Common use of The Producer Clause in Contracts

The Producer. a. Agrees to offer VSCs and/or GAP Contracts under the Program to its retail vehicle/loan customers (“Purchasers”) on all eligible vehicles during the term of this Agreement. b. Agrees to follow the underwriting guidelines issued by the Administrator from time to time on forms supplied by the Administrator. Such guidelines will determine which vehicles are eligible for coverage under the Program. Any VSCs and/or GAP Contracts issued in violation of such guidelines will be voidable or, if the VSCs and/or GAP Contracts cannot be voided, will result in the loss of claims reimbursement to the Producer with respect to such VSCs and/or GAP Contracts. c. Agrees to remit the following within fifteen (15) days after the end of the month in which the business was written to the Administrator on forms supplied by the Administrator: transmittal forms, completed VSCs and/or GAP Contracts, waivers (if applicable) and appropriate monies which are due to the Administrator. d. Agrees that the Administrator reserves the right to decline any VSCs and/or GAP Contracts submitted by the Producer that do not qualify under the Administrator’s guidelines, or are not submitted within forty-five (45) days from the date of purchase. e. Agrees that eligible vehicles include only those vehicles that follow the Administrator’s guidelines. For VSCs, such eligible vehicles must be in sound mechanical condition at the time of sale and any pre-existing condition(s) are the sole responsibility of the Producer and shall not be covered under a VSC. f. Agrees, in the event of a cancellation, to return to the lender that financed the purchase price of the VSC its retained portion of the total charge for the VSC in the amount calculated by the Administrator pursuant to the terms of the VSC. In the event the VSC was not financed, the Producer agrees to return to the Purchaser its retained portion of the total charge for the VSC in the amount calculated by the Administrator pursuant to the terms of the VSC. g. Agrees, in the event of a cancellation, to refund the purchase price, on a pro rata basis, of a GAP Contract due to a default by the Purchaser in its repayment obligations to the Producer. h. Agrees to return to the Purchaser his retained portion of the GAP Contract price in the event that the Administrator cancels or causes the Producer to cancel a GAP Contract, should any of the following occur: 1. Purchaser requests cancellation; 2. If there have been any material facts withheld, or misrepresented or in the event of fraud. 3. If the Purchaser’s vehicle is used in a manner that is not covered by the GAP Contract; 4. If the vehicle described on the GAP Contract is ineligible for coverage; 5. The Producer fails to properly remit the cost of the GAP Contract to the Administrator. i. Agrees to permit the Administrator or its authorized representatives during normal business hours to enter the Producer’s place of business to inspect and examine all records relative to the issuance of VSCs and/or GAP Contracts or the subject matter of this Agreement, during the term of this Agreement and for one (1) year following the expiration of all such VSCs and/or GAP Contracts, for the purpose of review and audit. j. Agrees, to stop offering VSCs and/or GAP Contracts to Purchasers should this Agreement be terminated by either the Producer or the Administrator. k. Agrees, where applicable, to be responsible for the collection and remittance of any state sales taxes which may be levied against VSCs and/or GAP Contracts sold by the Producer. l. Agrees that if the Administrator declines to issue a VSC and/or GAP Contract to a Purchaser, that the Producer is responsible for refunding all monies due to the Purchaser for said VSC and/or GAP Contract and will notify the Purchaser that all such coverage is null and void. m. For VSCs, agrees that the Administrator assumes no obligation for the workmanship, quality of repairs or replacement of parts; nor for any bodily injury or property damage caused directly or indirectly by the failure or malfunction, or any other cause, of a vehicle or any part thereof, nor for any other obligation not specifically provided for in the VSC; and the Producer agrees to hold the Administrator harmless from any and all such obligations, damage, and expense. n. Agrees (if the Producer is located in Indiana), that it will not sell GAP Contracts where the amount financed, less the cost of the GAP, the cost of credit insurance and the cost of warranties, is less than 80% of the MSRP for a new vehicle or the NADA average retail value for a used vehicle, in accordance with standards set by the Indiana Department of Financial Institutions.

The Producer. a. A. Agrees to offer VSCs and/or GAP Guaranteed Asset Protection Contracts under the Program or Certificates of Insurance (hereinafter called “GAP”) to its new and pre-owned retail vehicle/loan vehicle customers (hereinafter called “Purchasers”) on all eligible vehicles during the term of this Agreement. b. B. Agrees to follow the underwriting guidelines issued by the Administrator from time to time on forms supplied by the Administrator. Such guidelines will determine which vehicles are eligible for coverage under the Program. Any VSCs and/or GAP Contracts issued in violation of such guidelines will be voidable or, if the VSCs and/or GAP Contracts cannot be voided, will result use in the loss of claims reimbursement to the Producer with respect to such VSCs and/or Administrator’s GAP ContractsProgram. c. C. Agrees to remit the following within fifteen (15) 15 days after the end of the month in which the business was written to the Administrator on forms supplied by the Administrator: transmittal forms, completed VSCs and/or GAP Contractsapplications, waivers (if applicable) and appropriate monies which are due to the Administrator. Producer agrees to issue GAP applications to Purchasers in numerical sequence and submit both completed and voided or spoiled contract applications to the Administrator. Failure to submit to the Administrator the above within 45 days of the application’s inception date may result in denial of services or coverage. d. D. Agrees that to refund to any Lender which has financed the Administrator reserves purchase price of a GAP the right to decline any VSCs and/or GAP Contracts submitted Producer’s retained portion of the charge financed by the Producer that do not qualify under the Administrator’s guidelineslender, or are not submitted within forty-five (45) days from the date of purchase. e. Agrees that eligible vehicles include only those vehicles that follow the Administrator’s guidelines. For VSCs, such eligible vehicles must be in sound mechanical condition at the time of sale and any pre-existing condition(s) are the sole responsibility of the Producer and shall not be covered under on a VSC. f. Agreespro rata basis, in the event of a cancellationcancellation of a GAP at the Lender’s request due to a default by the GAP holder in repayment obligations to the Lender. In the event the GAP was not financed, the Producer further agrees to return to the lender that financed the purchase price of the VSC its Purchaser his retained portion of the total charge for the VSC GAP in the amount calculated by the Administrator pursuant to the terms of the VSCGAP. In addition, the event the VSC was not financedAdministrator may cancel or cause Producer to cancel a GAP, and the Producer agrees to return to the Purchaser its retained portion of the total charge for the VSC in the amount calculated by the Administrator pursuant to the terms of the VSC. g. Agrees, in the event of a cancellation, to refund the purchase price, on a pro rata basis, of a GAP Contract due to a default by the Purchaser in its repayment obligations to the Producer. h. Agrees to return to the Purchaser his retained portion of the GAP Contract price price, in the event that the Administrator cancels or causes the Producer to cancel a GAP Contract, should any of the following occurfollowing: 1. Purchaser requests cancellation; 2. If there have been any material facts withheld, or misrepresented or in the event of fraud. 3. If the Purchaser’s vehicle is used in a manner that is not covered by the GAP ContractGAP; 4. If the vehicle described on the GAP Contract application is ineligible for coverage; 5. The Producer Dealer fails to properly remit the cost of the GAP Contract to the Administrator.. 101-7908-0306-00 Page 1 i. E. Agrees to permit the Administrator or its authorized representatives during normal business hours to enter the Producer’s place of business to inspect and examine all records relative to the issuance of VSCs and/or GAP Contracts contracts or the subject matter of this Agreement, during the term of this Agreement and for until one (1) year following the expiration of all such VSCs and/or GAP Contracts, contracts for the purpose of review and audit. j. Agrees, F. Agrees to stop offering VSCs and/or GAP Contracts contracts to Purchasers should this Agreement be terminated cancelled by either the Producer or the Administrator. k. G. Agrees, where applicable, to be responsible for collect and remit to the collection and remittance State Department of Revenue any state sales taxes which may be levied against VSCs and/or GAP Contracts contractss sold by the Producer. l. Agrees that if the Administrator declines to issue a VSC and/or GAP Contract to a Purchaser, that the Producer is responsible for refunding all monies due to the Purchaser for said VSC and/or GAP Contract and will notify the Purchaser that all such coverage is null and void. m. For VSCs, agrees that the Administrator assumes no obligation for the workmanship, quality of repairs or replacement of parts; nor for any bodily injury or property damage caused directly or indirectly by the failure or malfunction, or any other cause, of a vehicle or any part thereof, nor for any other obligation not specifically provided for in the VSC; and the Producer agrees to hold the Administrator harmless from any and all such obligations, damage, and expense. n. Agrees (if the Producer is located in Indiana), that it will not sell GAP Contracts where the amount financed, less the cost of the GAP, the cost of credit insurance and the cost of warranties, is less than 80% of the MSRP for a new vehicle or the NADA average retail value for a used vehicle, in accordance with standards set by the Indiana Department of Financial Institutions.

The Producer. a. A. Agrees to offer VSCs and/or GAP Guaranteed Asset Protection Contracts under the Program or Certificates of Insurance (hereinafter called “GAP”) to its new and pre-owned retail vehicle/loan vehicle customers (hereinafter called “Purchasers”) on all eligible vehicles during the term of this Agreement. b. B. Agrees to follow the underwriting guidelines issued by the Administrator from time to time on forms supplied by the Administrator. Such guidelines will determine which vehicles are eligible for coverage under the Program. Any VSCs and/or GAP Contracts issued in violation of such guidelines will be voidable or, if the VSCs and/or GAP Contracts cannot be voided, will result use in the loss of claims reimbursement to the Producer with respect to such VSCs and/or Administrator’s GAP ContractsProgram. c. C. Agrees to remit the following within fifteen (15) 15 days after the end of the month in which the business was written to the Administrator on forms supplied by the Administrator: transmittal forms, completed VSCs and/or GAP Contractsapplications, waivers (if applicable) and appropriate monies which are due to the Administrator. Producer agrees to issue GAP applications to Purchasers in numerical sequence and submit both completed and voided or spoiled contract applications to the Administrator. Failure to submit to the Administrator the above within 45 days of the application’s inception date may result in denial of services or coverage. d. D. Agrees that to refund to any Lender which has financed the Administrator reserves purchase price of a GAP the right to decline any VSCs and/or GAP Contracts submitted Producer’s retained portion of the charge financed by the Producer that do not qualify under the Administrator’s guidelineslender, or are not submitted within forty-five (45) days from the date of purchase. e. Agrees that eligible vehicles include only those vehicles that follow the Administrator’s guidelines. For VSCs, such eligible vehicles must be in sound mechanical condition at the time of sale and any pre-existing condition(s) are the sole responsibility of the Producer and shall not be covered under on a VSC. f. Agreespro rata basis, in the event of a cancellationcancellation of a GAP at the Lender’s request due to a default by the GAP holder in repayment obligations to the Lender. In the event the GAP was not financed, the Producer further agrees to return to the lender that financed the purchase price of the VSC its Purchaser his retained portion of the total charge for the VSC GAP in the amount calculated by the Administrator pursuant to the terms of the VSCGAP. In addition, the event the VSC was not financedAdministrator may cancel or cause Producer to cancel a GAP, and the Producer agrees to return to the Purchaser its retained portion of the total charge for the VSC in the amount calculated by the Administrator pursuant to the terms of the VSC. g. Agrees, in the event of a cancellation, to refund the purchase price, on a pro rata basis, of a GAP Contract due to a default by the Purchaser in its repayment obligations to the Producer. h. Agrees to return to the Purchaser his retained portion of the GAP Contract price price, in the event that the Administrator cancels or causes the Producer to cancel a GAP Contract, should any of the following occurfollowing: 1. Purchaser requests cancellation; 2. If there have been any material facts withheld, or misrepresented or in the event of fraud. 3. If the Purchaser’s vehicle is used in a manner that is not covered by the GAP ContractGAP; 4. If the vehicle described on the GAP Contract application is ineligible for coverage; 5. The Producer Dealer fails to properly remit the cost of the GAP Contract to the Administrator. i. E. Agrees to permit the Administrator or its authorized representatives during normal business hours to enter the Producer’s place of business to inspect and examine all records relative to the issuance of VSCs and/or GAP Contracts contracts or the subject matter of this Agreement, during the term of this Agreement and for until one (1) year following the expiration of all such VSCs and/or GAP Contracts, contracts for the purpose of review and audit. j. Agrees, F. Agrees to stop offering VSCs and/or GAP Contracts contracts to Purchasers should this Agreement be terminated cancelled by either the Producer or the Administrator. k. G. Agrees, where applicable, to be responsible for collect and remit to the collection and remittance State Department of Revenue any state sales taxes which may be levied against VSCs and/or GAP Contracts contracts sold by the Producer. l. Agrees that if the Administrator declines H. Note to issue a VSC and/or GAP Contract to a Purchaser, that the Producer is responsible for refunding all monies due to the Purchaser for said VSC and/or GAP Contract and will notify the Purchaser that all such coverage is null and void. m. For VSCs, agrees that the Administrator assumes no obligation for the workmanship, quality of repairs or replacement of parts; nor for any bodily injury or property damage caused directly or indirectly Indiana Producers: In accordance with standards set by the failure or malfunctionIndiana Department of Financial Institutions, or any other cause, of a vehicle or any part thereof, nor for any other obligation GAP may not specifically provided for be sold in the VSC; and the Producer agrees to hold the Administrator harmless from any and all such obligations, damage, and expense. n. Agrees (if the Producer is located in Indiana), that it will not sell GAP Contracts instances where the amount financed, less the cost of the GAP, the cost of credit insurance and the cost of warranties, is less than 80% of the MSRP for a new vehicle or the NADA average retail value for a used vehicle, in accordance with standards set by the Indiana Department of Financial Institutions.