Sample Policy of Insurance for Cars, SUVs & Trucks (Power Train)

These Terms and Conditions of the Master Policy issued to The Good Sam Club and Your Evidence of Insurance, hereinafter referred to as Coverage, are among The Good Sam Club, hereinafter referred to as WE, US and OUR, our insurance company, and the Purchaser, hereinafter referred to as You and Your, and provides Coverage recorded for the time and mileage, whichever occurs first, as stated in the Evidence of Insurance. This Coverage constitutes Your entire agreement and supersedes any and all previous agreements whether written or oral and any other representations made by anyone in any form.

The limits, terms, and conditions of Your Coverage are important. You should read and understand the terms and conditions below.

MECHANICAL BREAKDOWN COVERAGE
We will provide payment to Your Repair Facility or reimburse You for reasonable costs of labor and materials (approved and receipted) to repair or replace any of the covered parts under this Coverage if required due to Mechanical Breakdown. A "Mechanical Breakdown or Breakdown" is defined as failure of a defective covered part or faulty workmanship of a covered part as originally supplied by the manufacturer and under normal service. A covered part has failed when it can no longer perform the function for which it was designed solely because of its condition and not because of the action or inaction of any non-covered parts. Replacement will be made with like kind and quality to include rebuilt or remanufactured parts. Coverage includes fluids when required as part of a covered repair. Coverage includes manufacturers’ deductible when paid by the contract holder for a covered repair. You must maintain Your Vehicle in accordance with the service requirements set forth in these Terms and Conditions to keep this Coverage in force. Evidence of proper service will be required in the event of a claim. In the event of a Breakdown, You must pay the deductible as stated in the Evidence of Insurance for each visit and pay any non-covered expenses.


Coverage applies only to the parts listed herein.

1. ENGINE ASSEMBLY - All internally-lubricated parts, including for example: pistons, pins, and rings; connecting rods and bearings; crankshaft and main bearings; camshaft, followers and cam bearings; push rods, valves, springs, guides, seats and lifters; rocker arms, shafts, and bushings; timing gear, chain tensioners, and retainers; eccentric shaft; oil pump; engine head(s) *, engine block*, and cylinder barrels*. Also covered is the valve timing belt. (excluding oil coolers and lines)
2. TRANSMISSION ASSEMBLY - All internally lubricated parts of the Transmission case* including for example; bearings, bushes, oil pump, torque converter, gears, bands, synchronizers, vacuum modulator; internal linkage and valve body. (excluding oil coolers and lines)
3. DRIVE AXLE ASSEMBLY (Front and Rear) – All internally lubricated parts of the Differential housing*; transaxle housing*; final drive housing* including for example; Ring and Pinion, gears, shafts, bearings, bushes, thrust washers and spacers.
   *If damaged by the failure of an internally-lubricated part.

SEALS AND GASKETS are covered for all of the components that are listed as covered in the Evidence of Insurance for units with an odometer reading of less than 50,000 miles AND a model year no older than the year claim is made minus five (5) years.
Oils, oil filter, antifreeze are covered only if it is essential to replace them because of the failure of a part which is covered under this policy.

• Any preexisting problems that are present prior to the purchase of this Coverage. The condition of the covered part(s) in question will be assessed to determine time of initial breakdown.
• Mechanical Breakdowns outside the United States and Canada.
• Any loss resulting from inadequate amounts of coolant, lubricant, or fluids.
• Any loss caused by racing, commercial use, or delivery purposes, or by pulling a trailer weighing more than the manufacturer’s recommend limits.
• Mechanical Breakdowns covered by manufacturer's warranty, manufacturer's recall, or factory bulletins, (regardless of whether or not the manufacturer is doing business as an ongoing enterprise), any vehicle Service Agreement, other Service Agreement, written warranty, or any valid and collectable insurance policy.
• Damage to a non-covered part by a covered part(s) or to a covered part by a non-covered part(s) failure.
• Any loss caused by improper or contaminated fuel or other fluids.
• Any covered part which is not broken down but which a repair facility recommends or requires be repaired or replaced. Suggested or necessary upgrades or replacements are not covered.
• Any loss caused by negligence, misuse, abuse, impact or collision damage or from any other cause whatsoever, except as provided under this Coverage
• Any loss or expense if the odometer has been tampered with, altered, or is inoperative.
• Any repair for the purpose of correcting the engine compression or correcting oil consumption when a Mechanical Breakdown has not occurred. Valve grinding and/or worn rings are not covered.
• Any replacement costs of filters, fluids, sealing boots, and seals or gaskets, except as provided under this Coverage.
• Any loss caused by any alterations not meeting manufacturer's specifications.
• Any failure, malfunction, defect, inoperability, breakdown, disruption or stoppage of any product, function or related component caused by the electronic date change to the year 2000, or any other date change including leap year.
• The replacement of an entire system due to obsolescence or unavailability of the failed covered part(s).
• Alignments, adjustments, tune-ups.
• Gradual reduction in operating performance due to wear and tear.
• Any damage or failure resulting from rust or corrosion.

The total of benefits payable to You and the liability of Our insurance company under the Terms and Conditions of the Master Policy of Insurance issued to The Good Sam Club shall in no event exceed the clean retail value listed in the most recent edition of the NADA Used Car Vehicle Appraisal Guide for Your vehicle.

OUR LIABILITY TO YOU AND THE LIABILITY OF OUR INSURANCE COMPANY FOR INCIDENTAL AND CONSEQUENTIAL DAMAGES INCLUDING, BUT NOT LIMITED TO, PROPERTY DAMAGE, DAMAGE TO A NON-COVERED PART(S), LOSS OF USE TO DESCRIBED VEHICLE, LOSS OF TIME, INCONVENIENCE, AND COMMERCIAL LOSS RESULTING FROM THE OPERATION, MAINTENANCE, OR USE OF THE DESCRIBED VEHICLE OR FROM THE BREACH OF ANY IMPLIED WARRANTIES ARISING BY OPERATION OF LAW, IS EXPRESSLY EXCLUDED.


Follow These Claim Procedures:

1. Call Us for instructions prior to proceeding with repairs. (We reserve the right to inspect all repairs to determine coverage.)
2. Present the Evidence of Insurance, Terms and Conditions, and required Maintenance Records to the Repairing Dealer.
3. Prior to proceeding with repairs, ensure the Repairing Dealer calls Us with an estimate of repairs and receives an authorization number from Us.

NOTE: In the event of a Breakdown occurring when Our office is closed, You may follow the claim procedures in these Terms and Conditions without prior authorization, and reimbursement will be made to You or the repair facility in accordance with policy provisions. You must call the Administrator's office within five (5) business days from the date of repair to determine if such repair will be covered by this Coverage.

NATIONAL CLAIMS NUMBER: (XXX) XXX-XXXX – Hours: 8:00 AM to 5:00 PM Mountain Time Monday-Friday

IMPORTANT!

• You assume all liability for payment of unauthorized repairs and benefits.
• Liability for teardown rests with You on non-covered parts.
• You must submit each claim, with supporting documentation and proper maintenance records to the repairing facility and the Administrator, within ninety (90) days after the failure date of each claim in order for a claim to be eligible for coverage consideration pursuant to this Coverage.

To receive the full benefits of this Coverage, You must at Your expense:

1. Have the vehicle serviced as recommended by the manufacturer.
2. Keep a record of maintenance validated (signed and stamped) by the licensed repair facility, and keep receipts and work orders showing date, mileage, and service performed. For services done by You, keep a personal maintenance record with date, mileage and services performed including any receipts for products purchased to carry out that aforementioned maintenance.

Cancellations: This Coverage applies only to You and the Vehicle described in the Evidence of Insurance. In the event of cancellation of this Coverage within 30 days of the purchase of the Coverage, We agree to refund the full purchase price to You, less any paid or approved claims. If this Coverage is canceled beyond 30 days from the date of purchase of the Coverage, We will calculate and make a pro rata refund based on time less an administrative fee of $50.00. Any lien holder will be named on the cancellation refund check as their interest may appear. All requests for cancellations must be received in writing, and must include the Evidence of Insurance, the current mileage, and the signature of the contract holder. We may cancel this Coverage for (1) Non-payment of the premium or (2) Intentional misrepresentation or fraud in obtaining this Coverage or in the submission of a claim.

Transfers: In the event this Coverage is not canceled, it may be transferred to an individual for non-commercial use to whom You sell the vehicle while this Coverage is in force. This can be done only if You send the Administrator copies of the validated (signed and stamped by the licensed repair facility) maintenance record for the required servicing, and the name and address of the new Purchaser within 30 days of change in ownership. If any portion of the premium remains unpaid at the time of the transfer, the new Purchaser must agree in writing to assume the responsibility for payment of the balance of the premium.