Sample Mercury ContractATED 01/01/2005

Table of Contents

VEHICLE MECHANICAL SERVICE CONTRACT FOR NEW AND USED VEHICLES

Contract Provisions - Part B, together with attached, signed Application - Part A, completes the Contract, except the Vehicle Service Contract Application must meet Our underwriting guidelines and is subject to acceptance by the Administrator . Your coverage is not subject to any verbal representations made by the seller. Signed Application Page Must be attached inside front cover

I. Definitions pages 6-7

II. What This Contract Covers pages 7-13

III. What Is Not Covered pages 14-15

IV. Conditions of Coverage pages 16-18

V. General Provisions pages 18-24

State Specific Provisions pages 24-27

How to Transfer Your Service Contract pages 18-19

Emergency Repairs page 17 & 29

DEFINITIONS

SECTION I. DEFINITIONS

In this Contract, certain words appear in dark print. They have the following special meanings:

“We”, “Us”, “Our” or “Administrator” means Mercury Select Management Company, Inc.

“You” and “Your(s)” and “Contract Holder” means the person named as the registered owner of the covered Vehicle on the signed Application.

“Vehicle” means only the private passenger automobile or truck listed as the covered Vehicle in the signed Application, which is used solely for personal and private use. (Limited commercial usage is available at additional cost.)

“Powertrain Warranty Component” means any component originally covered by the Vehicle Manufacturer’s Powertrain Warranty to the first retail owner.

“Diesel Engine Warranty Component” means any component originally covered by the Vehicle Manufacturer’s Diesel Engine Warranty to the first retail owner.

“Mechanical Breakdown” means the inability of a properly maintained component to function as intended by the manufacturer. Note: Minor loss of fluid is considered normal and does not constitute a Mechanical Breakdown .

“Repair Cost” means the parts and labor expense necessary to repair or replace any Covered Component that is the result of a covered Mechanical Breakdown , subject to the exclusions set forth herein. We may use replacement components of a like kind and quality that may be rebuilt, remanufactured, or used. Parts pricing will be determined by the lesser of Your Vehicle manufacturer’s suggested retail price or the suggested retail price of a like kind and quality part, whichever is authorized by Us . Labor will be determined by a current nationally recognized flat rate labor guide.

Repair Cost includes the required taxes associated with the covered Mechanical Breakdown .

For Bronze, Silver or Gold Coverages , Repair Cost does NOT include non-named or excluded items. For Platinum coverage Repair Cost does NOT include excluded items.

“Deductible” is the amount shown on the signed Application that You are responsible to pay for each repair visit. If a previously Covered Component fails for a subsequent time during the term of this Contract, no Deductible shall apply to those subsequent repair visits, unless additional Covered Components not previously covered are being repaired. In addition, if You selected the Reducing Deductible option and paid the appropriate surcharge, the Deductible will be waived provided you have repairs made at the dealership where You purchased this Contract.

“Maintenance Records” means the original verifiable receipts or invoices which confirm that all Vehicle maintenance has been performed as required by this Contract. (Refer to “Conditions of Coverage” and the Vehicle maintenance section.)

“Prior Authorization” means You must obtain an approval number issued by Us prior to repairs being performed on the Vehicle . Also see Emergency Repairs.

“Commercial Use” means, but is not limited to, the use of Your Vehicle for farming, ranching, rodeo, route work, job-site activities, deliveries, service calls, construction, hauling, daily rental, or carrying passengers for hire, whether Your Vehicle is licensed for commercial purposes or not, or registered to a corporation or not. Certain types of Commercial Use is allowed only if You have paid the Commercial Use surcharge at the time of application for this Contract. Surcharged Commercial Use coverage absolutely excludes the following types of Commercial Use : taxi, rental, mail carrier, snow plow, oil field, police/security, ambulance, shuttle service, tow truck, auto transport, road construction, fire/rescue, waste removal, dump truck, winch truck, hazardous material transportation, racing or competitive driving or any military/ federal/state/city/government use.

“Actual Cash Value” means the value of Your Vehicle at the time of the Mechanical Breakdown , as determined by Us .

“Covered Component” for Bronze, Silver or Gold Coverage means a component of Your Vehicle named in this Contract under “Section II. What This Contract Covers” and is not excluded in “Section III. What Is Not Covered.”

“Covered Component” for Platinum Coverage means a component of Your Vehicle that is not excluded in this Contract. “Road Hazard” means any foreign object accidentally driven over on a public highway or road.

SECTION II. WHAT THIS CONTRACT COVERS

COVERAGE A. MECHANICAL BREAKDOWN REIMBURSEMENT

During the term of this Contract, We will reimburse You , or an authorized repair facility, the Repair Cost to repair or replace any Covered Component of Your Vehicle that has experienced a Mechanical Breakdown , less the Deductible. THE MECHANICAL BREAKDOWN MUST OCCUR AND BE REPORTED DURING THE TERM OF THIS CONTRACT. Coverage for any Mechanical Breakdown is subject to the terms and conditions of this Contract, including the Proof of Registration and the Application. You must pay the Deductible for a repair or replacement of Covered Components for each repair visit, and You must pay for any non-covered items.

BRONZE COVERAGE

Engine Covered Components are: Cylinder block; Cylinder head(s);
Turbocharger/Supercharger and their internal components and mounts; Timing gears; Timing/Balance shaft chain/belt, guides, tensioners, sprockets and cover; Flywheel/Flex-plate; Harmonic balancer; Oil pan; Oil pump; Intake manifold; Valve cover(s); Wastegate; Engine oil and filter in conjunction with covered repairs.

Transmission/Transaxle Covered Components are: Transmission and
transaxle cases and their internal components and mounts; Torque converter; Vacuum modulator; Transmission oil cooler; Gear shift lever; Transmission shift linkage; Pan; Transmission fluid and filter in conjunction with covered repairs.

Transfer Case Covered Components are: Transfer case and all internal components and mounts, Transfer case fluid in conjunction with a covered repair.

Drive Axle Covered Components are: Final drive and axle housings and their internal components; Axles; Axle shafts and bearings; Propeller shafts; Hubs; Constant velocity joints; Universal joints; Center bearings; Yokes; Hub bearings; Locking rings; Drive axle fluid in conjunction with covered repairs.

For Bronze Coverage, Seals and Gaskets are covered only in conjunction with a covered repair.

Bronze Coverage is limited to the above named components. ANY PART NOT LISTED ABOVE IS NOT COVERED.

SILVER COVERAGE

Engine Covered Components are: Cylinder block; Cylinder head(s); Turbocharger/Supercharger and their internal components and mounts; Timing gears; Timing/Balance shaft chain/belt, guides, tensioners, sprockets and cover; Flywheel/Flex-plate; Harmonic balancer; Oil pan; Oil pump; Intake manifold; Valve cover(s); Wastegate; Engine oil pressure gauge; Engine oil and filter in conjunction with covered repairs.

Transmission/Transaxle Covered Components are: Transmission and transaxle cases and their internal components and mounts; Torque converter; Vacuum modulator; Transmission oil cooler; Gear shift lever; Transmission shift linkage; Pan; Transmission fluid and filter in conjunction with covered repairs.

Transfer Case Covered Components are: Transfer case and all internal components and mounts; Transfer case fluid in conjunction with a covered repair.

Steering Covered Components are: Gear housing, rack assembly and their internal components; Control valve and cylinder; Power cylinder assembly; Steering column shaft(s) and their couplings/bearings; Steering knuckle; Power steering pump, pulley, and mounting bracket; Pitman arm; Idler arm; Drag link; Steering column bearings; Power steering fluid in conjunction with covered repairs.

Engine Cooling Covered Components are: Radiator fan motor; Water pump and pulley; Fan clutch; Fan shroud; Radiator coolant recovery unit; Electric radiator fan motor relay/switch; Electric radiator fan motor sensor; Engine coolant temperature gauge; Engine coolant in conjunction with covered repairs.

Brake Covered Components are: Master cylinder; Power brake assist boosters; Backing plate assembly; Brake pedal assembly; Parking brake pedal; Parking brake cable; Parking brake release mechanism; Self adjusters; Brake lines and fittings; Brake fluid in conjunction with covered repairs.

Ignition and Charging Covered Components are: Alternator; Voltage regulator; Ignition coil; Electronic ignition module; Electronic ignition distributor; Throttle position sensor; Fuel control temperature sensor; Idle control actuator; Manifold vacuum sensor; Crankshaft position sensor; Camshaft position sensor; Alternator pulley and mounting bracket; Igniter; Volt/Amp gauge.

Fuel System Covered Components are: Fuel tank; Fuel pump; Accelerator pedal; Fuel pressure regulator; Fuel level sending unit; Accelerator pedal linkage; Fuel pressure sensor; Fuel pump relay; Fuel shutoff control; Fuel tank filler pipe; Metal fuel lines; Fuel gauge.

Factory Installed Air Conditioning Covered Components are: Compressor; Accumulator/Drier only in conjunction with compressor replacement; Condenser; Evaporator; Compressor clutch and coil; Compressor pulley and mounting bracket; Expansion valve; Orifice tube; Idler pulley and bearing; Manual temperature control selector head; Blower motor; Heater control valve; Idler pulley tensioner; Refrigerant and oil in conjunction with a covered repair.

For Silver Coverage, Seals and Gaskets are covered only for the above listed components.

Silver Coverage is limited to the above named components.

GOLD COVERAGE

Engine Covered Components are: Cylinder block; Cylinder head(s); Turbocharger/Supercharger and their internal components and mounts; Timing gears; Timing/Balance shaft chain/belt, guides, tensioners, sprockets and cover; Flywheel/Flex-plate; Harmonic balancer; Oil pan; Oil pump; Intake manifold; Exhaust manifold; Valve cover(s); Wastegate; Engine oil pressure gauge; Engine oil and filter in conjunction with covered repairs.

Transmission/Transaxle Covered Components are: Transmission and transaxle cases and their internal components and mounts; Torque converter; Vacuum modulator; Transmission oil cooler; Gear shift lever; Electronic shift control processor; Electronic shift control sensor; Transmission shift linkage; Pan; Four wheel drive actuator; Transmission fluid and filter in conjunction with covered repairs.

Transfer Case Covered Components are: Transfer case and all internal components and mounts, Transfer case fluid in conjunction with a covered repair.

Drive Axle Covered Components are: Final drive and axle housings and their internal components; Axles; Axle shafts and bearings; Propeller shafts; Hubs; Constant velocity joints; Universal joints; Center bearings; Yokes; Hub bearings; Locking rings; Differential cover; Drive axle fluid in conjunction with covered repairs.

Suspension Covered Components are: Wheel bearings; Sway bar and its bushings and linkage; Upper and lower control arms; Control arm shafts and bushings; Upper and lower ball joints; Radius arm and bushing; Stabilizer bar, links and bushings; Strut bar; Spindle and support; Strut bearings and bushings; Air suspension compressor; Suspension control computer; Suspension control solenoids; Height sensor; Mode selector switch.

Steering Covered Components are: Gear housing, rack assembly and their internal components; Control valve and cylinder; Power cylinder Assembly; Steering column shaft(s) and their couplings/bearings; Steering knuckle; Power steering pump, pulley, and mounting bracket; Dampener; Pitman arm; Tie rods; Tie rod ends; Idler arm; Drag link; Steering column bearings; Steering wheel; Tilt wheel mechanism; Rear wheel steering control valve and sensor; Rear wheel steering control unit; Rear wheel steering shaft and couplings; Rear wheel steering power cylinder(s); Rear wheel steering oil pump; Rear wheel steering stepper motor; Rear wheel steering rack assembly; Power steering fluid in conjunction with covered repairs.

Engine Cooling Covered Components are: Radiator; Radiator fan; Electric fan motor; Water pump and pulley; Water pump housing; Belt tensioner; Fan clutch; Fan shroud; Radiator coolant recovery unit; Electric radiator fan motor relay/switch; Electric radiator fan motor sensor; Engine thermostat; Engine coolant temperature gauge; Hot water valve; Engine coolant in conjunction with covered repairs.

Brake Covered Components are: Master cylinder; Power brake assist boosters; Combination valve; Backing plate assembly; Brake pedal assembly; Accumulator; Parking brake pedal; Parking brake cable; Parking brake release mechanism; Self adjusters; ABS booster pump; ABS control processor; ABS control sensors; ABS control solenoids; ABS modulator valve; ABS valve and accumulator; Brake calipers; Wheel cylinders; Brake lines and fittings; Brake fluid in conjunction with covered repairs.

Ignition and Charging Covered Components are: Alternator; Voltage regulator; Ignition coil; Ignition switch; Electronic ignition module; Electronic fuel injection sensors; Electronic fuel injection control units; Electronic ignition distributor; Electronic spark timing control unit; Alternator pulley and mounting bracket; Igniter; Volt/Amp gauge.

Electrical Covered Components are: Starter motor; Starter motor drive; Starter motor solenoid; Wiper motors; Manually operated electrical switches; Horn and horn relay; Electric window motors; Electric mirror motors; Cruise control module; Cruise control actuator; Electric door lock relay and actuator; Electric trunk/tailgate/hatchback actuators; Backup light switch; Brake light switch; Door operated courtesy light switches; Neutral safety switch; Power antenna motor; Rear window defogger unit; Rear window defrost grid; Windshield washer pump; Electric power seat motor; Electric convertible top motor; Electric sunroof motor; Electric headlamp motor; Electronic instrument panel control module; Electronic instrument panel display; Engine wiring harness; Electronic traction control sensors and control module; Electronic suspension air compressor; Factory installed theft alarm system; Factory installed remote keyless entry transmitter/receiver; Inclinometer; Cigarette lighter(s); Auxiliary power point; Illuminated vanity mirrors; Tachometer; Trip/Mileage computer; Headlamp dimmer switch; Map lights; Clock.

Fuel System Covered Components are: Fuel tank; Fuel pump; Fuel injection pump; Diesel fuel injectors; Gasoline fuel injectors(for electrical failure only); Accelerator pedal; Fuel pressure regulator; Fuel level sending unit; Accelerator pedal linkage; Fuel pressure sensor; Fuel pump relay; Fuel shutoff control; Fuel tank filler pipe; Metal fuel lines; Fuel gauge; Vacuum pump.

Factory Installed Air Conditioning Covered Components are: Compressor; Accumulator/Drier only in conjunction with compressor replacement; Condenser; Evaporator; Compressor clutch and coil; Compressor pulley and mounting bracket; Expansion valve; Orifice tube; Pressure switches; Idler pulley and bearing; Manual temperature control selector head; Automatic temperature control selector head; Blower motor; Heater control valve; Air ducts; Air registers; Control cables; Power module; Plenum doors; Vacuum motors; Idler pulley tensioner; Heater core; Refrigerant and oil in conjunction with a covered repair.

Audio Center Covered Components are: Factory installed entertainment chassis modules including: Radio; CD player; Magnetic tape player; Graphic equalizer. (Limited to repair only, not replacement)

Chassis Hardware Covered Components are: Ashtrays; Door handles; Door latches; Door locks; door hinges; Hood latch release mechanism; Hood struts; Hood hinges; Hood torsion bars; Ignition switch lock cylinder; Rear hatch struts; Seat tracks; Deck lid latch/release; Deck lid hinges; Deck lid torsion bars; Power seat transmission; Windo w c rank handles; Window regulators; Wiper motor transmission; Altimeter; Compass; Glove box lock and latch.

For Gold Coverage, Seals and Gaskets are covered only for the above listed components. Gold Coverage is limited to the above named components

PLATINUM COVERAGE

For Platinum Coverage, We will reimburse You or an authorized repair facility the Repair Cost to repair or replace any Component of Your Vehicle , not excluded under “SECTION III. WHAT IS NOT COVERED” herein, that has experienced a Mechanical Breakdown , less the Deductible . The Mechanical Breakdown must occur and be reported during the term of this Contract. Coverage for any Mechanical Breakdown is subject to the terms and conditions of this Contract, including the Proof of Registration and Application. You must pay the Deductible for a repair or replacement of Covered Components for each repair visit, and You must pay for any non-covered items.

ADDITIONAL COVERAGE FOR ALL PLANS

(Sec. II. Paragraphs B. through E.)

COVERAGE B. TOWING/ROAD SERVICE & LOST KEY/LOCK OUT

In the event Your Vehicle is disabled during the term of this Contract, towing and other road services are available. In the event the keys to Your Vehicle are lost, broken, or locked in Your Vehicle during the term of this Contract, Lost Key/ Lockout service is available. To use these services call 1-888-749-6233 and provide Your Vehicle’s Identification Number (VIN). The service will be dispatched to You . You only pay for any amounts that may exceed the coverage limits, $75.00 per occurrence for towing/road service and $35.00 for lost key/lockout service. Or, You may select Your own licensed service provider and submit Your paid receipts to Us for reimbursement, limited to the amounts covered by this Contract. To report a claim involving a Mechanical Breakdown , or for coverage questions, please call the National Claims Service toll-free number 1-800-654-8455 .

COVERAGE C. RENTAL VEHICLE REIMBURSEMENT:

In the event of a Mechanical Breakdown of a Covered Componen tthat requires Your Vehicle to be kept by a repair facility, You may wish to rent a substitute vehicle. The substitute vehicle must be rented from a licensed rental agency or the repair facility. Reimbursement is valid only for actual and verifiable expenses incurred from the date of the covered Mechanical Breakdown until the date repairs are completed, and excludes any expense for mileage, gasoline, maintenance or insurance charges. Rental Vehicle Reimbursement will not exceed $180.00 per repair visit for the entire period required to effect repairs. If repairs are delayed due to parts unavailability, which is confirmed by Us, You may receive reimbursement for up to 4 additional days of Rental Vehicle Reimbursement per repair visit ($30 per day for a aximum of $120), provided a separate additional authorization is obtained from Us. Rental reimbursement is subject to the following schedule:

COVERAGE D. TIRE PROTECTION REIMBURSEMENT

Until the expiration of this Contract or a tread depth of 3/32 of an inch, whichever comes first, We will reimburse You for the repair, or if necessary, the replacement of any of Your Vehicle’s tires (original equipment type and size only) that have become damaged or unsafe for use due to a Road Hazard . In no event will Our liability for Tire Protection Reimbursement exceed $125.00 per repair visit or $500.00 during the term of this Contract. The Deductible , the Rental, and Emergency Trip Interruption Reimbursements are not applicable to any claim You may have under the Tire Protection Reimbursement.

COVERAGE E. EMERGENCY TRIP INTERRUPTION REIMBURSEMENT:

If a covered Mechanical Breakdown disables Your Vehicle overnight more than 100 miles from Your residence, We will reimburse You for the verifiable and receipted expenses You incur for food and accommodations for the first three consecutive days while Your Vehicle is being repaired. Reimbursement for food will not include reimbursement for the purchase of alcoholic beverages. Reimbursement is limited to a maximum of $75.00 per day and will not exceed $225.00 per occurrence.

No Deductible applies to Coverage B., C., D., or E.

COVERAGE F. SPECIAL ELECTRONICS PACKAGE:

If You selected and paid an additional charge for the Special Electronics Package as shown on Your Application, the following additional components of Your Vehicle will be covered under this Contract: GPS /Navigation System; Night Vision system; and Video components including TV/VCR/ DVD /Video Game Player. In addition the following items are excluded under this coverage: all media (for example, digital storage media, cassettes, compact discs, DVDs, and game cartridges), subscription fees or services, and all handheld wired or remote controls or devices including wiring to handheld devices. Coverage for components specifically named in this section supersedes the exclusion of those components in Section III. What is Not Covered. This optional coverage requires payment of a surcharge and must have been selected at the time of the original agreement purchase. Component replacements are limited to one (1) occurence during the term of the contract.

SECTION III. WHAT IS NOT COVERED

NOT ALL COMPONENTS OF YOUR VEHICLE ARE COVERED BY THIS CONTRACT. ONLY THE COMPONENTS LISTED IN “SECTION II WHAT THIS CONTRACT COVERS” ARE COVERED BY THIS CONTRACT. THE COMPONENTS AND CONDITIONS LISTED BELOW ARE SPECIFICALLY NOT COVERED BY THE TERMS OF THIS CONTRACT.

1. THIS CONTRACT DOES NOT COVER ANY REPAIR OR REPLACEMENT OF COMPONENTS THAT ARE RECOMMENDED OR REQUIRED SOLELY BY THE ENACTMENT OF ANY LOCAL, STATE, OR FEDERAL LAW, RULE OR REGULATION.

2. THE FOLLOWING COMPONENTS ARE SPECIFICALLY EXCLUDED: AUDIO SPEAKERS; BATTERIES; BODY PANELS; BODY SEALS; BUMPERS; CABLES; CARPETING; CHASSIS; CLAMPS; FASTENERS ( I.E. , NUTS, BOLTS, CLIPS, ETC. UNLESS REQUIRED IN CONJUNCTION WITH A COVERED REPAIR); CONVERTIBLE TOPS AND THEIR MECHANISMS; EXHAUST AND EMISSION SYSTEM COMPONENTS; GASOLINE FUEL INJECTORS THAT DO NOT HAVE AN ELECTRICAL FAILURE; GLASS; INSULATION; HOSES; LINES AND FITTINGS (EXCEPT BRAKE LINES AND FITTINGS); MIRRORS; MANUAL CLUTCH COMPONENTS; PAINT; PASSENGER RESTRAINT SYSTEM; SEATS; SECONDARY IGNITION COMPONENTS; SOFT TRIM/MOLDINGS OR APPEARANCE ITEMS; SUSPENSION SPRINGS; TELEPHONES; TORSION BARS; UPHOLSTERY; WEATHER STRIPPING; WHEEL LUG NUTS/STUDS; WHEELS; WHEEL COVERS; INTERNET COMPUTER; NAVIGATION SYSTEM; VIDEO COMPONENTS; HEADSUP DISPLAY, AND NIGHT VISION SYSTEMS.

3. THIS CONTRACT SPECIFICALLY EXCLUDES: NORMAL MAINTENANCE AND SERVICE ITEMS; ALIGNMENTS; ADJUSTMENTS; CALIBRATIONS; CLEANING; NON-PUBLISHED DIAGNOSTIC LABOR; FILTERS/FLUIDS/LUBRICANTS/REFRIGERANTS (EXCEPT IN CONJUNCTION WITH A COVERED REPAIR); A/C ACCUMULATOR/DRIER (EXCEPT IN CONJUNCTION WITH COMPRESSOR REPLACEMENT); FUSES; LIGHTS/BULBS/LENSES; SHOP SUPPLIES; ENVIRONMENTAL DISPOSAL CHARGES; WEAR ITEMS; ACCESSORY DRIVE BELTS; BRAKE PADS AND SHOES; BRAKE DRUMS AND ROTORS; SHOCK ABSORBERS; STRUTS; TIMING BELTS THAT ARE WORN OR STRETCHED, AND WIPER BLADES.

4. THIS CONTRACT DOES NOT COVER ANY COMPONENT NOT SUPPLIED AS ORIGINAL EQUIPMENT BY THE VEHICLE MANUFACTURER.

5. IN NO EVENT WILL WE COVER ANY MECHANICAL BREAKDOWN OR DAMAGE:

A. CAUSED BY RUST, CORROSION, OXIDATION, CONTAMINATION, SLUDGE, OR RESTRICTED OIL PASSAGES;

B. CAUSED BY IMPROPER AMOUNTS OR IMPROPER TYPES OF LUBRICANTS, COOLANTS, REFRIGERANTS OR FILTERS;

C. IF PRIOR AUTHORIZATION IS NOT GIVEN BY US PRIOR TO REPAIRS BEING PERFORMED (SEE CONDITIONS OF COVERAGE);

D. RESULTING FROM MISUSE OF, ALTERATION OF, TAMPERING WITH, DISCONNECTION OF, MISCHIEF OR VANDALISM TO, THE VEHICLE OR ANY OF ITS COMPONENTS, OR DAMAGES RESULTING FROM COLLISION, ACCIDENTS, WATER, FIRE, FREEZING, ACTS OF GOD, OR THEFT;

E. IF MAINTENANCE RECORDS HAVE BEEN REQUESTED BY US BUT CANNOT BE PRODUCED OR VERIFIED;

F. THAT EXISTS PRIOR TO THE EFFECTIVE DATE OF THIS CONTRACT, THAT OCCURS OR IS REPORTED AFTER THE EXPIRATION OF THIS CONTRACT, OR THAT OCCURS DURING THE VEHICLE MANUFACTURER’S WARRANTY PERIOD, OR A REPAIRER’S GUARANTEE, OR A PARTS WARRANTY;

G. IF YOUR VEHICLE’S ODOMETER IS INOPERATIVE, HAS EVER BEEN ALTERED OR TAMPERED WITH, OR THE ACTUAL ACCUMULATED MILEAGE CANNOT BE DETERMINED.

H. DUE TO CONTINUED OPERATION OF YOUR VEHICLE, OR FAILURE TO USE REASONABLE MEANS TO PROTECT YOUR VEHICLE FROM FURTHER DAMAGE, AFTER A FAILURE OCCURS (SEE CONDITIONS OF COVERAGE);

I. CAUSED BY ENGINE OVERHEATING DUE TO FAILURE OF A NONCOVERED COMPONENT.

6. IN NO EVENT WILL WE COVER ANY OF THE FOLLOWING:

A. ANY RESULTING OR CONSEQUENTIAL DAMAGE TO A NON-COVERED COMPONENT, OR CAUSED BY, A NON-COVERED COMPONENT;

B. ANY CHARGES, COSTS, EXPENSE, INCONVENIENCE, LOSS OF TIME, LOSS OF INCOME OR ANY OTHER CONSEQUENTIAL LOSSES ARISING FROM A MECHANICAL BREAKDOWN NOT SPECIFICALLY COVERED BY THIS CONTRACT, OR ANY OTHER EXPENSES YOU INCUR NOT SPECIFICALLY COVERED BY THIS CONTRACT;

C. IF YOUR VEHICLE IS USED FOR, EQUIPPED FOR OR IDENTIFIED AS A:SNOW PLOW, RACING, EMERGENCY, DELIVERY VEHICLE, OR COMMERCIAL VEHICLE (LIMITED COMMERCIAL USE IS AVAILABLE ONLY IF THE PROPER SURCHARGE HAS BEEN PAID);

D. GRINDING OF VALVES OR OTHER COMPONENT REPAIRS TO IMPROVE COMPRESSION OR CORRECT OIL CONSUMPTION WHEN A DEFINED MECHANICAL BREAKDOWN HAS NOT OCCURRED;

E. ANY MECHANICAL BREAKDOWN IF ANY ALTERATIONS OR MODIFICATIONS HAVE BEEN MADE TO YOUR VEHICLE, OR YOU ARE USING OR HAVE USED YOUR VEHICLE IN A MANNER NOT RECOMMENDED BY THE MANUFACTURER, INCLUDING BUT NOT LIMITED TO: THE FAILURE OF ANY CUSTOM OR ADD-ON PART, ALL FRAME OR SUSPENSION MODIFICATIONS, LIFT KITS, OVERSIZED TIRES, HD TRAILER HITCHES, EMISSIONS AND/OR EXHAUST SYSTEMS MODIFICATIONS, ENGINE MODIFICATIONS, ENGINE OVER-REVVING, OR IMPROPER SHIFTING. IN THE SITUATIONS COVERED BY 5.E., 5.G., 6.C. AND 6.E ABOVE, OR IN THE EVENT YOUR VEHICLE IS REPOSSESSED OR HAS EVER BEEN DECLARED A TOTAL LOSS, SALVAGE OR REBUILT, WE MAY CANCEL THIS CONTRACT. ALSO, SEE THE PROVISIONS CONTAINED IN “SECTION V. GENERAL PROVISIONS, SUBSECTION I. CANCELLATION.”

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SECTION IV. CONDITIONS OF COVERAGE
You have specific duties that You MUST perform before We will be liable for
payment of claims under the terms of this Contract. They include:
A. VEHICLE MAINTENANCE:
1. You MUST follow the instructions contained within Your Vehicle
owner’s manual regarding proper operation and scheduled maintenance.
Your Vehicle manufacturer’s maintenance mileage recommendations
will be considered the maximum allowable interval between service
requirements.
2. You MUST retain Maintenance Records, as defined herein. If You
perform maintenance on the Vehicle Yourself, You must maintain a log
showing the date, mileage and type of maintenance service performed.
You must also keep receipts for the purchase of the products used to
perform the maintenance service (e.g., lubricants, and filters).
3. In the event of a Mechanical Breakdown, You will be requested to
produce all Maintenance Records, proving that proper maintenance has
been performed before a Mechanical Breakdown will be covered under
this Contract, regardless of where maintenance is performed and by
whom.
4. Failure to produce all requested Maintenance Records will cause
denial of benefits under this Contract. A Routine Maintenance and Repair
Log is provided to assist You in planning and keeping track of the
maintenance required on Your Vehicle, regardless of where the
maintenance is performed.
5. Some examples of maintenance that are recommended by the
manufacturer of Your Vehicle are:
a) Change engine and transmission oils and filters;
b) Check other required fluid levels;
c) Change air and fuel filters;
d) Replace worn timing belt, fan belts, and hoses;
e) Tune-ups, adjustments and alignments;
f) Inspect C.V. joint boots;
g) Flush radiator and replace coolant,
h) Re-pack wheel bearings.
Refer to Your Vehicle manufacturer owner’s manual for all recommended
maintenance services. If You do not have a Vehicle owner’s manual You must
either purchase one from a franchise dealer or You may contact Us and We will
provide You with the maintenance requirements for Your Vehicle as required by
this Contract.
B. WHAT TO DO WHEN A BREAKDOWN OCCURS: You are responsible for all
expenses and Repair Costs if it is determined that the failure or the Mechanical
Breakdown is not covered by the terms of this Contract. If Your Vehicle has a
failure or Mechanical Breakdown:
1. You MUST use all reasonable means to protect Your Vehicle from
further damage. Example: Activated warning lights, oil or temperature

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lights in the dashboard indicate that You should stop operating Your
Vehicle immediately. If Your Vehicle is disabled, or if it is unsafe to
continue to drive Your Vehicle, You may wish to arrange for towing.
2. You MUST have the repair facility contact Us when the Vehicle is brought
in for service and again when a cause of failure and Repair Cost is
determined, within Our normal business hours, Monday through
Friday, 8:00 a.m. - 7:00 p.m. Central Time. You must authorize the
repair facility to perform any diagnosis or teardown necessary to
determine the cause of failure and Repair Cost. You are responsible
for all incurred expenses if it is determined that the failure or
Mechanical Breakdown is not covered under the terms of this
Contract. National Claims Service toll-free number is 1-800-654-8455.
3. We may require additional inspections of the Vehicle to verify the
reported cause of the damage.
4. You MUST NOT authorize repairs until We verify that the Mechanical
Breakdown is covered by this Contract and issue an approval number.
Maintenance Records may be requested from You before an approval
number can be issued.
5. If payment for authorized claims is not made to an authorized repair
facility, We will reimburse You directly. To receive reimbursement of
Your authorized claim, please mail a copy of the paid receipt itemizing
the charges You paid. The receipt must also include Your signature,
the date of repair, the odometer reading, the Prior Authorization
number, Your telephone number, the Vehicle Identification Number,
and it must identify the repairer. You MUST pay any expenses that are
not covered by this Contract, including the Deductible.
6. Documents requesting reimbursement for Your authorized claim
must be received within 90 days of the date We provided the
approval number. If the required documentation is not received
within that time, Your claim will be denied.
C. EMERGENCY REPAIRS: A failure or Mechanical Breakdown may occur that is unexpected, and is of a serious and urgent nature that renders the Vehicle inoperable or unsafe to operate during a weekend or after Our normal business hours. In this case, if You are unable to reach Us to obtain Prior Authorization before repairs are completed, You may, at Your own discretion, wish to authorize the necessary emergency repairs. If any portion of the repairs is being performed during Our business hours, You must have the repair facility contact Us as soon as We are open for business after the breakdown occurred, and prior to the repairs being completed, or the claim may be denied. You are still responsible for all expenses and Repair Costs if it is determined that the failure or the Mechanical Breakdown does not qualify as an emergency repair as defined by this Contract.
In the case of emergency repairs, You MUST complete the Emergency Claim
Reimbursement Form and mail it to Mercury Select Management Company, P.O. Box 268866, Oklahoma City, OK 73126 within 30 days of the date of repair, and include all original paid receipts, Maintenance Records, Your Contract number, telephone number, and an explanation of the circumstances surrounding the failure. The 18
emergency repair claim will be processed according to the terms and conditions
of this Contract. We will contact You if additional information is needed. If We do
not receive the required documentation within 30 days of the date of repair,
Your claim will be denied.
* * * * * * * *
ANY PERSON WHO KNOWINGLY AND WITH INTENT TO INJURE, DEFRAUD, OR DECEIVE ANY INSURER, AUTO WARRANTY COMPANY, OR SERVICE CONTRACT COMPANY, OR ANY OTHER PERSON, OR FILES A STATEMENT OF CLAIM OR AN APPLICATION CONTAINING FALSE, INCOMPLETE, OR MISLEADING INFORMATION IS GUILTY OF A
FELONY.
SECTION V. GENERAL PROVISIONS
A. This is a Vehicle Service Contract between You and Us. It is NOT an
automobile liability or physical damage insurance policy, nor a warranty or
guaranty. It does NOT comply with any financial responsibility law or cover
consequential loss of any kind.
B. Contract Period: This Contract expires at 12:01 a.m. on the expiration date
shown in Your signed application, or when the number of miles identified
as the expiration mileage in Your signed application appears on Your
Vehicle’s odometer, whichever occurs first.
C. Territory: This Contract applies to a Mechanical Breakdown occurring only
within the United States of America and Canada.
D. No Benefit to Bailee: This Contract shall not, directly nor indirectly, benefit
any carrier or bailee for hire.
E. Your Responsibilities: It is Your responsibility to read and comply with Your
obligations in this Contract. Your obligations include, but are not limited to,
maintaining Your Vehicle according to the terms of this Contract, protecting
Your Vehicle from further damage in the event of a Mechanical Breakdown,
and obtaining Prior Authorization for repairs for any Mechanical Breakdown.
You should report all claims according to the procedures listed in “WHAT TO
DO WHEN A BREAKDOWN OCCURS.”
F. Your Assistance and Cooperation: If We request Your assistance, You
agree to cooperate with Us in investigating any claim under this Contract, in
making settlements, and in enforcing any right of contribution or indemnity
against any manufacturer or repairer that may be responsible to You for the
Repair Cost of any Mechanical Breakdown covered by this Contract. Unless
We expressly authorize You to do so, You agree that You will not assume any
obligation or incur any expense in this regard, except at Your own expense.
We may request Your assistance and cooperation on Our behalf.
G. Maximum Liability: Our maximum liability under this Contract is limited to
the lesser of the Actual Cash Value of Your Vehicle or the actual Repair
Cost, less any applicable Deductible.
H. Transfer: This Contract is solely for Your benefit; however, if You sell Your
Vehicle to another individual, the remaining coverage under this Contract
can be transferred one time to the new owner prior to the Contract
expiration date, provided that:
1. All the original manufacturer’s warranties are also transferred to
the new owner;
2. Your Vehicle has not been sold or traded to or through an automobile
dealer, auto broker, auto auction or financial institution;
and
3. You provide the new owner all Maintenance Records confirming that
Your Vehicle has had all required maintenance and servicing. Both
You and the new owner are responsible for ensuring that all
Maintenance Records for Your Vehicle are available for review in
case of a Mechanical Breakdown.
4. You complete the Transfer Request Form and mail it to Us within
fifteen (15) days of a change of ownership, to the address listed
below. Be sure to include:
a) a certified odometer statement for Your Vehicle, and
b) a $50.00 transfer fee. (A $40.00 transfer fee is applicable to
Arizona and Florida.)
If You die, Your Contract will automatically extend to 1) Your surviving
spouse or heir, or 2) Your legal representative, but only while acting
within the scope of his duties as such.

I. Cancellation: Except as otherwise provided below, the following terms apply
to cancellation of this Contract. You may cancel this Contract by mailing to
Us within 30 days of the date You wish to cancel 1) this Contract, 2) a signed
cancellation request stating the date of cancellation, and 3) a certified
odometer statement. We may cancel this Contract for any of the following
reasons: repossession or total loss of Your Vehicle; if Your Vehicle has
ever been issued a salvage or rebuilt title; Your Vehicle’s odometer has
ever been altered or is inoperable or otherwise does not represent Your
Vehicle’s true mileage; Your Vehicle has been altered or modified as set
forth herein; material misrepresentation or fraud by You at any time; nonpayment of fees; Commercial Use of Your Vehicle; or if You fail to maintain Your Vehicle according to the manufacturer’s recommendations, by mailing to You, at the address shown in the signed Application, written notice stating when the cancellation is effective and the amount of refund due, if any. The refund will be pro-rated based on the number of days this Contract has
been in force, or odometer miles, in relation to the term of this Contract,
whichever refund amount is less. We will retain a $35.00 cancellation fee.
If You cancel within sixty (60) days of purchase, and no claims have been
paid, We will refund the total charge made for this Contract and this Contract
will be considered void. If You cancel within the first sixty (60) days of purchase and You have a claim within that time, the refund will be pro-rated. If You financed this Contract, the refund will be paid to the Lender unless a lien
release accompanies the cancellation request.
If Your Vehicle is repossessed or deemed a total loss, the Lender will be the
sole payee of any refund, and such refund shall constitute a refund to You.
Cancellation - Arizona: The following additional provision applies to
cancellations in Arizona. A $25.00 cancellation fee will be withheld from any
refund made after the Contract has been in force for sixty (60) days.
Cancellation - Florida: Cancellation within 60 days of purchase: If either You
or We cancel this Contract within sixty (60) days after purchase date, You will
receive a full refund of the retail fee paid, less any claims We paid under this
Contract, and less a reasonable administrative fee not to exceed five percent of the retail fee paid by You. Cancellation after the Contract has been in effect for 60 days: After this Contract has been in effect for 60 days, We may cancel for the following reasons: material misrepresentations or fraud by You at the time of the sale, You have failed to maintain the Vehicle as prescribed by the
manufacturer, the Vehicle’s odometer has been tampered with or disabled and You have failed to have it repaired, or non-payment of fees. If We cancel this Contract in accordance with this provision, You will receive a pro-rated refund of the fees You paid, based upon the number of days the Contract has been in force or the odometer miles on the Vehicle, whichever is greater.
Cancellation - Georgia: The following additional provision applies to
cancellations in Georgia. We will cancel only in the event of fraud or material
misrepresentation on Your part, or if You fail to pay for the Contract. If You cancel this Contract within sixty (60) days of purchase, We will refund the total charge made for this Contract if no claims have been paid and this Contract will be considered void. If You had a claim within the first sixty (60) days, the refund will be pro-rated. All other cancellations will be pro-rated.

STATE SPECIFIC PROVISIONS
COLORADO –
Mercury Select Management Company, Inc. is insured to the extent of its obligations for Mechanical Breakdown reimbursement under this Vehicle Mechanical Breakdown Service Contract by a policy of insurance issued by American Mercury
Cancellation - Illinois: The following additional provision applies to cancellations in Illinois. If You cancel this Contract after thirty (30) days, We will retain a cancellation fee not to exceed the lesser of ten percent (10%) of the Contract price or $50.00
Cancellation - New York: The following additional provision applies to
cancellations in New York. Written notice of cancellation will be mailed to You at least fifteen (15) days prior to cancellation stating when the cancellation is
effective and the amount of refund due, if any. If You cancel within thirty (30) days of purchase, a ten percent penalty per month will be added to any refund that is not made to You within thirty (30) days of return of this Contract to Us.
Cancellation - North Carolina: The following additional provision applies to
cancellations in North Carolina. If this Contract is cancelled and a pro-rata refund is due, We will deduct from any pro-rata refund the amount of claims paid under this Contract and a reasonable administration fee not to exceed ten percent (10%) of the amount of the pro rata refund.
Cancellation - Oklahoma: The following additional provision applies to
cancellations in Oklahoma. If You cancel after thirty (30) days of purchase, You
will receive a refund of not less than 90% of the unearned pro rated fees You
paid.
Cancellation-South Carolina: Service contracts shall require the provider to permit the service contract holder to return the service contract within twenty days of the date the service contract was mailed to the service Contract holder or within ten days of delivery if the service contract is delivered to the service Contract holder at the time of sale, or within a longer time period permitted under the service contract. Upon return of the service contract to the provider within the applicable time period, if no claim has been made under the service contract prior to its return to the provider, the service contract is void and the provider shall refund to the service Contract holder, or credit the account of the service Contract holder, with the full purchase price of the service contract. The right to void the service contract provided in this subsection is not transferable and shall apply only to the original service contract purchaser and only if no claim has been made prior to its return to the provider. A ten percent penalty per month shall be added to a refund that is not paid or credited within forty-five (45) days after return of the service contract to the provider.
South Carolina Residents Only- Any questions regarding your service contract, you may contact the SC Department of Insurance, Post Office Box 100105, Columbia, SC 29202 or (803) 737-6180.
Cancellation - Texas: The following additional provision applies to cancellations in Texas. Written notice of cancellation will be mailed to You at least five (5) days prior to cancellation. Prior notice is not required if the reason for cancellation is nonpayment of fees, or a breach of duties by You relating to the Vehicle or its use.

Insurance Company, P.O. Box 268866, Oklahoma City, Oklahoma, 73126-8866, Policy No. 0741001-CO. If for any reason You are unable to have Your Vehicle repaired, You should contact American Mercury Management Company, Inc. at 1-800-654-8455.
FLORIDA –
A claim may not be made against the Florida Insurance Guaranty Association by virtue of Your purchase of this Contract.
GEORGIA –
American Mercury Select Management Company is insured to the extent of its obligations for Mechanical Breakdown under the Vehicle Mechanical Service Contract by a policy of insurance issued by American Mercury Insurance Company, P.O. Box 268866, Oklahoma City, Oklahoma 73126-8866, 1-800-654-8455. If for any reason You are unable to have
Your Vehicle repaired within sixty (60) days of submission of proof of loss to American Mercury Select Management Company, Inc. You may apply for reimbursement directly to American Mercury Insurance Company at 1-800-654-8455.
ILLINOIS –
Mechanical Breakdown shall include Normal Wear to a Covered Component,
excluding maintenance and service items. Normal Wear shall mean the premature deterioration of a Covered Component beyond the Vehicle manufacturer’s acceptable tolerances which results in a Mechanical Breakdown.
American Mercury Select Management Company is insured to the extent of its obligations for Mechanical Breakdown under the Vehicle Mechanical Service Contract by a policy of insurance issued by American Mercury Insurance Company, P.O. Box 268866, Oklahoma City, Oklahoma 73126-8866, 1-800-654-8455. If for any reason You are unable to have Your Vehicle repaired within sixty (60) days of submission of proof of loss to
American Mercury Select Management Company, Inc., You may apply for reimbursement directly to American Mercury Insurance Company at 1-800-654-8455.
IOWA –
This Contract is subject to all applicable provisions of the Iowa Consumer Credit Code, Chapter 537. The Motor Vehicle Service Contract Act is administered by the Commissioner of Insurance of the State of Iowa: Terri M. Vaughan, Commissioner of Insurance, State of Iowa, 330 East Maple Street, Des Moines, Iowa, 50319-0065.
LOUISIANA –
Your contract is cancelable and refundable upon request to American Mercury Select Management
Company. American Mercury Select Management Company, Inc. is insured to the extent of its obligations for Mechanical Breakdown under the Vehicle Mechanical Service Contract by a policy of insurance issued by American Mercury Insurance Company, P.O. Box 268866, Oklahoma City, Oklahoma 73126-8866, 1-800-654-8455. If You have not received payment or refund You may apply for reimbursement directly to American Mercury Insurance Company at 1-800-654-8455. If You or We cancel after this Contract has been in force for thirty (30) days, Your refund will be calculated on the Rule of 78s based on the number of days the Contract has been in force, or odometer miles, in relation to the term of this Contract, whichever refund amount is less. We will retain a $50.00 cancellation fee. If You cancel within thirty (30) days of purchase, We will refund the total charge made for this Contract, minus a $50.00 cancellation fee and this Contract will be considered void.

NEVADA –
The $35.00 cancellation fee will only apply in the event You cancel this Contract. In addition, in the event We cancel this Contract, We will give you fifteen (15) days notice of such cancellation. This contract is not renewable.
NEW YORK - OBLIGATIONS OF AMERICAN MERCURY MANAGEMENT COMPANY, INC. ARE BACKED BY THE FULL FAITH AND CREDIT OF AMERICAN MERCURY MANAGEMENT COMPANY, INC.
OKLAHOMA –
This Service Contract is not issued by the manufacturer or wholesale company marketing the product. This Contract will not be honored by such manufacturer or wholesale company.
SOUTH CAROLINA –
Obligations of the provider under this Service Contract are backed by the full faith and credit of the provider.
TEXAS –
American Mercury Select Management Company is insured to the extent of its obligations for Mechanical Breakdown under the Vehicle Mechanical Service Contract by a policy of insurance issued by American Mercury Insurance Company, P.O. Box 268866, Oklahoma City, Oklahoma 73126-8866, 1-800-654-8455. If for any reason You are unable to have
Your Vehicle repaired within sixty (60) days of submission of proof of loss to American Mercury Select Management Company, Inc., You may apply for reimbursement directly to American Mercury Insurance Company at 1-800-654-8455.
UTAH –
COVERAGE AFFORDED UNDER THIS CONTRACT IS NOT GUARANTEED BY THE PROPERTY AND CASUALTY GUARANTY ASSOCIATION.
American Mercury Select Management Company is insured to the extent of its obligations for Mechanical Breakdown under the Vehicle Mechanical Service Contract by a policy of insurance issued by American Mercury Insurance Company, P.O. Box 268866, Oklahoma City, Oklahoma 73126-8866, 1-800-654-8455. If for any reason You are unable to have Your Vehicle repaired within sixty (60) days of submission of proof of loss to American Mercury Select Management Company, Inc., You may apply for reimbursement directly to American Mercury Insurance Company at 1-800-
654-8455.
WISCONSIN –
1. THIS CONTRACT IS SUBJECT TO LIMITED REGULATION BY THE OFFICE OF THE COMMISSIONER OF INSURANCE.
2. American Mercury Select Management Company, Inc. is insured to the extent of its obligations under this Contract by a policy of insurance issued by American Mercury Insurance Company, P.O. Box 268866, Oklahoma City, OK 73126-8866, 1-800-654-8455. In the event American Mercury Select Management Company, Inc. does not fulfill its obligations under this Contract, You may make a claim directly with American Mercury Insurance Company by contacting that company at the address and phone number above.
3. We may not deny a claim solely because You fail to obtain Prior Authorization of a claim. (See “Section III. What Is Not Covered, Paragraph 5.C.”). However, if You do not obtain Prior Authorization of a claim, and You are unable to provide sufficient documentation for Us to determine if the Mechanical Breakdown is covered by this Contract, Your claim may be denied.
4. We may not deny a claim solely because You fail to remit the required
documentation within 90 days of the date We provide an approval number.
(See “Section IV. Conditions of Coverage, What to Do When a Breakdown
Occurs, Paragraph B.6.”)
5. We may not deny a claim solely because You fail or are unable to provide
Maintenance Records unless lack of maintenance will either increase the
risk of Mechanical Breakdown or contribute to the Mechanical Breakdown
for which a claim is presented.
WYOMING –
1. American Mercury Select Management Company, Inc. does not do business under the name American Mercury Warranty Services in the State of Wyoming, and any reference to American Mercury Warranty Services should be considered deleted from the service contract.
2. The following language is deleted from Section V. General Provisions,
subsection I:
“If You cancel within sixty (60) days of purchase, and no claims have been
paid, We will refund the total charge made for this Contract, and this Contract
will be considered void. If You cancel within the first sixty (60) days of purchase and You have a claim within that time, the refund will be pro-rated.”
and replaced with the following:
“If You cancel within sixty (60) days of the date We mail this Contract to You,
We will refund the total charge made for this Contract, and this Contract will
be considered void. If You cancel within the first sixty (60) days of the date We
mail this Contract to You, and You have a claim within that time, the refund will
be pro-rated.”
3. The following language is deleted from the Contract:
“ANY PERSON WHO KNOWINGLY AND WITH INTENT TO INJURE, DEFRAUD, OR DECEIVE ANY INSURER, AUTO WARRANTY COMPANY, OR SERVICE CONTRACT COMPANY, OR ANY OTHER PERSON, OR FILES A STATEMENT OF CLAIM OF AN APPLICATION CONTAINING FALSE, INCOMPLETE OR MISLEADING INFORMATION IS GUILTY OF A FELONY.”

ALL OTHER STATES –American Mercury Select Management Company is insured to the extent of its obligations for Mechanical Breakdown under the Vehicle Mechanical Service Contract by a policy of insurance issued by American Mercury Insurance Company, P.O. Box 268866, Oklahoma City, Oklahoma 73126-8866, 1-800-654-8455. If for any reason You are unable to have Your Vehicle repaired, You should contact American Mercury Insurance Company at 1-800-654-8455.