Sample Optional Extended Warranty Agreement

Transcription

1 Sample Optional Extended Warranty Agreement xiv

2 History of Trane s Optional Extended Warranty Programs Over the past decade, Trane marketed several programs that could be identified as Extended Warranty programs. Each of these programs was unique, since they were each sold and administered differently, using different claims payback guidelines. Reddi Repair Agreement This program replaced the Service Agreement Program and was sold until June It offered five (5) and ten (10) years extended coverage for parts and labor. All of the Agreements related to this program have expired. Current claims are being paid by Trane s Extended Warranty Department. All claims paid on these Agreements are based on the Reddi Repair Guidelines (listed in Appendix i). Claims are filed on Field Repair Invoices (FRI s) and processed through your distributor or local Trane sales office. Trane Plus In June 1990, Trane entered into a contract with a Texas based warranty company, specializing in Extended Warranty coverage and underwritten by an Oklahoma based insurance company. By the terms of the contract, Trane would purchase Optional Extended Warranties from the warranty company and would sell these warranties through the distributor/dealer network. Each of these Extended Warranty contracts are identified as Trane Plus contracts, not to be confused with contracts by any other warranty company. These contracts, depending on the model number purchased, could warrant parts, labor, or parts and labor for terms of one (1), five (5), or ten (10) years. All claims related to the Trane Plus program were to be paid by the warranty company using the Trane Plus Guidelines (listed in Appendix i) This contract expired May 1992, and the warranty company continued to administer and pay claims on all Extended Warranty contracts sold prior to the contract termination date. In April 1994, Trane, by mutual Agreement with the warranty company, began to administer and pay Trane Plus claims from the Extended Warranty Department. Claims are paid using the Trane Plus Guidelines (listed in Appendix i). Trane Extended Warranty Program In June of 1992, Trane began selling Extended Warranties backed and administered by Trane. The initial program sold 4-part Agreements that were purchased and stocked by Dealers and/or distributors. Once the Agreement was sold to an Equipment Owner, the Dealer completed the information on the Agreement and mailed 2 parts of the Agreement to the Trane Extended Warranty Department to be activated. Upon activation, the Equipment Owner was sent one of the parts and the remaining part was retained the Extended Warranty Department. Many of the 4-part Agreements have never been activated. These documents, if still in Dealer/distributor inventory, are still valid Agreements once activated. However, if they were actually sold to an Equipment Owner and have never been activated, we are unaware of the sale to the Equipment Owner or even IWD Dealer. This sometimes causes a problem if the Dealer or Equipment Owner does not know the Agreement number, as we have no other information (name, location or model/serial) to locate the Agreement. In May of 1994, we discontinued selling Agreements via 4-part forms and began our current method of using an Extended Warranty Application. This was a great improvement over the 4-part form in many ways. The Dealer/distributor no longer had to stock the 4-part forms (thereby increasing cash flow and reducing inventory). Also, when the Dealer/distributor had the wrong inventory of 4-part forms, they were charged a restocking fee in order to return forms and order the correct ones. In some cases, Dealers thought they could use one warranty model to substitute for another one and would mark out or change the coverage text on an in-stock 4-part form. Changing those documents caused many problems. The application routines solved those problems as warranty model numbers could be corrected before the Dealer/distributor was billed. In January of 1996, we added Labor Options to the program in response to Dealer requests for the ability to match payment guidelines to their own profit needs. In December of 2000, we formed American Standard Warranty Company for the purpose of segregating our Optional Extended Warranty business. American Standard Warranty Company invoices and administers all Optional Extended Warranty Agreements sold under all programs listed above. At that same time, we began using Virginia Surety Company, an Aon company, to meet the requirements for Optional Extended Warranty Sales in selected states. With the advent of Trane s new Manufacturer s Limited Warranties (effective 10/01/ 2001 based on install and production date of equipment), we added the in-warranty part mark-up feature to our program. Also, because Dealers and some owners use the term Extended Warranty when referring to a Manufacturer s Limited Warranty, we have chosen to use the term Optional when referring to the Extended Warranty Program. This change will be used in this handbook as well as any consumer brochures as they are reprinted. We strive to make the Trane Optional Extended Warranty program the best in the industry with innovations that protect the Equipment Owner from unplanned repair bills and pay the Dealer an amount for service work on par with the rest of his service business. xv

3 How to Complete an Application Call Trane s Extended Warranty for answers to any questions. Please use black ink when completing the application if at all possible. 1. Dealer/Seller Block - This block must be completed by the Dealer/Seller. a. Dealer/Seller Number - This number is his Trane Dealer number. It allows us to track the Dealer with regards to sales and claims. If the Dealer does not know his number, he can call for assistance. In case of a TSO/DSO Dealer, this number will be the bill to number. b. Name, address, city, state, zip, and telephone number - This information is required to identify the Dealer/Seller. It is important that this is the remittance address. 2. Servicer (if other than Dealer/Seller) - This block must be completed by the Dealer/Seller who sells the Agreement, but elects to assign another Dealer to provide service under the terms of the warranty Agreement. The block should not be completed if the Dealer/Seller remains the assigned Dealer. a. Servicer Number - Same as (1a) but for the Servicer. b. Name, address, city, state, zip, and telephone number - Same as (1b) but for Servicer. 3. Bill to Number - (this block must be completed by the distributor only) a. Bill to number - This number is the distributor s number (begins with 98) assigned by Trane. This number is a bill to number, allowing Trane to invoice an Independent Distributor for the application submitted by one of his Dealers. In case of a TSO/DSO, this number should be left blank unless a house account is to be billed. b. Name - The Distributor to whom the Dealer reports. The TSO/DSO should fill in the TSO/DSO name. c. Approval - Someone at the distributor level must approve the application before it is sent to Trane. It serves several functions as follows: * All Distributors can get a feel as to what type and what numbers of warranties are being sold by their Dealers. * All Distributors will have the chance to reject any application if, for example, the Dealer is on C.O.D. or is no longer a Dealer. * In the case of an Independent Distributor, the approval authorizes Trane to invoice the Distributor, not his Dealer. The Independent Distributor should invoice his customer. In the case of a TSO/DSO, the approval confirms the Dealers/Seller s number is the correct number to bill. 4. Warranty Model Number - Blocks must contain the warranty model number being purchased. All warranty numbers are found in the Trane Product Catalog or in this book. 5. Labor Options - Dealer can elect which of the three (3) Labor Options desired. Simply mark the Option desired. If no Option is chosen, the standard Option (Labor Option #1) will automatically be selected. 6. Warranty Renewal Blocks - Mark yes or no depending if the warranty is a renewal. If it is a renewal, the old Agreement number is required. 7. Coverage Check Boxes - These boxes are optional but they do help the homeowner understand the type and length of coverage. The boxes checked must agree with the warranty model number. 8. Equipment Owner - The purchaser of the warranty must be listed with his correct mailing address. Zip Code must be provided. 9. Equipment Location - The location of the equipment must be identified unless it is the same as the Equipment Owner information. Zip Code must be provided. 10. Equipment Covered - List each item that is to be covered (example: condensing unit, air handler, etc.) 11. Model Number - The Dealer/Seller must accurately list the complete model numbers of the equipment that he wants covered by the warranty. Make certain that the model numbers listed are covered under the warranty model number chosen (see item 4 above). See Pages Serial Number - The Dealer/Seller must accurately list the complete serial number of the equipment that he wants covered by the warranty. Serial numbers are optional on coils, thermostats and other accessories. If the serial number indicates a manufacturing date, which precedes the listed installation date by more than one year, please verify that the install date is correct or it will be questioned. 13. Date Equipment Installed - The Dealer/Seller must accurately list the date the equipment was installed or started. This is the date that coverage begins related to length of Agreement. It is also used to determine the age of the equipment. 14. Date Warranty Sold - The Dealer/Seller must accurately list the date the customer applied for warranty. Note: For the purpose of Optional Extended Warranty activation, Warranty Sale Date is the date we, at Trane s Extended Warranty Department accept, activate and print the Optional Extended Warranty Agreement. See Page Warranty Sales Price - The sales price is listed at the discretion of the Dealer/Seller, except in regulated states. The amount should be as follows: a. The actual selling price to the Equipment Owner. b. If the warranty was sold as part of a package or as part of a sales promotion, then the amount cannot be less than the Dealer paid for the warranty. This amount will be printed on the Equipment Owner s copy of the Agreement in regulated states and may be used for calculation of any requested refunds if the Dealer is unable to provide a copy of the Equipment Owner s original invoice which details the actual selling price is not the same as the amount on the Agreement. 16. Compressor Only Box - This box is applicable to a compressor only warranty. 17. Dealer/Seller Signature - The seller must sign the application. 18. Equipment Owner s Signature - The purchaser must sign the application to indicate he/she understands the terms and conditions listed on the reverse of the application. If the customer signs a separate proposal which lists the inclusion of the Optional Extended Warranty and the Dealer has explained the terms and conditions, the Dealer is allowed to write in the Equipment Owner s signature block Customer Signature on File. 19. Instruction Block - General instructions regarding the application. xvi

4 Order this publication and all other Extended Warranty publications online at xvii

5 Order this publication and all other Extended Warranty publications online at xviii

6 Order this publication and all other Extended Warranty publications online at xix

7 Order this publication and all other Extended Warranty publications online at xx

8 Order this publication and all other Extended Warranty publications online at xxi

9 Order this publication and all other Extended Warranty publications online at xxii

10 Notes xxiii

11 Notes xxiv

12 Notes xxv

13 Notes

14 P.O. Box 9010 Tyler TX A Business of American Standard Companies. Literature Order Number File No. Pub. No /04 Supersedes Pub. No Stocking Location PI Trane has a policy of continuous product improvement, it reserves the right to change design and specifications without notice American Standard Inc. All rights reserved.