Terms & Conditions of the 
Loss Damage Warranty Program

These Terms outline a Loss Damage Warranty Program (the "Program") to be made available to the above-referenced Client, effective on the Program Effective Date for vehicles submitted on the Fleet Schedule by Client under these Terms (the "Covered Vehicles").  The submitted fleet schedule must include VIN, Year, Make, Model, and the actual cash value at time of submission. This policy is written as a master policy for Car Rental Association Inc. The Program Manager is Auto Rental Insurance Group PCS 2021-40 aka ARIG.  

1. Enrollment: Prior to the Program Effective Date, Client shall provide the Program Manager with a Fleet Schedule. The Program Manager will alert the Client if any vehicles are ineligible for the Loss Damage Warranty Program. Specialty, Exotic or Rare or Expensive Vehicles are not eligible for the Loss Damage Warranty Program. All Reports for Days Sold are due by the 5^th of the month following the sale (completed sales only, sales that crossover a month are to be reported after the completion of the rental term). All Payments for Days Sold are due at Program Manager no later than the 10^th of the Month (5 days after the report is due). By accepting this coverage, you are enrolling in the Car Rental Association for use of their Loss Damage Warranty Program.
2. Pricing: The Program pricing was set forth in the Proposal provided to the Client, and is on a per vehicle, per calendar day sold basis.  A full daily fee is charged for each calendar day for the duration of the rental agreement that includes the purchase of the Loss Damage Warranty. Client is responsible for all expenses for a Covered Loss, within the Deductible stated on the Program Quote or in excess of the Covered Loss Limit stated on the Program Quote. Only expenses for a Covered Loss that are compliant with these Terms, may be included in the Deductible or in the coverage. 
3. Covered Losses: Covered Losses are determined on a per vehicle per loss basis and are comprised of Comprehensive Losses and Collision Losses.  Comprehensive Losses are losses caused by: (a) fire, lightning or explosion, (b) theft, (c) windstorm, hail or earthquake, (d) flood, or (e) striking an animal or a bird or falling object or airborne debris.  Collision Losses are losses caused by: (a) collision with another object, or (b) upset or overturn of a vehicle that is directly caused by a covered collision loss.
4. First Notice of Loss (FNOL): As a condition to coverage, Client shall notify the Program Manager of any accident or other event within ten business days after such accident or event, providing all information required by Program Manager, including information required by an industry-standard automotive loss report.  Whereas a result of an accident or other event, a Covered Vehicle is determined to be a total loss, Client shall provide the Program Manager with the title to such Covered Vehicle, and a signed and notarized Power of Attorney, within three days after receipt of notice from the Program Manager that such Covered Vehicle is a total loss.  In determining whether a loss is a total loss, the Program Manager shall determine value at the lower of Kelley Blue Book value and Actual Cash Value (ACV) for Covered Vehicles.  
5. Covered Vehicle Repairs and Services: Where repairs or service to a Covered Vehicle as a result of a Covered Loss are required, Client shall have the work performed by a repair facility authorized in advance by the Program Manager or claims adjusting company, and then only to the extent of the work (including scope, estimate price, and estimated completion date and time) authorized by the Program Manager.  No coverage is available for work performed or charges billed, that was not authorized in advance by the Program Manager or claims adjusting company.  Damage to a stolen covered vehicle is excluded. The maximum coverage for a Covered Loss under these Terms, is the submitted value on the fleet list at the time of submission, less the appropriate deductible. Coverage is contingent on Client's compliance with these Terms. Some claims may require further investigation to determine if a loss is covered under this Program.  Client agrees to pay any and all repairs along with associated costs if coverage is determined not to be afforded under this Program. Client agrees that if any vehicle, at time of submission, is undervalued any recovery for a claim with regard to that vehicle will be subject to penalties including but not limited to the voiding of any and all coverage and potential recovery reduced to the lesser of 10% of the value submitted or 10% of the repair or replacement estimate.  
6. Program Administration: Client shall provide the Program Manager with such data as the Program Manager may reasonably require to administer the Program, and Client shall coordinate and cooperate with the Program Manager and its designees, adjusters, repair facilities or other third parties represented by the Program Manager or claims adjusting company.  Under these Terms, Client retains responsibility for collecting any Deductible from the renter and responsibility for all expenses, such as rental replacements, towing and administrative fees, and Client retains responsibility above the Covered Loss Limit as to all expenses including repairs. With respect to subrogation recovery: should the Program Manager decide to initiate subrogation procedures, all subrogation recovery proceeds shall be retained by the Program Manager with the exception of any deductibles paid being returned to the party that paid the deductible.
7. Limitations: These Terms do not provide coverage for losses: (a) in Mexico or Canada, (b) where a Covered Vehicle is used outside of the lawful business activity of the Client or in violation of any definitive agreement between Client and the Program Manager, or (c) where the Covered Vehicle is used in any profession, commercial (other than rental), racing, or demolition context or activity.  These Terms do not provide coverage for losses where the Covered Vehicle driver did not possess a valid driver's license, or where a driver had been convicted of fleeing the scene of an accident, insurance fraud or DUI/DWI. (d) Wear and Tear of a Covered Vehicle, (e) maintenance items, (f) war, military action, civil unrest, or governmental action, (g) intentional acts or gross negligence by Client or its employees or others under Client's control or direction, (h) freezing, mechanical or electrical breakdown, and for electric vehicles, improper battery care and charging and other actions inconsistent with manufacturer instructions or industry standards, and for other alternative fuel vehicles, improper care and operation of alternative fuel systems and other actions inconsistent with manufacturer instructions or industry standards, (i) blowouts, punctures, or other road damage to tires; (j) loss involving drivers deemed to be excluded by liability carrier, or (k) damage to or loss of personal or business property (l) driver is not listed as renter or additional authorized driver on the rental agreement (m) Any obligation of an Insured under Workers Compensation, disability benefits, unemployment compensation law, or any similar law or any relating to any employer/employee benefits. (n) Claims related to or arising out of the actual, alleged, or threatened commission of any act relating to sexual activity including, but not limited to, sexual abuse, molestation, or harassment. Claims arising out of or related to such sexual activity are excluded from coverage, (o) Bodily Injury or Property Damage arising out of the actual, alleged, or threatened discharge, dispersal, seepage, migration, release, or escape of Pollutants at anytime (p) Property Damage to any goods or products manufactured, sold, handled, distributed, or disposed of by you, by others trading under your name, or by a person or organization whose business or assets you have acquired (q) Property Damage to Your Work, including but not limited to claims of faulty, incomplete or deficient workmanship, regardless of whether such damage occurs or is discovered after that work has been completed (r) Any Claim for any loss, cost, or expense incurred by you or others for the loss of use, withdrawal, recall, inspection, repair, replacement, adjustment, removal, or disposal of Your Product, Your Work, or Impaired Property if such product, work, or property is withdrawn or recalled from the market or from use by any person or organization because of a known or suspected defect, deficiency, inadequacy, or dangerous condition in it (s) Bodily Injury, Property Damage, or Physical Damage which directly or indirectly is the result of an act, error, or omission which was performed by the Insured prior to the Policy Period stated on the Declarations or any Endorsement, regardless of the date the Bodily Injury, Property Damage, or Physical Damage was first discovered, first manifest, or reported. (t) Bodily Injury, Property Damage, or Physical Damage arising out of the rendering or failure to render professional services. (u) Any claims for or awards against any Insured for punitive or exemplary damages, fines, statutory penalties, or sanctions, whether imposed by law or otherwise, trebled or otherwise multiplied damages or any multiplied portion of a compensatory award are not covered by the Policy regardless of whether they are demanded or awarded based upon the conduct of an Insured or upon the conduct of others for whose conduct the Insured may be deemed to be vicariously liable. (v) Any Claim seeking relief other than for monetary damages including, but not limited to, claims for injunctions, temporary restraining orders, or other equitable relief or requiring any Insured to take any action other than the payment of compensatory monetary damages for Bodily Injury, Property Damage, or Physical Damage as defined herein. (w) Any sums that any Insured becomes legally obligated to pay as Damages because of Bodily Injury, Property Damage, Personal Injury, Advertising Injury, or Medical Payments directly or indirectly relating to the actual, potential, alleged, or threatened presence of mold, mildew, or fungi of any kind whatsoever, or any materials containing them at any time; or (x) War, invasion, acts of foreign enemies, hostilities, or warlike operations (whether war be declared or not), civil war, rebellion revolution, insurrection, civil commotion assuming the proportions of or amounting to an uprising, military or usurped power; or Any act of terrorism, including, but not limited to, the use of force or violence and/or the threat thereof, of any person or group, whether acting alone or on behalf of or in connection with any organization or government, committed for political, religious, ideological, or similar purposes, including the intention to influence any government and/or to put the public, or any section of the public, in fear. (y) Any Claim or Damages arising out of the use or operation of a Drone, whether operated by you or any other person or entity, unless specifically scheduled in the Declarations or any Endorsement For purposes of this exclusion the term "Drone" means: any unmanned aircraft, land vehicle or watercraft; any flying, driving or floating robotics; or any remote, automatic or GPS operated craft, system, or device of any kind (z) Any Claim or Damages arising out of any transmissible pathogen, disease, microorganism, or causative agent of disease, including, but not limited to, any virus, bacterium, or fungus that is capable of inducing physical distress, illness or disease. This exclusion also applies to any Claim or Damages caused directly or indirectly by the suspected or anticipated presence of any transmissible pathogen, disease, microorganism, or causative agent of disease as described above (aa) Claims or Damages arising out of Cyber Liability. For purposes of this exclusion, Cyber Liability means a data breach, whether inadvertent or intentional, in which a third party's private or confidential information in the possession of any Insured is exposed, stolen or destroyed, regardless of whether the data breach is the result of conduct of the Insured. Cyber Liability, as used in this exclusion, includes any damage to data or tangible property arising from a computer virus. Cyber Liability also includes cyber extortion or network shutdowns. (bb) Any Claim or Damages alleging public nuisance, private nuisance, attractive nuisance, statutory nuisance or any other similar claim relating to the interference of the property rights, or loss of use or enjoyment of property, on the part of another person or entity, whether such claims involve negligent or intentional conduct. (cc) Vandalism or Mischief. (dd) Charges for towing, (ee) No Coverage is provided if the purchase of the LDW was not completed prior to the start of the rental term, continuous throughout the rental term, without lapse, during the entirety of the rental term and the date of loss occurs during the rental term 
8. NO WARRANTIES BY PROGRAM MANAGER: The Program Manager does not perform or oversee any maintenance or repair services, or related services, such as towing and storage. The Program Manager's role is limited to supporting Client in arranging for repair services by unrelated third parties, almost always selected only on the basis of geographic proximity to the Covered Vehicle ACCORDINGLY, THE PROGRAM MANAGER DISCLAIMS ALL WARRANTIES, REPRESENTATIONS AND OTHER COMMITMENTS OF ANY TYPE, WHETHER FOR GOODS OR SERVICES, RELATIVE TO ANY ACTS OR OMISSIONS OF ANY REPAIR FACILITY OR OTHER THIRD PARTY SERVICE PROVIDER, INCLUDING WARRANTIES OF FITNESS, FITNESS FOR A PARTICULAR PURPOSE, MERCHANTABILITY, TITLE, AND NON-INFRINGEMENT. The workmanship of the repair facility or other third parties, involvement of the Program Manager, and payments by the Program Manager, do not relieve Client of any responsibility, including responsibility under any lease contract between Client and the Program Manager.
9. Miscellaneous: Neither Client nor Program Manager are liable to the other for consequential damages (including lost profits), or special, exemplary, or punitive damages. Neither has any obligation to defend or indemnify the other for claims under these Terms. Any invoice for the Program fees or other amounts due to the Program Manager under these Terms shall be paid in full in accordance with the payment terms indicated in the Agreement, without set-off, and any amount not paid when due, shall bear interest until paid in accordance with the terms indicated in the Agreement.
10. Deductible: Client, when submitting the Fleet Schedule, designates each vehicle as being within a specific value range. Deductibles are based on this designated value. For ALL Vehicles, the Minimum Deductible agreed to by the Client is listed on Addendum 2. The Client is responsible for the collection of any and all Minimum Deductibles. Should a Credit Card or any other valid and collectible insurance, provide similar protection as the Loss Damage Warranty Coverage described herein, that coverage limit becomes the Minimum Deductible if larger than the deductible described in Addendum 2.
11. Priority of Other Comparative Coverage(s): Client is responsible for all Deductibles whether collected from the renter or not and for the value designation as submitted with the application. As such, the Client is in the best position to manage the Deductibles and the Priority of Coverage(s). The maximum possible recovery for the client is the value stated on the fleet schedule at submission, less the appropriate deductible. Any other applicable coverages following priority.

The Client and the Program Manager by their duly authorized representative hereby agree to the Terms effective as of the Program Effective Date.

Client:

(Authorized)

Program Manager:

(Authorized)

Attachments:

Loss Damage Warranty Program – Proposal

LOSS DAMAGE WARRANTY PROGRAM

Proposal

Program Contract

This Proposal is for a Loss Damage Warranty Program to be made available to the above-referenced Client, effective on the Program Effective Date for vehicles enrolled by Client under attached Terms (the "Covered Vehicles"). The Program Manager is Auto Rental Insurance Group, PCS 2021-40.

Quote Summary:

Vehicle Value/Price Chart: