In consideration of the cost shown on the reverse side of this form and subject to the terms and conditions of the policy, the Insurer shall pay the Insured for the deficiency balance remaining due to Loss to the Covered Vehicle. The policy shall serve as excess coverage over the Primary Carrier's policy, and shall be limited to Constructive Total Losses and Unrecovered Theft losses only.

The amount we will pay for the Covered Vehicle shall not exceed the lesser of:

A.) The amount shown as the Maximum Limit of Liability on the reverse side of this form; or B.) If the Covered Vehicle is protected by a Primary Carrier; the amount obtained by subtracting the primary insurance settlement including the primary insurance deductible from the Unpaid Net Balance plus the amount of the primary insurance deductible or the amount shown as the Maximum Deductible Buyback on the reverse side of this form, whichever is less: or C.) If the Covered Vehicle is not protected by a Primary Carrier; the amount obtained by subtracting the Actual Cash Value of the Covered Vehicle from the Unpaid Net Balance.

We will not pay for any portion of the Unpaid Net Balance that results from either the original purchase/loan amount, with regard to loans and installment sales contracts, or the total capitalized amount, with regard to leases; including all refundable items such as service contracts, warranties, insurance, or other such items; exceeding the percentage indicated on the reverse side of this form as Purchase/Loan/Lease Limit of a) the Manufacturer’s Suggested Retail Price (MSRP) for new vehicles or b) the then current National Automobile Dealers Association (NADA), used car guide’s average retail value.

A. INSURED, PURCHASER, BORROWER, LESSEE, YOU, YOUR: The person or persons identified as the Purchaser/Borrower/Lessee on the reverse side of this form.

B. COMPANY, INSURER, WE, US, OUR: The insurance company named on the reverse side of this form.

C. COVERED VEHICLE: The vehicle which is 1) identified on the reverse side of this form and 2) which is principally garaged and used in the United States and 3) that is not used for Commercial Purposes; and 4) for which the cost indicated on the reverse side of this form has been paid to the Company.

D. COMMERCIAL PURPOSES: Carrying goods or passengers for compensation. This includes, but is not limited to, using a vehicle as a taxi, or for livery or delivery services where compensation is provided for those services, or other commercial use. Share-the -expense car pools are not considered a Commercial Purpose under this policy.

E. PRIMARY CARRIER: The insurance company that: 1) is used by you to provide physical damage insurance on the Covered Vehicle for Comprehensive and Collision for an amount not less than its retail market value, or 2) provides liability coverage to any person who has caused the Covered Vehicle to incur a Constructive Total Loss, and for which that person is legally liable.

F. CONSTRUCTIVE TOTAL LOSS: A loss where the cost to repair or replace the Covered Vehicle would exceed the Actual Cash Value, as determined by the Primary Carrier or as determined by Us if the Covered Vehicle is not protected by a Primary Carrier.

G. UNRECOVERED THEFT: A Covered Vehicle reported as stolen to both the police and the Primary Carrier, who have made every effort, yet have failed, to find and return the Covered Vehicle. A Covered Vehicle improperly taken or secreted by any person in lawful possession of the Covered Vehicle shall not be deemed for the purposes of this insurance, as an Unrecovered Theft loss.

H. UNPAID NET BALANCE: The amount owed by You, resulting from early termination of the Financing Contract, and subject to the terms and conditions stated in the Financing Contract. This amount may not include any non-refundable "dealer reserve"; unearned interest; lease or loan charges; late charges; any Delinquent Payments; any uncollected service charges; refundable prepaid taxes and fees; or any indebtedness of the Purchaser/Lessee/Borrower arising prior to the effective date of the instrument and included in the initial instrument balance, which together with the vehicle exceeds 120% of the MSRP/ACV; other proceeds You may duly recover by canceling insurance coverages, service contracts or warranties; disposition fees, termination fees, penalty fees, or other items built into or added to the initial purchase/lease/loan balance.

I. DELINQUENT PAYMENTS: Any payment, as described in the Financing Contract, which remains unpaid for a period of more than ten (10) days after the date stated in the Financing Contract. Delinquent Payments will also include any late charges or interest that have accrued due to Financing Contract payments being past due.

J. ACTUAL CASH VALUE: The total amount paid by the Primary Carrier, plus any physical damage deductibles, in the event of a Constructive Total Loss or an Unrecovered Theft. However, if there is no collectible primary physical damage or theft insurance in effect at the date of loss, Actual Cash Value shall mean the retail value of the Covered Vehicle with appropriate adjustments for mileage or optional equipment. The retail value will be determined from the current, at date of loss, National Automobile Dealers Association (NADA), or its equivalent, official used car guide.

K. ELIGIBLE COLLATERAL includes autos and light trucks (up to 1 ton), motorcycles, all terrain vehicles (ATV), snowmobiles and personal watercraft (i.e., Jet Skis, Wave Runners). Eligible Installment Sale Contracts/Loans/Leases must have an original term of 84 months or less and have a uniform monthly repayment term.

The coverage does not apply to loss or damage a) resulting directly or indirectly from any dishonest, fraudulent, criminal, or illegal act or arising from an intentional act committed by the Purchaser/Borrower/Lessee; b) due to wear and tear, freezing, mechanical or electrical breakdown or failure; c) due to war, whether or not declared, invasion, civil war, insurrection, rebellion or revolution; d) due to confiscation; or e) resulting from the vehicle being operated, used, or maintained in any race, speed contest, or other contest. The policy also does not apply to any vehicle used for Commercial Purposes, if the loan or lease’s first payment is greater than 60 days from loan origination or if the loan or lease includes a "Balloon" payment.

You must file your potential claim for loss with your lender/lessor or dealer as soon as practicable. For each loss, You must subsequently complete a claim report, on a form approved by your lender/lessor or dealer, which must include, but is not limited to, the following information:

1) a copy of the primary insurance settlement and check; 3) a copy of the police report in the case of an Unrecovered Theft;

2) verification of the primary insurance deductible; 4) a calculation by the Lender/Lessor of the Unpaid Net Balance.