This is not a legal document. This is a sample of the terms and conditions and outlines the benefits, limitations and exclusions of the plan being offered. You will receive a complete contract upon purchase that includes adjustments to your state, if applicable.
The following outlines the terms and conditions applicable to a MotorAide Mechanical Breakdown Insurance Contract written in the state of Oregon:
WARNING: THIS COVERAGE DOES NOT PROVIDE BODILY INJURY AND PROPERTY DAMAGE LIABILITY INSURANCE AND DOES NOT COMPLY WITH ANY FINANCIAL RESPONSIBILITY LAW OR ANY OTHER LAW MANDATING MOTOR VEHICLE INSURANCE COVERAGE.
NOTE:
All highlighted terms are specific to the type of Vehicle Service Contract you may purchase and may be of special note to you as you review these terms and conditions of the contract.
INSURING AGREEMENT
The Company (MotorAide)
hereby agrees to pay on behalf of or reimburse the Certificate Holder for reasonable authorized costs to repair or replace any Covered Part listed in the Schedule of Coverages which causes a Breakdown, less the Deductible, and agrees to pay the Additional Benefits and the 24-Hour Roadside Assistance Benefits listed in the Schedule of Coverages in accordance with the terms
and provisions of this Policy.
LIMITS OF LIABILITY
A.
Per repair visit – our liability for any one (1) repair visit shall in no event exceed the actual cash value of yourVehicle at the time of said repair visit. Actual Cash Value means the National Auto Dealers Association (N.A.D.A.) Official Use Car Guide
â
published average value of yourVehicle for your region, taking age, condition and mileage into consideration.
B.
Aggregate Limit:
The Company's
liability with respect to the total of all benefits paid or payable while this Certificate is in force shall not exceed the lesser of:
(1)
The Vehicle Purchase Price, as shown on the Certificate Declarations; or
(2)
The NADA retail value of the Vehicle at the time of the current repair.
CERTIFICATE PERIOD
Coverage under this Certificate will expire on the Expiration Date or when the Vehicle reaches the specified Expiration Odometer Mileage, whichever occurs first, as shown on the Certificate Declarations. Certificate expiration is determined as follows:
A.
New Coverage Plan:
Coverage in both time and miles begins on the Certificate Effective Date. This certificate will expire according to the time or mileage of the plan you selected whichever occurs first, as shown on the application.
B.
Wrap Coverage Plan:
Coverage in both time and miles begins on the In-Service Date. This certificate will expire according to the time or mileage of the plan you selected whichever occurs first, as shown on the application.
C.
Used Coverage Plan:
Coverage is subject to a waiting period of thirty (30) days AND one thousand (1,000) miles from the Certificate Effective Date. However, one (1) month AND one thousand (1000) miles will be added to the Certificate term. Coverage will commence the day following the waiting period. Breakdowns occurring during the waiting period are not covered. This certificate will expire according to the time or mileage of the plan you selected whichever occurs first, as shown on the application.
DEDUCTIBLE
The Company
will pay the portion of the expense for a covered repair that is in excess of the Deductible selected by the Certificate Holder, as shown on the Certificate Declarations. The Deductible will not apply to the Additional Benefits or the 24-Hour Roadside Assistance Benefits listed in the Schedule of Coverages.
EXCLUSIONS
This Certificate does not provide coverage:
A.
For repair costs or expenses incurred within the first thirty (30) days AND one thousand (1,000) miles of the Certificate Purchase Date for Used Coverage Plans;
B.
For Breakdowns occurring within the coverage period and not reported within twenty-four (24) hours of the Certificate expiration date.
C.
For repair costs or expenses if the odometer of the Vehicle has broken or becomes inoperable or unreliable for any reason and odometer repairs were not made immediately at the time of failure, or if the odometer has been tampered with, disconnected or altered in any way;
D.
For repair costs or expenses if the Vehicle has been used for the following purposes, regardless of whether the Business Use option was purchased: police or law enforcement services, fire, ambulance or emergency services, taxi, limousine or shuttle services, pick-up, racing, rental services, construction, security services, snow removal or snow plowing, cable or line installation, or hauling for hire, or if the Vehicle has been used for hauling trailers in excess of the manufacturer’s rated capacity or hauling trailers without suitable equipment, or if the manufacturer’s specifications for Vehicles used to pull trailers are not followed,
E.
For repair costs or expenses if the Certificate Holder cannot provide to the Administrator, if requested, accurate records proving that the Certificate Holder has maintained the Vehicle in accordance with the manufacturer’s specifications and instructions, or if the breakdown is the result of any mechanical or electrical alterations that have been made to the Vehicle, including, but not limited to, the use of oversized tires, installation of header pipes, lift kits, or the removal of any emission control parts system;
F.
For repair costs or expenses if the repair is
still covered by the manufacturer’s warranty or covered by a recall or special policy by the manufacturer;
G.
For repair costs or expenses if the Vehicle has been abused or neglected, or any part of it has been subject to alteration or accident, or for any accidental loss, or damage resulting from collision or upset, falling missiles or objects, fire, theft, arson, explosion, lightning, earthquake, windstorm, ice, hail, water, flood, malicious mischief, vandalism, riot or civil commotion, or if the Vehicle is a total loss, has been repossessed or is the subject of a repossession action, or from any other cause whatsoever, except as outlined in this Certificate;
H.
For liabilities for damage to property or for injury to or death of any person arising out of the operation, repair, maintenance or use of the Vehicle, whether or not related to any Covered Part, or for consequential losses or damage, including, but not limited to, property damage, loss of use of the Vehicle, loss of time, inconvenience, or commercial loss resulting from the operation, maintenance and/or use of the Vehicle, unless specifically covered herein;
I.
For any mechanical problems or conditions that existed prior to the purchase of this Certificate or for repair costs or expenses if a Breakdown is directly or indirectly caused by overheating of any Covered Part or non-covered part or by the failure of the Certificate Holder to maintain proper qualities or levels of coolants or lubricants, or breakdowns resulting from continued operation in a failed condition.
J.
For repairs to any part that has not suffered a Breakdown or if the wear on that part has not exceeded the published field tolerances allowed by the manufacturer, or for repair costs not necessary to correct a Breakdown; oil consumption; or for damages or any loss resulting from faulty or negligent auto repair work or from the installation of defective parts;
K.
For repairs to a Covered Part if the failure of the Covered Part was caused by the action or inaction of a non-covered part, unless the Optional Consequential
Loss Coverage was purchased;
L.
If the Vehicle has been titled branded as salvaged, junked, re-built, totaled, flood-damaged, or lemon; or
M.
For any of the following parts, services or loss caused by: Hybrid vehicle batteries or Ultracapacitors, Brake pads, shoes, rotors, drums; manual clutch assembly, manual clutch pedal, disc, pressure plate and throw-out bearing; tune up, battery, battery cables, air filters; oil filter; coolants, fluids, if not in connection with a covered repair; carburetor, fuses and circuit breakers, nuts, bolts and fasteners, spark plugs, plug wires, glow plugs, core plugs, freeze plugs, drive belts, rubber hoses, emission components not listed (unless optional emission coverage is elected), manual and hydraulic linkages, exhaust pipes, catalytic converter, EGR valve
, mufflers, resonators; alignments, wheel balancing, shock absorbers, tires, wheels and covers; contamination of any kind, corrosion, rust, hazardous waste removal, carbon build up, sludge ; sealed beams, light bulbs, lenses, non-factory installed audio systems and disc players; car phones, body parts, bright metal parts, rubber moldings, weather strips, metal, glass, plastic, trim, upholstery, vinyl top, wiper blades, wiper arms, carpet, cup holders, normal maintenance items or services; rattles, water leaks, wind noises, any non-factory installed parts, convertible top, safety restraint systems (seat belts, air bags, driver side airbags and associated steering wheel components), or any part thereof; and charges for shop supplies.
N.
For Tire Coverage, the following apply: 1) tire damage incurred outside of the United States and Canada; 2) tire damage resulting from deflated or improperly inflated tires, off-road use, racing, collision with curb or another Vehicle, misuse, abuse, lack of proper maintenance, misalignment, suspension wear, vandalism, fire, upset and manufacturer defects; 3) tires which are undersized, oversized or otherwise not recommend by the Vehicle manufacturer; 4) tires transferred from another Vehicle; 5) tires which have less than 3/32 inch tread depth remaining; 6) damage to tires that do not affect their performance or safety; 7) tires not retained by you for inspection when requested by the Administrator.
O.
For any components included in any of the optional coverage plans unless the option has been selected and purchased as set forth on the Certificate Application.
GENERAL PROVISIONS
A.
Action Against the Company:
No action shall be taken against the Company unless and until there has been compliance with all of the terms of this Certificate and the action is brought within two (2) years after the Date of Loss.
B.
Amendments / Changes:
The terms of this Certificate may not be amended or changed, except by written endorsement signed by a duly authorized representative of the Company. Notice to any agent of the Company or knowledge possessed by any agents of the Company or by any other person shall not affect a waiver or change in any part of this Certificate or stop the Company from asserting any right under the terms of this Certificate.
C.
Assignment by the Certificate Holder:
The Certificate Holder
may assign this Certificate to someone whom the Certificate Holder sells or transfers the Vehicle while this Certificate is in force, if certain conditions are met. The Certificate Holder may not assign this Certificate if the Vehicle is sold or traded (retail or wholesale) to an automobile dealer or automotive wholesaler.
A completed transfer and a fifty dollar ($50) transfer fee must be submitted to the Administrator within thirty (30) days of a change in ownership, along with the following:
1. A notarized copy of the documentation showing change of title and current odometer mileage; and
2. Proof of maintenance as recommended by the
manufacturer; and
3. If the manufacturer’s warranty requires a transfer, a copy of the completed transfer form.
The requisite transfer form may be obtained from the Administrator. Transfers are subject to approval by the Administrator. In the event the transfer form, fee, and required documentation are postmarked after thirty (30) days of the change in ownership, then this Certificate will be deemed NON-TRANSFERABLE.
The Certificate Holder
is responsible for the transfer and payment of applicable transfer fees to retain all manufacturers’ warranties available on the Vehicle. Failure to transfer the manufacturer’s warranty can result in non-payment of a Claim if the manufacturer’s warranty would normally have been in effect if the transfer had been made.
D. Cancellation: Cancellation of Your Certificate
1. You may cancel this Certificate at any time by:
a.
Returning to the Seller to complete and sign the cancellation forms.
b.
Mailing written notice to the Seller/Lessor of Your desire to cancel the Certificate.
A notarized odometer statement indicating the odometer reading at the date of the request will be required. The request for cancellation must be made no later than forty-five (45) days of the date that the cancellation is to become effective (except in the case of repossession, stolen or totaled Vehicles). The Administrator may request supporting documentation from the primary insurance company or police reports indicating dates and mileage at time of incident.
2. We may cancel, at any time if:
a.
Your
Vehicle
is totaled or is repossessed.
b.
Your
Vehicle’s
odometer is disconnected or altered or the true and actual miles cannot be determined.
c.
Your Vehicle
is used in a manner not covered by the Certificate, including Vehicle modifications not recommended by the manufacturer.
d.
The charge for the Certificate is not paid.
e.
You
employed intentional misrepresentation in obtaining the Certificate.
f.
You
employed intentional misrepresentation in the submission of a claim.
g.
Your Vehicle
does not have a valid manufacturer VIN.
h.
Your Vehicle’s
title is branded as salvage, junk, rebuilt, totaled or flood damaged, or is a manufacturer buyback.
i.
Your
claim aggregate has reached the original Vehicle Purchase Price.
j. We will provide 10 days notice of effective date of cancellation if due to nonpayment of premium and 30 days prior to the effective date of cancellation if for any other reason.
Notice of such cancellation will be delivered to You by registered mail. The notice of cancellation will state one of the above mentioned bases of cancellation and will include any reimbursement required. The cancellation will be effective as of the date of termination as stated in the notice of cancellation.
E. Lien holder Cancellation: If YourVehicle and this Certificate have been financed, the lien holder shown on the Application may cancel this Certificate for default of the loan agreement or if Your Vehicle is declared a total loss due to accident or theft or is repossessed. In such event, immediate notification and submission of documents to the Administrator is required.
F. Refund Calculation: If this Certificate is cancelled within the first sixty (60) days from the effective date and no claims have been filed, We will refund the entire Certificate charge paid. If this Certificate is cancelled after the first sixty (60) days or a claim has been filed, Wewill refund an amount of the Certificate 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 a Fifty Dollar ($50.00) Administrative Fee. In the event of cancellation, the lien holder, if any, will be named on a cancellation refund check as their interest may appear. Any cancellation refund due will be made within thirty (30) days after notice of cancellation has been received.
G. Liberalization:
If We adopt any revision which would broaden the coverage under this Certificate without additional premium within 60 days prior to or during the coverage period, the broadened coverage will immediately apply to this Certificate.
H.
Conformity to Statute:
Any provision of this Certificate that which is in conflict with the laws of the state wherein this Certificate is effective is hereby amended to conform to the minimum requirements of such law.
I. Entire Agreement: The Certificate constitutes the entire agreement between the parties with respect to the matters set forth herein and supersedes all prior documents and understandings.
J.
Maintenance Requirements and Service History:
You must have Your Vehicle checked and serviced in accordance with the manufacturer’s recommendations, as outlined in the Owner’s Manual for Your Vehicle. NOTE: Your Owner’s Manual lists different servicing recommendations based on Your individual driving habits and climate conditions. You are required to follow the normal or severe maintenance schedule that applies to Your conditions. Failure to follow the manufacturer’s recommendations that apply to Your specific conditions may result in the denial of Coverage. It is required that You retain “Proof” of maintenance for the service and/or repair work performed on Your Vehicle, regardless if work was performed by You or a Licensed Repair Facility. “Proof” means repair orders from a Licensed Repair Facility and/or a self-maintained maintenance log that has corresponding “purchase receipts” for oil and filter, coolant and brake system flush, etc. A self-maintained log without corresponding “purchase receipts” is not acceptable “Proof” of maintenance. Repair orders from a Licensed Repair Facility must be readable and understandable, with customer complaint and repair diagnosis, parts, labor hours, Vehicle identification number, date, Vehicle mileage, Your name and signature, Licensed Repair Facility name, address and phone number, repair totals, Deductible(s) (if applicable), and method of payment to satisfy the repair order. The Administrator for related repairs may request “Proof” of maintenance and/or Your self-maintained log with corresponding original receipts.
K.
Other Insurance
: If at the time of loss hereunder there is other insurance or a warranty or service contract which covers the Vehicle, in the name of, or for the benefit of the Certificate Holder, this Certificate shall be considered as excess insurance and shall not apply to nor contribute to the payment of any loss until all such other insurance, warranty or service contract shall have been exhausted.
L. Representations: By acceptance of this Certificate, the Certificate Holder agree that all statements contained in the Declarations are complete and accurate and are the Certificate Holder's agreements and representations, and that this Certificate is issued in reliance upon the truth of such representations. All statements made by or on behalf of the Certificate Holder, in the absence of fraud, shall be deemed representations and not warranties. No such statements that arise from an error in the application shall be used in defense of a Claim under this Policy unless:
(1)
The statements are contained in a written application; and
(2)
A copy of the application is endorsed upon or attached to this Policy when issued.
In order to use any representation by or on behalf of the Certificate Holder in defense of a Claim under this Policy, the Company must show that the representations are material and that the Company relied on them.
M.
Rights of Recovery and Subrogation:
If the Company make any payment under this Certificate, the Company shall be subrogated to all of the Certificate Holder's rights of recovery, to the extent of such payment made, and shall have the right to participate with the Certificate Holder and any other insurer in the exercise of all of the Certificate Holder's rights of recovery against any person or organization. The Certificate Holder shall do nothing to impair or prejudice the Company's rights and shall execute and deliver instruments and papers and do whatever is necessary to assist the Company in the enforcement of its rights.
All amounts recovered by the Certificate Holder from third parties for which the Certificate Holder also received benefits under this Certificate, shall belong to and be paid to the Company by the Certificate Holder up to the total amount of benefits paid by the Company.
N.
Territory:
The benefits provided under this Certificate are only available for losses and expenses incurred within the United States and Canada. The United States means the fifty (50) United States and the District of Columbia and does not include Puerto Rico, Guam or other territories and possessions.
O.
Abandonment:
There will be no abandonment to us of any property.
P.
Appraisal:
If You and We fail to agree on the amount of loss, each of Us shall have the right to select a competent and disinterested appraiser within twenty (20) days from the date of disagreement. The appraisers will select an umpire. The appraisers will determine the amount of loss to the umpire. If they do not agree, then each appraiser will submit their amount of loss to the umpire. The agreement of any two will determine the amount of loss. You pay for Your appraiser and We pay for our appraiser. We and You shall each share in the expense of the umpire. The Appraisal Condition is voluntary and non-binding.
Q.
Arbitration:
Any and all disputes, controversies or Claims of any kind and nature between the Certificate Holder and the Company arising out of, or in any way related to, the validity, interpretation, performance or breach of any provision of this Policy, and upon which a settlement has not been reached by the Certificate Holder and the Company, may be resolved by arbitration, in accordance with the arbitration rules of the State of Oregon. Submission to arbitration is voluntary and both the Certificate Holder and the Company must mutally agree to the arbitration procedure.
In such event, the Certifcate Holder and the Company shall each appoint one arbitrator. The two appointed arbitrators shall together select a third arbitrator. Any decision of the three arbitrators shall be by majority vote. The decision of the arbitrators will not be binding on the Company or the Certificate Holder. Appeals may be taken from the arbitrators decision only in accordance with the Oregon arbitration rules.