1. Parties
Except as stated below, the obligor ("Obligor") on Your service contract ("Contract") is Federal Warranty Service Corporation, P.O. Box 105689, Atlanta, GA 30348-5689, (770) 763-1000 . FL Obligor: AMERICAN BANKERS INSURANCE COMPANY OF FLORIDA P.O. Box 105689, Atlanta, GA 30348-6589, (770) 763-1000 ("ABIC"). CA Obligor: Sureway, Inc., P.O. Box 105689, Atlanta, GA 30348-6589, (770) 763-1000. MA Obligor: General Electric Company, P.O. Box 100, Rapid City, SD 57709, (800) 626-2224 ("GE"). For water heaters, home appliances, plumbing and electrical, the Obligor is the same as stated above except in VA , where GE is the Obligor and in CA, where ABIC is the Obligor. The administrator ("Administrator") of this Contract is GE. The service performed under this Contract is provided through the Administrator or a servicer approved by the Administrator. This Contract is insured by an insurance policy issued by ABIC ("Insurer"). "We," "Us" and "Our" mean collectively the Obligor, Administrator and Insurer. "You" and "Your" mean the owner of the covered product who paid for this Contract.

2. Product Coverage

A covered product will be restored to normal operating condition after it has failed during normal single-family household use, excluding failures due to power surges. The plan covers all labor and parts costs necessary to repair Your covered product for problems due to functional part failures. If You have more than one product installed of the same type (e.g. two refrigerators, three central air/heating units), We will cover the first product for which You file a claim, unless You have coverage on all products of the same product type.

The following coverage applies if listed on the Schedule Page of this Contract.

Major Appliances - Such as Washer, Dryer, Refrigerator, Dishwasher, Compactor, Oven, Range.
Food Spoilage - You will be reimbursed for food losses resulting from the covered failure of Your refrigerator or freezer up to $100 per appliance over the life of this Contract; proof of loss will be required.

Home Appliances (HVAC) - Such as Central Air Conditioner, Heat Pump, Humidistat, and Dedicated Heat Pump.
Not covered - duct work, refrigerant lines, drain lines, or evaporation/condenser coils if rusted or corroded.

Other Appliances - Such as GE Water Softener, GE Undercounter Water Filter, GE Reverse Osmosis Water System.

Electronics - Such as TV, VCR, Personal Digital Assistant (PDA), Camcorder, Stereo, CD Player, Tape Player, DVD, remote control (remote control replacement of comparable functionality once per Contract).

Plumbing - Minor plumbing, such as water leaks on exposed plumbing limited to the interior of the residence.
Not covered - faucets, fixtures, main water lines and valves, foreign plumbing parts, or stoppages.

Electrical - Minor electrical, such as plugs, wall switches, outlets, circuit breakers.
Not covered - repair or replacement of main breaker or busbars, underground or in-the-wall wiring, or light bulb replacement.

Water Heaters - Thermostat, heating element, relief valve.
Not covered - holding or storage tank, solar water heater.

Digital Satellite Systems (DSS) - Receiver Exchange, Antenna Dish, LNB. If receiver replacement is needed, You will be required to return the defective receiver to the address provided to You by Administrator. Administrator will cover all shipping and handling expenses.

3. Coverage Period

Your coverage begins and ends on the dates identified on the Schedule Page of this Contract. If a labor end date is not specified, coverage will continue month-to-month until terminated and this Contract will be automatically renewed on a monthly basis, unless You notify Administrator in writing of Your decision not to renew.

4. Location of Service

A. In-home Service - If "in-home" service is specified, service will be provided at the address on the Schedule Page. If your product must be repaired elsewhere, pick-up and return expenses are covered.

B.Carry-in/Mail-in Service - If "carry-in/mail-in" service is specified, and there is a local servicer near You, You are responsible for delivering Your product to and from the authorized repair center. Some products, such as PDAs, digital cameras and digital camcorders, due to their sensitive technical nature, require the controlled environment of a factory authorized service center. Administrator will provide instructions to mail-in these products to an authorized servicer for repair. Reasonable mail-in expenses to and from the service location are covered.

DSS Service - Some types of service will be provided in Your home and for others, You will be responsible to remove and send the product to the address provided to You by Administrator and to reinstall the product. Administrator will cover all shipping and handling expenses.

5. If You Need Service

Call the telephone number displayed on the Schedule Page of this Contract to schedule service. Service will be available during regular working hours.

6. Moving Your Covered Products to a New Location in the USA

If You have coverage on Major Appliances, Major Electronics, DSS, or Major Components, You can change Your service address at any time by notifying Administrator in writing at the address on the Schedule Page.

7. If the Owner of the Covered Product is Changing

You can assign the product coverage to another person by notifying Administrator in writing at the address on the Schedule Page and enclosing a check for $10.00 to cover processing and administration costs. The coverage will become effective when We receive Your written notice and check.

8. Contract Cancellation

You may cancel at any time:
A. Notification - Notify the Administrator in writing at the address on the Schedule Page and include Your original Contract. You will receive a refund based on the following: (1) if Your Contract and cancellation notice are received within 30 days of the purchase date of this Contract, You will be refunded the full Contract price; (2) if Your Contract and cancellation notice are received after 30 days from the purchase date but before the effective date of this Contract, as indicated on the Schedule Page, You will be refunded the full Contract price, less an administrative fee of 10% of the Contract price or $25, whichever is less, unless otherwise precluded by law; and (3) if Your Contract and cancellation notice are received after the effective date of this Contract, You will be refunded a pro-rated amount of the Contract price, less any claims paid, less an administrative fee of 10% of the pro-rated Contract price or $25, whichever is less, unless otherwise precluded by law.

B. Cancellation by Administrator - If Administrator cancels the Contract, for any contractual reason, fraud, misrepresentation or non-payment by You, return of premium will be based on 100% of the unearned pro-rata premium.

9. Contract Limitations

A. Indirect Damages – IN NO EVENT ARE WE LIABLE FOR SPECIAL, INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES RELATING DIRECTLY OR INDIRECTLY TO THIS CONTRACT.

B. Limitation of Liability – To the extent permitted by applicable law, Our liability, if any, for any allegedly defective covered product or part shall be limited to repair or replacement of the product or part at Administrator's option, and Our liability, if any, for damages relating to any defective covered product or part shall not exceed Your purchase price for the product or part in question. THIS CONTRACT IS YOUR SOLE EXPRESS WARRANTY WITH RESPECT TO THE COVERED PRODUCT(S). ALL IMPLIED WARRANTIES WITH RESPECT TO THE PRODUCT(S) INCLUDING, BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, ARE HEREBY EXPRESSLY EXCLUDED.

C. Renewals – - We are not obligated to renew Your Contract.

D. Non-Original MFR and Re-Manufactured Parts – Genuine factory parts will be used whenever possible; however the use of non-original MFR and re-manufactured parts is allowed under this Contract.

E. Non-Repairable Products – Administrator, in its sole discretion, will determine if Your product is "non-repairable." If it is, Your remedy is to select a GE PRODUCT or a MONETARY credit ("Credit") from one of the schedules below. IF YOU CHOOSE A CREDIT FOR GE PRODUCT FROM SCHEDULE 1: (A) YOUR CREDIT WILL BE TEN (10) PERCENTAGE (%) POINTS HIGHER THAN IF YOU CHOOSE A MONETARY CREDIT FROM SCHEDULE 2, AND (B) YOU MUST USE THE GE PRODUCT CREDIT IN ITS ENTIRETY AND PAY ANY PRICE DIFFERENCE REQUIRED TOWARDS THE TOTAL PURCHASE PRICE.

Schedule 1: GE PRODUCT CREDIT to be applied to comparable replacement GE product

Product Age% CreditAge% CreditAge% Credit
1100578948
21006721042
39076011+36
484854
Schedule 2: MONETARY CREDIT to be applied to replacement product purchase only
Product Age% CreditAge% CreditAge% Credit
1100568938
21006621032
38075011+26
474844

The following additional terms shall apply:

(1) Credit amount is based on original purchase price not including sales tax, as shown on proof of purchase supplied to Administrator. Absent proof of purchase, Administrator will fix a price based on current comparable product prices;
(2) UNDER NO CIRCUMSTANCES SHALL A CREDIT FOR AN HVAC PRODUCT EXCEED $1,000;
(3) The Credit to which you are entitled shall never be less than the amount(s) You actually paid toward the price (including tax) of the Contract currently in effect;
(4) "Non-repairable" product is a product that Administrator determines cannot feasibly be repaired based on commercial and technical considerations including, but not limited to: age of product, repair cost, number of times the product has been repaired or attempted to be repaired, physical access, or parts not available in GE's parts warehouse or after a reasonable search in the case of non-GE parts;
(5) Unless otherwise precluded by law, provision of a Credit, or product replacement, shall constitute fulfillment of the Contract and shall excuse Administrator from any further performance of this Contract or obligations arising thereunder as to the affected product;
(6) The affected product will become the property of Administrator if Administrator unilaterally elects to recover the product at its own expense. If Administrator does not recover the product, You must dispose of it in compliance with the law;
(7) If you select a monetary credit, You must first confirm in writing that You will use the credit for a replacement product.

F. Service Failure or Delay – Administrator is not responsible for any failure or delay in performing service due to acts of God, war, or other causes beyond its control.



10. Consumer's Promises and Assurances

In order to keep this Contract in force during its term, You promise and assure: (1) full cooperation with Administrator and authorized service technicians during diagnosis and repair of the covered product; (2) accessibility of the covered product; (3) a non-threatening and safe environment for in-home service; (4) the presence of an adult at the time of scheduled service; (5) that the covered product is not used for business or commercial purposes; (6) that You will provide normal preventative maintenance for the covered product; and (7) that You will provide written notice of any defect or deficiency in service within 90 days of discovery by You.

11. What is Not Covered

Your Contract does not cover:

A. repair of product(s) upon noncompliance of any part of Section 10 by You;

B. coverage, components, products or items not specifically listed herein;

C. consumer replaceable items such as batteries, tapes, ribbons, bulbs, hoses, water membranes, air & water filters, fuses, belts, knobs, vacuum cleaner belts, bags, projection TV screen protectors, film, accessory cables, removable data storage media;

D. any repair covered by a MFR's original warranty or initiated by the MFR, or recall program whether the MFR is in business or not & all new products with less than an original 90 day MFR's parts & labor warranty and costs associated with MFR's recommended normal maintenance;

E.unauthorized repairs performed by third parties, inaccessible products, theft;

F. failures of components such as cabinets, frames, masks, finish defects, glass, scratched lenses;

G. damage or failures caused by conditions beyond Administrator's control such as freezing, inadequate plumbing, wiring, power supply, power surge, rust, corrosion, infestation, negligence, abuse, misuse, acts of God, failure to follow MFR's recommended maintenance, improper installation, leaking batteries, video game & other display markings, problems with phone lines;

H. repair or replacement caused by defects that existed prior to this Contract purchase;

I. service outside the continental USA and Hawaii;

J. water filtration systems where water is microbiologically unsafe or of unknown quality when there has not been adequate disinfection before or after installation of the system, such as single-user wells, or other non-public water systems not regulated by federal or state health and safety requirements;

K. products used for commercial purposes;

L. loss or damage to recording media, software or data, computer viruses, software defects or software generated problems;

M. shipping damage to products resulting from inadequate packaging by You;

N. upgraded, retrofit, or unapproved components, such as electronic thermostats;

O. TV image burn-in, plasma or LCD panels for minor pixel illumination issues that do not affect the overall viewing of the panel such as, but not limited to, missing pixels, intermittent pixels, or wrong color pixels;

P. TV stands.



12. Special Provisions

Note - These terms and conditions, including all provisions, limitations, definitions and exclusions, and the Schedule Page, constitute the entire Contract.
Subrogation - In the event Administrator repairs or replaces any covered product due to any defect for which the manufacturer ("MFR") or its agents or suppliers may be legally responsible, You agree to subrogate and assign Your rights of recovery to Administrator. You will be reimbursed for any reasonable costs and expenses You may incur in connection with the subrogation and assignment of Your rights.

13. Arbitration

MANDATORY ARBITRATION: Please read carefully. Either party may elect to resolve any legal dispute by binding Arbitration. If You or We elect to arbitrate a Claim (defined below), neither party will have the right: (1) for a court or a jury to decide the Claim; (2) to engage in discovery to the same extent a court would allow; (3) to participate in a class action in court or in Arbitration, either as a class representative or a class member; (4) to act as a private attorney general in court or in Arbitration; or (5) to join or consolidate Your Claim(s) with claims of another person(s). Other rights, such as the right to appeal, are more limited in Arbitration than in court. Only a court may determine the validity and effect of the language in this Section. If a court holds this language to be invalid, then this entire Mandatory Arbitration Provision shall be made null and void.
Right to Reject Arbitration: You may reject Arbitration. If You do, neither You nor We can require Arbitration of any Claim. Rejection of Arbitration will not affect any other part of Your Contract. To reject Arbitration, You must send us a Rejection Notice that We receive within sixty (60) days after the date You bought Your Contract. Any Rejection Notice must include Your name, address, and Contract number, and must be sent by certified mail to P.O. Box 100, Rapid City, SD 57709. If We dispute whether You sent a timely Rejection Notice, You must show a signed delivery receipt. This process is the only way to reject Arbitration.
Definitions: "We," "Us," "Our" for purposes of this Section includes the Obligor, Administrator, Insurer and any third party which the Administrator or Insurer agree to defend and indemnify regarding a Claim, and all of their parents, subsidiaries, affiliates, predecessors, successors, assigns, employees, officers and directors. "Claim" means any dispute under any law or legal cause of action between You and Us that arises from or relates to Your Contract, the relationships which result from it, or any prior agreement or service contract, including the enforceability or scope of this Section. It includes disputes that seek relief of any type, including injunctive, declaratory or damages. It includes disputes that arose before this Section's effective date. "Arbitrator" means the National Arbitration Forum, P.O. Box 50191, Minneapolis, MN 55405, www.arb-forum.com, (800) 474-2371, American Arbitration Association, 335 Madison Avenue, New York, NY 10017, www.adr.org, (800) 778-7879, or JAMS, 45 Broadway, 28th Floor, New York, NY 10006, www.jamsadr.com, (800) 352-5267.
Scope: This Section covers all Claims, except that We will not arbitrate an individual small claims court Claim, unless it is transferred, removed, or appealed to a different court. Starting Arbitration: To start Arbitration, a party must give written notice of their election to arbitrate. Notice can be given after a lawsuit has been filed (including in papers in the lawsuit). Upon Notice, the Claim shall be resolved by Arbitration under this Section and the rules of the Arbitrator. You can choose the Arbitrator in Your written notice electing to arbitrate, or by giving Us written notice of Your selection within 30 days after Our Arbitration Notice. Arbitrators shall be selected as per the Arbitrator's rules and shall be retired judges or lawyers with at least 10 years experience.
Location and Costs:Any Arbitration hearing will occur in a location reasonably convenient for You. On Your written request, We will pay all filing, administrative, hearing and/or other fees charged by the Arbitrator to You for Claim(s) asserted by You up to $2,500 after You have paid an amount equivalent to the fee, if any, for filing such Claim(s) in state or federal court in the judicial district where You live. (If You have already paid a court filing fee, You will not be required to pay that amount again.) If You must pay any fees over $2,500 to the Arbitrator--and cannot get a hardship waiver for such fees--We will consider in good faith Your reasonable written request to pay all or part of such added fees. Each party must pay for its own attorneys, experts and witnesses, regardless of who wins the Arbitration, unless applicable law and/or the Arbitrator's rules provide otherwise. We will under all circumstances pay any fees or expenses We are required to pay by law.
Governing Law:This Section is governed by the Federal Arbitration Act, 9 U.S.C. §§1 et seq. ("FAA"), and not by any state Arbitration law. The Arbitrator shall follow applicable law related to any Claim, statutes of limitation, and claims of privilege. Upon either party's timely request, the Arbitrator shall explain his decision in writing. The Arbitrator will set rules of procedure and evidence consistent with the FAA, this Section and the Arbitrator's rules.
Getting Information:At either of our request, the Arbitrator shall (1) consider a request for additional information from the other party beyond what is allowed by the applicable rules, and (2) issue a written decision supported by findings of fact and conclusions of law.
Effect of Arbitration Award: Any court may enter judgment upon an Arbitrator's award. The Arbitrator's decision will be final and binding except for (1) any appeal right under the FAA, and (2) any party may appeal awards of more than $100,000 to a three-Arbitrator panel appointed by the Arbitrator, which will reconsider any aspect of the appealed award from the beginning as if it had not been previously arbitrated. The panel's decision will be final and binding, except for any FAA appeal rights. Unless applicable law provides otherwise, the appealing party will pay the appeal's costs, regardless of its outcome. However, We will consider any reasonable written request for Us to bear the cost.
Continued Effect of Arbitration Section:This Section will survive the termination of our relationship and remain in force no matter what happens to You or Your Contract. If this Mandatory Arbitration Provision (or any part of it) is not valid or cannot be enforced under any applicable law, whether for public policy reasons or otherwise, it shall be made null and void without further action by either of us and the rest of Your Contract will remain valid. In case of a conflict or inconsistency between this Section, the Arbitrator's rules, or other Contract Sections, this Section will govern. Only a court may adjudicate the validity of this Section or any part of it.