Extended Warranty Handbook

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2 Contact Information: Standard Trane Warranty Company ( STWC ) P.O. Box 9035 Tyler, TX USA Phone: (800) Fax: (903) [email protected] Website: This Extended Warranty Handbook ( Handbook ) is for use by American Standard dealerships, contractors or servicers participating in the STWC Extended Warranty Program ( Program ), with an executed Dealer Participation Agreement ( DPA ). This Handbook and any referenced material, processes, or documents may be changed or updated by American Standard at any time upon notice to the dealership, contractor, or servicer. In the event of a direct conflict between this Handbook and the DPA, the DPA shall govern. STWC reserves the right to audit, reject, or reduce any claim submitted for payment under the Program. If you should have any questions about the information contained in this Handbook, please contact STWC at (800) Extended Warranty Publications Extended Warranty publications and forms are available electronically at in the Warranty Center. Communications, FAQ s, model listings, Extended Warranty policies and how-to documents are also available at in the Warranty Center. The Relationship Between Stwc, The Dealer, And The Equipment Owner The Extended Warranty Contract represents a contract solely between the Equipment Owner and STWC. Under the terms of the Contract, Equipment Owners have the right to appoint another Dealer to service their Extended Warranty, subject to the approval of STWC. In most cases, the Dealer listed on the Extended Warranty will remain the assigned Dealer for the duration of the coverage term. However, another Dealer may be assigned for the balance of the term, under the following circumstances. 1. The assigned Dealer goes out of business; 2. The assigned Dealer, although still in business, cannot or will not perform service; 3. The Equipment Owner(s) notify STWC, in writing, that they no longer want the assigned Dealer to perform service on their equipment; 4. The assigned Dealer cannot or will not abide by the conditions of the Program or the DPA Ingersoll-Rand Company. All Rights Reserved. 1

3 Dealer Registration All participants in the Program must comply with the following: 1. Be approved and registered with your local sales office or distributor. 2. Be properly licensed as required by local and state/provincial laws. 3. Sign a DPA. The DPA is a formal agreement between STWC and you, the Dealer. It clarifies the rights and obligations of each party for the Program. 4. Complete an IRS Form W-9 and submit to STWC, as claims paid to you are subject to reporting on IRS Form 1099 (US only). 5. Register an initial hourly labor rate, if a fixed rate is not provided by STWC. a. Your Dealer labor rate for Extended Warranty repairs should be the best rate you would charge your customers and must be competitive for your area. b. STWC will evaluate or audit labor rates on a regular basis and make any necessary adjustments to conform to the Program. c. All labor rate requests are subject to approval by STWC. Ordering An Extended Warranty And Equipment Coverage Extended Warranties are available in one (1), five (5) and ten (10) year increments and may be ordered online at under the Warranty Center section. An application must be completed listing all equipment model and serial numbers to be covered under the Extended Warranty. Any equipment not listed on the Extended Warranty application will not be covered. STWC reserves the right to request any documentation deemed necessary to evaluate an application for coverage including, but not limited to: maintenance records, inspection reports, limited warranty claim history, and service tickets. Applications are not effective until accepted by STWC. STWC reserves the right to deny any application submitted. NOTE: At no time should you or any other Dealer purchase an Extended Warranty without the Equipment Owner s knowledge or consent. Extended Warranties In Regulated States Regulated states (currently AL, CA, FL, HI, IL, KY, LA, MD, MN, NV, NH, NM, NY, NC, OK, SC, TX, VT, WA, WI and WY) require that the current terms and conditions be given to the Equipment Owners, for review, prior to the sale of the Extended Warranty. The current terms and conditions are on the reverse side of the application, as well as online, where they will be updated when necessary. Due to certain state regulations in Florida and Oklahoma, STWC has chosen to use contractual liability insurance which requires the use of state specific terms and conditions. Additionally, in regulated states, the Extended Warranty sales price must be broken out from the equipment on the quote, invoice or other documentation provided to the Equipment cannot be covered by an extended warranty beyond the end of the tenth (10) year from original installation date Ingersoll-Rand Company. All Rights Reserved. 2

4 Equipment Owner. Since the purchase of an Extended Warranty is optional, states require that Dealers inform Equipment Owners of the additional cost (if any) of the Extended Warranty. If you are operating in one of the regulated states, you must input the price charged for the Extended Warranty. Since this amount will appear on the face of the Contract, it should match the quote/invoice provided to the Equipment Owner. The price charged to the Equipment Owner must be the actual cost the Equipment Owner paid for the Extended Warranty coverage. It must be at least the price you paid or greater. Please note that the amount on the face of the contract will be used to calculate any applicable refund to the Equipment Owner and may be billed back to the billable party if either the Equipment Owner or Obligor cancels the Extended Warranty, based on the applicable terms and conditions. Extended Warranties are often used to help promote equipment sales, and are offered for free or at a discounted price, in states where free or discounted pricing is not prohibited by law. In order to show Equipment Owners the true value of the Extended Warranty being offered, list the regular price on the quote/invoice, then deduct the promotion amount so the net amount paid is clearly shown. Please note that some regulated states do not allow free Extended Warranties. You are responsible for knowing and following your state s applicable regulations. Effective January 1, 2011, any person who provides, offers to provide, or holds oneself out as providing or offering to provide a service warranty in the State of Florida without holding a subsisting license commits, in addition to any other violation, a misdemeanor of the first degree. A misdemeanor of the first degree is punishable by a definite term of imprisonment not to exceed one (1) year. Fla. Stat (4)(a). Moreover, as noted above, consumers must be provided with a complete sample copy of the terms and conditions of any service warranty prior to the time of sale. Fla. Stat ,.436. A person who has been convicted of an offense may be sentenced to pay a fine in addition to any punishment. Fines for designated crimes shall not exceed $1,000, when the conviction is of a misdemeanor of the first degree, any higher amount equal to double the pecuniary gain derived from the offense by the offender or double the pecuniary loss suffered by the victim, or any higher amount specifically authorized by statute. Commercial Installation / Residential Installation/Multi-Family Installation Each time an Extended Warranty is sold, you must indicate whether the equipment is used in a Residential or Commercial or Multi-Family application. The following are used to define the different applications: For purposes of this Extended Warranty: o Residential applications shall mean any application for personal, family, or household use in a single family setting. o Commercial applications shall mean any application other than for personal, family, or household use, including but not limited to: restaurants, convenience stores, hotels and dormitory units, as well as all buildings designated for commercial use. Equipment installations which qualify as commercial, under the Limited Warranty registration, will need to purchase a commercial Extended Warranty for proper equipment coverage. Exception multi-family applications o Multi-family applications shall mean any application that is designated as multi-family housing designed for use as rental units. Environment STWC does not cover equipment installed in corrosive or high risk atmospheres or establishments including, but not limited to: dry cleaners, beauty salons, animal facilities, ethanol plants, laundry facilities, sewage/waste treatment facilities, auto body/paint shops or cotton gins. If the location or the name of the location suggests a high risk environment, the use of the equipment in the location should be explained in the comments section of the application for STWC review. For an updated list of corrosive or high risk environments, please visit www. asdealernet.com in the Warranty Center or contact STWC Ingersoll-Rand Company. All Rights Reserved. 3

5 Coverage Eligibility STWC will consider applications for Extended Warranties on American Standard equipment when the warranty application is received as follows: 1. Any applicable Extended Warranty may be purchased up to the end of the third (3) year from the original equipment installation date for coverage terms identified below. 2. Beginning in the fourth (4) year, until the end of the seventh (7) year, from the original equipment installation date, the only available coverage is a one (1) year renewable parts and/or labor warranty. At the time of application, you must disclose any pending claims and attest that the unit is in warrantable, operational condition, as stated below. NOTE: Any equipment over nine (9) months old, must be inspected in both heating and air conditioning cycles for proper working condition, and must be in warrantable, operational condition. This inspection must be performed thirty (30) days or less prior to applying for Extended Warranty coverage. A detailed copy of the inspection report and all maintenance records are required at the time of application submittal. Please note that repairs necessary to get the unit in proper working condition are not covered by the Extended Warranty. Coverage Term 1 year* Extended Warranty contracts: *Coverage begins on the 91st day after STWC approves the application. For Extended Warranty applications received within thirty (30) days of the original installation date, coverage begins on the 91st day after the original installation. The expiration date is twelve (12) months from the date STWC approves the application. Coverage cannot extend beyond the end of the tenth (10) year from original installation date. Subsequent STWC approved renewals provide continuous warranty coverage, if purchased before current contract expires. 5 and 10 year Extended Warranty contracts: Coverage begins on the 91st day after STWC approves application. For Extended Warranty applications received within thirty (30) days of the original installation date, coverage begins on the 91st day after the original installation. The expiration date for 5 year Extended Warranty contracts is five (5) years from the original installation date. The expiration date for 10 year Extended Warranty contracts is ten (10) years from the original installation date. For other warranty coverage offerings that may be available, please visit the Warranty Center on Ingersoll-Rand Company. All Rights Reserved. 4

6 Renewing Coverage Renewals represent an extension of the original Extended Warranty contract. An Extended Warranty contract that is eligible for renewal can only be renewed within sixty (60) days prior to its expiration date. If an Extended Warranty contract expires and the equipment is still within the Coverage Eligibility period, the Equipment Owner may be able to purchase Extended Warranty coverage. See Coverage Eligibility to determine which coverage may be available. If an Extended Warranty is purchased before the end of the third year from the original equipment installation date, it may be extended with any applicable coverage as long as the coverage has not lapsed. In some instances, STWC may require an inspection of the equipment before allowing a renewal. o This inspection must be performed thirty (30) days or less prior to applying for Extended Warranty coverage. A detailed copy of the inspection report and all maintenance records may be required at the time of the application submittal. STWC reserves the right to refuse a renewal request. When applying for a renewal, you must disclose any pending claims and attest that the unit is in warrantable, operational condition. Please note that repairs necessary to get the unit in proper working condition are not covered by the Extended Warranty. Transferring Or Cancelling A Contract 1. Transferability: The remainder of the Extended Warranty term of coverage may be transferred to a new Equipment Owner should the original Equipment Owner decide to sell his/her property. Please see transfer policy on the reverse side of each individual contract for specific terms or visit 2. Cancelling a Contract: In regulated states, Equipment Owners are allowed to cancel their contract. For your state s policy, please see the Terms & Conditions on the reverse side of the Extended Warranty contract. General Information Regarding Claims STWC will reimburse you the cost of labor and/or parts for the repair or replacement of the internal components of the covered piece of equipment listed on the contract and subject to the product coverage of the Extended Warranty. In general, only factory installed internal working components are covered by Extended Warranty. For a repair to be reimbursed by STWC a covered failure must have occurred. 1. STWC does not allow charges in excess of the Program Details payout to be billed to the Equipment Owner, if the service is fully covered under the Equipment Owner s Extended Warranty. 2. Accordingly, Dealers should not invoice customers for covered repairs. You will invoice STWC, directly, online at in the Warranty Center section to receive payment for covered repairs. Claims for equipment repairs covered by an Extended Warranty should be submitted to STWC electronically, via www. asdealernet.com, which is the preferred method. If necessary, paper claims may also be submitted by mail, or fax to the addresses listed on page one. 3. The reimbursement amount for a given repair will be based on the Extended Warranty Task 2011 Ingersoll-Rand Company. All Rights Reserved. 5

7 Times and Parts Markup provided in the Program Details, which may be updated or changed by STWC from time to time. Visit com for the current Program Details and reimbursement amounts. The maximum program task time should be claimed as the primary repair. 4. All claims must include the following to ensure timely payment terms are met: Customer complaint. Diagnosed failure (must provide specific details). Work performed (must provide specific details). Parts used (must list part numbers for all parts replaced, both in warranty and out of warranty). List normal Dealer part cost excluding tax and freight. Provide part number with part cost at zero for the following: in warranty compressors, evaporator coils, condensing coils, heat exchangers, boilers and units. 5. All repair claims must be received by STWC within ninety (90) days of service date to be eligible for payment. 6. You must guarantee your work for ninety (90) days from date of completion of services rendered. 7. Diagnostic and travel will not be covered within ninety (90) days from completion of services on the same system. 8. STWC reserves the right to request any documentation deemed necessary in relation to a claim including, but not limited to, parts invoice, WCR, or falcon claim confirmation on any parts and service tickets. If request for additional information is sent, documentation must be returned to STWC within sixty (60) days of the request to be reviewed for processing. 9. A Dealer does not have to be listed as the servicer of record in order to perform repairs and submit a claim for payment on any Extended Warranty; as long as the Dealer is set up to participate in the Extended Warranty Program as a service provider. 10. Adding refrigerant is neither covered nor available for reimbursement, unless associated with an internal refrigerant circuit component replacement or an internal refrigerant leak is found and repaired. 11. A part and or markup that has been reimbursed will not be eligible for payment again within one (1) year. 12. Repairs must be diagnosed and documented and STWC must be notified within the coverage period of the contract. Repairs must be made within fifteen (15) days of diagnosis. 13. All furnace replacement coils out of limited warranty should be purchased through your Dealer Equipment Account (furnace coils are treated as a piece of equipment). The reimbursement amount for a furnace coil will be based upon the cost of the coil through your dealer equipment account. NOTE: Submitting a false claim is not only dishonest, it is against the law. STWC has several methods to audit claims. Any suspected fraudulent claim submitted to STWC will be investigated and appropriate action taken Ingersoll-Rand Company. All Rights Reserved. 6

8 Exclusions For Reimbursement Including but not limited to: Service calls where no repair is completed or temporary repairs are made. Services made mandatory by changes in federal, state or local regulations. Damages due to insufficient electrical voltage, power surges, electrical circuit overloads and electrical spikes. The misuse, abuse or negligence of the equipment, whether willful or accidental. Acts of God. Clogged drains, electrodes, nozzles, gaskets or other components which are considered routine maintenance items. All high voltage and low voltage wiring external to the equipment. Thermostat calibration and incorrect wiring. All piping external to the equipment proper. Insulation repairs or repairs due to loose insulation. Improper installation, incorrect wiring or nonconnected wires. Filters, ductwork, vents, fuses, belts, connectors, routine maintenance, periodic cleaning. Premium service cost over and above normal service charges. Shipping, handling, freight, and refrigerant disposal fees. Failures due to incorrect refrigerants, improperly matched condensing units and evaporator coils or metering devices. The TXV replacement to changeover from R22 to R410A refrigerant. Conversion (including but not limited to any equipment or part replacements) from R-22 refrigerant to R-410A refrigerant. Conversion (including but not limited to any equipment or part replacements) from R-410A refrigerant to R-22 refrigerant Failures due to corrosion or environmental factors are not covered by STWC. Claims for failures caused by lack of routine maintenance are not covered by STWC. Claims for failures not otherwise covered under the Extended Warranty contract. Access to the equipment or controls or to move any stock, fixtures or partitions to facilitate the servicer s work. Routine Maintenance Routine or preventative maintenance is the responsibility of the Equipment Owner and is not covered by an Extended Warranty contract. To determine what maintenance is required, please refer to the terms and conditions on the reverse side of the Extended Warranty contract and the Use and Care manual that accompanies the equipment. STWC does not allow payment for cleaning. Cleaning is considered a maintenance item. If a failed part is discovered during routine maintenance, reimbursement for diagnostic and travel charges cannot be claimed. NOTE: Claims for failures caused by a lack of routine maintenance are not covered by STWC. Pre-Authorization Equipment replacement (repair vs. replace) is now the only request that requires pre-authorization. For assistance with pre-authorizations, please call STWC at (800) A current pre-authorization policy or Repair/Replace Option form can be found at in the Warranty Center Ingersoll-Rand Company. All Rights Reserved. 7

9 Repair Or Replace Policy Sometimes, repair costs exceed the cost of the equipment. When this happens, replacing the equipment is the most sensible option. The decision to repair equipment or replace it is made by STWC at the time you request preauthorization. Under no circumstance should a Dealer make such an offer without approval from STWC. As a general rule, STWC will offer the Equipment Owner through the dealer an amount equal to the cost of repair or replace toward the price of a new Trane or American Standard unit. STWC will pay the lesser amount of the two options. 1. Please note: If the cost of replacing the unit is less than the repair cost, you must replace the unit. Please contact STWC for pre-authorization. 2. Please note: If the cost of replacing the unit is more than the repair and it is approved by STWC, you should offer the Equipment Owner the cost of the repair toward the installation price of either a new Trane or American Standard unit. This may be a viable option for the Equipment Owner depending on the age of the equipment and cost of the repair. If the Equipment Owner chooses to replace the equipment, the difference between the replacement cost and the repair cost is billed to the Equipment Owner. 3. The authorization amount provided will be voided if the Equipment Owner decides to use a different Dealer or a competitive brand of equipment. 4. If unit is replaced, a new Extended Warranty contract must be purchased in order to have Extended Warranty coverage on the new piece of equipment. Dirty Sock Syndrome Since Dirty Sock Syndrome ( DSS ) is an indoor air quality problem, it is not considered a mechanical failure of an internal component; however, DSS may be covered under the Extended Warranty if the following applies: 1. The Extended Warranty was purchased at time of original installation; 2. The Extended Warranty application was received by STWC for processing within the first sixty (60) days of original installation; 3. The equipment was registered for the longer Limited Warranty period within the first sixty (60) days from original installation; and 4. The indoor coil must be within the factory Limited Warranty period. STWC will allow three (3) hours of labor, at the registered labor rate approved by STWC, if all of the conditions listed above have been met. The three (3) hours includes all travel, refrigerant, and miscellaneous materials required to replace the indoor coil. STWC will allow a one time payment during the first five (5) years of the Extended Warranty contract period; provided the indoor coil is within the Limited Warranty coverage. NOTE: STWC does not allow payment for cleaning. Cleaning is considered a maintenance item. STWC does not cover cost of the coil as a component or any coating process that might be required. STWC reserves the right to change DSS coverage at any time without prior notice. If you should have any questions about the information contained in this Handbook, please contact STWC at (800) Ingersoll-Rand Company. All Rights Reserved. 8

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