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Rheem.com PROGRAM GUIDE FOR DEALERS

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Rheem.com

PROGRAM GUIDEFOR DEALERS

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Table of ContentsWhat is Protection Plus® • Dealer Benefits of the Program

Dealer EnrollmentPricing • Pricing to the Dealer

• Pricing to the Consumer

• How Repair Codes Effect Dealer Reimbursement — Repair Code Chart — Repair Code Examples

Coverage • Coverage Specifications — Coverage Start Date — Timeframe to Obtain Coverage — Covered Repairs — Companion Repairs — Multiple Repairs

• Coverage Options — 2014 Protection Plus Coverage Options

• Coverage Exclusions

• Maximum Limit of Liability

Claim Filing, Track & ReimbursementOption to Renew Expiring Protection Plus PlansDealer FAQ’sConsumer FAQ’s - How to Respond?

Protection Plus Program Terms & Conditions • Service Contract

• What is Covered?

• Wait Period

• Annual Maintenance

• Technical Inspection

• To Obtain Service

• Availability of Service

• Accessibility of Product

• Termination for Other Cause

• Important Note

• Time for Service

• Place of Service

• Unable to Repair

• Renewability

• Limitations of Coverage

• Cancellation

• Claims Limitations

• Buyout

• Transferability

• State Variations

• Novation

• Right to Recover from Others

• Coverage and Term

• Entire Contract

• Limitation of Liability

Reference Forms • Contractor Enrollment Form (including Terms & Conditions)

• Residential Application Order Form

• Commercial Application Order Form

• Residential Claim Form

• Commercial Claim Form

• Consumer Contract Cancellation Form

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What is Protection Plus®

Protection Plus is an extended service plan that financially prepares HVAC customers for unexpected and unbudgeted repairs after the manufacturer’s limited warranty expires. Offering Protection Plus to customers is a great way to gain repeated business, increase profits and develop lasting client relationships.

Dealer Benefits of the Program • Customer Retention – Because Protection Plus requires annual maintenance on covered equipment, the Dealer has the opportunity to build ongoing relationships with customers. Consumers will rely more heavily on the installing contractor for quality customer service and future HVAC needs.

• Customer Satisfaction – Consumers no longer have to worry about costly repairs and will view their installing Dealers as a solutions provider. When service calls are required, Dealers should provide extra value by vacuuming any mess, wearing booties or changing smoke or carbon monoxide detector batteries. With these added benefits, customer satisfaction and loyalty increase, building equity for a solid foundation in any Dealer’s business.

• Increased Revenue – By offering Protection Plus, Dealers will gain a new source of recurring revenue. With the option of selecting the level of reimbursement based off customized choices for a variety of repair solutions, Dealers are able to control the level of reimbursement that best fits their business.

Rheem Protection Plus is managed by Service Net, a leading provider of extended service plan administration and services. Service Net is a wholly owned subsidiary of AIG, the underwriter of the program. The Service Net and AIG partnership allows you to provide customers with a full-service, world-class solution for their long term HVAC needs.

Key Features of Service Net/AIG: • Service Net is a wholly-owned subsidiary of American International Group, Inc. (AIG)

• Service Net/Chartis, a subsidiary of AIG, is being rebranded to the Warranty Division of American International Group, Inc. (AIG), in order to better align with their parent company

• U.S.-Based Customer Care Center

• Over 26 years of experience

• Presently servicing over 75 million active contracts

• Other clients include: Apple, Amazon, Best Buy, The Home Depot, Toshiba, Sharp & LG

• Other HVAC OEM clients include: Nordyne, Lennox, Trane Commercial & Goodman Commercial

• Partnership with Rheem began January 2010

Letter of Confidentialityfrom Service Net,

part of AIG

Thank you for your decision to take advantage of

the Rheem Protection Plus Program administered

by Service Net.

In connection with our joint efforts, you will provide

us with information including names, addresses and

phone numbers of your customers. We understand

that this information is confidential and is important

to your current and future business.

Therefore, Service Net hereby agrees that any

information received from your company will be

deemed confidential and will not be disclosed to

any person, firm, corporation or entity without

your company’s prior written consent, except

that the information can be used by Service Net’s

employees and/or other persons retained by Service

Net to process claims and accounting functions.

We look forward to a mutual and prosperous

business relationship, with Service Net working on

your behalf.

®

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Dealer Eligibility & EnrollmentDealer Enrollment Protection Plus® is purchased by the Dealer directly from Service Net/AIG via the Protection Plus Portal through MyRheem.com, fax, email or standard mail. Distributors offer support for the program by assisting with enrollment, administrative questions, and coverage verification. The Dealer enrollment process is simple & fast requiring only submission of a completed Enrollment form, W-9 and liability insurance certificate.

PricingPricing to the Dealer The Dealer’s cost for the extended service agreement is based on the level of reimbursement chosen for a particular consumer that is purchasing a Protection Plus Service Agreement. There are 3 levels of reimbursement. Plan 1 is the least expensive while still providing a reasonable reimbursement rate. Plan 2 provides a higher level of reimbursement. Plan 3 has the highest cost, but has the largest level of reimbursement. Dealer pricing is also affected by the type of equipment and application. Residential equipment and applications are defined as equipment less than or equal to 5 tons that is installed within a single family dwelling, home, apartment or condominium where business is not conducted. Commercial equipment and applications, which tend to have higher plan pricing, is equipment greater than 5 tons that is installed in any type of business. Factories, industrial plants, schools and churches are common settings considered as commercial applications.

Pricing to the Consumer Dealers are able to determine the retail purchase price of Protection Plus to the consumer while balancing the goals of customer retention and profitability on the sale.

Consumer Deductibles $85-Deductible Option

Protection Plus Extended Service Agreements (Labor Only, Labor Plus) for residential products feature an $85 deductible per claim option, paid by the consumer at the time of service. The Dealer will be reimbursed by Service Net/AIG for the cost of the repair less the $85 deductible paid by the homeowner. Deductibles are common with standard insurance related products, such as car insurance, homeowners insurance and medical coverage, which all normally require a deductible. The goal for Protection Plus is to utilize this tool to mirror the insurance industry and have the ability to offer a more competitively priced extended service agreement plan option. It is important

Plan 1 Plan 2 Plan 3

Repair Code Type of Repair Repair Rate

AReplacement of electrical or mechanical components, such as all circuit boards, all relays, water relief valve,

thermocouple, thermostat, condenser fan blade, fan limit switch, door switch, control transformer.

Service CallPart Allowance

$30.00$25.00

$80.00$50.00

$90.00$75.00

REPAIR CODES

Replacement of electrical or mechanical components, such as blower motor, blower wheel, condenser fan motor,

condenser fan motor and blade, heater package and heat strips, gas valve, fuel pump, burner ignition transformer, oil burner motor.

$68.00 $90.00 $124.00

$105.00 $140.00 $193.00

Replacement of electrical or mechanical components, such as shaft and bearings, gas burners, blower motor assembly,

variable speed blower motor, variable speed module.C $135.00 $180.00 $248.00

Minor repairs to sealed system, such as TXV, factory joint leaks. (Repair code includes leak search, refrigerant recovery time,

refrigerant replacement and dryer).D $210.00 $280.00 $385.00

Major repairs to sealed system, such as heat exchanger, compressor, reversing valve, condenser/evaporator/hydronic

coil replacement, accumulator or muffler. (Repair code includes leak search, refrigerant recovery time, refrigerant replacement,

and dryer).

E $330.00 $440.00 $605.00

B

EXAMPLESPlan 1

Repair Code BFailure

Gas ValueService Call

Gas Valve Repl.Part Allowance

Parts cost**

In Warranty Out-of-Warranty

Total

$30.00$105.00$25.00$0.00

$160.00

$30.00$105.00$25.00$45.00$205.00

Plan 2Repair Code B

FailureGas ValueService Call

Gas Valve Repl.Part Allowance

Parts cost**

In Warranty Out-of-Warranty

Total

$80.00$140.00$50.00$0.00

$270.00

$80.00$140.00$50.00$45.00$315.00

Plan 3Repair Code B

FailureGas ValueService Call

Gas Valve Repl.Part Allowance

Parts cost**

In Warranty Out-of-Warranty

Total

$90.00$193.00$75.00$0.00

$358.00

$90.00$193.00$75.00$45.00$403.00

IMPORTANT: Any Refrigerant allowance is built into the Repair Code.

to note that residential parts only coverage and all commercial coverages do not have the $85 deductible feature.

Non-Deductible Option

These plans have a higher ESA purchase cost to the Dealer; however, the consumer does not have to pay any deductible at the time of a claim, making this plan option appealing when thinking of future claims.

How Repair Codes Affect Dealer Reimbursement Reimbursement amounts are dependent on the original Protection Plus

Service Agreement that was purchased. Reimbursement amounts for labor are also affected by the “Repair Code” chosen for the claim filed. Repair Code Options are A, B, C, D or E, with Repair Code A representing less time consuming repairs, and Repair Code E representing those major repairs that will require a higher level of labor reimbursement. Please review the differentiation among the repair codes in the below chart.

Enro

ll

Start Selling Plans S

ubmit C

laim

Receive Reimburse

men

t

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Coverage Options There are three types of Protection Plus Coverage Options: “Labor Only”, “Labor Plus”, and “Parts Only”.

Labor Only Plans cover costs for the labor required to repair equipment less the deductible of $85 per claim (if deductible plan is sold). These plans can be offered for 2, 5 or 10 year terms with the 2 and 5 year plans offering renewal options.

Labor Plus Plans cover costs for the labor required to repair equipment less the deductible of $85 per claim (if deductible plan is sold) for a term of 10 years. In addition, a process allowance is included to provide the contractor a mark-up on the existing parts coverage from the manufacturer.

Parts Only Plans cover the cost of parts required to repair equipment for a term of 10 years, beginning the first day of the 6th year of the equipment’s life.

Labor Only and Labor Plus Plans begin 31 days after the installation or after the date of purchase, whichever date occurs last.

All three coverage options require equipment owners to have annual maintenance by a servicing Dealer or authorized service technician. Proof of proper annual maintenance may be required at time of claim. Please see Terms and Conditions for complete details.

Protection Plus Coverage Options

Labor Only 31st Day after installation •

Labor Plus Labor Costs Covered*

Parts Only

RESIDENTIAL EQUIPMENT & APPLICATIONS

CoverageOptions

Description of Consumer’s

Coverage

COMMERCIAL EQUIPMENT & APPLICATIONS

Description of Dealer’s

Reimbursement

Coverage Start Date

Available Direct to

Dealer

Deductible($85)

• • • •

31st Day after installation

Labor Costs Covered*

*Less $85 deductible per claim based off of plan sold.

Labor Only

Parts Only

YES

NO

NO• •

• • •

Coverage Term Options Renewal Option

Available after2 or 5 Yr Term?

2 Yr 5 Yr 10 Yr

Service Call + Select RateReimbursement – Deductible

Parts Covered Parts Cost in Year 6-10 1st Day of 6th Year

Service Call + Select RateReimbursement + Parts

Allowance (Part Mark-up) – Deductible

CoverageOptions

Description of Customer’s

Coverage

Labor Costs Covered

Parts Covered

Description of Dealer’s

Reimbursement

Coverage Term OptionsCoverage

Start Date

Available Direct to

Dealer

Deductible($85)

2 Yr 5 Yr 10 Yr

Service Call + Select RateReimbursement – Deductible

Parts Cost in Year 6-10

366th Day after installation

366th Day after installation

NO

NO

Renewal OptionAvailable after2 or 5 Yr Term?

CoverageCoverage SpecificationsCoverage Start DateProtection Plus® coverage starts 31 days after the extended service agreement is sold as long as the completed Application Order Form is submitted and received by Service Net/AIG within fifteen (15) days from the date of sale to the consumer. If Service Net/AIG is not in receipt of the Application Order Form within this time, then the coverage start date is 31 days after Service Net/AIG receives the Application Order Form in-house. A delay in payment may also affect coverage. If the coverage is purchased within the first 12 months from installation, labor coverage will begin 31 days after installation or after the date of purchase, whichever date occurs last. If coverage is purchased after 12 months of age, there is a 90 day wait period from the date of purchase before coverage takes effect.

Timeframe to Obtain CoverageEquipment must be less than 60 months old from date of installation to qualify for Protection Plus coverage. No technical inspections are required for coverage. Furthermore, all equipment has a specific make, model and serial number which were designated at time of manufacture. The information can be found on each piece of equipment. It is the dealer’s responsibility to verify the exact information for each piece of equipment to be covered. If it is determined at time of claim or at any time during the term of the agreement that the make, model and serial number(s) do not match the information contained in the application or actual agreement, coverage may be declined.

Repair CoverageCovered Repairs include mechanical and electrical failures that occur inside the “unit cabinet” of covered equipment during normal operation. Some examples of covered repairs include contactors, capacitors, motors, gas valves and coils. Refer to the Program Terms & Conditions for further details.

Companion Repairs Companion Repairs are claims that are submitted as multiple repairs when in fact they should be considered one repair. These are referred to as companion repairs as they are in fact part of the same failure. For companion repairs, coverage will pay ONE labor charge and ONE part allowance, but will still PAY for multiple parts on residential and commercial equipment.

Multiple Repairs To alleviate any confusion regarding multiple repairs for claims reimbursement, please note that multiple repair codes allow for the highest cost repair to be applied first, then the second repair is at 75% and any additional repairs on the same ticket are 50% of the applicable repair code.

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Coverage Exclusions Repairs required as a result of installation error are excluded from coverage. Typical exclusions include repairs resulting from lack of proper maintenance, acts of nature, war, terrorism, earthquakes, flood, lightning, hurricanes, and other forces of nature. Registers, batteries, grills, key valves, duct work, plumbing, venting, belts, dampers, field wiring, line sets, or nuisance calls such as resetting breakers, or thermostat adjustments also fall under the exclusion section. Claims not filed within 60 days of the date of failure will not be accepted for consideration under this agreement. Pre-existing conditions, including those as found during annual maintenance prior to purchasing the Agreement, are also excluded. Contaminations such as Green Slime, Dirty Sock Syndrome, etc., are excluded under this agreement. Consequential damage otherwise caused by rust, brownouts, or blackouts, or inferior building equipment such as Chinese Dry Wall are also excluded under this agreement. For agreements purchased before Jan 1, 2013, one leak per component is covered for the term of the contract and up to the initial charge of the unit. For agreements purchased after Jan 1, 2013, multiple leaks per component will be covered.

Refer to the Terms & Conditions in the back of the Program Guide for further details.

Maximum Limit of Liability The maximum limit of liability owed under this agreement will be the lesser of the current market value of the covered product or the installed retail price paid by the consumer.

Claim Filing, Tracking & ReimbursementClaims can be filed under Protection Plus® coverage via fax, email or standard mail by submitting a Claim Form, or they can be filed by accessing the Protection Plus Portal for faster service. A signed Service Ticket must be included with the Claim Form or the claim payment may be delayed.

Using the Protection Plus Portal, via MyRheem.com, Dealers can file claims on behalf on their consumers within minutes. They can simply log on to MyRheem.com and look for Dealer Support. From there, select Marketing Programs & Support and then Protection Plus from the menu. Once Dealers are within the Protection Plus Portal, they can enter a new claim, finish entering a partially started claim, track claim status and view their overall claim history.

IMPORTANT: Depending on the coverage option, reimbursement level and repair code chosen, the Dealer will receive payment for the applicable labor, service call and parts allowance. The payment, known as the reimbursement, will be less the $85 consumer deductible paid to the Dealer at the time of service. Reimbursement payment for valid claims will be sent directly to the Dealer within 30 days once all required information is received.

Option to Renew Expiring Protection Plus Plans Protection Plus Plan Renewals are an opportunity to extend the benefits of an ESA beyond the initial coverage period. Dealer benefits from Renewals are:

• Protected, satisfied customer base

• Guaranteed future service revenue

• Brand protection for Dealer/Rheem

• Lock out competition/whole home warranty companies

• Referrals and add-on sales opportunity

• Helps drive sales for maintenance agreements

• Increases the value of overall proposal to consumer

• Differentiate from competition

Expiring Protection Plus Agreements within residential applications can be renewed, giving Dealers the opportunity to continue to protect their customer base. Original 2 Year Labor Only Agreements can be renewed for 1, 3, 5 or 10 years. Original 5 Year Labor Only Agreements can be renewed for 1, 3 or 5 years. Depending on the existing Protection Plus Agreement in place, coverage can be extended out for a total of 12 years of extended protection. This enables the consumer to have continued peace of mind that they will not experience sudden out of pocket expenses for repairs.

Service Net/AIG will provide to the Dealer a list of those consumers that have Protection Plus Plans expiring. The renewal program will be solicited by Service Net/AIG on behalf of the Dealer. Service Net/AIG must have written authorization from contractor before any renewals are attempted. Dealers have the right to refuse to offer renewal options. The Dealer will remain the servicing Dealer and will maintain the required yearly maintenance contract.

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Dealer FAQ’sWhere do Dealers send claims? Claims can be submitted four ways:

• Online: Protection Plus® Dealer Portal (via MyRheem.com)

• Fax: 866-244-0156

• Email: [email protected]

• Mail: Protection Plus Attn: Claims Processing 650 Missouri Avenue Jeffersonville, IN 47130

What should be included in a claim submission? To submit a claim via fax or mail, Dealer must include the following:

• Copy of the service ticket with consumer information, signature, serial number of the equipment and detail on what was wrong and what was done to repair the equipment

• If a part over $100 was purchased, a copy of the distributor’s invoice is required

• Completed claim form

• Most recent annual Maintenance Report signed by the consumer

How quickly will a Dealer receive payment after a claim is filed?If all of the required information is included with initial claim submission, claim should be processed within 30 days.

How do Dealers receive Customer Service Support? • Phone: 877-276-4294

• Email: [email protected]

• Mail: Protection Plus Attn: Customer Service PO Box 928 Jeffersonville, IN 47130 • Fax: 877-276-4294

What does Protection Plus cover? Protection Plus covers mechanical and electrical failures that occur inside the “unit cabinet.” Please see the program’s Terms and Conditions for more detail.

How quickly after purchase does the warranty take effect? If coverage is purchased within the first 12 months from installation, labor coverage will begin 31 days after installation or after the date of purchase, whichever date occurs last. If coverage is purchased after 12 months of age, there is a 90 day wait period from date of purchase before coverage takes effect. Parts coverage, if selected, begins the first day of the sixth year and is designed for seamless coverage beyond the standard Manufacturer’s warranty.

Can Protection Plus service agreements be transferred to future homeowners? Yes. Protection Plus agreements may be transferred to subsequent homeowners if the maintenance has been performed as required. Requests must be submitted along with a $25 transfer fee.

Is maintenance required for the equipment on all new Protection Plus agreements?Yes, all products covered by Protection Plus require annual maintenance performed by a servicing Dealer or authorized service technician. The homeowner can perform filter changes and/or cleaning of filters. The homeowner or their servicing Dealer may be required to submit proof of annual maintenance, including invoices for materials and/or labor charges associated with the maintenance service. Lack of annual maintenance or failure to provide proof of proper annual maintenance may result in denial of payment for claims under this agreement and/or cancellation of the agreement. The homeowner will be responsible for payment of denied claims due to the lack of annual maintenance.

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Consumer FAQ’s - How to RespondWhat is covered? Depending on which coverage type is chosen, either parts and/or labor will be covered for mechanical and electrical failures contained within the equipment, including compressor and heat exchanger. Regular maintenance must be performed to maintain coverage.

What is not covered? Any repair due to damage of equipment; components of the HVAC system contained outside of the covered equipment; required maintenance; or any overtime charges for a covered mechanical repair. See terms and conditions for full details.

Are there any coverage limits?The maximum limit of liability owed under this agreement will be the lesser of the current market value of the covered product or the installed retail price paid by the consumer.

How does the $85 deductible plan option work?An $85 deductible applies to each service event where repairs are deemed necessary. An individual service event may include a single part failure or multiple failures. The deductible is to be paid by the homeowner to the Dealer at the time of service.

Can the consumer transfer this agreement if home is sold? Yes, for a minimal charge of $25.

Who is eligible to apply? Consumers are eligible to apply as long as they have purchased and had installed the HVAC equipment from a Rheem Protection Plus® Dealer within 60 months.

When will coverage begin?If the coverage is purchased within the first 12 months from installation, labor cover will begin 31 days after installation or after the date of purchase, whichever date occurs last. If coverage is purchased after 12 months of age, there is a 90 day wait period, from the date of purchase, before coverage takes effect. Parts coverage begins the first day of the 6th year after the standard manufacturing warranty ends.

What if the consumer is not satisfied?The consumer may cancel this agreement for any reason during the first 30 days after it is issued to obtain a full refund of the purchase price. After the first 30 days, the consumer may cancel this agreement and receive a prorated refund based on the time remaining on the plan, less the value of any services or claims that have been provided or paid. An administration fee will also apply.

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Protection Plus® Program Terms & ConditionsSERVICE CONTRACT This document sets forth the entire Contract between the Service Contract Administrator, hereinafter referred to as We, Us and Our, and the Purchaser, as You and Your. No representation, promise or condition herein shall modify these terms. Service Net Warranty, LLC (“Service Net”) is contractually obligated to You to provide service under this Contract where in accordance with and as allowed by state law. If this Contract is purchased in Floridaor Oklahoma, Service Net Solutions of Florida, LLC is contractually obligated to You to provide service under this Contract.

1. WHAT IS COVERED? Depending on the coverage You purchased, We will furnish labor, parts, and/or replacement equipment (or pay for same) necessary to repair operationalor mechanical breakdowns of the Product specified in this Contract, provided such service is necessitated by Product failure during normal usage. The Product specified and covered includes only equipment as originally configured and installed at time of purchase and charged for in this Contract. Coverage also applies to the parts and accessories that are necessary to the covered Product’s functionality, but does not apply to accessories used in conjunction with or to enhance the performance of the covered Product. This Contract is inclusive of the manufacturer and dealer warranty, as reported to Us by Your dealer, and does not replace the reported warranties. Please refer to Your original purchase receipt for specific details on the reported warranties. Important Note: Some manufacturer’s offer longer parts warranties as registration incentives. Contact the manufacturer of Your product for information.

2. ELIGIBILITY. If You purchased Your Contract greater than twelve (12) months from Your Product’s original install date, this section applies to you. Contract purchase must be within sixty (60) months of original Product installation date. To be eligible for coverage, the Product must be in good working order at time of Contract purchase. If it is determined that a claim results from a pre-existing condition, the payment of claim may be denied. Information regarding the original install date of the product must be correct. Inaccurate information regarding install date may result in the product being ineligible for coverage. We reserve the right to inspect Your Product at any time to determine eligibility for coverage.

alteration of serial number, or because You have committed fraud upon us, at our discretion we may terminate this Contract without liability. If We exercise this right, You will receive a pro rata refund ofone-hundred (100%) of the purchase price of Your Contract based on the time remaining on Your plan less the value of any services or claims that have been provided or paid.

9. IMPORTANT NOTE. Repairs recommended by the repairing facility not necessitated by mechanical breakdown are not covered unless specifically authorized by Us. We reserve the right to inspect the Product prior to coverage determination or during the coverage period. Model number, serial number and original date of purchase of all Products to be covered must be provided to execute application for service. If You request a service call for a non-covered repair or “no failure found” diagnosis is determined for the same problem on a second trip, You may be responsible for all costs associated with the repair/call. In the event You are unable to meet the servicer, You must call to cancel the appointment one (1) business day prior to the agreed upon time of service or You may be responsible for paying the second trip charge for the subsequent rescheduled repair. If the Product is found to be performing to the manufacturer’s specifications, service will not be authorized and You will be responsible for costs incurred.

10. TIME FOR SERVICE. Service will be performed during the hours of 8:00 a.m. to 5:00 p.m. local time Monday through Friday, excluding holidays or during the hours of operation of the participating servicing dealer. Any additional costs above the authorized rates (premium or overtime charges) or after hours service will be at Your expense with exception of health related or severe weather related emergencies.

11. PLACE OF SERVICE. Onsite service will be provided at the address listed on the front side of Your Contract. Service will be performed by the Dealer named on the front side of this Contract, or by an authorized servicer.

12. UNABLE TO REPAIR. If We determine that We are unable to repair Your Productdue to the unavailability of functional parts, service or technical information, or if the cost to repair will exceed the Claims Limitation as described herein, the total liability owed to You under this Contract will be the lesser of (I) the current market value of a Product of comparable specifications; or, (II) the retail price paid for Your Product minus sales tax and claims paid, in lieu of service repairs or replacement of a Product of comparable specifications.

In all cases where parts or technical information are onextended backorder for a minimum of sixty (60) calendar days, We will determine if a replacement orreimbursement will be made. All contractual obligations are fulfilled, in lieu of repairs, upon Product replacement, reimbursement or Contract term expiration and the covered Product becomes the property of Service Net and We may, at Our discretion, require the Product to be returned to Us (or Our designee) at Our expense.

13. DEDUCTIBLE. A per claim deductible may apply to your contract. If a deductible applies, the amount is stated on the front side of Your Contract.

14. RENEWABILITY. This Contract is renewable at Our sole discretion.

15. LIMITATIONS OF COVERAGE – This Contract Does Not Cover: a. Any Product located outside the continental United States, Alaska, and Hawaii.b. Service required as a result of any alteration of the equipment, or repairs made by anyone other than an authorized service provider. This would include any unauthorized alterations made by You to the Product.c. Damage or other equipment failure due to causes beyond Our control including, but not limited to, repairs necessary due to operator negligence, the failure to maintain the equipment according to the owner’s manual instructions, abuse, vandalism, theft, fire, flood, wind, freezing, power failure, inadequate power supply, unusual atmospheric conditions, acts of war or acts of Nature.d. Service necessary because of improper storage, improper ventilation, or any utilization of the equipment that is inconsistent with either the design of the equipment, the specifications set by the manufacturer or Air Conditioning and Refrigeration Institute, or the way the manufacturer intended the equipment to be used. Any installation that prevents normal service.e. Any and all cases in which the manufacturer of the equipment would not honor any warranty regarding the equipment.f. Cosmetic defects, damage, or failures of non-operational components that do not inhibit the proper operation and performance of the covered items.g. Consumable items defined as any part that is considered consumable by the manufacturer or any item that is designed to be consumed (wear out) during the life of the Product, regardless if it is consumer replaceable or not.

3. WAIT PERIOD. COVERAGE BEGINS THIRTY (30) DAYS FROM CONTRACT PURCHASE OR UPON EXPIRATION OF THE DEALER’S LABOR WARRANTY, WHICHEVER IS LATER, UNLESS THE CONTRACT IS SOLD GREATER THAN TWELVE (12) MONTHS FORM THE PRODUCT’S INSTALLATION DATE. IF THE CONTRACT IS SOLD GREATER THAN TWELVE (12) MONTHS FROM THE INSTALLATION DATE, THERE IS A NINETY (90) DAY WAIT PERIOD. CLAIMS OR LOSSES THAT OCCUR PRIOR TO OR DURING THE WAIT PERIOD ARE NOT COVERED BY YOUR CONTRACT.

4. ANNUAL MAINTENANCE. All Products covered by this Contract require annualmaintenance performed by an authorized service technician and as specified by the manufacturer. You may be required to submit proof of annual maintenance in the event of a claim. Lack of annual maintenance or failure to provide proof of annual maintenance may result in denial of payment for claims under Your Contract. You will be responsiblefor payment of denied claims due to the lack of annual maintenance or failure to provide proof of annual maintenance.

5. TO OBTAIN SERVICE. If service is required, contact the number shown on the front side of this Contract and explain the problem. Prior to any repair being made, the dealermay be required to follow authorization procedures. In these cases, any claim for repairs without authorization will not be covered except as provided under emergency repairs.

6. AVAILABILITY OF SERVICE. Neither Us nor the dealer shall be liable for anydamages whatsoever arising out of delays, either before or after a day or time of service is agreed upon.

7. ACCESSIBILITY OF PRODUCT. If onsite service is required, You agree to make theProduct reasonably accessible to the repair person. If the Product is not accessible, the repair person will have the option of declining to provide service or assessing You an additional charge, which will not be covered by Us, for making the Product accessible, commensurate with the difficulty in working on the Product. All service fees incurred by Us will be appliedto the maximum liability of this Contract.

8. TERMINATION FOR OTHER CAUSE. Any attempts by YOU to repair or alter the Product, or if We cannot provide service due to removal or

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Rheem.comProtection Plus Program Guide for Dealers 10

Protection Plus® Program Terms & Conditionsh. Registers, batteries, grills, key valves, duct work, plumbing, venting, belts, dampers or nuisance calls such as resetting breakers, low or dead thermostat batteries and adjustments made to programming.i. Repairs to Product, including parts, labor, or Product replacement covered by the reported manufacturer warranty, reported dealer warranty, manufacturer’s recall, or similar manufacturer’s incentive or repair program (regardless of whether or not the manufacturer or dealer is doing business as an ongoing enterprise).j. Consequential damages as a result of malfunctioning of or damage to an operating part of the covered equipment, or damages as a result of any repairs or replacements under this Contract.k. Loss of use, loss of business, loss of profits, down-time and charges for time and effort.l. Damages caused by delays in rendering service or loss of use during the period that the Product is at the authorized service center or otherwise awaiting parts are not covered. Rentals and “loaner” equipment are not covered.m. Damage or failure caused by animals or insects.n. Operational or mechanical failure which is not reported prior to expiration of this Contract or within 60 days of Product failure.o. Equipment sold without a manufacturer’s warranty, sold “as is” or refurbished Products.p. Normal, periodic or preventative maintenance and/or checkups, including but not limited to customer education, adjustments, cleanings, and convergence. Regular maintenance, maintenance parts such as filters, lubricants, oil nozzles or any Product that has been altered or misused or requires replacement due to normal wear, accidents or lack of proper maintenance. Refrigerant as a top-off or stand alone repair.q. Pre-existing conditions (incurred prior to the effective date of coverage), known to You or discovered during annual maintenance.r. Equipment where the serial plate attached to the equipment is removed, defaced or made illegible.s. Damage resulting from user facilitated minor adjustments and settings outlined in the Product’s owner’s manual, inaccessible products or parts, negligence, misuse or abuse whether willful or not.t. Failure and replacement caused by contamination of the sealed system such as Green Slime, Dirty Sock Syndrome, etc. Consequential or damage(s) otherwise caused by rust, brownouts, or blackouts. Premature failure due to the use of inferior building material such as Chinese Dry Wall, corrosive conditions caused by location or moisture.

Leaks in the equipment on the unit(s) at the evaporator, Schrader cores, condenser and/or metering device or other connections resulting from loose valves and/or loose valve caps, interconnecting fittings and/or field piping (line sets/tubing). Miscellaneous items such as nitrogen that are used to detect or diagnosis failures.u. Transit or delivery damage, damage caused by packing, unpacking, assembly, installation, or removal.v. You are responsible for all charges as a result of a “no Failure Found” call, which includes, but is not limited to, problems that do not require parts, intermittent issues, blown fuses or circuit breakers that are external of the equipment.w. Repairs to alter the equipment to meet changes in federal, state or local codes and regulations, or repairs which require additional parts and labor to bring the equipment into working condition as a result of such Government Regulations.x. Products over sixty (60) months of age at the date of Contract purchase.y. Manual or digital thermostats and control units unless specifically listed on the face of this Contract.z. Any cost recoverable under any other warranty, guarantee, or under an insurance policy (in such case, this Contract will cover any applicable deductible).aa. Damage or failure caused by bodily fluids, including by not limited to urine and vomit.bb. Product that has been leased or rented to You.cc. Products used in a commercial environment, which is defined as non-residential, multiuser, communal, or industrial use.

16. CANCELLATION. You may cancel this Contract for any reason during the first thirty (30) days after it is issued and obtain a full refund of the purchase price less any services or claims provided or paid. After the first thirty (30) days, You will receive the lesser of a pro rata refund based on the term remaining on Your Contract OR ten percent (10%) of the price of this Contract. In either case, the refund will be reduced by the value of any services or claims provided or paid plus any applicable administrative fees.

17. CLAIMS LIMITATIONS. The maximum liability owed to You under this Contractwill be the lesser of (I) the current market value of a Product of comparable specifications; or, (II) the retail price paid for Your Product minus sales tax and claims paid, in lieu of service repairs or replacement of a Product of comparable specifications. When determining the current market value of a Product of comparable specifications a fair analysis is completed using current manufacturers’ and distributors’ pricing on comparable products. In the event We (I) replace the Product with a Product of comparable specifications; (II) reimburse You for the current market value of a Product

of comparable specifications; or (III) reimburse You for the retail amount of the Product, minus claims, minus sales tax, We shall have satisfied all obligations owed under this Contract and the covered Product becomes the property of Service Net and We may, at Our discretion, require the product to be returnedto Us (or Our designee) at Our expense.

18. BUYOUT. We may elect, at Our option, to buyout the Contract during the coverage term for the lesser of (I) current market value of a Product with comparable specifications, (II) purchase price of Your Product minus sales tax and claims paid, or at Your request(III) cost of repair in lieu of repair. You have up to forty five (45) days from the date of authorization to complete your product buyout transaction. We will have satisfied all obligations owed under this Contract if any one of the buyout options is accepted by You.

19. TRANSFERABILITY. This Contract may be transferred to subsequent owners if the maintenance has been performed as required by the manufacturer. You may transfer this request by sending a) written notice, b) proof of equipment/home acquisition or original owner signature, and c) a twenty-five dollar ($25) transfer administrative fee to: Service Net, P.O Box 1411, Jeffersonville, IN 47131-1411. Important Note: This contract does not cover changes or reductions in coverage of the manufacturer or dealer warranty due to transfers of ownership.

20. STATE VARIATIONS. Certain states have specific conditions; conditions listed on the front of this form may apply to You.

21. RIGHT TO RECOVER FROM OTHERS. If We make any payment, We are entitled to recover what We paid from other parties. By accepting settlement of a claim, You transfer to Us Your right to recovery against any other party.

22. COVERAGE AND TERM. This is not an insurance policy. As the Administrator, We will assist You in understanding Your warranty and coverage benefits from the day You purchase Your Contract. Upon inspection and diagnosis, if it is determined that the failure is covered by this Contract, You or the service facility must submit an invoice, work order, and/or customer reimbursement for any replacement parts and/or labor for which chargesare being made. The invoice MUST show model and serial number(s), the “Contract Number” located on the front side of this form, and the service provider’s cost and/or charges. The work order/invoice MUST secure a customer signature as acknowledgement of service

and be submitted to Us within sixty (60) days of the date of repair or replacement at Service Net Warranty LLC, 650 Missouri Ave., Jeffersonville, IN 47130 for processing and payment. These documents and/or parts must be made available to Us, upon request,no more than sixty (60) days from the date the claim was received in Our office or on site inspection was made. The Contract is secured by a contractual liability or reimbursement insurance policy provided by Illinois National Insurance Company in all states with theexception of AR, CA, FL, MS, NC, NY, OK, VA, which are covered by New Hampshire Insurance Company Inc., both located at 180 Maiden Lane, 25th Floor, New York, NY 10038. Telephone 1-800-250-3819. If, within sixty (60) days after proof of loss has been filed, We have not paid a covered claim, provided You with a refund, You are otherwise dissatisfied, or We are no longer a going concern, You may make a claim directly to the insurance company. Please enclose a copy of Your Contract when sending correspondenceto the insurer.

23. ENTIRE CONTRACT. This is the entire Contract and no other written or oral modifications are valid.

24. LIMITATION OF LIABILITY. THE DEALER/RETAILER, SERVICE NET, THEIR AGENTS, CONTRACTORS OR LICENSEES WILL NOT UNDER ANY CIRCUMSTANCES BE LIABLE FOR ANY INCIDENTAL OR CONSEQUENTIALDAMAGES, INCLUDING, BUT NOT LIMITED TO, PROPERTY DAMAGE, LOST TIME, LOST DATA RESULTING FROM THE BREAKDOWN OR FAILURE OF ANY EQUIPMENT OR FROM DELAYS IN SERVICING OR THE INABILITY TO RENDER SERVICE ON ANY COVERED EQUIPMENT. EXCLUSION IS MADE OF ANY IMPLIED WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE. THERE ARE NO EXPRESS OR IMPLIED WARRANTIES MADE HEREIN.

If You have any questions, require customer service, or wish to report a claim, please contact:

Service Net Warranty, LLC, 650 Missouri Ave., Jeffersonville, IN 47130.

13-HVAC-US-101 8/26/14

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Rheem.comProtection Plus Program Guide for Dealers 11

Reference Forms

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CONT

RACT

OR (D

EALE

R) E

NROL

LMEN

T TE

RMS

AND

COND

ITIO

NS

AUTH

ORIZ

ATIO

N TO

SEL

L SE

RVIC

E NE

T EX

TEND

ED S

ERVI

CE A

GREE

MENT

S

The p

artie

s agr

ee th

at, up

on th

e exe

cutio

n (wh

ich in

clude

s De

aler’s

elec

tronic

acce

ptanc

e) of

the D

ealer

Enr

ollme

nt

Form

(“En

rollm

ent A

gree

ment”

) betw

een S

ervic

e Net

War

ranty

, LLC

(“Se

rvice

Net”

)par

t of A

IG an

d the

exec

uting

de

aler (

“Dea

ler”),

Dea

ler sh

all be

autho

rized

to of

fer th

e

Servi

ce N

et Ex

tende

d Ser

vice A

gree

ment

(“Ser

vice

Ag

reem

ent”)

for s

ale to

its cu

stome

rs su

bject

to th

efol

lowing

term

s and

cond

itions

:

LIMI

TED

AUTH

ORIT

Y Se

rvice

Net

autho

rizes

Dea

ler to

sell t

o its

custo

mers

appli

cable

Ser

vice A

gree

ments

on he

ating

, ven

tilatio

n, air

co

nditio

ning a

nd re

friger

ation

equip

ment

pursu

ant to

the

expr

ess t

erms

of th

is En

rollm

ent A

gree

ment

and t

he

appli

cable

sales

/servi

ce gu

idelin

es. A

ny ac

t take

n by t

he

Deale

r and

/or its

agen

ts tha

t is ou

tside

the s

cope

of th

is En

rollm

ent A

gree

ment

and t

he sa

les gu

idelin

es sh

all no

t be

autho

rized

, and

shall

be de

emed

a br

each

of th

is En

rollm

ent A

gree

ment.

Dea

ler sh

all be

liable

to S

ervic

e Net

for al

l dam

ages

, cos

ts an

d fee

s aris

ing ou

t of D

ealer

’s ac

ts ou

tside

the s

cope

of its

autho

rity.

WAR

RANT

IES

AND

REPR

ESEN

TATI

ONS

Deale

r her

eby r

epre

sents

and w

arra

nts to

Ser

vice N

et as

fol

lows:

Up

on ea

ch po

tentia

l sale

by D

ealer

of a

Servi

ce

Agre

emen

t, Dea

ler sh

all pr

omptl

y pay

Ser

vice N

et in

full a

ll amo

unts

due S

ervic

e Net

on su

ch sa

le. S

ervic

e Ag

reem

ent s

hall n

ot be

valid

unles

s and

until

Deale

r pa

ys S

ervic

e Net

in ful

l all a

moun

ts du

e Ser

vice N

et.

Deale

r sha

ll info

rm ea

ch ho

lder o

f a S

ervic

e Ag

reem

ent th

at the

Ser

vice A

gree

ment

shall

not b

e va

lid un

less a

nd un

til De

aler p

ays S

ervic

e Net

in ful

l all

amou

nts du

e to S

ervic

e Net;

Deale

r sha

ll pro

mptly

, but

in no

even

t later

than

six (

6)

month

s fro

m da

te of

purch

ase o

f Ser

vice A

gree

ment,

no

tify S

ervic

e Net

in wr

iting o

f eac

h sale

of a

Servi

ce

Agre

emen

t by D

ealer

inclu

ding d

elive

ry to

Servi

ce N

et

all in

forma

tion a

s is n

eces

sary

for S

ervic

e Net

to re

gister

each

Ser

vice A

gree

ment

sold

by D

ealer

and t

o ac

cura

tely i

denti

fy the

cove

red p

rodu

ct an

d hold

er of

su

ch S

ervic

e Agr

eeme

nt;

Ea

ch an

d eve

ry cla

im su

bmitte

d by D

ealer

to S

ervic

e Ne

t sha

ll be t

rue,

genu

ine an

d auth

entic

, sha

ll re

pres

ent s

ervic

es ac

tually

perfo

rmed

by D

ealer

on th

e eq

uipme

nt co

vere

d und

er th

e app

licab

le Se

rvice

Ag

reem

ent a

nd pa

rts ac

tually

used

for t

he be

nefit

of

the ho

lder o

f the S

ervic

e Agr

eeme

nt as

set fo

rth in

the

claim

, and

shall

be co

vere

d und

er th

e Ser

vice

Agre

emen

t. Clai

ms m

ade f

or pa

rts an

d lab

or w

hich

were

not a

resu

lt of a

n equ

ipmen

t failu

re w

ill no

t be

reim

burse

d by S

ervic

e Net;

Any a

pplic

ation

for a

Ser

vice A

gree

ment

subm

itted t

o Se

rvice

Net

after

six (

6) m

onths

from

the d

ate of

pu

rchas

e sha

ll be v

oid. S

ervic

e Net

shall

have

no

oblig

ation

to th

e Dea

ler or

appli

cant

there

unde

r and

De

aler s

hall b

e res

pons

ible f

or an

y and

all c

laims

re

lated

to su

ch ap

plica

tion a

nd sh

all in

demn

ify S

ervic

e Ne

t for a

ny da

mage

s rela

ted to

such

claim

s.

If D

ealer

did n

ot re

port

the re

lated

Ser

vice A

gree

ment

to Se

rvice

Net

and/o

r rem

it the

appr

opria

te su

m for

su

ch S

ervic

e Agr

eeme

nt pu

rsuan

t to th

e ter

ms of

this

Enro

llmen

t Agr

eeme

nt, S

ervic

e Net

may,

in its

sole

discre

tion,

acce

pt su

ch S

ervic

e Agr

eeme

nts; p

rovid

ed

that D

ealer

shall

not b

e reim

burse

d any

such

claim

s re

porte

d prio

r to D

ealer

’s su

bmiss

ion of

the f

ull am

ount

due f

or su

ch S

ervic

e Agr

eeme

nt an

d rem

ain re

quire

d to

subm

it full

amou

nt du

e to S

ervic

e Net.

Afte

r Dea

ler

has m

ade p

ayme

nt for

the f

ull am

ount

due a

nd an

y su

ch cl

aims,

Servi

ce N

et ma

y the

n acc

ept

resp

onsib

ility t

o inv

estig

ate, p

roce

ss, a

djust

and

arra

nge f

or th

e pay

ment

of an

y fur

ther v

alid c

laims

cove

red b

y the

Ser

vice A

gree

ment

after

nine

ty (9

0)

days

;

Deale

r sha

ll coll

ect a

ny ap

plica

ble sa

les ta

x inc

urre

d on

the s

ale of

Ser

vice A

gree

ments

and r

emit s

uch

taxes

to th

e app

ropr

iate t

ax au

thorit

y; an

d

In tho

se st

ates c

onsid

ered

“Dea

ler O

bligo

r” (C

A, C

O,

MA, M

E, N

C, N

J, OR

, PA,

TX

and V

A), th

e Dea

ler

shall

be co

nside

red t

he ob

ligor

unde

r the

Ser

vice

Agre

emen

t, but

shall

be na

med a

s an a

dditio

nal

insur

ed un

der S

ervic

e Net’

s app

licab

le co

ntrac

tual

liabil

ity in

sura

nce

polic

y.

Deale

r agr

ees t

hat it

shall

not in

itiate

any r

epair

(s) fo

r the

Se

rvice

Agr

eeme

nt ho

lder w

ithou

t che

cking

the d

ate an

d ter

ms of

the r

espe

ctive

Ser

vice A

gree

ment.

Dur

ing th

e re

spec

tive S

ervic

e Agr

eeme

nt pe

riod,

Deale

r sha

ll give

Se

rvice

Net

any f

actor

y war

ranty

or w

arra

nties

on al

l new

pr

oduc

ts an

d new

parts

. Ser

vice N

et re

serve

s the

right

to re

quire

Dea

ler to

prea

uthor

ize al

l repa

irs.

CL

AIMS

De

aler s

hall h

ave t

he rig

ht to

refus

e any

servi

ce w

ork o

r se

rvice

calls

. Dea

ler sh

all be

oblig

ated t

o pro

vide t

he

servi

ce re

quire

d with

one (

1) pe

rson p

er jo

b hou

r at th

e ra

tes pe

rmitte

d in t

he ap

plica

ble S

ervic

e Agr

eeme

nt, w

ith

no ov

ertim

e, ho

liday

pay,

or ot

her c

harg

es w

ithou

t the p

rior

writte

n con

sent

of Se

rvice

Net.

Dea

ler sh

all w

arra

nt its

se

rvice

(labo

r and

parts

) for

nine

ty (9

0) da

ys on

all re

pairs

or

repla

ceme

nts m

ade w

ithin

the te

rm of

the S

ervic

e Ag

reem

ent a

nd sh

all re

medy

failu

res w

ith ni

nety

(90)

days

W

ITHO

UT ad

dition

al ch

arge

to S

ervic

e Net.

Ser

vice N

et sh

all pa

y vali

d clai

ms w

ithin

thirty

(30)

days

from

rece

ipt of

all

nece

ssar

y clai

ms do

cume

ntatio

n by i

ts cla

ims

depa

rtmen

t. Al

l clai

m pa

perw

ork m

ust b

e file

d by

Dea

ler w

ith S

ervic

e Ne

t with

in six

ty (6

0) da

ys fr

om da

te of

failur

e. P

aper

work

includ

es cl

aim fo

rm, s

igned

and c

omple

ted fie

ld se

rvice

tic

ket, a

nd co

st ba

ck-u

p at m

inimu

m. C

laims

not s

ubmi

tted

withi

n sixt

y (60

) day

s will

beco

me th

e res

pons

ibility

of th

e De

aler.

OWNE

RSHI

P OF

INTE

LLEC

TUAL

PRO

PERT

Y Se

rvice

Net

is the

sole

owne

r or a

n auth

orize

d lice

nsee

of

any a

nd al

l cop

yrigh

ts, se

rvice

mar

ks, tr

adem

arks

, trad

e na

mes,

trade

dres

s, pa

tents

and a

ll othe

r intel

lectua

l pr

oper

ty (co

llecti

vely

refer

red t

o as t

he “I

ntelle

ctual

Prop

erty”

) use

d by S

ervic

e Net

in its

busin

ess,

includ

ing,

but n

ot lim

ited t

o, the

“Ser

vice N

et” t

rade

mark

and a

ll as

socia

ted tr

adem

arks

and s

ervic

e mar

ks. A

ll Inte

llectu

al Pr

oper

ty is,

and s

hall r

emain

, the s

ole an

d exc

lusive

pr

oper

ty of

Servi

ce N

et an

d its

licen

sors,

and n

othing

in th

is En

rollm

ent A

gree

ment

shall

gran

t or c

onve

y to D

ealer

any

rights

to, o

r lice

nses

in, th

e Inte

llectu

al Pr

oper

ty ex

cept

as

expr

essly

prov

ided f

or he

rein.

US

E OF

SER

VICE

NET

NAM

E Th

irty (3

0) da

ys pr

ior to

imple

menti

ng an

y sale

s, ma

rketin

g or

custo

mer s

olicit

ation

prog

ram

(e.g.

, dire

ct ma

iling,

broc

hure

desc

ribing

servi

ces o

r Ser

vice A

gree

ment,

ad

vertis

emen

ts, et

c.) w

hich,

in an

y man

ner,

uses

or

other

wise

explo

its th

e “Se

rvice

Net”

name

or tr

adem

ark,

or

any o

ther I

ntelle

ctual

Prop

erty,

Dea

ler m

ust n

otify

Servi

ce

Net’s

mar

ketin

g divi

sion a

t [80

0-88

6-93

63] o

f said

prog

ram,

an

d mus

t obta

in Se

rvice

Net’

s writt

en ap

prov

al of

said

prog

ram

and u

se or

othe

r exp

loitat

ion of

the “

Servi

ce N

et”

name

, trad

emar

k or o

ther I

ntelle

ctual

Prop

erty.

Ser

vice N

et sh

all ha

ve th

e sole

and e

xclus

ive rig

ht to

rejec

t any

such

pr

ogra

m or

camp

aign f

or an

y rea

son w

hatso

ever

. In t

he

even

t Dea

ler fa

ils to

notify

Ser

vice N

et as

set fo

rth ab

ove,

or

fails

to ob

tain t

he re

quire

d app

rova

l of th

e pro

gram

, De

aler s

hall h

ave n

o righ

t to us

e or o

therw

ise ex

ploit t

he

“Ser

vice N

et” na

me or

trad

emar

k, or

any o

ther I

ntelle

ctual

Prop

erty,

in sa

id pr

ogra

m in

any m

anne

r wha

tsoev

er.

TERM

INAT

ION

Subje

ct to

the te

rms o

f this

para

grap

h, eit

her p

arty

may

termi

nate

this E

nroll

ment

Agre

emen

t at a

ny tim

e, wi

th or

wi

thout

caus

e, up

on th

irty (3

0) da

ys pr

ior w

ritten

notic

e to

the ot

her p

arty.

In th

e eve

nt Se

rvice

Net

disco

vers

evide

nce o

f a D

ealer

’s (o

r its a

gent’

s) ma

terial

frau

d, mi

srepr

esen

tation

or br

each

of th

is En

rollm

ent A

gree

ment,

Se

rvice

Net

shall

prom

ptly n

otify

Deale

r, in

writin

g, of

its

evide

nce a

nd fin

dings

. Upo

n suc

h an e

vent

and p

rior

writte

n noti

ce to

Dea

ler, S

ervic

e Net

may t

ake s

uch a

ction

as

it de

ems r

easo

nable

and n

eces

sary,

inclu

ding b

ut no

t lim

ited t

o (i) r

equir

ing th

e De

aler t

o imm

ediat

ely te

rmina

te an

y age

nt(s)

or em

ploye

e(s)

found

to ha

ve en

gage

d in

mater

ial fr

aud,

misre

pres

entat

ion or

brea

ch, (

ii) co

nduc

ting

an ac

coun

ting a

nd re

view

of De

aler’s

book

s and

reco

rds,

(iii) r

equir

ing D

ealer

to im

pleme

nt ce

rtain

inter

nal

proc

edur

es to

redu

ce th

e inc

idenc

e of s

uch f

raud

, mi

srepr

esen

tation

or br

each

, or (

iv) im

media

tely t

ermi

natin

g thi

s Enr

ollme

nt Ag

reem

ent; p

rovid

ed, h

owev

er, th

at im

media

te ter

mina

tion s

hall o

nly be

upon

a go

od fa

ith

findin

g tha

t Dea

ler ha

s eng

aged

in a

patte

rn an

d pra

ctice

of

fraud

, misr

epre

senta

tion a

nd br

each

, or h

as fa

iled t

o tak

e re

ason

able

and n

eces

sary

meas

ures

to pr

even

t suc

h fra

ud,

misre

pres

entat

ion or

brea

ch by

its ag

ent(s

) or e

mploy

ee(s)

aft

er be

ing pu

t on n

otice

of th

e sam

e. U

pon s

uch

termi

natio

n, De

aler s

hall h

ave n

o fur

ther r

ight to

sell,

marke

t or d

eal in

Ser

vice A

gree

ments

, or a

ny S

ervic

e Net

prod

uct, i

n any

man

ner o

r on b

ehalf

of an

y par

ty, an

d De

aler s

hall h

ave n

o fur

ther r

ight to

, dire

ctly o

r indir

ectly

, su

bmit a

ny cl

aim or

claim

s, re

gard

less o

f their

natur

e and

tim

ing, u

nder

or pu

rsuan

t to sa

id Se

rvice

Agr

eeme

nts.

CANC

ELLA

TION

In

the ev

ent o

f a ca

ncell

ation

of a

Servi

ce A

gree

ment,

Se

rvice

Net

shall

prom

ptly r

efund

Ser

vice N

et’s p

ro-ra

ta po

rtion o

f the m

onies

it re

ceive

d fro

m the

sale

of the

or

igina

l Ser

vice A

gree

ment.

Dea

ler sh

all pr

omptl

y retu

rn

the pr

o-ra

ta pu

rchas

e pric

e of th

e Ser

vice A

gree

ment

the

resp

ectiv

e hold

er of

the S

ervic

e Agr

eeme

nt in

acco

rdan

ce

with

the S

ervic

e Agr

eeme

nt. F

or de

tails

on ca

ncell

ation

of a

Servi

ce A

gree

ment,

plea

se re

fer to

the

Servi

ce N

et Te

rms

and C

ondit

ions.

ENFO

RCEM

ENT

Notw

ithsta

nding

anyth

ing el

se co

ntaine

d here

in, S

ervic

e Ne

t may

seek

a tem

pora

ry re

strain

ing or

der,

preli

mina

ry inj

uncti

on an

d/or a

perm

anen

t injun

ction

in or

der t

o pre

vent

the D

ealer

from

conti

nuing

to se

ll, off

ering

or m

arke

ting

Servi

ce A

gree

ments

or fr

om co

ntinu

ing to

repr

esen

t itse

lf as

an au

thoriz

ed de

aler,

agen

t or r

epre

senta

tive o

f Ser

vice

Net.

ATTO

RNEY

S FE

ES

In the

even

t of li

tigati

on be

twee

n the

partie

s for

any m

atter

ar

ising

out o

f, rela

ted to

or co

nnec

ted w

ith th

is En

rollm

ent

Agre

emen

t or t

he S

ervic

e Agr

eeme

nt(s),

or th

e bre

ach o

r no

n-pe

rform

ance

here

of, if

Servi

ce N

et is

the pr

evail

ing

party

in su

ch lit

igatio

n, Se

rvice

Net

shall

be en

titled

to

reco

ver a

gains

t Dea

ler re

ason

able

attor

neys

’ fees

, ex

pens

es an

d cou

rt co

sts at

all le

vels.

GOVE

RNIN

G LA

W

Indian

a law

, inclu

ding i

ts law

s gov

ernin

g the

confl

icts o

f law

s, sh

all go

vern

this

Enro

llmen

t Agr

eeme

nt an

d any

and

all di

spute

s aris

ing he

reun

der o

r rela

ted he

reto.

The

ex

pens

e of th

e disp

utes s

hall b

e bor

ne by

Dea

ler. A

ll dis

putes

shall

take

plac

e in

Jeffe

rsonv

ille, In

diana

. E

XCEP

T FO

R MO

DIFI

CATI

ON T

O TH

E SE

RVIC

E AG

REEM

ENT

AND

THE

SALE

S/SE

RVIC

E GU

IDEL

INES

, (W

HICH

SHA

LL B

ECOM

E EF

FECT

IVE

FOR

SUBS

EQUE

NT S

ALES

AND

SUB

SEQU

ENT

SERV

ICE

UPON

POS

TING

BY

SERV

ICE

NET)

, ANY

MO

DIFI

CATI

ONS

IN T

HE A

BOVE

TER

MS A

ND

COND

ITIO

NS S

HALL

NOT

BE

EFFE

CTIV

E OR

AC

CEPT

ED W

ITHO

UT A

PRI

OR W

RITT

EN C

ONSE

NT

SIGN

ED B

Y AN

OFF

ICER

OF

SERV

ICE

NET.

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Rheem.com

Rheem Heating, Cooling & Water HeatingP.O. Box 17010, Fort Smith, AR 72917

Rheem manufactures residential & commercial heating, cooling and water heating products. “In keeping with its policy of continued progress and product improvement, Rheem reserves the right to make changes without notice.”Printed in the U.S.A. 9/14 DC Form No. M11-1770 Version 2 Program Guide