Exhibit 10(u)
Great American Insurance Company
000 Xxxxxx Xxxxxx
Xxxxxxxxxx, XX 00000
DECLARATIONS PAGE
SERVICE PLAN AGREEMENT
INSURANCE POLICY
Named Insured: Warrantech Consumer Product Services, Inc.
Warrantech Carribean, LTD
Policy Number: 1833232
CT Policy
Mailing Address: 0000 Xxxxx Xx Xxxx Xxxxxx Policy is: New
Caso Xxxxxxxx, Xxxxx 0000-00
Xxx Xxxx, XX 00000-0000
Policy Period: From: February 1, 2001 To: UNTIL CANCELLED
12:01 A.M., Standard Time at the
Mailing Address Shown Above.
Limits of Liability: Per Section VI. of the Policy
Premium: Per Premium Reporting Provision in the Policy
Aggregate Reserve: 100% of all service contracts premiums less $____________
per contract
Forms & Endorsements:
WAR-GN-1002 (12/00) Service Plan Agreement Insurance Policy
WAR-GN-0003 (12/00) Signatures
WAR-GN-0004 (12/00) Additional Named Insureds
WAR-GN-0005 (12/00) Exclusions
WAR-GN-0008 (12/00) Connecticut Changes
This Declaration, and the Policy and Endorsements, if any, listed
above and included, complete this Policy.
SERVICE PLAN AGREEMENT INSURANCE POLICY
Notwithstanding the limitations for losses in excess of the Aggregate Reserve,
Great American Insurance Company (hereafter referred to as the Company), in
consideration of the payment of the premium and subject to the conditions,
provisions and other requirements of this Policy, agree with the Named Insured
shown in the Declarations Page as follows:
1. INSURING AGREEMENT
The Company agrees to pay:
A. to the Named Insured; or
B. on behalf of the Named Insured to reimburse repair facilities
authorized to perform repairs on behalf of the Named Insured
All those sums that the Named Insured becomes legally obligated to pay as Claims
to a Service Plan Agreement Holder under a valid Service Plan Agreement issued
by the Named Insured and payable under the terms of this policy.
Reimbursement of the losses shall only be an obligation of the company to
reimburse the insured for losses in excess of an Aggregate Reserve equal to the
program per service contract reserve amounts for each Program Service Contract
Account reported to the company and covered hereunder.
II. DEFINITIONS
The following key words have specific meanings and appear in bold type
throughout this policy:
A. Named Insured means the person(s) and/or organization(s) shown as the Named
Insured in the Declarations Page which is attached to this Policy.
B. Service Plan Agreement means a Service Plan Agreement or Service Plan
Extension Agreement issued by the Named Insured to a Service Plan Agreement
Holder:
1. while this Policy is in force and for which the premium has been paid;
and
2. on a product on the schedule of approved products on file with the
Company; and
3. on a form the content of which relative to the coverage provided by
this Policy has been approved in writing by the Company; and
4. for which the Named Insured's Contractual Obligations to a Service
Plan Agreement Holder is for a term no longer than one hundred twenty
(120) months.
C. Service Plan Agreement Holder means any natural person or other legal
entity who legally acquires the rights to benefits under a Service Plan
Agreement as defined in Section II.b.
D. Named Insured's Contractual Obligations to a Service Plan Agreement Holder
means the duty or liability of the Named Insured to a Service Plan
Agreement Holder to repair or replace the defective or damaged parts or
products with like kind and quality in accordance with the Service Plan
Agreement.
E. Claims means a claim for expenses incurred by a Service Plan Agreement
Holder in accordance with and payable under the terms of a valid Service
Plan Agreement.
F. Loss means a Claim for which the Named Insured is legally obligated to pay
under the Named Insured's Contractual Obligations as stated in the Service
Plan Agreement.
III. DUTIES OF THE NAMED INSURED
The Named Insured agrees to the following:
A. REPORTING
The Named Insured will report monthly records required by the Company of
Service Plan Agreements issued by the Named Insured or its authorized
representative. Reports are due within twenty-five (25) days from the last
day of each month.
B. PAYMENT OF PREMIUMS
The first Named Insured is responsible for the payment of all premiums due
under each monthly report of Service Plan Agreements issued by the Named
Insured or its authorized representative.
C. COMMENCEMENT OF COVERAGE
The Named Insured agrees that the Company will have no obligation under
this policy unless a valid Service Plan Agreement has been issued.
D. NOTICE OF CLAIM
When a Service Plan Agreement Holder presents a Claim, the Named Insured
will process the Claim per the agreement stated in the Service Plan
Agreement.
E. PROOF OF LOSS
The Named Insured will give written proof of all claims to the Company.
Such proof will be provided monthly evidencing the Service Plan number and
total amount of claims paid by item. The Named Insured agrees to submit to
examination under oath by any person named by the Company as often as may
be required to verify any proof of Loss.
IV. EXCLUSIONS
This Policy provides coverage only for the Named Insured's Contractual
Obligation under a valid Service Plan Agreement and does not apply to any:
A. Liability for damages caused by repair work or failure to perform
repair work by the Named Insured, its agents or employees, or any
other repair facility, its agents or employees;
B. Duties or liabilities arising out of the Named Insured's sale of a
product which is the subject of a Service Plan Agreement, or any part
of such product;
C. Liability for negligence;
D. Duty or liability to anyone other than the Service Plan Agreement
Holder;
E. Duties, liabilities or claims arising from any acts of fraud, or other
dishonest or criminal acts of the Named Insured, its agents or
employees.
X. Xxxxxx claimed for the withdrawal, inspection, repair, replacement, or
loss of use of the Named Insured's products or work completed by or
for the Named Insured or of any property of which such products or
work form a part, if such products, work or property are withdrawn
from the market or from use because of any known or suspected defect
or deficiency therein.
G. Liability for any Service Plan Agreement issued on a product, not on
the Company's schedule of approved products on file with the Company.
H. Liability for any Service Plan Agreement the content of which relative
to the coverage provided by this Policy has not been approved in
writing by the Company and any claim or loss arising out of any
obligations not expressly contained in the Service Plan Agreement.
I. Liability for loss of use or consequential damages, except as
expressly contained in the Service Plan Agreement.
X. Xxxxx, penalties, punitive damages, exemplary damages or treble
damages in whatever form assessed (unless prohibited by law).
X. Xxxxxxxxx arising out of implied warranties of merchantability,
implied warranties of fitness or strict liability.
V. PREMIUMS AND RATES
A. Premium charges for each Service Plan Agreement will be made per the
company's rates and rules in effect at the time each Service Plan
Agreement is issued.
B. The Company from time to time may effect changes in the Rate Schedule
applicable to this Policy. Such changes will be made by endorsement to
the Policy stating the date such changes are effective.
VI. LIMITS OF LIABILITY
The limit of the Company's liability is as follows:
The Company's limit of liability, with respect to any one claim, shall not
exceed the liability the Named Insured has assumed under a Service Plan
Agreement.
VII. POLICY TERM
The Policy is issued and goes into effect at the Date and Time shown on the
Declaration Page. This is a continuous Policy and will remain in effect
until cancelled by the Named Insured or the Company.
VIII. POLICY CANCELLATION
A. BY THE COMPANY
The Company shall have the right to cancel the Policy without cause by
giving one hundred eighty (180) days written notice to the Named
Insured. Also, the Company shall have the right to cancel the policy
by giving thirty (30) days written notice:
1. If required to do so by any regulatory body;
2. In the event the Named Insured does not make premium payment as
required;
3. In the event of any act of fraud by the Named Insured;
4. In the event of any material violation of any of the terms of
this Policy, however, if the Named Insured is able to show within
thirty (30) days to the satisfaction of the Company that the
material violation has been corrected, then the Policy shall be
reinstated.
Notice of Cancellation will be delivered or sent by registered mail,
certified mail or mail evidenced by the United States Post Office
certificate of mailing.
B. BY THE INSURED
The Named Insured has the right to cancel this policy:
1. By sending the Company written notice of its intent to cancel the
Policy showing the date cancellation is to be effective;
2. By returning the original policy or a signed Lost Policy Release to
the Company the date cancellation is to be effective.
C. EFFECT OF CANCELLATION
Cancellation of this policy will not affect the duties of the Named Insured
or the Company, as set forth in this Policy, as respects Service Plan
Agreements issued before the effective date of cancellation.
IX. POLICY PERIOD
This Policy applies only to Service Plan Agreements issued during the
Policy Period stated in the Declarations.
X. GENERAL PROVISIONS
A. INSUREDS REPRESENTATIONS
By acceptance of this Policy, the Named Insured agrees that all statements
contained in the application for this policy and on the Declarations Page
attached hereto are accurate and complete, the statements are based on
representations the Named Insured made to the Company. This Policy is
issued relying upon the truth of such statements and includes all
agreements between the Named Insured and the Company.
B. INSPECTION AND AUDIT
The Company will have the right to inspect the Named Insured's premises,
books and records as they pertain to coverage provided under this Policy.
This right will extend until one (1) year after Named Insureds Service Plan
Agreements are no longer in effect.
C. SUBROGATION AND RECOVERIES
1. In the event of any payment by the Company under the policy, the
Company will be entitled to all of the Named Insured's rights of
recovery against any person or entity. The Named Insured will execute
and deliver instruments and papers and do whatever is necessary to
secure such rights. The Named Insured will do nothing to interfere
with such rights.
2. After a payment of Loss by the Company, all amounts recovered by the
Named Insured for which the Named Insured has been indemnified will
become the property of and be forwarded to the Company by the Named
Insured up to the total amount of the loss paid by the Company.
3. The Company will not be entitled to any subrogation proceeds unless
and until the Named Insured has been fully reimbursed the Loss.
D. NO BENEFIT TO BAILEE
The insurance afforded by this Policy will not inure directly or indirectly
to the benefit of any carrier or other Bailee for Loss covered by a Service
Plan Agreement.
E. CHANGES/AMENDMENTS
No waiver or changes of the terms of this Policy will be made except when
done so in writing, signed by an authorized representative of the Company.
Written changes must be attached to and form a part of the Policy.
F. ASSIGNMENT BY INSURED
Assignment of interest under this Policy shall not bind the Company until
its consent is endorsed hereon.
G. INSOLVENCY OR BANKRUPTCY OF INSURED
The insolvency or bankruptcy of the Named Insured will not relieve the
Company of its obligations under this policy. Should a judgement be
rendered against the insolvent or bankrupt Named Insured, the Company will
be liable for the amount of such judgement not to exceed the applicable
limit of liability under the policy.
H. ACTION AGAINST COMPANY
No action will lie against the Company unless, as a condition precedent
thereto:
1. The Named Insured has fully complied with all terms and conditions of
this Policy.
2. The amount of the Named Insured's obligation to pay has been finally
determined either by judgement against the Named Insured (after actual
trial) or written agreement of the Named Insured, claimant and
Company; and
3. Unless commenced within twelve (12) months of the date of the Loss.
Any repair facility authorized by the Named Insured to perform repairs on
behalf of the Named Insured or the legal representatives thereof who has
secured such judgement or written agreement shall thereafter be entitled to
recover under this policy to the extent of the insurance afforded under
this Policy. No person or organization shall have any right under this
Policy to join the Company as a party to any action against the Named
Insured to determine the Named Insured's liability. The Company shall also
not be impleaded by the Named Insured or his legal representatives.
I. CONFORMITY WITH LAW
The terms of this policy which are in conflict with the statutes of the
state wherein this policy is issued are hereby amended to confirm to such
statutes.
J. OTHER INSURANCE
The Named Insured warrants that this is the only Service Plan Agreement
Insurance Policy applicable to Service Plan Agreement Holder Claims.
K. DEDUCTIBLE/AGGREGATE RESERVE
The insured has executed a Trust Agreement with Company as insurer and
beneficiary. The insured agrees to deposit in the Trust an amount equal to
the agreed upon reserve for each service contract.
It is hereby agreed that all funds deposited with Trustee into the Trust
Account, either before or after a loss has occurred but net of withdrawals
made and any Trust fees paid from the Trust Fund, are available to the
company as a reimbursement of losses paid under the policy in accordance
with the terms of the Trust Agreement. To the extent that funds are
available in the Trust Account, such amounts shall be considered the
Aggregate Policy Deductible.
Great American Insurance Company
SIGNATURES
THE ONLY SIGNATURES APPLICABLE TO THIS POLICY ARE THOSE REPRESENTING THE COMPANY
NAMED ON THE FIRST PAGE OF THE DECLARATIONS.
By signing and delivering the policy to you, we state that it is a valid
contract.
Great American Insurance Companies
000 Xxxxxx Xxxxxx, Xxxxxxxxxx, Xxxx 00000
/s/ Xxxx X Xxxxxxx XXX /s/ Xxxx Xxxxx Xxxxxxx
President Secretary
------------------------------
Authorized Agent
Great American Insurance Company
ADDITIONAL NAMED INSUREDS ENDORSEMENT
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
This endorsement modifies insurance provided under the following:
SERVICE PLAN AGREEMENT INSURANCE POLICY.
It is agreed that the following Named Insureds are added to the policy:
Dealers or Retailers who sell Service Plan Agreements administered by the
insured and who are listed in the Schedule on file with the Company.
Great American Insurance Company
EXCLUSION - YEAR 2000 COMPUTER, COMPUTER SOFTWARE,
MICROPROCESSOR AND YEAR 2000 COMPLIANCE-RELATED PROBLEMS
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
This endorsement modifies insurance provided under the following:
SERVICE PLAN AGREEMENT INSURANCE POLICY
It is agreed that the following exclusion is added to section IV. EXCLUSIONS:
M. Liability arising out of:
1. Any actual or alleged failure, malfunction or inadequacy of:
a. Any of the following due to potential or actual "year 2000
compliance-related problems":
1. computer hardware;
2. computer software;
3. computer operating systems;
4. computer networks;
5. microprocessors (computer chips);
6. any other computerized or electronic equipment or
components; or
b. Any other products, services or functions that directly or
indirectly utilize or rely upon, in any manner, any of the items
listed in paragraph 1.a. of this endorsement due to any potential
or actual "year 2000 compliance-related problems."
2. Any advice, consultation, evaluation, inspection, installation,
maintenance, service, repair or replacement done by the Named Insured
or for the Named Insured to determine, rectify or test, any potential
or actual "year 2000 compliance-related problems."
"Year 2000 compliance-related problems" means the inability of those products,
services or functions described in paragraphs 1.a or 1.b to correctly recognize,
distinguish, interpret or accept the date field of the year 2000 and beyond.
------------------------------
Insured's signature
Great American Insurance Company
CONNECTICUT CHANGES
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
This endorsement modifies insurance provided under the following:
SERVICE PLAN AGREEMENT INSURANCE POLICY
If the Company cancels this Policy, the Company will send at least sixty (60)
days advance notice of its intention to cancel to the Insurance Commissioner of
Connecticut specifying the reason for the cancellation.
Great American Insurance Company
ADDITIONAL NAMED INSUREDS ENDORSEMENT
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT
CAREFULLY.
This endorsement modifies insurance provided under the following:
SERVICE PLAN AGREEMENT INSURANCE POLICY.
It is agreed that the following is added to the policy as an additional Named
Insured:
MUEBLELECTRIC
P.O. Box 2848
Bayamon, PR 00960
Attn. Xx. Xxxxxx Xxxxxx
Policy Number: 1833232
Date: June 20, 2001
-----------------------------
Authorized Agent
