Leading F&I Provider Committed to Delivering Quality ... · 3/21/2018 · • Draw more interested buyers into your dealership • Increase your customer loyalty and retention rates

Guaranteed Asset Protection (GAP) Waiver

Unmatched Service Comes from ExperienceSM

Leading F&I Provider Committed to Delivering Quality Products and Services

• Your service department and customers will appreciate our award winning company* and claims process• You will gain access to a variety of web-based services, from rating to remitting• Your current DMS and menu provider will integrate seamlessly with us• You will be supported by over 35 years of industry-leading expertise • You will have peace of mind with the backing of over $50 billion in assets from CNA Financial

UNPARALLELED SERVICE makes it easy to do business

• Vehicle Service Contracts• Guaranteed Asset Protection (GAP) Waiver• Limited Warranty and Wrap Programs• Tire & Wheel

COMPREHENSIVE SUITE OF PRODUCTS that meets your customers’ needs

• We offer multiple participation programs to meet short- and long-term financial goals• We offer F&I training for dealership personnel, from beginning to advanced classes, to help deliver

consistent, elevated results

PROVEN PROGRAMS maximize your profit potential

*As awarded by Auto Dealer Today: “Best Service Contract Provider” 2005-2010, 2012-2017

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Vehicle Service Contracts


1 Covers vehicles used for hire to the public or to transport people for hire if the vehicle is titled in a personal name and the vehicle is operated by one individual or multiple related individuals.

2 Does not apply to Powertrain coverage. Please see actual contract for terms, conditions, limitations and exclusions. Coverage varies by eligibility and chosen program option. All terms and conditions are subject

to state limitations and requirements.

Our outstanding vehicle service contracts are what put us on the map

Z2 PROGRAM HIGHLIGHTS

Choice of increasing levels of coverage, from basic powertrain to our top-of-the-line exclusionary coverage

No exclusion for pre-existing conditions

Multiple deductible options, including disappearing deductible(s) to help increase customer retention

A repeated repair of the same item includes no deductible

No exclusion for breakdown due to wear and tear

No exclusion for ride sharing commercial use1

Propulsion battery coverage included2

Additional coverage provided for custom suspension and/or snowplow-equipped vehicles (surcharges apply)2

Sport package components, such as body accessories, utility, and four-wheel accessories, included in our exclusionary coverage

Awarded #1 Vehicle

Service Contract Provider

Towing Reimbursement up to $150/occurrence

Roadside Assistance up to $50/occurrence

Travel Reimbursement $100 per day, up to $300/occurrence

Rental Car Reimbursement up to $50/day for maximum of seven days

Future Contract Guarantee based on underwriting guidelines

Transferability can increase resale value

CONSUMER BENEFITS AMONG THE BEST IN THE INDUSTRY

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Unmatched Service Comes from ExperienceSM Vehicle Service Contracts

*As awarded by Auto Dealer Today: “Best Service Contract Provider” 2005-2010, 2012-2017. Stated-component coverage comparison is for illustrative purposes only. See supplemental inserts or the actual contract for a list of components covered under each category. This overview is not all-inclusive. Please see the actual contract for terms, conditions, limits of liability, exclusions, and state-specific provisions that may change your coverage and/or benefits.

CHOOSE THE #1 VEHICLE SERVICE CONTRACT PROVIDER*Four Increasing Levels of Coverage...

BEST Automotive Preferred Care+PlusSM

If the part is not listed below, it’s covered

Accessory drive belt(s), hoses, radiator cap, tubes and clamps Glass, including fogged or hazy headlight lenses

Antenna mast and mirrors Jack and tool kit, wheel lugs and lug nuts

Audio speakers and wiring Manual transmission clutch disc, pressure plate and throw-out bearing

Body, body panels, body fasteners, chassis frame and bumpers Natural gas/propane fuel system

Brake drums, rotors, pads and linings PCV valve, oil separator and fuel vapor canister

Bright metal, trim, upholstery, carpet, insulation and paint Spark plugs, plug wires and glow plugs

Convertible top fabric (except frame) Starting, lighting, ignition (SLI) battery

Exhaust system and catalytic converter Tires, wheels and wheel covers

Filters and filter housings Windshield wiper rubber inserts

Fuses and fusible links

BASICPowerTrain Advantage

Care+PlusSM

GOODVehicle Value Care+PlusSM

BETTERMechanical Advantage

Care+PlusSM

Engine

Transmission

Drivetrain Assembly

Suspension

Front-Wheel Steering

Brakes (Manual & Power)

Electrical

Air Conditioning & Heating

Fuel System

Cooling System

Steering

Thermostat

Interior Electronics

Powertrain Electronics

ABS Brakes

Convenience Accessories

Vehicle Hardware

Stated-Component Coverage

Exclusionary Coverage



• For new and used vehicles • Can be financed on loans up to 84 months• Available on loans up to 150% of MSRP (new vehicles) or NADA retail value (used vehicles)

CNA National Warranty Corporation is the administrator of the GAP Waiver Addendum programs. Please see the actual GAP Waiver addendum for exclusions and limitations of coverage. State restrictions may apply.

GAP ADVANTAGESM GAP PREFERREDSM GAP ELITESM

Eligibility guidelines

• Retail sales value up to $100,000

• Models 15 years old or newer

• Retail sales value up to $100,000


• No limit on value of collateral


Waiver amount Up to $50,000 Up to $50,000 Limited to 150% of MSRP or NADA retail

Insurance deductible coverage Up to $1,000 Up to $1,000 Up to $1,000

Discount allowance None $1,000 None

THREE PROGRAM OPTIONS AVAILABLE

PROGRAM HIGHLIGHTS

Helps reduce or even eliminate amounts remaining on your customer’s loan after their vehicle is stolen or is declared a total loss

Administered by CNA National

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Lifetime Limited Warranty and Wrap Program


The Lifetime Limited Warranty program is administered by CNA National Warranty Corporation. The Limited Warranties are offered with the purchase of the vehicle at no additional cost to the buyer. Please see the actual warranty for terms, conditions, limitations and exclusions. The Wraps are vehicle service contracts that are sold for an additional consideration. The obligatory of the Lifetime Wrap programs is Continental Service Provider, Inc., Continental Service Plan, Inc., or CNAN-Florida, depending on the state. Please see actual contract for terms, conditions, limitations and exclusions. All coverage is subject to state limitations and requirements.

POWERTRAIN COVERAGE

• Engine• Transmission• Drivetrain Assembly

Pro Certified Lifetime Limited Warranty

OPTION BPro Certified Stated Term Wrap+PlusSM

Customizable term options• Used vehicles up to 5 years/60,000 miles• Near-new up to 7 years/100,000 miles• New up to 10 years/100,000 miles

OPTION APro Certified Lifetime Wrap+PlusSM • Lifetime wrap offers strong marketing appealCustomer is Provided

WRAP COVERAGEComprehensive coverage

beyond powertrain

Customer Purchases

For new and used vehicles, this program can give you a competitive edge in your market and increase customer retention

• Extensive list of eligible vehicles • Variety of deductible options for Wrap coverage, including disappearing deductible(s) • Point-of-sale materials to effectively market at your dealership

PROGRAM HIGHLIGHTS

• Towing Reimbursement up to $150/occurrence • Travel Reimbursement $100 per day, up to $300/occurrence• Rental Car Reimbursement up to $50/day for maximum of 7 days


• Draw more interested buyers into your dealership• Increase your customer loyalty and retention rates – keeping customers coming back to you for years to come• Achieve potentially higher vehicle gross• Increase long-term service retention and revenue

WRAP PROGRAM BENEFITS

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Used Vehicle Limited Warranty


• Attract customers by advertising the reassurance of certified, quality used vehicles • Provide certification for models outside of your franchise • Customize the program to fit your specific market and sales goals

Converting your used vehicle inventory into Pro Certified® pre-owned can help maximize profitability while enhancing your customer retention.

The used-vehicle limited warranty program is administered by CNA National Warranty Corporation. The limited warranties are offered at the point of sale at no additional cost to the buyer. Please see the actual warranty for terms, conditions, limitations and exclusions. All coverage is subject to state limitations and requirements.

A limited warranty program that offers multiple coverage, deductible and term options for your dealership

• Range of term options from 3 months/3,000 miles up to 12 months/12,000 miles• Coverage options range from basic powertrain to exclusionary• Deductible options include $0, $50 and $100• Point-of-sale materials to effectively promote the program at your dealership

PROGRAM HIGHLIGHTS

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Administered by CNA National

Tire & Wheel


*Chrome-plated wheels are not eligible for coverage. Please see actual contract for terms, conditions, limitations and exclusions. Offerings are subject to state limitations.

Coverage to repair or replace tires and wheels when damaged by a covered road hazard

• Up to $100 reimbursement for on-the-spot repair of flat tire or spare tire installation• Up to $100 reimbursement for towing if tire is unrepairable or spare is not usable• Up to $35/day for up to three days of rental car reimbursement


• Choice of terms (1-5 years)• No deductible for tire-and-wheel repairs or replacements• No occurrence limits• No aggregate dollar limit• Transferable• Options include coverage for situations that are often excluded, such as damage caused by car washes

PROGRAM HIGHLIGHTS

PREFERRED TIRE CARE+PLUSSM

Includes all the benefits of Preferred Tire CareSM and more...

• Pays the costs to repair significant cosmetic damage, such as scrapes, abrasions, dents or nicks to the surface area of wheels caused by a road hazard*

• Pays the costs to repair damage to tires and/or wheels caused by contact with a curb

PREFERRED TIRE CARESM

• Pays the costs to repair or replace tires and/or wheels that are damaged due to a road hazard

• Includes cost of mounting, balancing, valve stems and taxes when a covered repair is made

• Covers tires with run-flat technology

TWO PROGRAM OPTIONS AVAILABLE

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Dealer Participation Programs


Subject to program eligibility, terms, conditions and limitations. Please read contracts carefully. CNA National makes no representations as to the need for or appropriateness of producer-affiliated reinsurance companies. Reinsurance involves risk. Please consult your own legal counsel and financial representatives before deciding whether to create or invest in such an entity. Please consult with your own CPA regarding attribution rules and the gross receipts test to determine your potential tax liabilities so you can choose the structure that is right for you.

No two dealers are the same, so you may choose from three different participation structures to meet your financial goals

Profit Bonus:• Loss ratio less than 100% allows you to receive profit

on eligible policy years• Receive up to 100% of the profit in the account, based

on your service contract production • Paid after just 75% of an eligible policy year’s business

is earned• Profit bonuses paid every six months based on eligible

policy years are yours to keep

Equity Bonus: • Inception-to-date loss ratio of less than 100% qualifies

you to receive investment income• Minimum of 90 contracts every six months to receive

program benefit• Equity bonuses paid every six months are

yours to keep

DEALER EQUITYSM

An agreement between you and CNA National designed to provide long-term income with no up-front costs

CONTROLLED FOREIGN CORPORATION (CFC)As a long-term strategy for maximizing future returns, the CFC is a 100% dealer-owned company

Program Highlights• Can be single shareholder• Written premium deposited monthly• Monthly cession intervals maximize investment

income • Potential tax deferral• Qualifying dividends taxed at favorable rates• Choice of independent experts to establish and

manage your company

NON-CONTROLLED FOREIGN CORPORATION (NCFC)This Bermuda-based, 100% dealer-owned company is designed to maximize long-term profitability

Program Highlights• Multiple shareholders• No single shareholder owns more than 10%• Monthly cession intervals maximize investment

income • Potential tax deferral • Income grows in a tax-free environment• Independent experts manage the company• Defined exit strategy for redemption of shares

DEALER EQUITY RE®For dealers interested in reinsurance, we offer a choice of two structures

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Documents

Leading F&I Provider Committed to Delivering Quality ... · 3/21/2018 · • Draw more interested buyers into your dealership • Increase your customer loyalty and retention rates