Dealer Information Guide Effective December 2011 Effective December 2011 Rev-08-12
Dealer Information Guide Effective December 2011 Welcome and Introduction.......................................... 2 Welcome and Company Profile Key Personnel and contacting CoverageOne CoverageOne Corporation Company & Product Appeal................. 3 Product Definition and Administration by Province.................... 4 Product Overview................................................ 5 Coverage One CoverageOne Plan Terms & Eligibility Levels of Coverage CoverageOne Warranty Wrap Plans Product Highlights & Benefits Future Contract Purchases Cancellations, Transfers and Limit of Liability Vehicle Eligibility Guideline Contracts....................................................... 15 Contract Specimen How to Complete/Register a Contract/Policy (Sales Driver) How to remit..................................................... 17 Procedures Statement information Statements Online (Reports Online) Cancellation procedures Service Payment Plan (SPP)....................................... 21 Procedures SPP Vehicle Service Contract Register Rewards Program................................................. 24 Claims.......................................................... 25 Claim Procedures How to Get Paid Supply Order Form............................................... 27 1
Welcome! To our new dealers: Welcome to CoverageOne Corporation and thank you for your decision to begin marketing our products. We re confident that you have made a wise decision to affiliate yourself with CoverageOne. You will be selling one of the highest quality vehicle service agreements found in Canada. CoverageOne is underwritten by Motors Insurance Corporation (MIC). MIC is known throughout the industry as a company with substantial experience as an underwriter of vehicle service agreements. This experience, along with MIC s solid overall operating performance and strong capitalization provides the necessary stability for our business partners and customers to rely upon. While MIC has been around since the early 1900 s, the formation of CoverageOne is relatively recent. Research conducted by MIC indicated an opportunity to increase business and market share by developing new ways to offer mechanical repair protection products and services. Recognizing that new opportunities require new business practices, the creation of a new company was deemed to be the best approach. For this reason, CoverageOne was established in July of 2001. By combining the industry experience and financial backing of MIC with the designed ability to respond to dynamic market conditions, CoverageOne is uniquely capable of satisfying multiple needs. How to reach us You can contact us at anytime with questions or concerns. CoverageOne Corporation P.O. Box 7280 Ottawa, ON K1L 8E2 CoverageOne Key Personnel Charlie Hastings Don Sande - Vice President of Sales, Service and Marketing - National Sales Director (800) 841-1670 ext.3251 Contact us by calling: Sales and Marketing 1-877-453-2178 Or visit our website at www.coverageone.ca 2
CoverageOne Corporation Company and Product Appeal Stability CoverageOne is underwritten by Motors Insurance Corporation (MIC). MIC has been underwriting mechanical protection plans in the Canadian market for over 25 years. Full Range of Coverage Basic powertrain coverage up to manufacturer-like exclusionary coverage. This coverage also includes desirable convenience features. Adaptable CoverageOne presents a wide array of coverage levels, deductibles and term lengths and add-on options to fit the Dealer s and Customer s needs. Fast Claim Authorization Our highly qualified claim representatives have, on average, 20 years of automotive experience, including dealership experience, and 9 years of claim administration experience. With our strong emphasis on customer service, claim authorization is fast and pleasant. Claim payments are typically processed within 3 days of receipt of the repair order. Corporate Credit Card Claim Payments Immediate claim payments to repair facilities for customers who experience a covered breakdown and are unable to return to their selling dealer. Service After the Sale Our customer service personnel will gladly help the dealership or retail customer with questions about coverage and procedures. Nationwide Service Coverage is honoured nationwide, as well as the continental United States, Alaska and Hawaii. Automatic Call Distribution Our phone system and equipment allows callers to access the proper departments more efficiently with minimal hold times. 3
Product Definition and Administration by Province For: Ontario, Manitoba, and the Atlantic Provinces: Coverage Plans are Vehicle Service Contracts Administrator is CoverageOne Corporation For: Quebec: Coverage Plans are Vehicle Service Contracts Administrator is CoverageOne Corporation For: British Columbia, Alberta, and Saskatchewan: Coverage Plans are Vehicle Warranty Insurance Policies Administrator is Motors Insurance Corporation 4
CoverageOne Plan Terms New Vehicle Plans: Expiration is measured in time/kilometres from the Factory In-Service Date and Zero Kilometres, whichever comes first. The coverage begins on the Purchase Date of the contract (policy). Used Vehicle Plans: Expiration is measured in time/kilometres from the Contract (Policy) Purchase Date and odometer reading at the time of the contact (policy) purchase. The coverage begins on the Purchase Date of the contract (policy). Vehicle Eligibility NEW VEHICLE PLAN ELIGIBILITY GUIDELINES Vehicles with at least 1 day and 1 kilometre of the manufacturer s basic full coverage warranty remaining are eligible. Only vehicles listed in the CoverageOne Sales Driver web site are eligible. Vehicles must have 60,000 kilometres or less at time of sale, or 80,000 kilometres in the case of vehicles with a 48 month manufacturer's basic full coverage warranty. WARRANTY WRAP PLAN ELIGIBILITY GUIDELINES To be eligible for new vehicle wrap plans, the vehicle must have at least 1 day and 1 kilometre of the manufacturer s basic full coverage warranty remaining. The vehicle must also have 80,000 kilometres or less at time of sale. For new and used vehicle wrap plans, the vehicle must have a 5-year, 100,000 kilometres or greater manufacturer s powertrain warranty in effect. Only vehicles loaded in the CoverageOne Sales Driver web site are eligible. See the web site for age and kilometre restrictions. USED VEHICLE PLAN ELIGIBILITY GUIDELINES All vehicles shown in the CoverageOne Sales Driver web site are eligible for used vehicle coverage if all of the following conditions are met: 1. The dealership must sell the vehicle and the service contract may be purchased only at the time of sale of the vehicle. 2. The vehicle must be in good working condition and all covered components must be functioning properly at the time of sale of the vehicle. 3. The vehicle must be within the age limits for the available plans (January 1 establishes a model year change). 4. The vehicle must be within the kilometres limits for the available plans. See the CoverageOne Sales Driver web site for age and kilometre restrictions. 5
Plans Overview 6
ENGINE: Cylinder Block, Cylinder Head(s) and all internal lubricated parts contained within the engine including: Pistons; Piston Rings; Connecting Rods and Bearings; Crankshaft; Crankshaft Main Bearings; Camshaft; Camshaft Bearings; Cam Followers; Timing Chain or Belt; Timing Gears, Guides, Tensioners; Rocker Arms; Rocker Shafts; Rocker Bushings; Cylinder Head Valves; Valve Guides; Valve Lifters; Valve Springs; Valve Seals; Valve Retainers; Valve Seats; Push Rods; Water Pump; Oil Pump and Oil Pump Housing; Harmonic Balancer; Oil Pan; Timing Chain Cover; Intake and Exhaust Manifolds; Valve Covers; Engine Mounts; Seals and Gaskets. TURBOCHARGER/SUPERCHARGER: (factory installed only) Turbocharger/Supercharger Housing and all internal parts; Seals and Gaskets. TRANSMISSION: (Automatic or Standard) Transmission Case and all internal parts plus: Torque Converter, Flywheel/Flex Plate, Vacuum Modulator; Electronic Shift Control Unit; Shift Control Sensors; Transmission Cooler; Transmission Mounts; Oil Pan; Seals and Gaskets. TRANSFER CASE: Transfer Case and all internal parts; Seals and Gaskets. DRIVE AXLE: (Front and Rear) Drive Axle Case and all internal parts contained within the Drive Axle; Locking Hubs; Drive Shafts; Centre Support Bearings; Universal Joints; Constant Velocity Joints; Axle Bearings; Four-Wheel Drive Actuator; Differential Cover; Seals and Gaskets. 7
Guardian Coverage Includes Eliminator Coverage Plus: STEERING: All internal parts contained within the Steering Box; Rack and Pinion Gear; Power Steering Pump; Power Steering Hoses; Steering Knuckles; Pitman Arm; Idler Arm; Tie Rod Ends and Drag Link; Steering Dampener; Upper and Lower Steering Column Shafts and Couplings, including Internal Tilt-Wheel Mechanism; Steering Box and Rack and Pinion Gear Housings; Seals and Gaskets. Rear Wheel Steering: Rear Steering Shaft and Couplings; Power Cylinder and Pump; Electronic Control Unit/Solenoid; Phase Control Unit; Stepper Motor; Steering Box; Control Valve; Rack; Tie Rod Ends; Seals and Gaskets. BRAKES: Master Cylinder; Power Brake Cylinder; Vacuum Assist Booster; Hydro Boost; Disc Brake Calipers; Wheel Cylinders; Compensating Valve; Brake Hydraulic Lines and fittings; Hydraulic Control Unit; Seals and Gaskets. The following ABS Parts are also covered: Electronic Control Processor; Wheel Speed Sensors; Hydraulic Pump/Motor Assembly; Pressure Modulator Valve/Isolation Dump Valve; Accumulator; Seals and Gaskets. AIR CONDITIONER: Condenser; Compressor, Compressor Clutch and Pulley; Refrigerant Lines; Evaporator; Idler Pulley; Belt Tensioner and Idler Pulley Bearing; High/Low Compressor Cut-off Switch; Expansion Valve; Pressure Cycling Switch; Seals and Gaskets. The following parts are also covered if they are required in connection with the repair of a covered part listed above: Accumulator/Receiver Dryer; Orifice Tube; Oil and Refrigerant. 8
Sentinel Coverage Includes Eliminator-Guardian Coverage Plus: ELECTRICAL: Alternator; Voltage Regulator; Starter Motor; Starter Solenoid, Starter Ring Gear and Starter Drive; Engine Wiring Harness; Transmission Wiring Harness; Computerized Timing Control Unit; Powertrain Control Module; Electronic Ignition Module; Crank Angle Sensor; Cam Sensor; Knock Sensor; Ignition Switch; Ignition Switch Lock Cylinder; Front and Rear Window Wiper Motor, Pulse Wiper Delay Module; Washer Pump and Switch; Stop Lamp Switch; Headlamp Switch; Turn Signal Switch; Heater/A.C. Blower Speed Switch; Manual Heater/A.C. Control Head and Horns. FUEL DELIVERY: Fuel Pump; Fuel Injection Pump and Injectors; Vacuum Pump; Fuel Tank; Fuel Tank Sending Unit; Metal Fuel Delivery Lines. Pinnacle Coverage Includes Eliminator-Sentinel Coverage Plus FRONT AND REAR SUSPENSION: Upper and Lower Control Arms; Control Arm Shafts and Bearings or Bushings; Upper and Lower Ball Joints; Radius Arm and Bushings; Torsion Bars and Mounts or Bushings; Stabilizer Bar, Links and Bushings; Spindle and Spindle Support; Wheel Bearings. Variable Dampening Suspension: Compressor; Control Module; Actuator; Solenoid; Height Sensor and Mode Selector Switch. HEATING / COOLING: Engine Cooling Fan and Motor; Fan Clutch; Belt Tensioner; Radiator; Heater Core; Blower Motor and Hot Water Valve. ENHANCED ELECTRICAL: Automatic Climate Control Programmer; Electronic Instrument Cluster; Mileage/Kilometrage Computer; Distributor; Ignition Coil; Ignition Coil Packs, Coil Pack Housing; Oxygen Sensor; Electronic Combination Entry System (Does not include Transmitters and Receivers for Remote Locks); Cruise Control Module, Engagement Switch, Transducer, Servo and Amplifier; Headlamp Motors; Power Window Motor and Switch; Power Seat Motor and Switch; Power Mirror Motor and Switch; Power Antenna Motor/Mast Assembly; Convertible Top Motor; Factory installed Power Sunroof Motor; Rear Defogger Switch; Power Door Lock Actuator and Switch. 9
Exclusionary Coverage Plan Virtually every mechanical component on the vehicle is covered, except for those excluded under the general provisions section of the contract/policy: Maintenance Services And Parts Described In The Owner s Manual For Your Vehicle And Other Normal Maintenance Services And Parts Which Include, But Are Not Limited To: Alignments, Adjustments, Cleaning, Wheel Balancing, Tune-Ups, Spark Plugs, Spark Plug Wires, Glow Plugs, Hoses (Except Steering And Air Conditioning), Drive Belts, Timing Belts (If Not Replaced At Manufacturer s Recommended Maintenance Interval), Brake Pads, Brake Linings/Shoes, Drain/Fill Plugs, Wiper Blades, Repairs To Correct Squeaks, Rattles Or Wind Noise, Shop Supplies, Environmental Waste Charges, Freight And Storage Charges. Attaching Nuts, Bolts, Studs or Attaching Hardware, Fluids, Lubricants, Coolants, Refrigerants and Filters. Unless Required In Connection With A Breakdown. Any Of The Following Parts: Carburetor; Throttle Body; Battery; Battery Cables; Shock Absorbers; Struts; Strut Bearing Plates; Manual Transmission Clutch Assembly; Friction Clutch Disc And Pressure Plate, Throw Out Bearing, Pilot Bearings, Manual Linkages; Distributor Cap And Rotor; Safety Restraint Systems (Including Air Bags);Glass; Window Defroster Elements; Lenses; Headlamps And Projection Lamp Assemblies; Sealed Beams; Light Bulbs; Fuses; Circuit Breakers; Telephones; Brake Rotors And Drums; Exhaust; Evaporative And Exhaust Emission Systems; Weather Strips; Trim; Mouldings; Bright Metal; Chrome; Upholstery And Carpet; Zippers; Fasteners; Cup Holders; Dash Pad And Vents; Squeaks And Rattles; Water Leaks; Wind Noise; Seat Frames; Seat Tracks; Window Channels; Lift Gate Cylinders; Paint; Outside Ornamentation; Bumpers; Body Sheet Metal And Panels; Body Parts; Hinges; Frame And Engine Cradles; Body Mounts; Brackets; Structural Body Parts; Vinyl And Convertible Tops; Tires; Wheels/Rims; Hubcaps/Wheel Covers And Mechanical Adjustments. 10
Warranty Wrap Plans Vehicle manufacturers now provide extended Powertrain warranties on the majority of their vehicles. These limited warranties typically cover only the essential components necessary to provide propulsion. That is, the internal parts of the Engine, Transmission and Driveline, which are collectively referred to as the Powertrain. It s a good deal for everyone when manufacturers provide Powertrain warranties, because repair costs for Powertrain components can be quite expensive. However, today s vehicles have other components that can be equally expensive to repair. For example, repairs for Anti-lock Brakes and Air Conditioner systems can be very costly. Considering the potential costs of unexpected repairs, CoverageOne protection is always a great value, and for vehicles that have a manufacturer s extended Powertrain warranty, we can enhance that value by discounting the price! For the duration of the manufacturer s Powertrain warranty, CoverageOne has no liability for the cost of Powertrain repairs. Therefore, the coverage we provide wraps around the manufacturer s coverage and enhances it by extending Powertrain protection even further, and by providing coverage for other types of components. Since our risk exposure is reduced, we can provide the same coverage as Non- Wrap plans for significantly lower cost. Visual of how wrap plans work. 11
Product Highlights and Key Benefits All CoverageOne Plans Include: Rental Car $45 per day, up to 6 days In the event of a covered breakdown, we will pay up to $45 per day for up to six (6) days, (a maximum of two hundred seventy dollars $270), for each repair visit. This covers expenses to rent a replacement vehicle, if the covered repairs take two (2) hours or more of labour according to approved labour time guides, or if awaiting parts delivery or if the vehicle has to be kept overnight. Trip Interruption $75 per day, up to 3 days If a breakdown occurs more than one hundred and sixty (160) kilometres from home which results in a repair facility keeping the vehicle overnight, we will pay up to seventy-five ($75) dollars per day for up to three (3) days, for a maximum of two hundred twenty five ($225) dollars (per occurrence), for motel/hotel and restaurant expenses. Towing/Road Service Covered for most disablements, up to $75 per occurrence In the event the covered vehicle is disabled, we will pay up to seventy-five ($75) dollars per occurrence for towing. We also provide 24-hour roadside assistance. Coverage is limited to one occurrence per disablement. Lost Key/Lockout Service Up to $50 for Locksmith services If keys for the covered vehicle are lost, broken or accidentally locked inside, we will pay up to fifty ($50) dollars for locksmith services and also provide 24-hour lost key/lockout assistance. 12
Eligibility Future Contract Purchase Vehicle is not used for commercial purpose. Vehicle qualifies for current coverage plans. Vehicle has at least 15 days and 1,500 kilometres of their current coverage plan in force. Contract/Policy holder returns to the original selling dealer. Vehicle is available for inspection, if needed. Cancellation: For both new and used vehicle plans, within the first 60 days of contract/policy inception, a full refund less a $100 fee + GST and any applicable provincial tax is paid to the issuing dealer. After 60 days, or if a claim has been made within the first 60 days, a pro-rata refund less $100 fee + GST and any applicable provincial tax is paid to the issuing dealer. As per dealer agreement, the dealer shall pay to the Lienholder or the VSC Holder on those VSC sold by the Dealer, any cancellation refund due to a Lienholder or VSC Holder based on Retail Price (inclusive of GST/HST and any applicable provincial tax) charged by the Dealer. Transfers: 15 days to submit request Contract/Policy may only be transferred once to a private retail buyer Copies of maintenance records must be given to new owner, but they are not necessary to submit with transfer request. Limit of Liability: Per Repair Visit Current retail value of vehicle at time of repair Aggregate Retail price paid for the vehicle when originally purchased. 13
Vehicle Plan Eligibility Guidelines New Vehicle Plan Eligibility Guidelines Vehicles with at least 1 day and 1 kilometre of the manufacturer s basic full coverage warranty remaining are eligible. Only vehicles listed in the CoverageOne Sales Driver portal are eligible. Vehicles must have 60,000 kilometres or less at time of sale, or 80,000 kilometres in the case of vehicles with a 48 month manufacturer's basic full coverage warranty. Warranty Wrap Plan Eligibility Guidelines To be eligible for new vehicle wrap plans, the vehicle must have at least 1 day and 1 kilometre of the manufacturer s basic full coverage warranty remaining. The vehicle must also have 80,000 kilometres or less at time of sale. For new and used vehicle wrap plans, the vehicle must have a 5-year, 100,000 kilometres or greater manufacturer s powertrain warranty in effect. Only vehicles listed in the CoverageOne Sales Driver portal are eligible. Used Vehicle Plan Eligibility Guidelines All vehicles shown in the CoverageOne Sales Driver portal are eligible for used vehicle coverage if all of the following conditions are met: 1. The dealership must sell the vehicle and the service contract may be purchased only at the time of sale of the vehicle. 2. The vehicle must be in good working condition and all covered components must be functioning properly at the time of sale of the vehicle. 3. The vehicle must be within the age limits for the available plans (January 1 establishes a model year change). Sales Driver will update automatically as of January 1. 4. The vehicle must be within the kilometres limits for the available plans. See the CoverageOne Sales Driver web site for kilometre restrictions Ineligible Vehicles 1. Used in racing or competition 2. Not manufactured for distribution in Canada or the USA (Grey market vehicles) 3. With a gross vehicle weight of over 6,136 kilograms (13,500 pounds) 4. With odometers that have been replaced, tampered with, altered or are inoperative 5. Having a salvage or branded title 6. If the vehicle is used as a Commercial Vehicle including but not limited to use as rental, taxi, limousine, shuttle, hearse, delivery of parcels or goods, repair or service vehicle, construction or job site activities, snowplowing, towing, vehicle carrier, hauling, police or emergency service, principally off-road use 7. If the vehicle is used for towing a trailer or another vehicle or object or is being hauled (unless the vehicle is equipped with a factory installed or factory authorized tow/haul package), for towing or hauling that exceeds the manufacturer s recommendations, for racing or competitive driving, for business travel by more than one drive on a regular basis 8. If any alterations have been made to the vehicle including frame or suspension modifications, lift kits, oversized/undersized tires or exhaust system modifications If you have any questions, please contact your representative or CoverageOne at (877) 453-2178. For Alberta, British Columbia, Saskatchewan and Quebec, call (866) 988-1642. 14
CoverageOne Contract Specimen Specimen 15
How to Complete and Register CoverageOne Contracts / Policies (BC, AB & SK) CoverageOne Online Registration Portal The CoverageOne SalesDriver sales application is a powerful on-line web based tool designed to facilitate and manage the CoverageOne program: Electronic Rating - Contract Printing - Online Registration Simply complete the requested information in Steps 1-4: 1. Enter Vehicle Information, 2. Select a Plan, 3. Confirm the Price, 4. Create and Print Contract. The information will be transmitted to CoverageOne s policy registration system immediately upon creating & submitting the contract. At month end, a dealer statement will be issued to the dealership for the plans registered during the past month. Accessing the CoverageOne SalesDriver site: Launch a web browser (i.e. Internet Explorer, Netscape) by entering the following into your browser s address field: https://sales.coverageonedealers.ca For detailed information regarding Sales Driver utilisation, please consult the User Guide posted under the training material in the document library section of Reports Online: https://reports.coverageonedealers.ca Reports Online is available to CoverageOne dealers to get quick access to important information, including: Sales Dashboard; Production Metrics; Statements and Document Library. For a user name & password, please contact your dealership s in-house administrator, or your CoverageOne Agent. 16
How to Remit CoverageOne (C1) will provide accurate and timely monthly statements via mail and online by the 3 rd of each month. The Dealer will pay C1 the full retail cost for each plan sold as shown in the Sales Driver web site (including GST/HST). The Dealer cost may be revised from time to time by C1 with such revised costs to be effective on not less than thirty (30) days written notice to the Dealer. The Dealer agrees that C1 may bill the Dealer monthly for all plans sold, and for all amounts due to C1. The Dealer agrees to pay the C1 statement, including applicable taxes, within ten (10) days after the statements are sent or made available to the Dealer. In circumstances where a deal falls through on a previously submitted plan, or if a vehicle is traded in to the issuing dealer, a refund based on the original dealer cost of the plan will be made to the issuing dealer. All cancellation requests are still to be initiated through your dealership, giving you the opportunity to converse with your customer. Dealers in all provinces, please make cheque payable to: CoverageOne Corporation, P.O. Box 7280, Ottawa, ON K1L 8E2 The C1 Statement will include the following details: Three categories that include Sale, Cancellation, and Statement Adjustment. Each category is subtotaled and rolled up to a Grand Total Balance Due. Unpaid balances from previous months will be itemized by contract number on the statement. For Cancellations, this report will only display transactions where a balance is due. Cancellations with no balances due will not display on this report. The Cancel Date displayed reflects the reason for the cancellation along with the effective cancellation date. Dealers who are registered for Reports Online Statements can view current and historical statement details at: https://reports.coverageonedealers.ca. Statements can be viewed in.pdf or exported to an Excel file. To register for Online Statements, see the following page for details. 17
Registration Form Reports Online To view and print your statements using the online web site, please complete and submit this registration form by e-mail to: christina.mut@gmacfs.com Please include the following information in your email: Dealer Name: Dealer Code: Person s Name: Title: Email Address: Accounting dept. general email address (if applicable): User name if already using Sales Driver: Include any additional users & their email address that you would like to have access as well: If you have questions regarding this information please contact your CoverageOne Agent Access to Reports Online Signing up to Reports Online will provide dealer users with online access to current and previous monthly statements. Statements will be available by the 3 rd of each month, and you will no longer 18
receive printed statements by the mail. All users will receive an email notification directing recipients to download and review the dealer s electronic monthly statement. Access to Reports Online is performed the same way as accessing Sales Driver. In fact, the same username and password that is used to access Sales Driver is used to access Reports Online. https://reports.coverageonedealers.ca Once you have accessed the Reports Online homepage, enter your Username and Password, and then click the Login button. Reports Online AR Statements & Statement Balance Detail Reports Before you begin, check to see if Adobe Reader is installed and the Pop up Blocker is turned off. The Statement Balance Detail report provides a listing of contracts that make up the dealers account receivable balance at a certain month end. This report matches the concurrent month Account Receivable Statement. Access the reports by clicking the appropriate PDF file for the month you wish to view. The system displays a copy of the monthly AR Statement or Statement Balance Detail Report. 19
Contract or Policy Cancellations The Dealer shall notify C1 of all cancellations promptly in accordance with the program guidelines and procedures. Upon notice of cancellation, C1 may arrange for any applicable refund to be sent to the customer or lienholder, or may require the Dealer to do so, and will be based on Retail Price (inclusive of GST/HST and any applicable provincial tax). The Dealer shall pay C1 the pro rata portion of the Dealer mark-up or commission with respect to the cancelled policy based on the greater of time or kilometres utilized or otherwise as calculated by C1 plus any applicable taxes. For both new and used vehicle plans, within the first 60 days of contract/policy inception, a full refund less a $100 fee + GST and any applicable provincial tax is paid to the issuing dealer. After 60 days, or if a claim has been made within the first 60 days, a pro-rata refund less $100 + GST and any applicable provincial tax is paid to the customer or lienholder, or may require the Dealer to do so. The Dealer mark-up or commission No ChargeBack program (DNCB) for CoverageOne contracts sold on or after November 1, 2010 will be applicable after 90 days of contract sale. Regular charge-back applies to the mark-up or commission within 1st 90 days of contract sale DNCB capped at $1000 dealer margin Above $1,000 dealer mark-up, the normal pro-rata provision/calculation and dealer chargeback would apply. DNCB not applicable on 3 month plan terms. Dealers and lienholders are able to process C1 cancellation by calling the C1 service center and provide the required information over the phone. If a cancellation refund is to be directed to the dealer for use as part of a trade-in down payment, dealers must call the service center for processing. Customers calling the C1C service center to request cancellation of their Plan will be instructed to return to their selling dealership to complete the process, unless doing so would cause undue burden on the customer. In such limited instances, an alternate process will be utilized for obtaining verification of the odometer reading and lienholder information. You may obtain a Cancellation Quote by calling CoverageOne at (877) 453-2178. For Alberta, British Columbia, Saskatchewan and Quebec, call (866) 988-1642. 20
SPP Service Contract No Interest Payment Plan Down Payment: Collect the Minimum 10% cash down payment from the customer and all taxes related to the entire transaction. You may collect more than the minimum down payment. Payment Term: The customer can opt for a 6, 12, 18 or 24 month payment plan for the agreement. Contract Term: The 6 month payment plan is available for agreements with a minimum Protection Plan term of 12 months & 20,000 kms or greater. The 12 month payment plan is available for agreements with a minimum Protection Plan term of 24 months & 40,000 kms or greater. The 18 month payment plan is available for agreements with a minimum Protection Plan term of 36 months & 60,000 kms or greater. The 24 month payment plan is available for agreements with a minimum Protection Plan term of 48 months and 80,000 kilometres and also sold within 12-months and 20,000 kms from the vehicle s in-service date. Administration: Service Payment Plan, Inc. (SPP) administers The No Interest Payment Plan. Service Fees: 1) The 6 month payment plan: a. The Service Payment Plan fee will be $65.00 if the amount financed is less than $2,000.00. b. In the event the agreement is cancelled during the payment term, the retained Service Payment Plan fee will be $30.00. c. The Service Payment Plan fee will be $115.00 if the amount financed is $2,000.00 or greater. d. In the event the agreement is cancelled during the payment term, the retained Service Payment Plan fee will be $50.00. 2) The 12 month payment plan: a. The Service Payment Plan fee will be $115.00 if the amount financed is less than $2,000.00. b. In the event the agreement is cancelled during the payment term, the retained Service Payment Plan fee will be $50.00. c. The Service Payment Plan fee will be $160.00 if the amount financed is $2,000.00 or greater. d. In the event the agreement is cancelled during the payment term, the retained Service Payment Plan fee will be $100.00. 21
3) The 18 month payment plan: a. The Service Payment Plan fee will be $160.00 if the amount financed is less than $2,000.00. b. In the event the agreement is cancelled during the payment term, the retained Service Payment Plan fee will be $100.00. c. The Service Payment Plan fee will be $245.00 if the amount financed is $2,000.00 or greater. d. In the event the agreement is cancelled during the payment term, the retained Service Payment Plan fee will be $125.00. 4) The 24 month payment plan: a. The Service Payment Plan fee will be $245.00 if the amount financed is less than $2,000.00. b. In the event the agreement is cancelled during the payment term, the retained Service Payment Plan fee will be $125.00. c. The Service Payment Plan fee will be $375.00 if the amount financed is $2,000.00 or greater. d. In the event the agreement is cancelled during the payment term, the retained Service Payment Plan fee will be $150.00. SalesDriver Interest Free Financing Functionality: Dealers who are signed up for interest free financing with Service Payment Plan will have the ability to have their Retail Installment Contract populated, printed and sent via the Contract Entry System (SalesDriver). When Service Payment Plan is selected as a Lienholder in the Step 3 of the contract creation process, the following information is displayed: Down Payment field: Enter the down payment amount greater than or equal to the defaulted calculated minimum down payment amount. Eligible payment options: Select from the 6, 12, 18 or 24 payment amounts displayed. 22
After successfully populating the Vehicle Service Contract required fields, enter the purchaser s payment information directly into Service Payment Plan s system: a. Credit Card (Visa, MasterCard, Discover) b. Direct Debit to customer s checking account After successfully populating the purchaser s payment information directly into Service Payment Plan s system, the Retail Installment Contract will print with the CoverageOne contract/policy. Please ensure the documents are faxed to SPP to finalize the transaction: Faxed to SPP: 1-800-449-5990 Amount Financed: Service Payment Plan will collect payment by debiting the customer s checking or savings account or debiting the customer s Visa, MasterCard or Discover card. Service Payment Plan will pay dealers promptly, the entire plan charge, less down payment and fee. Contracts will appear on the dealer s monthly statement and dealers will be responsible to pay CoverageOne within 10 days of receipt. Cancellation of Agreement: All requests for cancellation of agreements where the customer is still making installment payments to Service Payment Plan, Inc. should be directed to the Administrator. Please Note: If your customer does not make the payments in a timely manner, Service Payment Plan, Inc. reserves the right to cancel the Installment Agreement and the customer agreement. Please Note: The Federal Truth-In-Lending Law strictly prohibits the dealer from adding a separate charge to the customer for this No Interest Payment Plan. 23
CoverageOne Rewards Program Welcome to CoverageOne Rewards, where every qualifying CoverageOne plan sale earns you money via a VISA Prepaid Card. There's almost nothing the card can't buy. Spend a weekend golfing. Surprise the family with a spontaneous getaway. Treat yourself to a weekend shopping spree. Or just pick up the check after dinner with your friends. The rewards are yours to choose. CoverageOne Rewards is a volume based bonus structure providing participating dealers with the opportunity to earn more with each plan sold. All dealers will have their payout levels determined by the total number of eligible plans sold each month. Includes all new and used plans, excluding 3 and 6 month used terms. Program revised annually and administered through the Motors Insurance Reporting Web-site: https://gmacinsurancerewards.com Web Site Registration In order to enroll in the CoverageOne Rewards program, a dealership must first register to use the Motors Insurance Reporting web site. The Dealership will setup a password and security questions during the registration process. Your CoverageOne agent can facilitate your dealerships enrollment and provide you with an overview of the web-site s functionality. CoverageOne Rewards Program Enrollment Once a dealership has access to the Motors Insurance Reporting web site, the Dealership can then enroll in the CoverageOne Rewards program. Steps for enrollment are as follows: 1) Dealership accesses the CoverageOne Rewards section of the Motors Insurance Reporting web site 2) Dealership chooses the enrollment option 3) System displays the Enrollment page (web site registration contact information is pre-populated as the contact). 4) Dealership verifies contact and dealer principal information making any necessary updates 5) Dealership sets up a PIN 6) Dealership reads the rules and acknowledges/accepts the rules 7) Dealership submits the enrollment request 8) System validates and saves the enrollment Dealership Statements Dealerships will receive earnings starting the month in which the dealership enrolls in the program if they meet the minimum volume requirements. Dealership statements are updated daily and will show monthly program results, deposits and redemptions. Card Administration Card Administration is used by the dealer to order a new CoverageOne card or to deposit additional funds to an existing card for a participant. The PIN is required to access Card Administration. Dealerships will order cards for individuals by entering required participant information and the amount to be deposited. A card can only be issued to a new participant if a minimum amount of $100 is deposited to the participant s card initially. After initially issuing the debit card (with the $100 minimum), additional funds can be debited to an existing card (no minimum amount required). Amounts can be transferred from the dealership account to a participant s account via the website at any time. Amounts transferred to a participant account will be deposited to the participant s debit card on a weekly basis. Any amount transferred from the dealership account to a participant cannot be placed back into the dealership account. 24
Claim Procedures Before Calling CoverageOne for Claim Approval 1. Please obtain a copy of the customer's Service Contract / Policy Registration Page and verify the service contract is still in force (date & kilometres). Please retain this copy when calling CoverageOne. 2. Our claims specialist will ask for the following information to initiate a claim: a. Service contract number, customer's name and kilometres on the vehicle. b. COMPLAINT by the customer. c. CAUSE of failure. d. CORRECTION Technician's diagnosis and suggested method of repair. e. An accurate cost estimate of the repair-detailing manufacturer s suggested retail parts prices with part numbers, labour, taxes (if applicable), rental, etc. f. Labour time will be based on the current year s Chilton, Mitchell, or AllData labour time guides. Reimbursement for labour charges may also be based on the applicable manufacturer s warranty labour time guide with up to a 30% mark-up allowed. To verify labour, our claims specialist will ask for the Labour Guide section and page number. g. All applicable maintenance receipts. h. A mark-up not to exceed 20% or maximum of $100 will be allowed on any covered sublet repairs. Calling CoverageOne for Claim Approval 1. Telephone CoverageOne for Claim Reference Number: (877) 453-2178 Claim Administration (866) 988-1642 Claim Administration for AB, BC, SK and Quebec (877) 453-2179 Fax (613) 842-3239 Fax for Alberta, British Columbia, Saskatchewan and Quebec (800) 714-2370 Towing and Roadside Service 2. Your CoverageOne Claims Adjuster will: a. Confirm or deny coverage of the failure based upon the terms and conditions of the service contract/policy. b. Issue a Claim Reference Number for the repairs and amounts agreed upon. If actual costs exceed the approved amount, you MUST call and request approval for the additional amount. 25
How to Get Paid for the Repair Work 1. Collect the deductible amount plus GST/HST and any other applicable provincial tax and any other customer pay charges from the contract / policy holder. 2. Have the Repair Order signed and dated by the contract/policy holder. 3. Write the service contract/policy number, claim reference number and approved amounts on the face of the repair order. 4. Forward the completed Repair Order, including any maintenance records, sublets or rental bills necessary to establish all charges to: CoverageOne P. O. Box 7280 Ottawa, Ontario K1L 8E2 NOTE: All repairs must be submitted within sixty (60) days from the Repair Order date and with Repair Orders signed and dated by the contract / policy holder to be eligible for payment. Key Guidelines that Apply in Claim Settlements Diagnosis/Teardown The customer is the ONLY one who may authorize diagnosis, teardown or repairs of their vehicle. Inspectors As independent contractors, inspectors cannot authorize repairs, teardown or payment. Manufacturer Warranty Investigate all possibilities of factory help, FTC'S, campaigns or recalls for the repair prior to calling CoverageOne. Service Records Service records will be required on all applicable repairs (e.g. engine, transmission, suspension). The customer is to provide maintenance receipts. Customers performing maintenance are responsible for verifiable receipts to include VIN, kilometres, date and parts. This information must be recorded on the vehicle maintenance record. Rental If the covered repair requires two (2) hours of labor according to approved labour time guides, the rental vehicle must be rented from the repair facility or a licensed rental agency. Shop Supplies Not covered. Taxes The service contract/policy covers GST/HST and any other applicable provincial taxes for covered repairs. 26
Supply Order Form Item Name Form Number Quantity Ordered Quantity Shipped A. Agreements Office Use Only 1. CoverageOne Vehicle Service Contract 2. CoverageOne Vehicle Service Contract-French 3. CoverageOne Vehicle Warranty Insurance Policy VWI 4. PowerOne Vehicle Service Contract 5. PowerOne Vehicle Service Contract-French 6. PowerOne Vehicle Warranty Insurance Policy - VWI B. Brochures Point of Sale Materials 1. Ultimate (Our Most Comprehensive Mechanical Protection) CO-AMB 2. Ultimate (Our Most Comprehensive Mechanical Protection)-French CO-AMB/FR 3. Select (Eliminator, Guardian, Sentinel, Pinnacle) CO-PPB 4. Select (Eliminator, Guardian, Sentinel, Pinnacle)-French CO-PPB/FR Available online through the CoverageOne Sales Driver site 5. Agreement Pocket Folder (small) CO-PKTF 6. Agreement Pocket Folder (small)-french CO-PKTF-FR 7. Pitch Kit Folder (large) CO-PF 8. Pitch Kit Folder (large)-french CO-PF/FR 9. Dealer Information Guide CO-DLRG 10. Dealer Information Guide-French CO-DLRG -FR 11. Pitch Kit VSC PITCH-KIT-VSC 12. Pitch Kit VWI (BC, AB, SK) PITCH-KIT-VWI 13. Pitch Kit VSC-French PITCH-KIT-VSC-FR 14. Poster Is your vehicle covered? CO-PST 15. Poster-French Votre véhicule est-il protégé? CO-PST-FR 16. Desktop Laminate (Ultimate coverage) CO-LAM 17. Desktop Laminate (Ultimate coverage) -French CO-LAM FR C. Interest Free Payment Plan 11. Retail Installment Contract - SPP- is available online through the CoverageOne Sales Driver web site. FAX ORDERS TO: (905) 501-7400 Ordered by: Dealer / Company Name: Mailing Address: City, Province, Postal Code: E-Mail: Attention: Phone: Date: 27
Ontario, Manitoba and the Atlantic Provinces Contract (Policy) Administration 1-877-453-2178 Claims Administration 1-877-453-2178 Fax 1-877-453-2179 Alberta, British Columbia, Quebec & Saskatchewan Policy (Contract) Administration 1-866-988-1642 Claims Administration 1-866-988-1642 Fax 1-613-842-3239 National Sales Director Don Sande 1-800-841-1670 (x3251) 24-Hour Towing & Roadside Dispatch 1-800-714-2370 P.O. Box 7280 Ottawa, Ontario KIL 8E2