR: refers
to the Obligor under this CONTRACT which is Tier One
Warranty, LLC, P.O. Box 680144, Houston, TX 77268.
YOU, YOUR: means the
purchaser of this CONTRACT or properly designated transferee.
B. LIMITS OF LIABILITY
THE DOLLAR TOTAL OF ALL BENEFITS
PAID OR PAYABLE UNDER THIS CONTRACT SHALL NOT EXCEED
THE PURCHASE PRICE OF THE VEHICLE PAID BY THE ORIGINAL
PURCHASER OF THIS CONTRACT. THE TOTAL DOLLAR BENEFITS
PAYABLE FOR ANY SINGLE REPAIR OR REPLACEMENT SHALL NOT
EXCEED THE CASH VALUE OF THE VEHICLE IMMEDIATELY PRIOR
TO BREAKDOWN AS DETERMINED BY THE MOST RECENT NATIONAL
AUTO RESEARCH BLACK BOOK FOR A VEHICLE IN AVERAGE CONDITION.
LIABILITY FOR INCIDENTAL AND CONSEQUENTIAL
DAMAGES, OR FOR BREACH OF ANY IMPLIED WARRANTIES, INCLUDING
THE IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR
A PARTICULAR PURPOSE, IS EXPRESSLY EXCLUDED. SUCH INCIDENTAL
AND CONSEQUENTIAL DAMAGES INCLUDE, BUT ARE NOT LIMITED
TO, PROPERTY DAMAGE, LOSS OF USE OF THE VEHICLE, LOSS
OF TIME, INCONVENIENCE AND COMMERCIAL LOSS.
THESE LIMITATIONS AND EXCLUSIONS
OF LIABILITY APPLY ONLY TO THE EXTENT ALLOWED BY LAW.
C. OTHER SERVICE CONTRACTS, WARRANTIES
OR INSURANCE POLICIES
The term of this CONTRACT includes the
term of the manufacturer’s warranty issued to
the original purchaser of the VEHICLE, regardless of
whether it is valid, collectible or transferred to YOU.
Coverage under this CONTRACT is secondary to, and does
not replace, the manufacturer’s warranty, but
provides certain additional benefits during the term
of the manufacturer’s warranty. If more than one
service contract, warranty or insurance policy can be
applied to a BREAKDOWN, coverage under this CONTRACT
shall be excess over all other coverage, whether valid
or collectible, except for benefits that may be applicable
under Section G-SUPPLEMENTARY COVERAGES-of
this CONTRACT.
D. OUR RESPONSIBILITIES
WE will repair or replace, or have repaired or replaced,
any COVERED PART, which breaks down (subject to the
DEDUCTIBLE). Follow the procedure described in Section
J- INSTRUCTIONS IN THE EVENT OF A BREAKDOWN.
WE will reimburse YOU for pre-authorized expenses incurred
for the repair or replacement of the COVERED PART(S).
Reasonable expenses are not to exceed the manufacturer’s
suggested retail price for parts, and the REPAIR FACILITY’S
hourly labor rate (as approved by the ADMINISTRATOR)
multiplied by the appropriate operation time as published
in an authorized national labor time guide. Replacement
may be made, in OUR sole discretion, with a part which
is new, of like kind and quality compatible with the
original design specifications and wear tolerances of
YOUR VEHICLE, remanufactured, or used.
E. LIST OF COVERED PARTS
COVERAGE IS LIMITED TO THE PARTS DESCRIBED
BELOW FOR THE PLAN SELECTED ON THE DECLARATION PAGE.
1. POWERTRAIN COVERAGE:
a. Engine: All internal
lubricated parts; engine block; engine head(s);
exhaust manifold; expansion plugs; intake manifold;
mounts; oil pan; super/turbocharger; timing belt
or chain; valve cover(s); water pump; and seals
and gaskets.
b. Transmission (Including
Transfer Case If Four Wheel Drive): All
internal lubricated parts within the transmission
and transfer case; cooler lines (metal); mounts;
throttle valve cable; torque converter; transmission
and transfer case housing; vacuum modulator; seals
and gaskets.
c. Front/Rear Wheel Drive:
All internal lubricated parts within the drive/trans-axle
assembly; axles and axle shafts; constant velocity
joints (but not constant velocity boots or related
failures); drive/trans-axle housing; drive shaft
support; front hub bearings; front hub locking assemblies
(four wheel drive); propeller shafts; universal
joints; and seals and gaskets.
2. POWERTRAIN PLUS COVERAGE:
Components listed above for Powertrain Coverage in
addition to the following components.
a. Brake Group: Brake
booster; calipers; combination valve; lines and
fittings (metal only); master cylinder; wheel cylinders;
and seals and gaskets.
b. Front Suspension:
Ball joints; control arms; bearings; bushings and
shafts; kingpins and kingpin bushings; spindles;
wheel bearings; wheel seals; and seals and gaskets.
c. Steering: All
internal lubricated parts within the steering gear;
power steering pump; power cylinder; steering gear
and pump housing; and seals and gaskets.
d. Electrical: Alternator;
alternator voltage regulator; brake light switch;
distributor bushings, gear, housing and shaft (excludes
cap, rotor and wires); horns; ignition coil; ignition
switch (excludes lock cylinder and coded keys);
starter motor, solenoid and starter relay (excludes
any damage to flywheel, flexplate and ring gear);
and windshield wiper motor.
e. Air Conditioning:
Accumulator; blower motor; compressor bearings,
clutch, internal parts and pulley; condenser; evaporator;
receiver/dryer; seals and gaskets; compressor housing;
and refrigerant ONLY if needed in conjunction with
the repair of an above listed part.
f. Fuel Group (Gasoline):
Distributor; injectors; lines (metal); fuel pump;
rail; tank; tank filler neck; and throttle body.
g. Anti-Lock Brake System:
Accumulator; electronic control unit and module;
hydraulic pump; isolation dump valve; relays; and
sensors (excludes sensor rings).
3. PREMIUM COVERAGE:
Components listed above for Powertrain Plus Coverage
in addition to the following components.
a. Cooling System:
Cooling fan blade assembly, clutch and motor; heater
core; radiator; thermostat; and seals and gaskets.
b. High-Tech Package:
Air conditioning power module, controller, relay,
orifice tube, suction control devices and thermostatic
expansion valve; antenna motor and mast (power factory
installed only); burglar alarm (factory installed)
relays, sensors and siren; convertible top motor;
cruise control module, and electronic servo/ transducer;
front struts (front only and excludes springs) and
upper pivot bearing mounting assembly; door lock
actuators/solenoids (power only); head lamp door
motors (only); ignition cylinder; air conditioning
and heating dash control unit/temperature control
programmer (excludes cathode-ray tube [CRT] display);
idle speed or automatic idle speed assemblies; warm-up
regulator; diesel accessory vacuum pump and injector
pump; ignition spark control pick-up sensor; instrument
cluster electronic driver information display module/power
supply, gauges and speedometer head (excludes bulb
and CRT display repairs); keyless entry system;
level control (electronic only): sensors, limiter
valves and compressor; power seat motor and transmission;
oil pressure sending unit; sensors (Engine Management);
main wiring harness; ignition module; main electronic
control unit; sunroof motor; blower motor (heater-A/C)
switch; burglar alarm switches (factory installed);convertible
top switch; cruise control engagement switch; door
lock switches; seat switches; sunroof switch; trunk
lid release switch; window switches; trunk lid release
activator and motor; washer pump motor; power window
gear, motor, regulator and lift tape.
4. ULTIMATE COVERAGE:
Any BREAKDOWN of YOUR VEHICLE less the
DEDUCTIBLE, except for items listed in Section F –
EVENTS WHICH ARE NOT COVERED.
F. EVENTS WHICH ARE NOT COVERED
This CONTRACT does not cover the following:
1. Repairs and/or replacements of COVERED
PART(S) that are not authorized by US.
2. Scheduled maintenance, adjustments,
wear items and the following: audio-visual systems
including television, DVD, VCR and other video equipment;
batteries; body and trim items; active, passive or
supplemental restraint systems; belts; brake drums
and rotors; cellular phone; exhaust system; friction
materials; glass; convertible top; global positioning
satellite (GPS) system including OnStar; perimeter
warning systems; infrared vision systems; hoses; light
bulbs; manual transmission clutch disc lining; throw
out bearing and pressure plate; spark plugs; ignition
wires; tires; water leaks; noises; wheel balancing;
and wiper blades. Filters, lubricants, coolants, and
refrigerants are covered only if replacement is required
in connection with a BREAKDOWN.
3. Any equipment not installed by the
manufacturer.
4. A BREAKDOWN that is the direct result
of a mechanical or structural flaw that the manufacturer
has acknowledged, or that the manufacturer will repair
at its expense.
5. Any replacement part supplied by
anyone but the manufacturer of YOUR VEHICLE, unless
it is of a kind and quality compatible with the design
specifications and wear tolerances of the VEHICLE’s
manufacturer.
6. Vehicles in excess of one (1) ton,
or with dual rear wheels, or with a fifth wheel, or
which are equipped for plowing or towing, or with
diesel engines.
7. Vehicles not certified for sale in
the United States at the time of manufacture.
8. A BREAKDOWN caused by negligence,
misuse, improper servicing, or failure by YOU to perform
required services, or a BREAKDOWN caused by the lack
of proper and necessary amounts of coolants or lubricants,
or by overheating.
9. A BREAKDOWN caused by sludging of
oil.
10. A BREAKDOWN caused by accident,
civil commotion, riot, terrorism, collision or upset,
earthquake, explosion, falling objects, fire, flood,
fluid contamination, freezing, fuel contamination,
hail, lightning, malicious mischief, oil contamination,
corrosion, rust, theft , larceny, vandalism, water,
water contamination, windstorm, and other external
forces or events.
11. Any VEHICLE used commercially or
used for competitive or off road racing.
12. Any VEHICLE used for towing in excess
of what is recommended by the manufacturer.
13. A BREAKDOWN of any part is not covered
if the odometer has been tampered with, or disconnected,
or the true mileage cannot be determined. If YOU have
not promptly repaired a defective odometer, this limitation
applies, and coverage will be denied.
14. A gradual reduction in operating
performance where a mechanical breakdown has not occurred.
This includes, but is not limited to, valve and ring
repairs designed to improve engine compression or
reduce oil consumption. However, a covered component
not operating within manufacturer’s specifications
is covered.
15. Repair or replacement of a COVERED
PART to correct conditions that may be reasonably
assumed to have existed at the inception date of the
coverage provided by this CONTRACT.
16. A BREAKDOWN caused by alterations
to the VEHICLE that affects the operation of a COVERED
PART. This includes, but is not limited to; exhaust
headers, oversized tires, and suspension lift kits.
17. A BREAKDOWN or repair occurring
outside of the United States or Canada.
18. A BREAKDOWN caused by the failure
of a non-covered part.
19. Components or parts which have not
failed or resulted in a BREAKDOWN, but which, due
to recommendation of the manufacturer or the REPAIR
FACILITY, require repair or replacement.
20. Damage caused by failure to take
reasonable precautions to prevent further damage when
an apparent problem exists.
21. A BREAKDOWN which is or should be
covered by the manufacturer’s warranty, by recall
or special policy from the manufacturer, or by a repairer’s
warranty or guarantee.
22. Detonation, pre-ignition, carbon
buildup, electrolysis, and hazardous waste removal.
23. Repairs if the VEHICLE is a total
loss or has been repossessed.
24. Any VEHICLE designed to use alternative
fuels (including but not limited to LPG, CNG, methanol,
and electricity).
25. The following exclusions apply to
Road Hazard Coverage:
a. Tire damage resulting from off-road
use, racing, collision with curb or another vehicle,
misuse, abuse, lack of proper maintenance, misalignment,
suspension problems, vandalism, fire, upset, manufacturer
defects, and driving on tires which are deflated
or improperly inflated.
b. Tires that are undersized, oversized,
or otherwise not recommended by the vehicle manufacturer
for installation on YOUR VEHICLE.
c. Tires transferred from another
vehicle.
d. Tires that do not have at least
3/32-inch tread depth remaining.
e. Tires mounted on vehicles other
than on-road use private passenger cars and light
duty trucks, and any vehicle exceeding 13,500 pounds
gross vehicle weight rating.
f. Damage to tires that does not affect
their performance or safety.
g. Tires not retained by YOU for inspection
by the ADMINISTRATOR.
G. SUPPLEMENTARY COVERAGES
SUBSTITUTE TRANSPORTATION COVERAGE
If YOUR VEHICLE requires repair due to
a BREAKDOWN of a COVERED PART, even when that part is
covered by a factory warranty, and YOUR VEHICLE is required
to be in a REPAIR FACILITY overnight, WE will reimburse
YOU for actual substitute transportation expenses. This
benefit will be at a rate of up to thirty-five dollars
($35.00) per day for each day YOUR VEHICLE is undergoing
covered repairs for a maximum of seven (7) days. A valid
licensed rental agency’s', auto dealers' or REPAIR
FACILITYS' invoice is required for reimbursement.
TOWING / ROAD SERVICE / LOCKOUT
In the event Your Vehicle is disabled, We will dispatch
a service vehicle to Your location to assist You. In
the event Your Vehicle is unable to continue under its
own power Your Vehicle may be towed to a location of
Your choosing. You will receive 25 miles of towing at
no cost, any additional mileage will be Your responsibility
and payment will be expected at the time service is
rendered. When calling for towing or road service You
must call 1-866-330-0760. You will be required to give
the representative assisting You the following information:
Producer Code – 66719, Your Vehicle Service Contract
Number (located on the front right hand corner of this
application) and Your plan letter which is U.
TRIP INTERRUPTION
In the event a BREAKDOWN covered by this CONTRACT occurs
more than one hundred (100) miles from YOUR home and
results in a REPAIR FACILITY keeping YOUR VEHICLE overnight,
WE will reimburse YOU for receipted motel and restaurant
expenses up to seventy–five dollars ($75.00) per
day for a maximum of three (3) days. The total benefit
per occurrence shall not exceed two hundred and twenty-five
dollars ($225.00).
H. YOUR RESPONSIBILITIES
In order for YOU to maintain the benefits
of the coverage as indicated on the Declaration Page,
YOU must follow the procedures listed below. If YOU
fail to follow the listed procedures and YOUR failure
causes a BREAKDOWN, YOU will be denied coverage.
1. YOU must reasonably protect YOUR
VEHICLE from further damage. Failure to do so will
cause any additional loss to become YOUR responsibility.
2. YOU must have YOUR VEHICLE maintained
as recommended by the manufacturer and keep all fluids
at proper levels between service intervals.
3. YOU must obtain a claim approval
reference number from the ADMINISTRATOR prior to repairing,
replacing or cleaning any parts. Failure to do so
may result in a reduction or denial of coverage.
4. YOU must save all sales receipts,
invoices or work orders showing the date, mileage,
a description of YOUR VEHICLE, and the services performed,
including parts and fluids used to complete these
services. Failure to provide verifiable proof of maintenance
will result in denial of coverage.
I. ROADSIDE ASSISTANCE
ROADSIDE ASSISTANCE
Roadside Assistance is provided through a complementary
membership with Nation Safe Drivers.
In the event Your Vehicle is disabled, We will dispatch
a service vehicle to Your location to assist You. In
the event Your Vehicle is unable to continue under its
own power Your Vehicle may be towed to a location of
Your choosing. You will receive 25 miles of towing at
no cost, any additional mileage will be Your responsibility
and payment will be expected at the time service is
rendered. When calling for towing or road service You
must call 1-800-689-1190. You will be required to give
the representative assisting You the following information:
Producer Code – 37497, Your Vehicle Service Contract
Number (located on the front right hand corner of this
application) and Your plan letter which is U.
COVERAGE: You are entitled
to one (1) service per 72-hours. Services available
to You at no cost are: a tow up to 25 miles; battery
jumpstart; flat tire change; fuel delivery (You are
responsible for the actual cost of the delivered materials);
locksmith.
REIMBURSEMENT: In the
event Your Vehicle is disabled and You contracted for
any of the above covered services on Your own, You will
be able to submit Your original receipted road service
expenses for reimbursement. Your reimbursement for towing
is $50. Reimbursement for any other roadside service
including locksmith services is $50. Send to: Nation
Safe Drivers, 800 Yamato Road, Boca Raton, FL 33431.
Attn: Claims
SERVICE PROVIDER NETWORK
Nation Safe Drivers operates through a network of contracted
service providers who have agreements with Nation Safe
Drivers to perform road and towing service for Nation
Safe Drivers members. As independent contractors, they
have exclusive control over their own equipment and
personnel. Nation Safe Drivers is not responsible for
their acts or omissions.
J. INSTRUCTIONS IN THE EVENT OF
A BREAKDOWN
1. Prevent Further Damage: Take immediate
action to prevent further damage. This CONTRACT will
not cover the damage caused by continued operation
in a failed state, and/or failing to secure a timely
repair of the failed component.
2. Take YOUR VEHICLE to an Approved
REPAIR FACILITY: In the event of a BREAKDOWN, take
the VEHICLE to any licensed REPAIR FACILITY approved
by the ADMINISTRATOR.YOU may contact the ADMINISTRATOR
for assistance in locating a REPAIR FACILITY. Provide
the REPAIR FACILITY with a copy of this CONTRACT and/or
the CONTRACT Number.
3. Obtain Prior Authorization from the
ADMINSITRATOR: Prior to any repair being made, instructs
the REPAIR FACILITY to contact the ADMINISTRATOR to
obtain authorization for the claim and a Claim Authorization
Number. It is YOUR responsibility to ensure that authorization
has been obtained for any covered repair prior to
the work being performed. For authorization, please
call the ADMINISTRATOR’S Claim number at 800-682-9774.
Failure to obtain proper authorization
shall result in a denial of benefits.
The amount authorized by the ADMINISTRATOR
is the maximum that will be paid for the repairs covered
under the terms of this CONTRACT. Any additional repair
costs must receive prior approval. If a BREAKDOWN
occurs after the ADMINISTRATOR’S normal working
hours, YOU must follow the same procedures for filing
a CLAIM, and will be directed to call OUR after-hours
phone number to contact a representative to receive
a reference number related to YOUR repair. For authorization,
please call the ADMINISTRATOR’S Claim number
at 800-682-9774.
4. Review Coverage: After the ADMINISTRATOR
has been contacted, review with the REPAIR FACILITY
what will be covered by this CONTRACT and what portions
of the repair (if any) that will not be covered.
5. Tear Down and/or Inspection of the
VEHICLE: In some cases, YOU may need to authorize
the REPAIR FACILITY to inspect and/or teardown the
VEHICLE in order to diagnose the failure and determine
the cost of the repair. YOU will be responsible for
these charges if the failure is not covered under
this CONTRACT. WE reserve the right to require an
inspection of the VEHICLE prior to any repairs being
performed.
6. Substitute Transportation and Towing
Requirement: Prior authorization from the ADMINISTRATOR
is required for a Claim made for any Substitute Transportation
and Towing reimbursement. For authorization, please
call the ADMINISTRATOR’S Claim number at 800-682-9774.
7. Pay DEDUCTIBLE and Costs for Non-Covered
Repairs: WE will reimburse the REPAIR FACILITY or
YOU for the work performed on the VEHICLE that is
covered by this CONTRACT for the previously authorized
amount, less the applicable DEDUCTIBLE. YOU must pay
for any repair or service that is not covered by this
CONTRACT.
8. Submit Repair Orders for Payment:
Once authorization is obtained and the repair is complete,
all repair orders and documentation must be submitted,
along with the Claim Authorization Number, to the
ADMINISTRATOR, within thirty (30) days from the date
the covered repair was completed to be eligible for
payment. ADMINISTRATOR-Tier One Warranty Services,
P.O. Box 680144, Houston, TX 77276.
9. Emergency Repairs: PRIOR APPROVAL
MUST BE OBTAINED IN ALL CASES. FAILURE TO OBTAIN PROPER
AUTHORIZATION SHALL RESULT IN A DENIAL OF BENEFITS.
(PLEASE REFER TO ITEM #3 ABOVE FOR AFTER HOURS PROCEDURES.)
K. CONTRACT CANCELLATION PROVISION
1. Contact the ADMINISTRATOR in writing
within sixty (60) days after the requested cancellation
date, and enclose this CONTRACT.
2. Include with YOUR refund request
proof that there is no lien or outstanding credit
obligation against this CONTRACT. If such proof is
not provided, or if there is a lien or outstanding
credit obligation against this CONTRACT, the lienholder
or creditor will be named with YOU as a joint payee
of the refund.
3. If this CONTRACT is canceled because
the VEHICLE is repossessed, the lienholder or creditor
will be the sole payee of the refund.
4. If this CONTRACT is canceled because
of a total loss of the VEHICLE, the lienholder or
creditor will be the sole payee of the refund, unless
YOU provide the ADMINISTRATOR with proof that there
is no lien or outstanding credit obligation against
this CONTRACT.
5. WE may cancel this CONTRACT at anytime
if YOU do not pay the CONTRACT price or if YOU make
a material misrepresentation in obtaining the CONTRACT
or in the submission of a claim.
6. If this CONTRACT is canceled within
the first sixty (60) days, WE will refund the entire
CONTRACT purchase price less any claims paid. If this
CONTRACT is canceled after the first sixty (60) days,
the refund will be the lesser amount yielded by the
following two computation methods. The first method
is the pro rata method based upon the number of months
of the TERM expired at the time of cancellation. The
second method is the pro rata method based upon the
number of miles driven from purchase date to date
of cancellation. In addition, a service charge equal
to the lesser of ten percent (10%) of the CONTRACT
price or twenty-five ($25) dollars will be deducted
from the refund. Please call YOUR Provider for a quote.
L. WHO TO CONTACT IN CASE OF BREAKDOWN
CALL: Tier One Warranty Services, P.O. Box
680144, Houston, TX 77268. For claims please call 800-682-9774.
For cancellations or transfers please call 800-497-5633.
For roadside assistance please call: Nation Safe Drivers
at 800-689-1190.
OUR obligation to perform under this CONTRACT are insured
by and insurance policy issued to us by Dallas National
Insurance Company, 14160 Dallas Parkway, Dallas, TX
75254. If the ADMINISTRATOR fails to pay an authorized
claim under this CONTRACT within sixty (60) days after
proof of loss has been filed, you may make a claim directly
against the Insurer.
M. TRANSFER OF CONTRACT
This CONTRACT applies to YOU and the VEHICLE described
in this CONTRACT. Only YOU can transfer this CONTRACT.
This CONTRACT cannot be transferred to or from an automobile
dealer. WE will accept transfer of this CONTRACT only:
1. If YOU request a transfer form from
the ADMINISTRATOR within fifteen (15) days of change
of ownership of the VEHICLE.
2. If YOU pay off YOUR lease before
the end of the lease term (applies to leased vehicles
only).
3. If within thirty (30) days of change
of ownership YOU provide the ADMINISTRATOR with the
following:
a. YOUR sales receipts, invoices or
work orders showing date, mileage, and the service
performed, evidencing the fact that all the maintenance
requirements have been met. (See Section H - YOUR
RESPONSIBILITIES - for maintenance requirements.)
b. A licensed dealer’s certification
of YOUR VEHICLE’S odometer reading.
c. A photocopy of the documents YOU
sent to the manufacturer showing that YOU transferred
YOUR factory warranty, if applicable. If the full
original manufacturer’s warranty is not transferred
or reduced on transfer, the transferee must contact
the ADMINISTRATOR for an additional surcharge to
complete the transfer. Failure to transfer the manufacturer’s
warranty or pay the surcharge will result in a nonpayment
of a claim.
d. A transfer fee of thirty-five ($35.00)
dollars made payable to Tier One Warranty Services.
Send a check or money order only.
e. A completed transfer form with
the two (2) required signatures.
4. If this CONTRACT is financed, YOU
must provide proof that YOUR loan is paid in full.
5. If the transferee does not receive
a confirmation of transfer within forty-five (45)
days after change of ownership, the transferee should
notify the ADMINISTRATOR.
N. GENERAL PROVISIONS
1. YOUR HELP AND COOPERATION
If WE ask, YOU agree to help US enforce
YOUR rights against any manufacturer or REPAIR FACILITY
that may be responsible to YOU for the cost of repairs
covered by this CONTRACT.
2. SUBROGATION
If WE pay for coverage under this CONTRACT,
WE may require YOU to assign YOUR rights of recovery
against others. WE will not pay for a BREAKDOWN if
YOU impair these rights to recovery. YOUR rights to
recover from others may not be waived.
3. ALTERNATIVE DISPUTE RESOLUTION CLAUSE
Read The Following Arbitration Provision (“Provision”)
Carefully. It Limits Certain Of Your Rights, Including
YOUR Right to Obtain Relief Or Damages Through Court
Action.
As used in this Provision, “YOU”
and “YOUR” means the person or persons
named in the CONTRACT and all his/her heirs, survivors,
assigns and representatives. “WE” and
“US” shall mean the Obligor identified
above and shall be deemed to include all of its agents,
affiliates, successors and assigns, and any retailer
or distributor of its products, and all of the dealers,
licensees, and employees of any of the foregoing entities.
Any and all claims, disputes, or controversies
of any nature whatsoever (whether in contract, tort
or otherwise, including statutory or common law fraud
(whether by misrepresentation or by omission) or other
international tort, property, or equitable claims)
arising out of, relating to, or in connection with
(1) this CONTRACT or any prior CONTRACT, and the purchase
thereof; and (2) the validity, scope, interpretation,
or enforceability of this Provision or of the entire
Agreement (“Claim”), shall be resolved
by binding arbitration before a single arbitrator.
All arbitrations shall be administered by the American
Arbitration Association (“AAA”) in accordance
with its Expedited Procedures of the Commercial Arbitration
Rules of the AAA in effect at the time the Claim is
filed. The terms of this Provision shall control any
inconsistency between the AAA’s Rules and this
Provision. YOU may obtain a copy of the AAA’s
Rules by calling (800) 778-7879. The arbitrator will
decide whether YOU or WE will be responsible for these
fees. The arbitrator shall apply relevant substantive
law and applicable statute of limitations and shall
provide written, reasoned findings of fact and conclusions
of law. This Provision is part of a transaction involving
interstate commerce and shall be governed by the Federal
Arbitration Act, 9 U.S.C. § 1 et seq.
If any portion of this Arbitration Provision is deemed
invalid or unenforceable, it shall not invalidate
the remaining portions of the Arbitration Provision.
This Arbitration Provision shall inure to the benefit
of and be binding on YOU and US and shall continue
in full force and effect subsequent to and notwithstanding
the expiration or termination of this CONTRACT.
YOU agree that any arbitration proceeding will only
consider YOUR Claims. Claims by, or on behalf of,
other individuals will not be arbitrated in any proceeding
that is considering YOUR Claims.
YOU AND WE UNDERSTAND AND AGREE
THAT BECAUSE OF THIS ARBITRATION PROVISION NEITHER
YOU NOR US WILL HAVE THE RIGHT TO GO TO COURT EXCEPT
AS PROVIDED ABOVE OR TO HAVE A JURY TRIAL OR TO PARTICIPATE
AS ANY MEMBER OF A CLASS OF CLAIMANTS PERTAINING TO
ANY CLAIM.
Note: Due to state law restrictions,
mandatory and/or binding arbitration may not be allowed
in YOUR state. Please refer to Section O – SPECIAL
STATE DISCLOSURES to determine if arbitration is allowed
in your state.
O. SPECIAL STATE DISCLOSURES
If YOU purchased this CONTRACT in one
of the states identified below, the Special State Disclosure
for that state applies to YOUR CONTRACT.
Alabama: The following
is added under Section K – CONTRACT CANCELLATION
PROVISION: A ten (10%) percent penalty per
month shall be added to a refund that is not paid or
credited within forty-five (45) days after the return
of the CONTRACT to the ADMINISTRATOR. The right to return
this CONTRACT applies only to the original purchaser
of this CONTRACT.
Obligations of the Obligor under this
Service Contract are guaranteed under a Contractual
Liability Insurance Policy.
Arkansas: Under Section
N – GENERAL PROVISIONS –
Paragraph 3. ALTERNATIVE DISPUTE RESOLUTION CLAUSE is
deleted and replaced with the following:
Notice: Arbitration is voluntary
and non-binding.
Connecticut: Connecticut
Public Act, 87-393, Laws 1987, requires an automobile
dealer to provide a warranty covering certain classes
of used motor vehicles as follows:
Used VEHICLES with a sale price
of $3,000, but less than $5,000: Provides coverage
for thirty (30) days or 1,500 miles, whichever comes
first.
Used VEHICLES with a sale price
of $5,000 or more: Provides coverage for sixty
(60) days or 3,000 miles, whichever comes first.
The VEHICLE YOU have purchased may be
covered by this law. If so, the following is added to
this CONTRACT: In addition to the dealer warranty required
by this law, YOU have elected to purchase this CONTRACT,
which may provide YOU with additional protection during
the dealer warranty period and provides protection after
the dealer warranty period has expired. YOU have been
charged separately only for this CONTRACT.
The required dealer warranty is provided
free of charge. Furthermore, the Definitions, Coverage
and Exclusions stated in this CONTRACT apply only to
this CONTRACT and are not the terms of the required
dealer warranty.
Idaho: Notice: The following
is added to YOUR CONTRACT: Coverage afforded under this
CONTRACT is not guaranteed by the Idaho Insurance Guarantee
Association. Obligations of the Obligor under
this agreement are guaranteed under a Contractual Liability
Insurance Policy.
Illinois: Under Section
N – GENERAL PROVISIONS –
Paragraph 3. ALTERNATIVE DISPUTE RESOLUTION CLAUSE is
deleted and replaced with the following:
Notice: Arbitration is not mandatory
for disputes which may arise from this CONTRACT but
may be chosen voluntarily by the parties to this CONTRACT.
Our Obligations to YOU are covered
under a Contractual Liability Insurance Policy, issued
by Dallas National Insurance Company, 14160 Dallas Parkway,
Dallas TX 75254.
Indiana: Notice: The
following is added to YOUR CONTRACT: YOUR proof of payment
to US or the ADMINISTRATOR or PROVIDER which issued
this CONTRACT shall be considered proof of payment to
the Insurance Company identified on the Declaration
Page which guarantees OUR obligations to YOU, provided
such insurance was in effect at the time YOU purchased
this CONTRACT.
Iowa: Notice: The following
is added to YOUR CONTRACT: In the event YOU have any
questions regarding YOUR CONTRACT, YOU may contact the
Iowa Insurance Commissioner at the following: Iowa Insurance
Division, 330 Maple Street, Des Moines, Iowa 50319,
515-281-4441.
Massachusetts: Notice:
The following is added to YOUR CONTRACT: NOTICE
TO CUSTOMER: PURCHASE OF THIS AGREEMENT IS NOT REQUIRED
IN ORDER TO REGISTER OR FINANCE A VEHICLE. THE BENEFITS
PROVIDED MAY DUPLICATE EXPRESS MANUFACTURER’S
OR SELLER’S WARRANTIES THAT COME AUTOMATICALLY
WITH EVERY SALE. THE SELLER OF THIS COVERAGE IS REQUIRED
TO INFORM YOU OF ANY WARRANTIES AVAILABLE TO YOU WITHOUT
THIS AGREEMENT.
Chapter 90, Section 7N 1/4 of Massachusetts
General Laws requires an automobile dealer to provide
a warranty covering certain classes of used motor Vehicles
as follows:
Used Vehicles with less than 40,000 miles at
the time of sale: Provides coverage for ninety
(90) days or 3,750 miles, whichever occurs first.
Used Vehicle with 40,000 miles or more but less
than 80,000 miles at the time of sale: Provides
coverage for sixty (60) days or 2,500 miles, whichever
occurs first.
Used Vehicles with 80,000 miles or more but
less than 125,000 miles at the time of sale:
Provides coverage for thirty (30) days or 1,250 miles,
whichever occurs first.
The VEHICLE YOU have purchased may be covered by this
law. If so, the following is added to this CONTRACT:
In addition to the dealer warranty required by this
law, YOU have elected to purchase this CONTRACT, which
may provide YOU with additional protection during the
dealer warranty period and provides protection after
the dealer warranty has expired. YOU have been charged
separately only for this CONTRACT. The required dealer
warranty is provided free of charge. Furthermore, the
Definition, Coverage, and Exclusions stated in this
CONTRACT apply only to this CONTRACT and not the terms
of the required dealer warranty.
Mississippi: Under Section
N – GENERAL PROVISIONS –
Paragraph 3. ALTERNATIVE DISPUTE RESOLUTION CLAUSE is
deleted and replaced with the following:
Notice: Arbitration is not mandatory
for disputes which may arise from this CONTRACT but
may be chosen voluntarily by the parties to this CONTRACT.
Our obligations to YOU are covered
under a Contractual Liability Insurance Policy, issued
by Dallas National Insurance Company, 14160 Dallas Parkway,
Dallas, TX 75254.
Missouri: Under Section
K– CONTRACT CANCELLATION PROVISION
– Paragraph 6 is amended to delete the service
charge.
Under Section M – TRANSFER
OF CONTRACT– Paragraph 3 is amended to
delete the transfer fee.
Under Section N – GENERAL
PROVISIONS – Paragraph 3. ALTERNATIVE
DISPUTE RESOLUTION CLAUSE is deleted and replaced with
the following:
Notice: Arbitration is not mandatory
for disputes which may arise from this CONTRACT but
may be chosen voluntarily by the parties to this CONTRACT.
Nebraska: Under Section
N – GENERAL PROVISIONS –
Paragraph 3. ALTERNATIVE DISPUTE RESOLUTION CLAUSE is
deleted and replaced with the following:
Notice: Arbitration is not mandatory
for disputes which may arise from this CONTRACT but
may be chosen voluntarily by the parties to this CONTRACT.
Our Obligations to YOU are covered
under a Contractual Liability Insurance Policy, issued
by Dallas National Insurance Company, 14160 Dallas Parkway,
Dallas, TX 75254.
Nevada: Under Section
K – CONTRACT CANCELLATION PROVISION –
Paragraph 6 is deleted and replaced with the following:
YOUR Cancellation Rights
Free Look Period
YOU may cancel YOUR CONTRACT and receive a full refund
of the purchase price if YOU have not made a claim under
the service contract and if YOU returned the service
contract to US:
(a) within twenty (20) days after the date that WE mailed
the service contract to YOU;
(b) within ten (10) days after YOU received YOUR service
contract at the time of purchase.
WE should refund the purchase price within
forty-five (45) days after the service contract is returned.
If WE fail to refund the purchase price within that
time, WE shall pay YOU an additional ten (10) percent
of the purchase price for each thirty (30) day period
or portion thereof that the refund and any accrued amounts
remain unpaid. WE may not, under any circumstances,
deduct paid or pending claims from a refund.
If YOU cancel the CONTRACT outside of
the “free look period” described above,
WE will refund the unearned portion of the purchase
price to YOU. The refund will be the lesser amount yielded
by the following two computation methods. The first
method is the pro rata method based upon the number
of months of the TERM expired at the time of cancellation.
The second method is the pro rata method based upon
the number of miles driven from purchase date to date
of cancellation. In addition, a service charge equal
to the lesser of ten (10%) percent of the CONTRACT price
or twenty-five ($25) dollars will be charged. Please
call YOUR Provider for a quote.
If the purchase price of the service contract
is financed and the loan has not been paid in full,
WE will provide the amount still owed to the lender
with the balance being paid to YOU.
OUR Cancellation Rights
Grounds for cancellation; date cancellation
effective.
1. No service contract that has been
in effect for at least seventy (70) days may be cancelled
by US before the expiration of the agreed term or
one (1) year after the effective date of the service
contract, whichever occurs first, except on any of
the following grounds:
a. Failure by YOU to pay an amount
when due;
b. Conviction of YOU of a crime which
resulting in an increase in the service required
under the service contract;
c. Discovery of fraud or material
misrepresentation by YOU in obtaining the service
contract, or in presenting a claim for service there
under;
d. Discovery of:
(a) An act or omission by YOU; or
(b) A violation by YOU of any condition
of the service contract, which occurred after
the effective date of the service contract and
which substantially and materially increases the
service required under the service contract
e. A material change in the nature
or extent to the required service or repair which
occurs after the effective date of the service contract
and which causes the required service or repair
to be substantially and materially increased beyond
that contemplated at the time that the service contract
was issued or sold.
2. No cancellation of a service contract
may become effective until at least fifteen (15) days
after the notice of cancellation is mailed to YOU.
3. If WE cancel the contract, WE may
not charge a cancellation or administrative fee.
THIS CONTRACT IS NOT RENEWABLE.
Obligations of the Obligor under
this Service Contract are insured under a Contractual
Liability Insurance Policy, issued by Dallas National
Insurance Company, 14160 Dallas Parkway, Dallas, TX
75254.
New Hampshire: Under
Section K – CONTRACT CANCELLATION PROVISION
– paragraph 6 is deleted and replaced
with the following:
If this CONTRACT is canceled within the first thirty
(30) days and no CLAIMS have been filed, WE will refund
the entire CONTRACT purchase price. If this CONTRACT
is canceled after the first thirty (30) days or a Claim
has been filed, the refund will be the lesser amount
yielded by the following two computation methods. The
first method is the pro rata method, based upon the
number of months of the TERM expired at the time of
cancellation. The second method is the pro rata method,
based upon the number of miles driven from the purchase
date to the date of cancellation. Please call YOUR Provider
for a quote.
North Carolina: Under
Section K – CONTRACT CANCELLATION PROVISION
– Paragraph 6 is deleted and replaced with the
following:
YOU may cancel this CONTRACT at any time. If YOU cancel,
YOU will receive a pro rata refund less any claims paid
and less an administrative fee not to exceed ten (10%)
percent of the amount of the pro rata refund. Please
call YOUR Provider for a quote.
Under Section N – GENERAL PROVISIONS
– Paragraph 3. ALTERNATIVE DISPUTE RESOLUTION
CLAUSE is deleted and replaced with the following:
Notice: Arbitration is not mandatory
for disputes which may arise from this CONTRACT but
may be chosen voluntarily by the parties to this CONTRACT.
Oklahoma: Under Section
K – CONTRACT CANCELLATION PROVISION
– Paragraph 6 is deleted and replaced with the
following:
If this CONTRACT is canceled within the first sixty
(60) days and no claims have been filed, WE will refund
the entire CONTRACT purchase price. If this CONTRACT
is canceled after the first sixty (60) days or a claim
has been filed, the refund will be the lesser amount
yielded by the following two computation methods. The
first method is the pro rata method based upon the number
of months of the TERM expired at the time of cancellation.
The second method is the pro rata method based upon
the number of miles driven from purchase date to date
of cancellation. In addition, a service charge of ten
(10%) percent of the pro rata refund amount will be
applied if this CONTRACT is canceled by YOU. Any claims
paid or pending will be deducted from the refund. Please
call YOUR Provider for a quote.
The following is added to the CONTRACT:
This CONTRACT is not issued by the manufacturer or wholesale
company marketing the product. This CONTRACT will not
be honored by such manufacturer or wholesale company.
Under Section N –
GENERAL PROVISIONS – Paragraph 3.
ALTERNATIVE DISPUTE RESOLUTION CLAUSE is deleted
and replaced with the following:
Notice: Arbitration is not mandatory
for disputes which may arise from this CONTRACT but
may be chosen voluntarily by the parties to this CONTRACT.
Rhode Island: Section 31-5-4 of Rhode
Island General Business Law requires an automobile dealer
to provide a warranty covering certain classes of used
motor vehicles as follows:
Used VEHICLES with 36,000 miles
or less at the time of sale: Provides coverage
for sixty (60) days or 3,000 miles, whichever occurs
first.
Used VEHICLES with more than 36,000
miles but less than 100,000 miles at the time of sale:
Provides coverage for thirty (30) days or 1,000 miles,
whichever occurs first.
The VEHICLE YOU have purchased may be
covered by this law. If so, the following is added to
this CONTRACT: In addition to the dealer warranty required
by this law YOU have elected to purchase this CONTRACT,
which may provide YOU with additional protection during
the dealer warranty period and provides protection after
the dealer warranty period has expired. YOU have been
charged separately only for this CONTRACT. The required
dealer warranty is provided free of charge. Furthermore,
the Definitions, Coverage and Exclusions stated in this
CONTRACT apply only to this CONTRACT and are not the
terms of the required dealer warranty.
South Carolina: Under
Section K – CONTRACT CANCELLATION PROVISION –
the following is added to Paragraph 6:
A ten (10%) percent penalty per month
shall be added to a refund that is not paid or credited
within forty-five (45) days after the return of the
CONTRACT to the ADMINISTRATOR. The right to return this
CONTRACT applies only to the original purchaser of this
CONTRACT.
In the event YOU have a question or complaint,
YOU may contact the South Carolina Department of Insurance,
P.O. Box 100105, Columbia, South Carolina, 29202, Telephone
800-768-3467.
Obligations of the Obligor under
this Service Contract are insured under a Contractual
Liability Insurance Policy.
Texas: The following
is added under Section K – CONTRACT CANCELLATION
PROVISION:
A ten (10%) percent penalty per month
shall be added to a refund that is not paid or credited
within forty-five (45) days after the return of the
CONTRACT to the ADMINISTRATOR. The right to return this
CONTRACT applies only to the original purchaser of this
CONTRACT.
Notice: If YOU have complaints
or questions regarding this CONTRACT, YOU may contact
the Texas Department of Licensing and Regulation at
the following address and telephone number: Texas Department
of Licensing and Regulation, P.O. Box 12157, Austin,
Texas 78711; 512-463-6599 or 800-803-9202.
Obligations of the Obligor under
this Service Contract are insured under a Contractual
Liability Insurance Policy.
Utah: Notice: Coverage
afforded under this CONTRACT is not guaranteed by the
Property and Casualty Guarantee Association.
Obligations of the Provider under this
service contract are guaranteed under a contractual
liability insurance policy. Should the Provider fail
to pay or provide service on any claim within sixty
(60) days after proof of loss has been filed; the contract
holder is entitled to make a claim directly against
the insurance company.
Section J – INSTRUCTION IN THE EVENT
OF A BREAKDOWN – is amended to include the following:
YOUR failure to submit repair orders and other documentation
within thirty (30) days of the repair will not automatically
invalidate YOUR claim if YOU can demonstrate that it
was not reasonably possible to file these documents
within such time period.
For emergency repairs, should a BREAKDOWN
occur after the ADMINISTRATOR’S normal business
hours or on a national holiday, the pre-authorization
requirement is amended. The ADMINISTRATOR must still
be contacted when reasonably possible following the
BREAKDOWN. Such unauthorized repair claims will be subject
to adjustment in cases of excessive parts or labor charges.
The following is added under Section K
– CONTRACT CANCELLATION PROVISION – Paragraph
5:
If WE cancel this CONTRACT, WE will mail
written notice of cancellation to YOU at least ten (10)
days before the effective date if this CONTRACT is cancelled
due to non-payment of the CONTRACT selling price, or
thirty (30) days prior to the effective date of cancellation
if this CONTRACT is cancelled for any other reason.
Under Section N – GENERAL PROVISIONS
– Paragraph 3. ALTERNATIVE DISPUTE RESOLUTION
CLAUSE is deleted and replaced with the following:
Notice: Arbitration is not mandatory
for disputes, which may arise from this Contract but
may be chosen voluntarily by the parties to this Contract.
Vermont: Under Section
N – GENERAL PROVISIONS –
Paragraph 3. ALTERNATIVE DISPUTE RESOLUTION CLAUSE is
deleted and replaced with the following:
Notice: Arbitration is not mandatory
for disputes which may arise from this CONTRACT but
may be chosen voluntarily by the parties to this CONTRACT.
Virginia: This warranty
is subject to limited regulation by The Department of
Agriculture and Consumer Services, Office of Consumer
Affairs.
Wyoming: The following
is added under Section K – CONTRACT CANCELLATION
PROVISION:
A ten (10%) percent penalty per month shall be added
to a refund that is not paid or credited within forty-five
(45) days after the return of the CONTRACT to the ADMINISTRATOR.
Under Section N – GENERAL PROVISIONS
– Paragraph 3. ALTERNATIVE DISPUTE RESOLUTION
CLAUSE is deleted and replaced with the following:
Notice: Arbitration is not mandatory
for disputes which may arise from this CONTRACT but
may be chosen voluntarily by the parties to this CONTRACT.
Obligations of the Obligor under this
service contract are insured under a Contractual Liability
Insurance Policy. The insurer is Dallas National Insurance
Company, 14160 Dallas Parkway, Dallas, TX 75254
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