Guaranteed Asset Protection (GAP) Waiver Leading F&I Provider Committed to Delivering Quality Products and Services COMPREHENSIVE SUITE OF PRODUCTS that meets your customers needs Vehicle Service Contracts Guaranteed Asset Protection (GAP) Waiver Limited Warranty and Wrap Programs Tire & Wheel UNPARALLELED SERVICE makes it easy to do business Your service department and customers will appreciate our award winning company* and claims process You will gain access to a variety of web-based services, from rating to remitting Your current DMS and menu provider will integrate seamlessly with us You will be supported by over 35 years of industry-leading expertise You will have peace of mind with the backing of over $50 billion in assets from CNA Financial PROVEN PROGRAMS maximize your profit potential We offer multiple participation programs to meet short- and long-term financial goals We offer F&I training for dealership personnel, from beginning to advanced classes, to help deliver consistent, elevated results *As awarded by Auto Dealer Today: Best Service Contract Provider 2005-2010, 2012-2017 6188 (11/17)
Vehicle Service Contracts Our outstanding vehicle service contracts are what put us on the map Awarded #1 Vehicle Service Contract Provider Z2 PROGRAM HIGHLIGHTS Choice of increasing levels of coverage, from basic powertrain to our top-of-the-line exclusionary coverage No exclusion for pre-existing conditions Multiple deductible options, including disappearing deductible(s) to help increase customer retention A repeated repair of the same item includes no deductible No exclusion for breakdown due to wear and tear No exclusion for ride sharing commercial use 1 Propulsion battery coverage included 2 Additional coverage provided for custom suspension and/or snowplow-equipped vehicles (surcharges apply) 2 Sport package components, such as body accessories, utility, and four-wheel accessories, included in our exclusionary coverage CONSUMER BENEFITS AMONG THE BEST IN THE INDUSTRY Towing Reimbursement up to $150/occurrence Roadside Assistance up to $50/occurrence Travel Reimbursement $100 per day, up to $300/occurrence Rental Car Reimbursement up to $50/day for maximum of seven days Future Contract Guarantee based on underwriting guidelines Transferability can increase resale value 1 Covers vehicles used for hire to the public or to transport people for hire if the vehicle is titled in a personal name and the vehicle is operated by one individual or multiple related individuals. 2 Does not apply to Powertrain coverage. Please see actual contract for terms, conditions, limitations and exclusions. Coverage varies by eligibility and chosen program option. All terms and conditions are subject to state limitations and requirements. 6189 (11/17)
CHOOSE THE #1 VEHICLE SERVICE CONTRACT PROVIDER* Guaranteed Asset Protection (GAP) Waiver Four Increasing Levels of Coverage... Stated-Component Coverage BASIC PowerTrain Advantage Care+Plus SM GOOD Vehicle Value Care+Plus SM BETTER Mechanical Advantage Care+Plus SM Engine Transmission Drivetrain Assembly Suspension Front-Wheel Steering Brakes (Manual & Power) Electrical Air Conditioning & Heating Fuel System Cooling System Steering Thermostat Interior Electronics Powertrain Electronics ABS Brakes Convenience Accessories Vehicle Hardware Exclusionary Coverage BEST Automotive Preferred Care+Plus SM If the part is not listed below, it s covered Accessory drive belt(s), hoses, radiator cap, tubes and clamps Antenna mast and mirrors Audio speakers and wiring Body, body panels, body fasteners, chassis frame and bumpers Brake drums, rotors, pads and linings Bright metal, trim, upholstery, carpet, insulation and paint Convertible top fabric (except frame) Exhaust system and catalytic converter Filters and filter housings Fuses and fusible links Glass, including fogged or hazy headlight lenses Jack and tool kit, wheel lugs and lug nuts Manual transmission clutch disc, pressure plate and throw-out bearing Natural gas/propane fuel system PCV valve, oil separator and fuel vapor canister Spark plugs, plug wires and glow plugs Starting, lighting, ignition (SLI) battery Tires, wheels and wheel covers Windshield wiper rubber inserts *As awarded by Auto Dealer Today: Best Service Contract Provider 2005-2010, 2012-2017. Stated-component coverage comparison is for illustrative purposes only. See supplemental inserts or the actual contract for a list of components covered under each category. This overview is not all-inclusive. Please see the actual contract for terms, conditions, limits of liability, exclusions, and state-specific provisions that may change your coverage and/or benefits. Vehicle Service Contracts
Guaranteed Asset Protection (GAP) Waiver Administered by CNA National Helps reduce or even eliminate amounts remaining on your customer s loan after their vehicle is stolen or is declared a total loss PROGRAM HIGHLIGHTS For new and used vehicles Can be financed on loans up to 84 months Available on loans up to 150% of MSRP (new vehicles) or NADA retail value (used vehicles) THREE PROGRAM OPTIONS AVAILABLE GAP ADVANTAGESM Eligibility guidelines Retail sales value up to $100,000 Models 15 years old or newer GAP PREFERREDSM Retail sales value up to $100,000 Models 15 years old or newer GAP ELITESM No limit on value of collateral Models 15 years old or newer Waiver amount Up to $50,000 Up to $50,000 Limited to 150% of MSRP or NADA retail Insurance deductible coverage Up to $1,000 Up to $1,000 Up to $1,000 Discount allowance None $1,000 None CNA National Warranty Corporation is the administrator of the GAP Waiver Addendum programs. Please see the actual GAP Waiver addendum for exclusions and limitations of coverage. State restrictions may apply. Unmatched Service Comes from ExperienceSM 6190 (11/17)
Lifetime Limited Warranty and Wrap Program For new and used vehicles, this program can give you a competitive edge in your market and increase customer retention WRAP PROGRAM BENEFITS Draw more interested buyers into your dealership Increase your customer loyalty and retention rates keeping customers coming back to you for years to come Achieve potentially higher vehicle gross Increase long-term service retention and revenue PROGRAM HIGHLIGHTS Extensive list of eligible vehicles Variety of deductible options for Wrap coverage, including disappearing deductible(s) Point-of-sale materials to effectively market at your dealership CONSUMER BENEFITS AMONG THE BEST IN THE INDUSTRY Towing Reimbursement up to $150/occurrence Travel Reimbursement $100 per day, up to $300/occurrence Rental Car Reimbursement up to $50/day for maximum of 7 days OPTION A Customer is Provided POWERTRAIN COVERAGE Pro Certified Lifetime Limited Warranty Engine Transmission Drivetrain Assembly Customer Purchases WRAP COVERAGE Comprehensive coverage beyond powertrain Pro Certified Lifetime Wrap+Plus SM Lifetime wrap offers strong marketing appeal OPTION B Pro Certified Stated Term Wrap+Plus SM Customizable term options Used vehicles up to 5 years/60,000 miles Near-new up to 7 years/100,000 miles New up to 10 years/100,000 miles The Lifetime Limited Warranty program is administered by CNA National Warranty Corporation. The Limited Warranties are offered with the purchase of the vehicle at no additional cost to the buyer. Please see the actual warranty for terms, conditions, limitations and exclusions. The Wraps are vehicle service contracts that are sold for an additional consideration. The obligatory of the Lifetime Wrap programs is Continental Service Provider, Inc., Continental Service Plan, Inc., or CNAN-Florida, depending on the state. Please see actual contract for terms, conditions, limitations and exclusions. All coverage is subject to state limitations and requirements. 6191 (11/17)
Used Vehicle Limited Warranty Administered by CNA National A limited warranty program that offers multiple coverage, deductible and term options for your dealership Converting your used vehicle inventory into Pro Certified pre-owned can help maximize profitability while enhancing your customer retention. Attract customers by advertising the reassurance of certified, quality used vehicles Provide certification for models outside of your franchise Customize the program to fit your specific market and sales goals PROGRAM HIGHLIGHTS Range of term options from 3 months/3,000 miles up to 12 months/12,000 miles Coverage options range from basic powertrain to exclusionary Deductible options include $0, $50 and $100 Point-of-sale materials to effectively promote the program at your dealership The used-vehicle limited warranty program is administered by CNA National Warranty Corporation. The limited warranties are offered at the point of sale at no additional cost to the buyer. Please see the actual warranty for terms, conditions, limitations and exclusions. All coverage is subject to state limitations and requirements. Unmatched Service Comes from ExperienceSM 6192 (11/17)
Tire & Wheel Coverage to repair or replace tires and wheels when damaged by a covered road hazard PROGRAM HIGHLIGHTS Choice of terms (1-5 years) No deductible for tire-and-wheel repairs or replacements No occurrence limits No aggregate dollar limit Transferable Options include coverage for situations that are often excluded, such as damage caused by car washes CONSUMER BENEFITS AMONG THE BEST IN THE INDUSTRY Up to $100 reimbursement for on-the-spot repair of flat tire or spare tire installation Up to $100 reimbursement for towing if tire is unrepairable or spare is not usable Up to $35/day for up to three days of rental car reimbursement TWO PROGRAM OPTIONS AVAILABLE PREFERRED TIRE CARE SM Pays the costs to repair or replace tires and/or wheels that are damaged due to a road hazard Includes cost of mounting, balancing, valve stems and taxes when a covered repair is made Covers tires with run-flat technology PREFERRED TIRE CARE+PLUS SM Includes all the benefits of Preferred Tire Care SM and more... Pays the costs to repair significant cosmetic damage, such as scrapes, abrasions, dents or nicks to the surface area of wheels caused by a road hazard* Pays the costs to repair damage to tires and/or wheels caused by contact with a curb *Chrome-plated wheels are not eligible for coverage. Please see actual contract for terms, conditions, limitations and exclusions. Offerings are subject to state limitations. 6193 (11/17)
Dealer Participation Programs No two dealers are the same, so you may choose from three different participation structures to meet your financial goals DEALER EQUITY SM An agreement between you and CNA National designed to provide long-term income with no up-front costs Profit Bonus: Loss ratio less than 100% allows you to receive profit on eligible policy years Receive up to 100% of the profit in the account, based on your service contract production Paid after just 75% of an eligible policy year s business is earned Profit bonuses paid every six months based on eligible policy years are yours to keep Equity Bonus: Inception-to-date loss ratio of less than 100% qualifies you to receive investment income Minimum of 90 contracts every six months to receive program benefit Equity bonuses paid every six months are yours to keep DEALER EQUITY RE For dealers interested in reinsurance, we offer a choice of two structures CONTROLLED FOREIGN CORPORATION (CFC) As a long-term strategy for maximizing future returns, the CFC is a 100% dealer-owned company Program Highlights Can be single shareholder Written premium deposited monthly Monthly cession intervals maximize investment income Potential tax deferral Qualifying dividends taxed at favorable rates Choice of independent experts to establish and manage your company NON-CONTROLLED FOREIGN CORPORATION (NCFC) This Bermuda-based, 100% dealer-owned company is designed to maximize long-term profitability Program Highlights Multiple shareholders No single shareholder owns more than 10% Monthly cession intervals maximize investment income Potential tax deferral Income grows in a tax-free environment Independent experts manage the company Defined exit strategy for redemption of shares Subject to program eligibility, terms, conditions and limitations. Please read contracts carefully. CNA National makes no representations as to the need for or appropriateness of producer-affiliated reinsurance companies. Reinsurance involves risk. Please consult your own legal counsel and financial representatives before deciding whether to create or invest in such an entity. Please consult with your own CPA regarding attribution rules and the gross receipts test to determine your potential tax liabilities so you can choose the structure that is right for you. 6194 (11/17)