Tier One Direct Powertrain Plus Contract
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| TIER ONE PROTECTION
PLUS POWERTRAIN CONTRACT |
TERMS & CONDITIONS
DEFINITIONS
ADMINISTRATOR: Tier One
Warranty, LLC, PO Box 680144, Houston, TX 77268-0144
is the Administrator of this Contract.
BREAKDOWN: The failure
of any Covered Part to perform the
function for which it was intended. Gradual reduction
in operating performance due to the natural and inherent
wear characteristics of automotive parts, where no failure
has occurred, will not be considered a Breakdown.
CONTRACT: refers to this
vehicle service Contract which You
purchased to protect Your Vehicle.
COVERED COMPONENT: Any
part or component listed in the Coverage section of
this Contract. The listed parts must be the original
equipment on Your Vehicle or like replacement
parts meeting the manufacturer’s specifications.
Any Covered Components which have been
repaired or replaced prior to the Effective
Date of this Contract must
have been repaired or replaced by a state licensed mechanic.
COVERED REPAIR: means
a repair to a Covered Component as
approved by the Administrator.
DEDUCTIBLE: refers to
the Deductible You must pay, as shown
on the Declaration Page of this Contract,
for each Covered Repair visit.
EFFECTIVE DATE: either
sixty (60) days or ninety (90) days from the Purchase
Date as chosen by the Registered Owner and indicated
on the Declaration Page of this Contract.
EFFECTIVE ODOMETER READING:
The odometer reading indicated on the Declaration Page
of this Contract plus one thousand,
five hundred (1,500) for sixty (60) days to Effective
Date - or - the odometer reading indicated
on the Declaration Page of this Contract
plus five hundred (500) miles for ninety (90) days to
Effective Date.
EXPIRATION DATE: The
five year anniversary of the Effective Date,
or upon cancellation by You. In the
event You cancel this Contract prior to the Expiration
Date, the cancellation will be effective the
date the cancellation was requested by You.
Upon cancellation, You will no longer be eligible for
benefits under this Contract.
VEHICLE: The Vehicle
described on the Declaration Page of this Contract
which, upon acceptance by the Administrator,
is covered by this Contract.
WE, US OR OUR: Refers
to the Obligor of this Contract
which is Tier One Warranty, LLC.
YOU, YOUR, OR REGISTERED OWNER:
Refers to the person listed as the Registered
Owner on this Contract
GENERAL TERMS
The following represents the Coverages,
Benefits, Cancellations, What to do in the Event of
a Failure and Exclusions of Your Vehicle Service Contract.
This document is an Application for the Vehicle Service
Contract and does not constitute a Contract until accepted
by Administrator.
1. CONTRACT PERIOD: This
Contract begins on the Effective Date and Effective
Odometer Reading and will expire according to the time/mileage
selected, whichever occurs first, as shown on the Declaration
Page of this Contract. Failure of a Covered Component
occurring prior to the Effective Date and Effective
Odometer Reading will not be covered.
2. FAILURE OF COVERED COMPONENTS:
We will pay or reimburse You for reasonable costs to
repair or replace a Covered Component in the event of
a Breakdown. Replacement parts may be new, remanufactured
or replacement parts of like kind and quality.
3. TERRITORY: This Contract
is limited to Breakdowns which occur, and Covered Repairs
that are made within the United States of America and
Canada.
4. LIMITS OF LIABILITY:
In case of a failure within the lubricated parts of
the engine and/or transmission of the Vehicle, Our obligation
is limited to repairing or replacing defective parts
with parts of like kind and quality and may be new,
remanufactured or replacement parts. The limit of liability
is $3,000.00 per engine (aggregate), $2,000.00 per transmission
(aggregate), $1,500.00 per transfer case (aggregate),
$500.00 per Electrical (aggregate), and $ 500.00 per
Air Conditioning (aggregate). Our maximum cumulative
liability for the Vehicle shall be either the actual
cash value of the Vehicle as determined by the then-current
NADA price guide for a Vehicle in average condition
– or – $5,500 whichever is less. If a single
claim or cumulative claims and benefits exceed the actual
cash value of the Vehicle, as determined by the then-current
NADA average trade in value, and We elect to pay up
to the actual cash value of the Vehicle or $5,500, this
Contract will become fully earned and no further claims
can be made against Us. Once the maximum limit of liability
has been reached, this Contract, its transfer and cancellation
rights, terminate.
5. OUR RIGHT TO RECOVERY:
If We pay anything under this Contract and You have
a right to recover from another party, Your rights will
become Our rights up to the amount We paid. You will
do whatever is necessary to enable Us to enforce these
rights.
6. TRANSFER RIGHTS: This
Contract is for the benefit of the Registered Owner
and is transferable subject to a transfer fee providing:
a) Proof of transfer of the remaining
manufacturer’s warranty is provided, if applicable.
b) This Contract is being transferred
to a subsequent private purchaser of Your Vehicle.
(Transfer rights are voided when Vehicle is either
traded sold or put on consignment to an individual
or entity engaged in the wholesale or retail sale,
leasing or rental of Vehicles.)
You must submit the following:
a) Transfer application (available from
Administrator).
b) Bill of sale showing sale date and
mileage at time of sale.
c) $50.00 Transfer fee made payable
to the Administrator within thirty (30) days of the
transfer of Vehicle ownership.
7. MAINTENANCE REQUIREMENTS:
You must:
a) Change the engine oil and filter
within sixty (60) days after the purchase date of
this Contract.
b) Have the engine oil and filter changed
by a commercial service facility every four (4) months
or four thousand miles thereafter whichever comes
first. Proper documented and verifiable receipts for
oil and engine filter changes will be required in
the event of a claim. Hand written receipts will not
be accepted. Receipts must be on licensed repair facility
letterhead and include Vehicle identification number,
date and mileage at time of service.
c) Maintain Your Vehicle according to
the manufacturer’s recommendations as outlined
in the owner’s manual. NOTE: Your owner’s
manual has separate required maintenance schedules
for “normal” and “more severe”
operating conditions. You are required to follow the
maintenance schedule that applies to Your conditions.
d) Be sure only the proper grade of
lubricants and coolants, as recommended by the manufacturer,
are used in Your Vehicle.
e) Retain verifiable receipts for all
parts and materials necessary to perform the required
maintenance
8. DEDUCTIBLE: In the
event of a Breakdown, You are required to pay a Deductible.
No Deductible is required with respect to coverages
listed in the Additional Benefits section of this Contract.
The Deductible amount You must pay is shown on the Declaration
Page of this Contract for Covered Repairs on a per visit
basis. If a Breakdown requires more than one visit to
repair, only one Deductible will apply to that Breakdown.
9. ARBITRATION: If We
and You do not agree on the settlement of any claim,
either party may make a written request for arbitration.
In this event, each party shall select an arbitrator.
The two arbitrators shall select a third. If they cannot
agree on a third within thirty (30) days, either may
request that the selection be made by a judge of a court
having jurisdiction. Each party shall pay the expenses
they incur, and bear the expenses of the third party
arbitrator equally. A decision agreed to by any two
of the arbitrators shall be binding on both parties
COVERAGE
This Contract covers ONLY the components/parts
listed below:
ENGINE: All internally
lubricated parts of engine, including pistons, piston
rings, piston pins, crankshaft and main bearings, connecting
rods and rod bearings, camshaft and camshaft bearings,
timing chain and timing gears, intake and exhaust valves,
valve springs, oil pump, push rods, rocker arms, hydraulic
lifters, rocker arm shafts. The engine block and cylinder
heads are only covered if damaged by the failure of
any of the above-listed parts.
TRANSMISSION: All internally
lubricated parts of manual or automatic transmissions,
including torque converter case if damaged by the failure
of an internally lubricated Covered Part, oil pump,
drums, planetaries, sun gear and shell, shaft(s), bearings,
shift rail, forks, and synchronizers.
TRANSFER CASE: All internally
lubricated parts.
COOLING: Water pump.
AIR CONDITIONING: Compressor
motor, clutch & clutch coil, condenser, evaporator.
ELECTRICAL: Starter motor,
alternator, power window motors, heater fan and front
and rear wiper motors.
DEDUCTIBLE: You are responsible
for a fifty ($50) dollar Deductible per Covered Repair
visit.
ADDITIONAL BENEFITS
RENTAL REIMBURSEMENT:
We will provide reimbursement for a rental vehicle from
a licensed agency in the event of a Breakdown. We will
pay up to thirty five ($35) dollars for every four (4)
hours or portion thereof of approved labor time to complete
the Covered Repair (maximum 3 days). The first 4 hours
of labor time for any Covered Repair does not qualify
for rental reimbursement. You must submit receipts to
the Administrator for reimbursement. This coverage does
not apply to service or parts delays or other time delays
beyond Our control or that of the repair facility.
24-Hour Emergency Roadside Assistance
This Contract includes membership in the
Nation Motor Club 24-Hour Emergency Roadside Assistance
program. Club products and services are provided by
Nation Motor Club, Inc. d/b/a Nation Safe Drivers with
corporate offices located at 800 Yamato Road –
STE 100, Boca Raton, FL 33431.
Roadside Coverage: 24-Hour
roadside assistance services are available all days
of the year throughout the US/Canada and Puerto Rico.
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 866-330-0760. You will be required to give
the representative assisting You the following information:
Producer Code – 89908, Your Contract number (located
on the front right 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 consideration. Your reimbursement
for towing is $50. Reimbursement for any other roadside
service including locksmith services is $50. You must
send your original receipted roadside bills along with
a completed claim form to: Nation Safe Drivers, 800
Yamato Rd STE 100, Boca Raton, Florida, 33076. Attn:
Claims. Claim forms are available online at www.nsdclaims.com
or by calling toll free 1-800-338-2680.
WHAT TO DO IN THE EVENT OF A FAILURE
1. Prevent Further Damage - You should
use all reasonable means and precautions to protect
Your Vehicle from further damage. This Contract will
not cover damage caused by not securing a timely repair
of the failed component.
2. Take Your Vehicle to a Licensed
Repair Facility - (You may contact Administrator for
assistance in locating a repair facility).
3. Instruct the repair facility that
they must obtain an authorization number from the
Administrator prior to proceeding with repairs. The
amount so authorized is the maximum that will be paid.
Any additional amounts need prior approval.
4. In some cases, You may be required
to authorize the repair facility to inspect or tear
down Your Vehicle to determine the cause and cost
of the repair. You will be responsible for these charges
if the failure is not covered by this Contract. We
reserve the right to require an inspection of Your
Vehicle prior to any repair being performed.
5. After the Administrator has been
contacted, We recommend that You review with the repair
facility the components that will be covered for this
claim.
6. Administrator will pay the repair
facility directly or reimburse You for the cost of
authorized repairs performed on Your Vehicle, less
any applicable Deductible. All repair orders and necessary
documentation must be submitted to Administrator within
thirty (30) days to qualify for payment.
REPAIR FACILITY GUIDELINES FOR CLAIMS
HANDLING
Follow these steps when handling a claim:
1. Advise Registered Owner that evaluation
of a failure does not mean that the repair is covered
under this Contract. All Covered Repairs must receive
prior authorization by Administrator.
2. Have Registered Owner authorize inspection/tear
down of the Vehicle to determine cause of the failure
and cost to repair. Save all components, including
fluids and filters, should Administrator require outside
inspection. Notify Registered Owner that cost of tear
down will not be paid if it is determined that the
failure is not covered under this Contract.
3. Determine the cause of failure, correction
required and cost of the repairs.
4. Contact Administrator’s Claims
Department at 800-682-9761 to get authorization to
proceed with the claim. Be prepared with the following
when placing the call:
a. Registered Owner’s name and
Contract number.
b. Cause of failure and recommended
correction.
c. Cost of repair.
5. A Claims Advisor will verify coverage
and do one of the following:
a. Approve Claim - If approved, You
will be given an authorization number to be recorded
on the repair order. The authorized amount is the
maximum that will be paid. Additional amounts must
receive prior approval.
b. Require additional evaluation,
inspection or tear down - Administrator may require
an inspection prior to repair being completed. If
a tear down is required to determine cause of failure,
Registered Owner must authorize the tear down. Notify
Registered Owner that if the repair is not covered,
then Registered Owner will be responsible for cost
of the tear down. Repair facility should save all
components requiring inspection, including fluids
and filters. The Claims Advisor will arrange for
the inspection. If inspection is not made within
forty-eight (48) hours, contact the Claims Advisor.
c. Deny the claim and provide the
reason for the denial.
6. Review Administrator’s findings
with Registered Owner as well as what will be covered
by this Contract and what portion of the repairs,
if any, will not be covered.
7. Obtain Registered Owner’s authorization
to complete repairs. All repair orders must have Registered
Owner’s signature to qualify for payment.
8. Submit repair order(s), which must
contain Contract number, authorization number and
authorized amount to
Administrator within thirty (30) days at the following
address:Tier One Warranty, LLC, P.O. Box 680144, Houston,
TX 77268, 800-682-9761.
CANCELLATION OF VEHICLE SERVICE
CONTRACT
1. You may cancel this Contract by notifying
Us in writing. A cancellation form indicating the
odometer reading on the date of cancellation will
be required. You may request this form from the Administrator.
2. We may cancel this Contract for non-payment
of the Contract charge, or for intentional misrepresentation
in obtaining this Contract or in submitting a claim.
3. If Your Vehicle and/or this Contract
have been financed, the lienholder may cancel this
Contract for non-payment, or if Your Vehicle has been
declared a total loss or has been repossessed. The
rights under this Contract are transferred to the
lienholder and the lienholder is also entitled to
any resulting refund.
4. If this Contract is canceled within
the first thirty (30) days and no claim has been filed,
the entire Contract charge paid will be refunded.
After thirty (30) days, or if a claim has been filed,
an amount of the unearned Contract charge will be
refunded according to the pro-rata method reflecting
the greater of the days in force or the mileage driven
based on the term of Contract and the date or miles
when Coverage began.
5. The greater of a $50 service charge
or the total of all authorized claims will be deducted
from all refunds after thirty (30) days.
6. In the event of cancellation, the
lienholder, if any, will be named on the cancellation
refund check.
EXCLUSIONS
This Vehicle Service Contract
Provides NO Coverage or Benefits for any of the following:
A. FAILURE OF A COVERED COMPONENT OCCURRING
PRIOR TO THE EFFECTIVE DATE OR EFFECTIVE ODOMETER READING.
B. OIL CONSUMPTION, WORN OUT PARTS, AND
DIMINISHED PERFORMANCE INCLUDING THAT RESULTING FROM
A GRADUAL REDUCTION IN OPERATING PERFORMANCE DUE TO
NORMAL WEAR AND TEAR INCLUDING BUT NOT LIMITED TO GUIDES,
VALVES, RINGS, AND TRANSMISSION CLUTCH PACK, DISCS AND
BANDS.
C. DIESEL ENGINES MANUFACTURED PRIOR TO
1990, ROTARY ENGINES, 4100 GM ENGINES OR ENGINES USED
IN COMMERCIAL VEHICLES.
D. SHOP SUPPLY CHARGES; EPA DISPOSAL FEES;
SPECIAL ORDER PARTS SHIPPING COST; PARTS LOCATOR RESEARCH
FEE; STORAGE FEES; FILTERS, LUBRICANTS, COOLANTS, FLUIDS
AND REFRIGERANTS EXCEPT WHEN REPLACEMENT IS REQUIRED
DUE TO A COVERED FAILURE.
E. ANY COMPONENT NOT COVERED BY THE VEHICLE
MANUFACTURER FOR THE FULL TERM OF THE VEHICLE WARRANTY.
F. ANY FAILURE RESULTING FROM COLLISION;
INTERNAL OR EXTERNAL FIRE; THEFT; VANDALISM; RIOT; EXPLOSION;
LIGHTNING; EARTHQUAKE; FREEZING; RUST OR CORROSION;
WINDSTORM; HAIL; WATER OR FLOOD; ACTS OF GOD; ACTS OF
WAR; ACTS OF TERRORISM; SALT; ENVIRONMENTAL DAMAGE;
CONTAMINATION OR LOSS OF FLUIDS, FUELS, COOLANTS OR
LUBRICANTS; ABUSE; NEGLIGENCE; LACK OF NORMAL MAINTENANCE
REQUIRED BY THE MANUFACTURER’S MAINTENANCE SCHEDULE
FOR YOUR VEHICLE; IMPROPER SERVICING AFTER THE EFFECTIVE
DATE OF THIS CONTRACT; SLUDGE BUILD-UP OR FAILURE TO
MAINTAIN PROPER LEVELS OF LUBRICANTS AND/OR COOLANTS;
NOT PROTECTING THE VEHICLE FROM FURTHER DAMAGE WHEN
A FAILURE HAS OCCURRED.
G. ANY REPAIR OR REPLACEMENT OF A COVERED
COMPONENT IF NO FAILURE HAS OCCURRED REGARDLESS OF REPAIR
FACILITY RECOMMENDATIONS; OR IF THE WEAR ON THAT PART
HAS NOT EXCEEDED THE FIELD TOLERANCES PERMITTED BY THE
MANUFACTURER; ANY REPAIR NOT SPECIFICALLY AUTHORIZED
BY US.
H. IF ANY ALTERATIONS HAVE BEEN MADE TO
YOUR VEHICLE OR IF YOU USE YOUR VEHICLE IN A MANNER
NOT RECOMMENDED BY THE MANUFACTURER. INCLUDING THE FAILURE
OF ANY CUSTOM OR ADD-ON/AFTERMARKET PART REGARDLESS
IF SUPPLIED BY A FRANCHISE DEALER OR NOT; ANY FRAME
OR SUSPENSION MODIFICATIONS; LIFT KITS; OVERSIZED/UNDERSIZED
TIRES OR WHEELS; TRAILER HITCHES; OR MODIFICATIONS TO
ANY OF YOUR VEHICLE’S SYSTEMS.
I. IF YOUR ODOMETER HAS CEASED TO WORK
AND REPAIRS HAVE NOT BEEN IMMEDIATELY MADE; THE ODOMETER
HAS BEEN ALTERED IN ANY WAY SUBSEQUENT TO PURCHASE;
OR IF VEHICLE’S TRUE MILEAGE CANNOT BE DETERMINED.
J. LIABILITY FOR PROPERTY DAMAGE, OR FOR
INJURY OR DEATH OF ANY PERSONS ARISING OUT OF THE OPERATION,
MAINTENANCE OR USE OF YOUR VEHICLE, WHETHER OR NOT RELATED
TO THE PARTS COVERED. LOSS OF TIME, PROFIT, INCONVENIENCE,
OR ANY OTHER LOSS THAT RESULTS FROM A FAILURE (EXCEPT
AS PROVIDED UNDER THE BENEFITS OR COVERAGES HEREIN.)
K. REPAIRS TO SEIZED OR DAMAGED ENGINES
DUE TO CONTINUED OPERATION REGARDLESS OF CAUSE OR WITHOUT
SUFFICIENT LUBRICANTS OR COOLANT. YOU ARE RESPONSIBLE
FOR MAKING CERTAIN THAT THE OIL AND TEMPERATURE WARNING
LIGHTS/GAUGES ARE FUNCTIONING PROPERLY. YOU MUST PULL
OFF THE ROAD IMMEDIATELY AND DISCONTINUE VEHICLE OPERATION
WHEN ANY OF YOUR VEHICLE’S LIGHTS/GAUGES INDICATES
INADEQUATE PROTECTION OR PERFORMANCE OR IF OVERHEATING
OCCURS.
L. SALVAGED TITLE VEHICLES; WHEN RESPONSIBILITY
FOR A REPAIR IS COVERED BY AN INSURANCE POLICY; WARRANTY
FROM THE MANUFACTURER INCLUDING EXTENDED DRIVE TRAIN,
MAJOR COMPONENT OR FULL COVERAGE WARRANTIES; A REPAIRER’S
GUARANTEE OR WARRANTY; OR FAILURES FOR WHICH THE MANUFACTURER
HAS ANNOUNCED RESPONSIBILITY THROUGH ANY MEANS, INCLUDING
RECALL CAMPAIGNS AND FACTORY SERVICE BULLETINS.
M. IF YOUR VEHICLE IS USED FOR TOWING
A TRAILER OR OTHER OBJECT OR VEHICLE WITHOUT BEING EQUIPPED
WITH A FACTORY INSTALLED OR AUTHORIZED TOW PACKAGE;
OR IS USED FOR COMMERCIAL PURPOSES, INCLUDING, BUT NOT
LIMITED TO, RENTAL, TAXI, LIMOUSINE, LIVERY OR SHUTTLE,
TOWING OR ROAD REPAIR, CONSTRUCTION, FARMING OR AGRICULTURAL
PURPOSES, JOB SITE ACTIVITIES, HAULING, POLICE OR EMERGENCY
SERVICES, PRINCIPAL OFF ROAD USE, RACING, COMPETITIVE
DRIVING, SNOW REMOVAL, ROUTE-WORK, SERVICE & REPAIR.
N. ANY FAILURE OCCURRING PRIOR TO THE
PURCHASE DATE OF THIS CONTRACT, OR IF INFORMATION PROVIDED
BY YOU OR A REPAIR FACILITY CANNOT BE VERIFIED AS ACCURATE
OR IS FOUND TO BE DECEPTIVELY INACCURATE.
O. ANY FAILURE OCCURRING OUTSIDE OF THE
UNITED STATES OF AMERICA OR CANADA.
P. DAMAGE CAUSED BY PRE-IGNITION DETONATION,
PINGING, IMPROPER/CONTAMINATED FUEL OR IMPROPER ENGINE
ADJUSTMENTS.
SPECIAL STATE REQUIREMENTS/DISCLOSURES
1. Terms of Contract Conformed to Statute
- Terms of this Contract which are in conflict with
the statutes of the state in which this Contract was
purchased are hereby amended to conform to the minimum
standards of those statutes.
2. THIS SERVICE CONTRACT IS ONLY SUBJECT
TO LIMITED REGULATION BY THE OFFICE OF THE COMMISSIONER
OF INSURANCE.
3. The following special state requirements
and/or disclosures apply if this Contract was purchased
in one of the following states:
ALABAMA
Our obligations under this service Contract are guaranteed
under a Contractual Liability Insurance Policy. Consequential
damages and preexisting conditions are not covered under
this service Contract.
CANCELLATION OF SERVICE CONTRACT SECTION:
Item 5 is deleted and replaced with the following:
5. A twenty-five dollar ($25) service charge will be
deducted from all refunds that you request after thirty
(30) days or if a claim has been filed. A request for
a refund upon Us pursuant to the cancellation provision
is payable within 45 days of receipt and any such refund
which is not timely paid is subject to a 10% penalty.
ALASKA
Dealerships in Alaska are now required to disclose specific
information about the service Contracts they sell to
each Contract purchaser at the time of sale. The state
of Alaska has passed legislation requiring the following
disclosures to be made to a service Contract purchaser
before the dealer delivers the vehicle for which the
service Contract is sold:
1. The difference between a service
Contract and a warranty;
2. The identity of the obligor on the
service Contract and the relationship between the
dealer and the obligor;
3. A statement that the dealer may not
disclaim any implied warranties that may be in addition
to the obligations included in the service Contract.
EXCLUSION SECTION: Item J. is amended
by adding the following:
This Contract will provide Coverage if Your Unit is
used for snow removal, provided Your Unit is properly
equipped for such use and is not used commercially.
ARIZONA
In the State of Arizona “We, Us, Our” refers
to Tier One Warranty Services.
TERMS AND CONDITIONS SECTION: 9. ARBITRATION IS DELETED
AND REPLACED WITH THE FOLLOWING: ARBITRATION: Any controversy
or claim arising out of or relating to this Contract,
or the breach thereof, may be settled by binding arbitration
in accordance with the statutes of Arizona. Either party
may make a written request for arbitration to the American
Arbitration Association. If binding arbitration is agreed
upon by both parties, a decision by the Arbitrator shall
be binding upon the parties. Exclusion P. is deleted.
CONNECTICUT
Connecticut General Statute Annotated Title 42 Chapter
743F sect 42-221 or (C.S.G.A. sect. 42-221) 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 30 days or 1,500 miles, whichever
occurs first.
Used Vehicles with a sale price of $5,000
or more
Provides Coverage for 60 days or 3,000 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 has expired. You have been charged
separately only for this Contract. The required Dealer
warranty is provided free of charge. Furthermore, the
definitions, Coverages and exclusions stated in this
Contract apply only to this Contract and are not the
terms of the required Dealer warranty.
You may pursue arbitration to settle disputes
between You and the Administrator. A written complaint
containing a description of the dispute, the purchase
or lease price of the Vehicle, the cost of repair of
the Vehicle and a copy of Your Agreement may be mailed
to: State of Connecticut, Insurance Department, P.O.
Box 816, Hartford, CT 06142-0816, Attention: Consumer
Affairs Division.
GEORGIA
Our obligations to You are guaranteed under a Contractual
Liability Insurance Policy.
CANCELLATION OF VEHICLE SERVICE CONTRACT complies with
G.S. 33-24-44.
If this Contract is canceled within the first thirty
(30) days and no claims have been filed, We will refund
the entire Contract charge paid. If this Contract is
canceled after the first thirty (30) days or a claim
has been filed, We will refund an amount of the Contract
charge according to the pro-rata method reflecting the
greater of the days in force or the miles driven based
on the term of the plan selected and the date Coverage
begins. An administration fee of 10% of the pro-rata
refund amount will be applied if this Contract is canceled
by You. In the event of cancellation, the lienholder,
if any, will be named on a cancellation refund check
as their interest may appear. If You have canceled this
Contract and have not received the refund from Us or
the Administrator within (60) days of such cancellation
We must include a 25% penalty of the amount of the return
and interest at 18% per anum, with penalties and interest
limited to 50% of the refund.
Arbitration- refer to Terms & Conditions #9. Arbitration
will not be binding on the parties for contracts sold
in Georgia.
HAWAII
DEFINITIONS SECTION: The definition of Breakdown is
deleted and replaced with the following: Breakdown -
Means the Failure of a covered part under normal service
due to defects in material and workmanship. A covered
part has failed when it can no longer perform the function
for which it was designed solely because of its condition
and not because of the action or inaction of any non-covered
parts.
Hawaii Revised Statutes require an automobile dealer
to provide a warranty covering certain classes of used
motor Vehicles as follows:
Used Vehicles with less than 25,000
miles at the time of sale
Provides Coverage for 90 days or 5,000 miles, whichever
occurs first.
Used Vehicles with 25,000 miles or more
but less than 50,000 miles at time of sale
Provides Coverage for 60 days or 3,000 miles, whichever
occurs first.
Used Vehicles with 50,000 miles or more
but not more than 75,000 miles at the time of sale
Provides Coverage for 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 has expired. You have been charged
separately only for this Contract. The required Dealer
warranty is provided free of charge. Furthermore, the
definitions, Coverages and exclusions stated in this
Contract apply only to this Contract and are not the
terms of the required Dealer warranty.
IDAHO
Notice - Coverage afforded under this Contract is guaranteed
by the Idaho Insurance Guarantee Association.
ILLINOIS
CANCELLATION OF SERVICE CONTRACT SECTION: Item 5 is
deleted and replaced with the following:
5. A cancellation fee not to exceed the lesser of 10%
of the Service Contract cost or fifty dollars ($50)
will be deducted from all refunds after thirty (30)
days or if a claim has been filed.
ADDITIONAL CANCELLATION LANGUAGE - The
obligor is the party responsible for honoring cancellation
requests. The selling dealer, however, can handle your
request for cancellation on behalf of the obligor.
NOTICE - You are reminded that this Contract
is not an insurance policy. Our obligation to perform
under this Contract is insured separately by a Contractual
Liability Insurance Policy.
INDIANA
Your proof of payment to the Issuing Dealer for this
Contract shall be considered proof of payment to the
Insurance Company which guarantees Our obligations to
You, providing such insurance was in effect at the time
You purchased this Contract.
IOWA
The obligations of the service company under this service
Contract are guaranteed separately under a Contractual
Liability Insurance Policy. If the service company fails
to pay or provide service on a claim within sixty days
after proof of loss has been filed with the service
company, You are entitled to make a claim directly against
the Contractual Liability Insurance Policy. Please contact
the Obligor at P.O. Box 680144 Houston, TX 77268-0144
for more information. Iowa residents may also contact
the Iowa Insurance Commissioner at the Iowa Insurance
Department, 330 Maple Street, Des Moines, Iowa 50319.
Cancellation of Service Contract: A request
for a refund upon Us pursuant to the cancellation provision
is payable within 30 days of receipt and any such refund
which is not timely paid is subject to a 10% penalty.
MASSACHUSETTS
NOTICE TO CUSTOMER: PURCHASE OF THIS CONTRACT 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 CONTRACT.
Chapter 90, Section 7N ¼ 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 90 days or 3,750 miles, whichever
occurs first.
Used Vehicles with 40,000 miles or more
but less than 80,000 miles at the time of sale
Provides Coverage for 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 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 warranty
is provided free of charge. Furthermore, the definitions,
coverages and exclusions stated in this Contract apply
only to this Contract and are not the terms of the required
Dealer warranty.
MINNESOTA
Our obligations under this service contract are guaranteed
under a Contractual Liability Insurance Policy.
The Coverage listed below is provided
to You by the Dealer at no charge as required by Minnesota
Statute 325F.662. The term of the required warranty
is based on the mileage at the time of sale as follows:
Used Vehicles with less than 36,000
miles at the time of sale
Provides Coverage for 60 days or 2,500 miles, whichever
occurs first.
Used Vehicles with 36,000 miles or more
but less than 75,000 miles at the time of sale
Provides Coverage for 30 days or 1,000 miles, whichever
occurs first.
For used vehicle coverage, routine maintenance
must be performed every three months or three thousand
(3,000) miles.
The dealer express warranty shall cover,
at minimum, the following parts:
(1) with respect to the engine, all lubricated parts,
intake manifolds, engine block, cylinder head, rotary
engine housings, and ring gear;
(2) with respect to the transmission, the automatic
transmission case, internal parts, and the torque converter;
or the manual transmission case, and the internal parts;
(3) with respect to the drive axle, the axle housings
and internal parts, axle shafts and output shafts, and
universal joints; but excluding the secondary drive
axle on vehicles, other than passenger vans, mounted
on a truck chassis;
(4) with respect to the brakes, the master cylinder,
vacuum assist booster, wheel cylinders, hydraulic lines
and fittings, and disc brake calipers;
(5) with respect to the steering, the steering gear
housing and all internal parts, power steering pump,
valve body, piston;
(6) the water pump
(7) the externally-mounted mechanical fuel pump;
Note: The following parts are covered
only on Vehicles with less than 36,000 miles: the radiator;
alternator, generator and starter; the steering rack.
The above Coverages are excluded from this Contract
during the applicable warranty period, unless Dealer
becomes unable to meet its obligations. Your rights
and obligations are fully explained in the Dealer issued
used Vehicle limited warranty document.
Failures caused by rust or corrosion will not be excluded
(refer to exclusions section).
NEBRASKA
Our obligations under this contract are guaranteed by
a Contractual Liability Insurance Policy issued to Tier
One Warranty, LLC.
NEVADA
NRS 690C.270 Grounds for cancellation; date cancellation
effective.
1. No Service Contract that has been in
effect for at least 70 days may be canceled by the provider
before the expiration of the agreed term or 1 year after
the effective date of the Service Contract, whichever
occurs first, except on any of the following grounds:
(a) Failure by the holder to pay an
amount when due;
(b) Conviction of the holder of a crime
which results in an increase in the service required
under the service Contract;
(c) Discovery of fraud or material misrepresentation
by the holder in obtaining the Service Contract, or
in presenting a claim for service thereunder;
(d) Discovery of:
(1) An act or omission by the holder;
or
(2) A violation by the holder 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;
or
(e) A material change in the nature
or extent of 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 15 days after the
notice of cancellation is mailed to the holder.
CANCELLATION OF VEHICLE SERVICE CONTRACT
SECTION:
If the Administrator cancels the Contract, the Contract
Holder will receive the refund amount of the unearned
Contract charge less any outstanding balance on the
account from the amount of the purchase price.
If the Administrator cancels the Contract
a cancellation fee will not be imposed.
If the Contract is cancelled by the Contract
Holder in writing after thirty (30) days, We will refund
the amount of the unearned Contract charge less a $50.00
cancellation fee.
NEW YORK
Section 198b of New York 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 90 days or 4,000 miles, whichever
occurs first.
Used Vehicles with more than 36,000
miles but less than 80,000 miles at time of sale
Provides Coverage for 60 days or 3,000 miles, whichever
occurs first.
Used Vehicles with 80,000 miles or more
but not more than 100,000 miles at time of sale
Provides Coverage for 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 has expired. You have been charged
separately only for this Contract. The required Dealer
warranty is provided free of charge. Furthermore, the
definitions, coverages and exclusions stated in this
Contract apply only to this Contract and are not the
terms of the required Dealer warranty.
New York State Consolidated Law, Article
79 Section 7905: Paragraph (c) “Obligations of
the provider under this service Contract are backed
by the full faith and credit of the provider”.
NORTH CAROLINA
CANCELLATION OF VEHICLE SERVICE CONTRACT SECTION:
If this Contract is canceled within the first thirty
(30) days and no claims have been filed, We will refund
the entire Contract charge paid. If this Contract is
canceled after the first thirty (30) days or a claim
has been filed, We will refund an amount of the Contract
charge according to the pro-rata method reflecting the
greater of the days in force or the miles driven based
on the term of the plan selected and the date Coverage
begins, less an administration fee of $35 or 10% of
the pro-rata refund amount, whichever is less. In the
event of cancellation, the lienholder, if any, will
be named on a cancellation refund check as their interest
may appear.
OKLAHOMA
The following language is to be substituted for language
in the Terms and Conditions as follows:
DEFINITIONS SECTION:
Administrator................ refers to Tier One Warranty,
LLC. P.O. Box 680144, Houston, TX 77268-0144.
We, Us, Our................... refers to Tier One Warranty,
LLC. P.O. Box 680144, Houston, TX 77268-0144.
DISCLOSURE STATEMENT: This service warranty
is not issued by the manufacturer or wholesale company
marketing the product. This warranty will not be honored
by such manufacturer or wholesale company.
CANCELLATION OF VEHICLE SERVICE CONTRACT
SECTION: Sections 1-6 are replaced by A, B, C
a. You may cancel this contract by notifying
Us. A cancellation form indicating the odometer reading
on the date of the request will be required. If the
Contract is cancelled by You within thirty (30) days
and no claims have been filed, We will refund the
entire Contract charge paid. If this Contract is cancelled
after the first thirty (30) days or a claim has been
filed, We will refund 90% of the amount of the Contract
charge according to the pro-rata method reflecting
the greater of the days in force or the miles driven
based on the term of the plan selected and the date
coverage begins.
b. We may cancel this contract for non-payment
of the Contract charge, or for intentional misrepresentation
in obtaining this contract or submitting a claim.
In the event the contract is cancelled by Us, return
of the premium shall be based upon 100% of the unearned
prorated premium, less any outstanding balance on
the account from the amount of the purchase price.
c. If Your Vehicle and this Contract
has been financed, the lien holder may cancel this
Contract for non-payment, or if Your Vehicle has been
declared a total loss or has been repossessed. The
rights under this Contract are transferred to the
lien holder and the lien holder is also entitled to
any resulting refund. In the event of cancellation,
the lien holder, if any, will be named on the cancellation
refund check.
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 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 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 has expired. You have been charged
separately only for this Contract. The required Dealer
warranty is provided free of charge. Furthermore, the
definitions, coverages and exclusions stated in this
Contract apply only to this Contract and are not the
terms of the required Dealer warranty.
TEXAS
Unresolved complaints or questions concerning the regulation
of service contract providers may be addressed to: Texas
Department of Licensing and Regulation, E.O. Thompson
Office Building, 920 Colorado, Austin, Texas 78701,
(800) 803-9202.
UTAH
Note: Coverage afforded under this Contract is not guaranteed
by the Property and Casualty Guarantee Association.
VERMONT
In the State of Vermont “We, Us, Our” refers
to Tier One Warranty Services, LLC.
WASHINGTON
Our Obligations to You under this service contract are
insured under a Contractual Liability Insurance Policy.
If We fail to pay an authorized claim within sixty (60)
days after proof of loss has been filed, You are entitled
to make a direct claim against the Contractual Liability
Insurance Policy. Please contact Tier One Warranty,
LLC at P.O. Box 680144 Houston, TX 77276-0144.
1. The components, work and parts covered
under this Contract are listed under the section entitled
“COVERED COMPONENTS” for the level of
Coverage indicated on the Application Page and Identification
Card.
2. To file a claim in the event of a
Failure, follow the instructions listed under the
section entitled “WHAT TO DO IN THE EVENT OF
A FAILURE.”
3. In order to maintain Coverage under
this Contract, Vehicle must be serviced as indicated
in the section entitled “MAINTENANCE REQUIREMENTS”
in the Contract Terms and Conditions.
4. This Contract can be canceled and
a refund received as indicated under the section entitled
“CANCELLATION OF VEHICLE SERVICE CONTRACT.”
After ten (10) days the cancellation fee for motor
vehicle service contracts is $25.00. Upon Our receipt
of a refund request, a refund will be issued in a
timely manner. A 10% penalty per pro rata refund will
be added if refund is not paid within 30 days of receipt.
5. This Contract does not cover a number
of exclusions which are listed under the section entitled
“EXCLUSIONS.”
6. Consequential damages and pre-existing
conditions are excluded under this Contract.
7. The implied warranty of merchantability
is not waived if this Contract is purchased within
ninety (90) days of the purchase date of the Vehicle.
WISCONSIN
The following language is to be substituted for language
in the Terms and Conditions as follows:
THIS WARRANTY IS SUBJECT TO LIMITED REGULATION
BY THE OFFICE OF THE COMMISSIONER OF INSURANCE.
WHAT TO DO IN THE EVENT OF A FAILURE SECTION:
Item 3 is deleted and replaced with the following:
Obtain Authorization from Administrator. Prior to any
repair being made, instruct the Service Manager at the
repair facility to contact Administrator to obtain authorization
for the claim. Failure to obtain authorization prior
to having repairs made may jeopardize Coverage under
this Contract. The amount authorized by Administrator
is the amount that will be paid for repairs covered
under the terms of this
Contract. Any additional amount must receive prior approval.
Section 631.81 (1), Wis. Stat., states
that notice of loss should be made as soon as reasonably
possible and within one year of the time required by
the Contract. Failure to submit repair orders and/or
documentation within 30 days does not invalidate or
reduce the claim unless the company is prejudiced by
the failure to submit.
OUR RIGHT TO RECOVERY SECTION:
Section is deleted.
WYOMING
In the state of Wyoming “We, Us, Our” refers
to Tier One Warranty, LLC.
TERMS AND CONDITIONS SECTION: 9. Arbitration
is replaced with the following: Any controversy or claim
arising out of or relating to this Contract, or the
breach thereof, may be settled by binding arbitration
in accordance with the Wyoming Uniform Arbitration Act.
Either party may make a written request for arbitration
to the American Arbitration Association. If binding
arbitration is agreed upon by both parties, a decision
by the Arbitrator shall be binding upon the parties.
CANCELLATION OF VEHICLE SERVICE CONTRACT:
3. is replaced with the following: 3. If Your Vehicle
and this Contract has been financed, the Contract may
be cancelled if Your Vehicle has been declared a total
loss or has been repossessed. If so, the lienholder
is entitled to any resulting refund.
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