Contract Holder: [NAME] [ADDRESS] [CITY ST ZIP] Vehicle Information: Vehicle Identification: [VIN or HULL] Make: HONDA Model: [MODEL] Year: [0000] Honda Protection Plan Information: Contract Number: [CONTRACT NUMBER] Length of Coverage: [COVERAGE TERM] Contract Issuance Date: [00-00-0000] Contract Expiration Date: [00-00-0000] Contract Purchase Price: [$000.00] Contract Expiration Mileage: Unlimited Deductible: N/A Issuing Dealer/Licensed Representative: Dealer Name Dealer Address Dealer City, State ZIP Lienholder: [LIENHOLDER NAME] [ADDRESS] [CITY, ST ZIP] Refer to inside back cover for your ID card FLS_PWC_NEW_08_01_2011 1
Dear Customer Name: Congratulations on your purchase of HondaCare Protection. In American Honda s continuing effort to make your ownership experience as pleasurable and carefree as possible, we offer you extended service coverage designed specifically for your Honda. Please take the time now to carefully review and verify all of the pertinent information concerning your coverage. If the information is correct, remove the HondaCare ID Card on the inside of the back cover of this Service Contract and keep it with you when you ride your Honda. Also, please place your Service Contract in a safe place in case you need to refer to it in the future. If you find any errors in your Service Contract, please contact the selling Honda dealer immediately. Welcome to the Honda Family, Sincerely, American Honda Service Contract Corporation FLS_PWC_NEW_08_01_2011 2
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HondaCare Personal Watercraft Plan Watercraft Service Contract Declaration American Honda thanks you for purchasing this Honda Protection Plan. We hope you will enjoy peace-of-mind knowing your Honda WATERCRAFT is protected - in the unlikely event covered repairs are needed after the Distributor s Limited Warranty expires. Please read the information contained in this coverage agreement carefully. It explains the terms and conditions of the Plan that you have purchased. Please verify the information is correct. If not, please contact the Issuing dealer. Again, thank you for choosing HondaCare. Plan Administrator: American Honda Service Contract Corporation P.O. Box 2225 Torrance, California 90509-2225 License: #60083 (800) 555-3496 I. Coverage To Qualify For This Plan The HondaCare Personal Watercraft Plan may be purchased at or any time after the original purchase of the WATERCRAFT, up to the expiration of the Distributor s Limited Warranty. YOU should have received a copy of the Distributor s Limited Warranty from YOUR DEALER. The HondaCare Personal Watercraft Plan may only be purchased from a DEALER within the United States who is authorized by AMERICAN HONDA to sell Personal WATERCRAFT products. FLS_PWC_NEW_08_01_2011 4
HondaCare Personal Watercraft Plan Coverage The HondaCare Personal Watercraft Plan provides that AHSCC will repair or, at its option, replace any part subject to section IV. and V. proven, under normal use, to be defective in materials or factory workmanship for the duration of the Plan. Covered repairs may only be performed by an authorized HONDA PERSONAL WATERCRAFT DEALER. There will be no charge to YOU for parts or labor for covered repairs. Parts repaired or replaced under this Plan continue to be covered only for the duration of the Plan. All replaced parts become the property of AHSCC. The total amount of any reimbursement will not exceed the actual cash value of the WATERCRAFT at the time of failure as determined by standard publications for establishing WATERCRAFT value. All repairs and replacements of covered parts will be made with new genuine HONDA parts. COVERAGE UNDER THIS CONTRACT IS LIMITED TO REPAIRS PERFORMED IN THE UNITED STATES DURING THE CONTRACT PERIOD. PURCHASE OF THE CONTRACT IS NOT REQUIRED IN ORDER TO PURCHASE OR OBTAIN FINANCING FOR A WATERCRAFT. THE RATE CHARGED FOR THIS CONTRACT IS NOT SUBJECT TO REGULATION BY THE OFFICE OF INSURANCE REGULATION. II. DEFINITIONS The words listed below have the following meaning in this CONTRACT: ADMINISTRATOR means the service agreement company, American Honda Service Contract Corporation ( AHSCC ). FLS_PWC_NEW_08_01_2011 5
AHSCC means American Honda Service Contract Corporation, the issuer and ADMINISTRATOR of this CONTRACT. AMERICAN HONDA means American Honda Motor Co., Inc. APPLICATION means the document YOU completed and signed to enter into this CONTRACT. CONTRACT means this Service Agreement which specifies among other things, YOUR coverage, YOUR WATERCRAFT, and the CONTRACT PERIOD. CONTRACT PERIOD means the period which begins on the date YOUR APPLICATION is received by the HONDA DEALER and reported to the ADMINISTRATOR and ends upon the expiration of the time limitation stated on the WATERCRAFT Service Contract Declaration. The time limitation will be measured from the original registration date of the WATERCRAFT. HONDA means HONDA Personal WATERCRAFT. HONDA DEALER means any authorized HONDA Personal WATERCRAFT dealership. HOURMETER READING means the total time from the ORIGINAL REGISTRATION DATE as measured by an operative, unaltered HOURMETER. MAINTENANCE RECORDS means the original receipts or invoices which confirm that all WATERCRAFT maintenance has been performed in accordance with the maintenance section of YOUR HONDA Owner s Manual or as otherwise specified by AMERICAN HONDA. FLS_PWC_NEW_08_01_2011 6
MECHANICAL BREAKDOWN means the inability of a properly maintained part covered under this CONTRACT to perform the function(s) for which it was designed, due solely to defects in materials or faulty workmanship. Without limitation, MECHANICAL BREAKDOWN DOES NOT INCLUDE DAMAGE DUE TO NEGLIGENCE, DAMAGE CAUSED BY ACCIDENT, OR THE GRADUAL REDUCTION IN OPERATING PERFORMANCE DUE TO NORMAL WEAR AND TEAR. ORIGINAL REGISTRATION DATE means the date on which YOUR WATERCRAFT is first put into use, or on the date it is first registered under the Distributor s Limited Warranty, whichever occurred first. REPAIR COST means the actual part and labor expense necessary to repair or replace any covered part as the result of a covered MECHANICAL BREAKDOWN. REPAIR COST will be determined by the HONDA DEALER S regular retail parts prices up to Manufacturer s Suggested Retail Price and the current HONDA warranty flat rate labor guide. REPAIR COST includes the necessary parts and labor associated with the covered MECHANICAL BREAKDOWN. UNITED STATES means the 50 states in the United States of America and the District of Columbia and DOES NOT INCLUDE PUERTO RICO OR OTHER TERRITORIES AND POSSESSIONS OF THE UNITED STATES OF AMERICA. WATERCRAFT and YOUR WATERCRAFT each mean the HONDA WATERCRAFT listed as the covered PERSONAL WATERCRAFT in YOUR CONTRACT. WE, US, and OUR(S) means AHSCC. FLS_PWC_NEW_08_01_2011 7
YOU and YOUR means the CONTRACT holder named in the CONTRACT and any transferee pursuant to a transfer made in compliance with Article VI. of this CONTRACT. YOUR HONDA DEALER means the HONDA DEALER that sold YOU this CONTRACT. III. WHAT IS COVERED The HondaCare Personal Watercraft Plan Gives YOU Virtually The Same Coverage As YOUR HONDA Distributor s Limited Warranty, WITH THE EXCEPTION OF: -batteries -accessories IV. YOUR OBLIGATIONS DURING THE CONTRACT PERIOD A. YOUR Responsibilities As The HONDA Owner YOU must maintain YOUR HONDA according to the Maintenance Schedule in its Owner s Manual. 1. Service inspections, adjustments, and replacements in accordance with the time and usage intervals and other recommendations given in the Maintenance Schedule are essential. YOUR HONDA DEALER is YOUR best source for the recommended periodic maintenance to YOUR HONDA. 2. YOU are responsible for paying all maintenance costs, including scheduled periodic service costs; however, YOU may choose to perform the maintenance YOURSELF if YOU have the skills to do so. 3. Failures which occur as a result of improper maintenance are not covered by this Plan. YOU must keep a record of YOUR HONDA S service history, such as: 1. A MAINTENANCE RECORD (such as the one in the Owner s Manual) showing the HOURMETER hours of use and service date. Each entry should be signed or FLS_PWC_NEW_08_01_2011 8
stamped by a person who is qualified to service YOUR WATERCRAFT. 2. Copies of repair orders or other receipts for required maintenance that include the HOURMETER hours of use and service date. 3. A statement that YOU performed the maintenance YOURSELF, showing the HOURMETER hours of use and service date. Receipts for replacement parts (fluids, filter, gaskets, etc.) should accompany this statement. NOTE: It is necessary that YOUR MAINTENANCE RECORDS remain with YOUR WATERCRAFT for use by subsequent owners. B. How To Get YOUR WATERCRAFT Repaired Under The HondaCare Personal Watercraft Plan If repairs are necessary, YOU should visit a DEALER who is authorized to service YOUR HONDA Personal WATERCRAFT during their Service Department s normal business hours. YOU may be asked to provide documentation of proper maintenance. C. In The Event Of A MECHANICAL BREAKDOWN: 1. YOU must take YOUR WATERCRAFT for service to YOUR HONDA DEALER. If that is not practical, YOU must take YOUR WATERCRAFT to the nearest HONDA DEALER in the UNITED STATES. 2. YOU must give authorization to the repair facility for tear-down to diagnose a problem. If the MECHANICAL BREAKDOWN is determined to be covered by this CONTRACT, AHSCC will pay the reasonable cost of tear-down as a part of the covered MECHANICAL BREAKDOWN, as determined by AHSCC. 3. AHSCC reserves the right to inspect YOUR WATERCRAFT to gather necessary information regarding any claim. FLS_PWC_NEW_08_01_2011 9
V. WHAT IS NOT COVERED (A) THE HONDACARE PERSONAL WATERCRAFT PLAN DOES NOT COVER: - BATTERIES - ACCESSORIES (B) THE FOLLOWING HONDACARE PERSONAL WATERCRAFT PLAN EXCLUSIONS ARE THE SAME AS YOUR NEW HONDA DISTRIBUTOR S LIMITED WARRANTY. THE PLAN DOES NOT COVER: FAILURES WHICH ARE NOT DUE TO A DEFECT IN MATERIAL OR FACTORY WORKMANSHIP REGULAR OR REQUIRED MAINTENANCE REPLACEMENT OF EXPENDABLE MAINTENANCE ITEMS INCLUDING, BUT NOT LIMITED TO, SPARK PLUGS, FILTERS, COOLANT, AND LUBRICANTS, GASKETS, HOSES, SHAFT SEALS, AND BELTS UNLESS THEY ARE GENIUNE HONDA PARTS WHICH ARE DEFECTIVE IN MATERIAL OR FACTORY WORKMANSHIP. PARTS OR ACCESSORIES AFFECTED OR DAMAGED BY: NORMAL WEAR, LACK OF REQUIRED MAINTENANCE, IMPROPER MAINTENANCE, NEGLECT, MISUSE, ABUSE, ACCIDENT AND/OR COLLISION, VANDALISM, THEFT, FIRE, CORROSION, SUBMERSION, NATURAL DISASTER, IMPROPER INSTALLATION, ACTS OF NATURE, DETERIORATION FROM THE ELEMENTS, MARINE ORGANISM GROWTH, WATER INGESTION, IMPELLER WEAR, WATER IN THE HULL OR ENGINE, EXPOSURE TO SEA WATER, UNAUTHORIZED ALTERATION OF ANY PART, INCORPORATION OR USE OF UNSUITABLE ATTACHMENTS OR PARTS, UNSUITABLE USE IN AN APPLICATION FOR WHICH THE PART WAS NOT DESIGNED, IMPROPER STORAGE OR FLS_PWC_NEW_08_01_2011 10
TRANSPORTATION, SAND, GRAVEL, STONES, PRECIPITATES, FISHING LINES, ROPE, OTHER FLOATING OR SUBMERGED OBJECTS, OR BEACHING. WATERCRAFTS USED IN THE FOLLOWING ACTIVITIES (SUCH USE WILL VOID COVERAGE): RACING, COMPETITION, OR RENTAL. REPAIRS PERFORMED BY OTHER THAN AN AUTHORIZED HONDA PERSONAL WATERCRAFT DEALERSHIP. (C) MAINTENANCE SERVICE EXPENSES SPECIFIED IN YOUR HONDA OWNER S MANUAL SUCH AS: ENGINE TUNE-UP, CLEANING, CALIBRATIONS; CLAMPS AND FASTENERS; TIGHTENING; FILTERS; FLUID AND LUBRICANT REPLACEMENT/REPLENISHMENT (UNLESS REQUIRED AS THE RESULT OF THE FAILURE OF A COVERED PART). (D) REPAIRS NEEDED AS A RESULT IN WHOLE OR IN PART OF: - FAILURE TO PERFORM MAINTENANCE OR CUSTOMARY LUBRICATION SERVICES, OR OF THE USE OF FUELS, OILS AND/OR LUBRICANTS OTHER THAN THOSE REQUIRED BY YOUR HONDA OWNER S MANUAL OR AS OTHERWISE SPECIFIED BY AMERICAN HONDA; - FAILURE TO STOP OPERATING OR PROTECT YOUR WATERCRAFT FROM FURTHER DAMAGE AFTER A MECHANICAL BREAKDOWN OCCURS; - MISUSE OR ABUSE (E.G., OVERLOADING, RACING, OR OTHER TYPES OF COMPETITIVE ACTIVITIES), OR OF NEGLIGENCE, MODIFICATION, ALTERATION; TAMPERING, DISCONNECTION, IMPROPER TOWING, FLS_PWC_NEW_08_01_2011 11
OR ANY IMPROPER ADJUSTMENTS OR SERVICING, OR USING THE WATERCRAFT IN A MANNER NOT RECOMMENDED BY AMERICAN HONDA; - VIBRATION, DETERIORATION, DISCOLORATION, DISTORTION, DEFORMATION AND/OR FADING; - ENVIRONMENTAL CAUSES SUCH AS RUST, MARINE ORGANISM GROWTH, WATER LEAKS, ACID RAIN, FALL-OUT (E.G., CHEMICALS, TREE SAP, ETC.), SALT, HAIL, FLOOD, LIGHTNING, CYCLONE, FIRE, WINDSTORM, CORROSION, EARTH-QUAKES OR OTHER ACTS OF GOD; - ACCIDENTAL LOSS, OR EXTERNAL CAUSES SUCH AS CONTAMINATED FUEL, REVOLUTION, WAR, RIOT, VANDALISM, OR ANY OTHER EVENT OR CAUSE BEYOND THE REASONABLE CONTROL OF THE PARTIES; AND - ANY CONDITION THAT EXISTED PRIOR TO SALE AND WOULD HAVE BEEN OBVIOUS DURING THE PRESALE INSPECTION. (E) ANY WORK PERFORMED FOR THE PURPOSE OF IMPROVING COMPRESSION OR REDUCING OIL OR FUEL CONSUMPTION, OR ANY OTHER WORK PERFORMED WHEN A MECHANICAL BREAKDOWN HAS NOT OCCURRED. (F) REPAIRS PERFORMED OUTSIDE OF THE UNITED STATES. (G) REPAIRS FOR MECHANICAL BREAKDOWNS COVERED BY THE HONDA LIMITED, EMISSIONS SYSTEM, ANY HONDA DEALER S OR OTHER SERVICE ESTABLISHMENTS GUARANTEE, OR ANY OTHER FORM OF WARRANTY OR INSURANCE COVERAGE. (THESE WARRANTIES MAY PROVIDE COVERAGE FOR PARTS NOT COVERED UNDER THIS FLS_PWC_NEW_08_01_2011 12
CONTRACT. REFER TO YOUR HONDA DISTRIBUTOR S LIMITED WARRANTY FOR DETAILS OR VISIT YOUR NEAREST HONDA DEALER.) (H) REPAIRS PROHIBITED BY STATUTE, GOVERNMENTAL REGULATION, OR ANY OTHER LAW. (I) SERVICE NEEDED TO DIAGNOSE YOUR COMPLAINT, IF NO MECHANICAL BREAKDOWN IS FOUND TO HAVE OCCURRED. (J) ANY CONSEQUENTIAL OR INCIDENTAL DAMAGES INCURRED OR SUFFERED BY YOU, DIRECTLY OR INDIRECTLY, INCLUDING, BUT NOT LIMITED TO, DAMAGES CAUSED BY A NON- COVERED PART, LOSS OF USE OF THE WATERCRAFT, LOSS OF TIME, INCONVENIENCE, PERSONAL EXPENSES, LOST PROFITS, LOST BUSINESS REVENUE, FAILURE TO REALIZE EXPECTED SAVINGS, OR ANY OTHER ECONOMIC LOSS OF ANY KIND WHATSOEVER, EVEN IF AHSCC HAS BEEN ADVISED OF THE POSSIBILITY THEREOF. (K) ANY REPAIR COST - ONCE THE AGGREGATE OF PAID REPAIR COSTS EXCEED THE PRICE YOU PAID FOR THE WATERCRAFT OR FOR A SPECIFIC CLAIM OR CLAIMS THAT IS OR ARE GREATER THAN THE APPLICABLE REPLACEMENT COST OF THE WATERCRAFT AS DETERMINED BY AMERICAN HONDA; - IF YOU FAIL TO PRODUCE ALL MAINTENANCE RECORDS PERTAINING TO COVERED PARTS WHICH REQUIRE ROUTINE MAINTENANCE THAT SUSTAIN A MECHANICAL BREAKDOWN. FLS_PWC_NEW_08_01_2011 13
- IF THE HOURMETER OF THE WATERCRAFT IS ALTERED OR DISCONNECTED OR OTHERWISE INOPERABLE SUBSEQUENT TO THE SALE OF THIS SERVICE CONTRACT SO THAT ACTUAL HOURS OF USE CANNOT BE ACCURATELY DETERMINED; - IF FOR ANY REASON THE WATERCRAFT S FACTORY WARRANTY HAS BEEN VOIDED BY AMERICAN HONDA. VI. TRANSFER OF CONTRACT This CONTRACT may be transferred by YOU to a purchaser of YOUR WATERCRAFT for the remainder of the original CONTRACT PERIOD. TRANSFER REQUIREMENTS: 1. Return to a HONDA DEALER. 2. Complete a Transfer of Contract form. 3. Present the following items: A. This CONTRACT; B. A complete copy of YOUR MAINTENANCE RECORDS and C. Documentation evidencing change of ownership and HOURMETER READING on the date of transfer. TRANSFER CONDITIONS: 1. THIS WATERCRAFT SERVICE CONTRACT CANNOT BE TRANSFERRED TO ANOTHER WATERCRAFT. It can only be transferred to a different private owner of the same WATERCRAFT. 2. IF YOUR MAINTENANCE RECORDS are not available, AHSCC may require the WATERCRAFT to be inspected to assure that the WATERCRAFT has been properly maintained. In the event the inspection discloses abnormal conditions, the transfer request may be rejected. FLS_PWC_NEW_08_01_2011 14
3. Transfer must take place within 30 days of change of WATERCRAFT ownership. 4. All remaining underlying warranties must be transferred to the new owner. VII. TERMINATION OF CONTRACT To terminate this CONTRACT and request a refund, YOU must return this complete CONTRACT to the HONDA DEALER or US. If a lien existed and a Discharge of Lien is provided, AHSCC will make the check payable to the owner of the WATERCRAFT. If a Lien exists and a Discharge of Lien is not provided, any refund amount will be issued with a joint payee. In the event of a loan default or repossession for which the lender has been unable to reach the owner, the lender may request, and AHSCC may, at their option, make the check payable to the Lienholder. A. On or before sixty (60) days following the commencement of the CONTRACT PERIOD, YOU may terminate this CONTRACT and receive a refund of 100 percent (100%) of the purchase price less any claims paid on this CONTRACT. A reasonable administrative fee will be charged not to exceed 5% of the gross premium paid by the CONTRACT holder. B. After this CONTRACT has been in effect for sixty (60) days, it may not be terminated by the ADMINISTRATOR unless: 1. There has been a material misrepresentation or fraud at the time of sale of this CONTRACT; 2. YOU have failed to maintain the WATERCRAFT as prescribed by the manufacturer; 3. The HOURMETER has been tampered with or disabled and YOU have failed to repair the HOURMETER; or FLS_PWC_NEW_08_01_2011 15
4. YOU have failed to pay the premium, in which case the ADMINISTRATOR shall provide YOU notice of termination by certified mail. If the CONTRACT is terminated by the ADMINISTRATOR, the return of premium must not be less than 100 percent of the paid unearned pro rata premium less any claims paid. If, after sixty (60) days, the CONTRACT is terminated by YOU, the ADMINISTRATOR shall return directly to YOU not less than 90 percent of the unearned pro rata premium less any claims paid. However, the salesperson and agent are responsible for the refund of the unearned pro rata commission. TRANSFERRED CONTRACTS ARE NOT ELIGIBLE FOR CANCELLATION REFUNDS. A REFUND SHALL TERMINATE THIS SERVICE CONTRACT. IF CANCELED, COVERAGE CANNOT BE REINSTATED. VIII. SUBROGATION YOU agree that WE, after honoring a claim on YOUR CONTRACT, have all rights of subrogation against those who may be responsible for YOUR MECHANICAL BREAKDOWN. YOU shall do whatever is necessary to secure such rights. YOU shall do nothing to prejudice such rights, and YOU shall execute and deliver to US instruments and papers required to either secure or maintain such rights. All amounts recovered by YOU for which YOU were previously reimbursed under this CONTRACT shall become OUR property or the property of OUR designee and shall be forwarded to same by YOU, up to the total amount paid by US under this CONTRACT. IX. ARBITRATION Any controversy or claim arising out of or relating to this CONTRACT, or a breach hereof, shall be settled by nonbinding arbitration in accordance with the Commercial Arbitration Rules of the American Arbitration Association. FLS_PWC_NEW_08_01_2011 16
Judgment upon the award rendered by the Arbitrator(s) may be entered in any court having jurisdiction thereof. YOU must notify the ADMINISTRATOR in writing of YOUR intent to seek arbitration at the following address: American Honda Service Contract Corporation Attn: HondaCare Client Services P.O. Box 2225 Torrance, California 90509-2225 In compliance with federal law, the contents of this CONTRACT should be interpreted and understood within the meaning of a Service Contract as referred to in Public Law #93-637. THIS CONTRACT IS NOT A NEW WATERCRAFT WARRANTY OR AN EXTENSION OF A NEW WATERCRAFT WARRANTY. THIS IS A SERVICE CONTRACT WHICH MAY PROVIDE DUPLICATE COVERAGE WHILE THE NEW WATERCRAFT WARRANTIES ARE IN FORCE. THIS CONTRACT IS NOT AN EXPRESS, IMPLIED OR GENERAL WARRANTY AND IT IS NOT A CONDITION OF THE SALE OF THE WATERCRAFT. BY ENTERING INTO THIS CONTRACT, YOU DO NOT WAIVE ANY WARRANTIES WHICH MAY BE IMPLIED BY LAW. Be sure to read this CONTRACT carefully so that YOU understand the difference in coverage. FURTHER, YOU are advised that there are various state and federal laws that protect YOUR interests as a consumer. In the event of a problem that cannot be resolved with the ADMINISTRATOR, YOU may have other rights and remedies available to YOU. FLS_PWC_NEW_08_01_2011 17
Maintenance Log Date of Service Hours or Mileage at Service Name & Address of Repair Facility Type of Service Please retain all Repair Orders and other Service Documents For Honda Powersports products Administered in Florida by Claims & Customer Service American Honda Service Contract Corp. (866) 784-1870 P. O. Box 2225 Torrance, CA 90509-2225 Visit our website at License # 60083 powersports.honda.com FLS_PWC_NEW_08_01_2011 18