EXTENDED PROTECTION GLOSSARY

– A –

Actual Cash Value (ACV):

The retail value of the covered vehicle, on the date of loss, as listed in a national or regional guide, such as National Automobile Dealers Association (NADA) or, at our discretion, we may use an equivalent national or regional guide for the territory in which the covered vehicle is principally garaged. For a covered vehicle that has no retail value available, or is located in territories where NADA or an equivalent national or regional guide is not customarily used, ACV will be determined using the best information available to us, which we reasonably believe accurately reflects the retail value of the covered vehicle and is customarily used as the basis for establishing ACV for covered vehicles in the territory of the covered vehicle location.

Administrator:

The Administrator as shown on the Registration Page.

Agreement Term:

The time and mileage during which a contract is in effect.

Alternate
Vehicle:

The Silver and Platinum Protection Plans will pay the cost to rent a replacement vehicle or for public transportation (up to $40 per day) whenever two or more manufacturer’s labor time guide hours are required for a covered repair or if the vehicle must be kept overnight.

– B –

Breakdown:

The failure of a covered part under normal service. 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. Subsequent damages resulting from the breakdown of a covered part are covered by the contract, except when you have failed to perform the recommended maintenance services for your vehicle.

– C –

Cancellation:

An act that ends the Protection Plan contract earlier than the scheduled contract expiration. Cancellation requests made within 60 days of the Protection Plan purchase will be refunded in full if no claim has been made. After 60 days, contracts will be canceled using a pro rata method. Fees and requirements vary by state.

Certificate Holder Policy Period:

The period of time from the inception date to the expiration date shown in your Certificate of Insurance.

Claim:

A request for payment for services or repairs received based on coverage provided by a vehicle service contract, vehicle maintenance contract, or insurance policy.

Commercial Use:

Vehicles used for farming or ranching, route work, job-site activities, service or repair work, delivery of goods, and snow removal. Usage must not exceed manufacturer’s ratings and/or limitations.

Consequential
Damage:

An event or damage that occurs separately as a consequence or result of the failure of a covered or non-covered part, such as loss of time or use, inconvenience, commercial loss, personal injury, or property damage.

Constructive Total Loss:

A loss of or damage to a covered vehicle that meets one or more of the following criteria:

• The total cost to repair the covered vehicle is greater than the ACV of the covered vehicle immediately prior to the date of loss; or
• The covered vehicle is stolen and is not recovered within 30 days from the date a police report is filed; and
• Your primary carrier declares the vehicle a total loss.

Contract:

The vehicle service contract that you have purchased from us to protect your vehicle.

Coverage:

The protection you have selected, as listed in the Schedule of Coverages section.

Covered Vehicle:

Each and every vehicle that you have identified to the master policyholder as a vehicle for which you desire coverage under the policy. However, no vehicle shall be deemed a covered vehicle unless the required premium for such vehicle has been paid to us when due.

Customer/
Borrower:

The person to whom we have extended financing for the purpose of purchasing or leasing the covered vehicle.

– D –

Date of Loss:

The date that the police report regarding the theft of the covered vehicle is filed or covered vehicle incurs physical damage that is severe enough to constitute a constructive total loss, whichever applies.

Deductible:

The amount you are required to pay, as shown on the Registration Page, for covered breakdowns.

Delinquent Payment:

Any payment, as described in the financing contract, that remains unpaid for a period of more than 30 days after the due date stated in the financing contract. The delinquent payment will be determined as of and limited to amounts past due on the date of loss.

Diagnostic:

The system investigation required to determine the cause of the failure.

– F –

Financing Contract:

The contract that represents the financing agreement between you and the lender for the purchase or lease of the covered vehicle.

Franchised Dealer:

A dealer that is part of a franchise organization.

– G –

GAP Addendum:

The Guaranteed Automobile Protection contract.

Gray Market Vehicle:

A vehicle sold in the United States that has been imported through a channel other than a manufacturer’s authorized distributor, and therefore does not have a warranty that is valid in the United States.