Obligations under this Agreement are provided by Warranty Global Group Inc. The Administrator performance under this Contract is insured by an insurance policy issued by Dealers Assurance Company, P.O. Box 21185, Upper Arlington, OH. 43221, Telephone 800-282-8913. If a covered claim is not paid within sixty (60) days after proof of loss has been filed, you may file a claim with Dealers Assurance Company at the address listed above.

1. Warranty Global Group, Inc. will provide coverage for systems and primary kitchen appliances as described in this Contract for authorized repair or replacement of covered property when such covered items become inoperative due to operational failure during coverage periods so long as they:

A. Are located within the confines of the main foundation of the home or attached garage (with exception of the exterior well pump, air conditioner and pool/spa equipment, if selected)

B. Become inoperative due to normal wear and tear

C. Are in good working order on the effective date of this contract and

D. Are properly installed throughout the term of this contract for proper diagnosis.

2. This contract covers single family resale homes, condominiums or town homes which are used for residential purposes only. It covers only systems, equipment or appliances that are contained within the interior of a condominium unit. It does not cover equipment, items, or systems that are owned by the condominium association or designated as a condominium common area. It does not cover commercial structures or space or properties where commerce occurs, even though shared with covered residential unit(s). It does not cover cabins, boarding houses, dormitories, fraternities, sororities, other cooperatives, mobile homes not attached to permanent concrete or concrete block foundation, and apartments with written leases less than one (1) year. Items and services not specifically listed as covered are not covered.

3. This contract covers the actual reasonable cost for repair or replacement of parts or components as long as the repair or replacement is made necessary by operational failure of the parts or components occurring during the Contract period. We have the sole right to determine if a part or component should be repaired or replaced. In the event of replacement, it shall be with material of like kind and quality, but not necessarily the same brand or color. The use of non-original manufacturer’s parts is permitted in making repairs under this Contract. If an item is non-repairable due to the covered failure of an obsolete or unavailable component part, we are not responsible for replacement of the entire item. We will be obligated only to make a reasonable payment based upon the value of installing a comparable component part that is available, subject to any per occurrence or aggregate maximums. You shall provide us the opportunity to speak with the repair technician prior to their implementation of any repairs. You and the repair technician shall provide Us with sufficient information as to the cause and nature of the occurrence, as well as other pertinent information relating to the claim to the best of your knowledge and belief. This information also may include estimates relating to repair or replacement of the part or component which failed. We reserve the right to request additional opinion(s). In all cases, work must be authorized and approved by us prior to implementation of the repairs.

4. The contract term for the home buyer begins upon close of sale and lasts 1 (one) year from that date if the application is received and accepted with payment in full to Warranty Global Group, Inc. The contract term for New Construction begins one year after sale date and continues for three years from that date if the application is received and accepted with payment in full to Warranty Global Group, Inc. A New Construction customer is a first time owner of a newly constructed home which has not been occupied prior to the contract sale date. The contract term for Seller begins upon receipt and acceptance of the application by us and lasts for 180 (one hundred-eighty) days. Payment for the seller coverage portion of the Contract fee must be received by us before we can accept a request for service by the seller.

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When service is needed, you are to telephone us at 1-866-237-4980, twenty-four (24) hours per day, seven (7) days per week (except the twenty-fifth (25th) of December). Under normal circumstances, we will initiate the performance of services during normal business hours by an authorized trade person or technician chosen by us within 48 hours after you request the services.

If a repair involves the loss of heating or cooling, loss of plumbing, substantial loss of electrical service or any other condition which renders a dwelling uninhabitable, it will be considered a temporary emergency condition. In event of temporary emergency conditions, you shall notify us of such fact through the use of our toll-free number so we may give the proper authorization to repair or replace to alleviate the emergency.

You shall give notice to us of any occurrence of operational failure that may be covered as soon as reasonably possible after the failure or malfunctions have occurred. You shall take every precaution to protect the property giving rise to the loss until the necessary repair or replacement is authorized by us and made. YOU MUST NOTIFY US OF ANY LOSS PRIOR TO ACTUAL REPAIR OR REPLACEMENT. We shall not be liable for a loss unless said notice is given prior to the expiration of your coverage, regardless of when the loss occurred.

For each trade service call, you will pay seventy-five dollars ($75.00) Service Call Fee for Gold Plan members or fifty dollars ($50.00) Service Call Fee for Platinum Plan members, or actual cost, whichever is less The Service Call Fee is for each call dispatched including the event you fail to be present at the scheduled time of the trade service call or in the event you cancel a call at the time the service technician is in route to your home or the service technician has already arrived at your home. Your payment must be made prior to completion for each service call including, but not limited to trade service calls wherein coverage was granted excluded, limited or denied in whole or in part. If no defects covered by this Contract are discovered or repaired during a service call, then you are responsible for the cost of the entire service call. We have the option to suspend this Contract for non-payment of service call fees until such time payment is received.

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Gold Plan

The following systems and appliances are covered for the home buyer and are an optional coverage for the home seller during the listing period if the Home Seller Coverage was selected for an additional fee. For the home seller, the items in this section are subject to a combined $1,500.00 maximum coverage limitation during the listing period.

1. CENTRAL HEAT SYSTEM

COVERED: Furnace units and heat pumps (max. of two units). Includes accessible ductwork. Fireplace gas burner unit. Thermostat(s): controlling equipment only for furnaces, air conditioners and appliances.

NOT COVERED: all coal or wood burning equipment or conversions from coal to gas or coal to oil systems, oil storage tanks, fuel oil lines, geo-thermal systems, space heaters, chimneys, fireplaces, flue liners, air filters, gas logs, normal maintenance cleaning, adjustments.

NOTE: We will pay no more than $1500.00 per covered item per agreement term for access, diagnosis and repair or replacement of any glycol system, self contained heat and domestic hot water systems (boilers). Any of the foregoing covered components as well as plenum, indoor electrical up to the disconnect, and duct connections are also covered as required to maintain compatibility and compliance with minimum SEER and HSPF standards.

2. CENTRAL AIR SYSTEM

COVERED: Central air unit (max of two units unless purchase of 3rd HVAC option) not to exceed 5 tons per unit. Refrigerated and evaporative cooler, central air conditioning unit(s) and heat pump(s). Water cooling storage tanks. Thermostat(s): Controlling equipment only for furnaces, air conditioners and appliances. Attic and Exhaust Fans.

NOT COVERED: normal maintenance, cleaning, adjustments and capacity increases. Geo-thermal systems. Cooling systems with compressors larger than five tons.

NOTE: Any of the foregoing covered components as well as plenum, indoor electrical up to the disconnect, and duct connections are also covered as required to maintain compatibility and compliance with minimum SEER and HSPF standards.

3. DUCTWORK

COVERED: Ducts from heating and/or cooling unit to point of attachment at registers or grills and flex ductwork.

NOTE: Coverage will provide access to ductwork through unobstructed walls, ceilings, or floors only, and will return the access opening to a rough finish condition. Coverage for concrete-encased ductwork is limited to $500.00, less applicable service fees, per incident.

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The following systems and appliances are covered for home buyer. Coverage will also apply to the home seller during the listing period if the Home Seller Coverage was selected for an additional fee except where noted as Buyer Coverage Only.

1. PLUMBING

COVERED: Piping for gas, hot and cold water, drain and waste lines, vent, branch and riser lines: plumbing component parts within the toilet tank; inline shut-off or supply valves and risers leading into sinks, lavatories, toilets and tubs.Sump pump to pump ground water only. Whirlpool motor and jets. Polybutylene lines.

NOT COVERED: Conditions of low or insufficient water pressure, color or purity of water, water filters, and water purification systems, or repair of piping damage caused by screws, nails, or vegetation roots. Water well system, shower base pans, wax ring seals, toilet fixtures and water tanks, shower enclosures or doors, sinks, tubs, "insty" heat type devices and water purifiers; fixtures, faucets, showerheads and trip levers; repair or replacement of main body or caulking, grout, or tiles; drain tile or lawn sprinkler systems; normal maintenance services such as, but not limited to pumping septic tanks; clearing of line stoppage; water well system; domestic water softener; septic lines and tank; dry (refuse) well; ejector pump; stand alone Jacuzzi-type tubs, whirlpools or saunas; Fixtures, Faucets, Shower heads and trip levers malfunction or failure of items due to rust, corrosion or mineral buildup.

Note: The aggregate coverage for repairing or replacing polybutylene lines shall not exceed $500.00 during this Agreement. Coverage will provide access to plumbing systems through unobstructed walls, ceilings, or floors only, and will return the access opening to a rough finish condition. Coverage for concrete-encased plumbing is limited to $500.00, less applicable service fees, per incident.

2. ELECTRIC
COVERED: All components and parts within the interior of the home. Wiring main service panel not to exceed $500.00.

NOT COVERED: Telephone wiring, door bell system, lighting fixtures, ceiling fans, garage door openers. Conditions of overload caused by inadequate wiring capacity, code violations, or any licensing permits.

3. WATER HEATER SYSTEM

COVERED: Components, electrical or gas connections, flue piping and hot water tank.

NOT COVERED: Oil, solar or solar-assisted water heating units. Self-contained heat and domestic hot water systems (boilers) refer to section C-1.

4. KITCHEN REFRIGERATOR (Buyer Coverage Only)

COVERED: All parts and components for one (1) kitchen unit only.

NOT COVERED: Food spoilage, ice makers, ice crushers, racks, shelves, beverage dispensers, interior thermal shells, door liner.

5. DISHWASHER

COVERED: all parts and components for one (1) kitchen unit only.
NOT COVERED: Rollers, racks, baskets, portable units.

6. FOOD WASTE DISPOSER

COVERED: All parts and components for one (1) kitchen unit only.
NOT COVERED: Stoppage caused by foreign material.

7. COOKING RANGE/OVEN/COOKTOP

COVERED: All parts and components, including self cleaning mechanisms and timers (when timer affects functions of oven) for one (1) kitchen unit only.

NOT COVERED: Commercial equipment, box, door glass, lights, rotisseries, racks, handles, knobs, sensi heat burners, filters and magnetic induction.

8. OVER THE RANGE OR BUILT IN MICROWAVE

COVERED: All parts and components, includes touch pad panel for one (1) kitchen unit only.

NOT COVERED: Door glass, interior lining, clocks, lights, shelves, rotisseries, meat probe assemblies, countertop or portable microwave oven.

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Platinum Plan

The following systems and appliances are additional coverage for the home buyer if the Platinum Plan Coverage was selected for an additional fee. Coverage will also apply to the home seller during the listing period if the Home Seller Coverage was selected for an additional fee.

1. CENTRAL SYSTEM
COVERED: Permanently mounted, non-ducted heater, humidifiers, dehumidifiers, electronic air filtering devices, and attic and exhaust fans.

2. PLUMBING
COVERED: Domestic water softener; fixtures, faucets, shower heads and trip levers; clearing of line stoppage by a rotary machine (includes the drain line to the street); septic lines, ejector pump to pump sewage only and transfer waste from a lower level to an upper level into the sewage system; water well system including pressure tank, motor, pump, shaft and point for a single dwelling only.

NOTE: The aggregate coverage for repairing or replacing water well system components shall not exceed $300.00 during this Agreement.

3. ELECTRIC
COVERED: Door bell system; lighting fixtures permanently mounted to the main residence or attached garage including ceiling fans at builder’s standard.

NOT COVERED: Audio/Video surveillance systems, intercom systems, or
monitors working in conjunction with the doorbell system, and fixtures commonly known as chandeliers.

4. TRASH COMPACTOR
COVERED: All parts and components for one (1) kitchen unit only.

NOT COVERED: Lock and key assembly, and removable buckets.

 

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The following systems and appliances are optional coverage for the home buyer, if selected, for an additional fee.

1. HOME INSPECTION SERVICE OPTION

• Non-detected pre-existing conditions: We will cover existing defects or mechanical failures if not detected during the home inspection.
• Permits: Cost for obtaining permits up to $250.00 per occurrence.
• Code Violations: We will pay up to $250.00 per contract term to correct code violations.
• Water heater rust and sediment buildup: if not detected during the home inspection.
• Improper installation, repairs, or modifications: We will repair or replace a system or appliance that was improperly installed, repaired, or modified prior to or during this contract term not to exceed $1,000.00 if not detected during the home inspection.
• Removal of defective equipment: cost to dispose of an old appliance, system or component.
• Refrigerant recapture, reclaim, and disposal.

NOTE: This option requires a written home inspection and applies to systems and appliances covered by this Agreement and shall not exceed any applicable limits.

2. CLOTHES WASHER AND DRYER
COVERED: All parts and components.

NOT COVERED: Plastic mini-tubs, soap dispensers, filter screens, venting, knobs and rails, damage to clothing.

3. SWIMMING POOL AND SPA EQUIPMENT
COVERED: All parts and components of the heating, pumping and filtration system and blower.

NOT COVERED: Pool sweep motors, lights, liners, concrete, encased or underground electrical, plumbing or gas lines, cleaning equipment, motors, pump, or any mechanism used in association with a waterfall, fountain, or any other attachment not associated with the primary function of the covered equipment, structural defects, solar equipment, jets, fuel storage tanks, and built-in or detachable cleaning equipment including pop-up heads, turbo valves, creepy crawlers and the like.

NOTE: The aggregate coverage for repairing or replacing components shall not exceed $1,000.00 for swimming pool and $500 for spa during this Agreement.

4. ICE MAKER
COVERED: All parts and components of an ice maker installed in a kitchen refrigerator or freestanding or under the counter ice makers. For one (1) kitchen unit only.

NOT COVERED: Food spoilage, ice crusher, plastic buckets, interior thermal shells, and door liners.

5. UPRIGHT OR CHEST FREEZER
COVERED: All parts and components for only one (1) unit separate from refrigerator.

NOT COVERED: Food spoilage, ice makers, ice crushers, racks, shelves, beverage dispensers, interior thermal shells, door liner. Room or walk-in freezers.

6. GARAGE DOOR OPENER
COVERED: All parts and components.

NOT COVERED: Failure caused by improper installation, transmitters, loss controls, and damage to automobiles, exterior touch pads and springs.

7. CENTRAL VACUUM SYSTEM
COVERED: All parts and components.

NOT COVERED: Conditions of inadequate capacity or clogged lines.

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We will pay for losses up to the maximum amount of coverage shown for all sums paid or payable in the aggregate over the entire term of the Agreement period. The aggregate amount of coverage under this Agreement is limited to $25,000.00. This Agreement is limited to $1,500.00 per individual item, $2,500.00 per system except for section C, or as specifically provided elsewhere in this agreement.

This agreement is not applicable to the items listed below, or where damage or failure is due to:

1. Items that are not in proper working order on the Contract sale date of coverage.

2. Fire, wind, freezing rain, hail, sleet, snow, ice or water back-up due to ice, explosions, acts of God, accident, rot, dry rot, condensation, mineral deposit build up, power failure or shortage, lightning, destruction caused by pets, rodents, termites, insects and vermin, or any cause other than by operational failure to a covered part and/or component. Corrosion, rust, mineral build up with the exception of water heater if Home Inspection Service Option Section F1 was selected and a home inspection was performed.

3. Excessive or inadequate water pressure, code violations, electrical surge, excessive or inadequate voltage, electrical currents artificially generated, electrical wiring not to code.

4. Any systems due to lack of capacity, maintenance inspections, cleaning, adjustment and lubrication services, failure to maintain the temperature in the residence above freezing, or caused by incorrect use or contamination of fuel or energy.

5. Damage to the physical structure of the residence including, but not limited to, bearing walls, walls, roof, roof supports, structural floor base, foundation or slabs, and ceilings except where specifically identified as covered.

6. Faulty workmanship by any agreement or trade-person selected and hired, or any improper installation of any component or system by the owner, seller or any other person, either before or after issuance of this Contract unless the Home Inspection Service Option section F1 was selected and a home inspection was performed.

7. Leased or rental equipment.

8. Permits, fees, cost of disposal of any replaced or repaired item, coolant recovery fees or other environmental fees or charges unless Home Inspection Service Option Section F1 was selected.

9. Misrepresentation/fraud by you in reporting a loss.

10. Defects in the equipment due to the manufacturer’s errors or improper construction of the equipment.

11. Any incidental or consequential property damage, lost time, lost data, nor failure to provide timely service due to conditions beyond our control, including but not limited to , part or equipment delays, labor difficulties.

12. Non-functional parts, including damage to cabinetry, light bulbs, plastic, porcelain or enamel parts, exterior/interior finishes, knobs, dials, hinges, lock and key assemblies, handles, racks, baskets, probes or rotisseries, trim and/or appearance parts AND ALL ITEMS NOT LISTED AS COVERED.

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Should we deem it required to complete the proper adjudication of your service request, you shall supply us with all requested information with regard to manufacturer warranties on all appliances and systems, prior to payment for repair or replacement. In the event that there is any other collectible insurance warranty or guarantee coverage available to you covering a loss and also covered by this Contract, our coverage shall be in excess of, and we will not contribute with any other warranty or guarantee.

When the residence is affected by zoning or building codes or any other law, and restoration of a system or component of the residence to original condition is not permitted and/or the code requires more costly material or additional work, we will not be liable for the additional material labor or expenses. When code corrections are necessary prior to the repair or replacement, you shall be liable for making the corrections and we shall have no obligations to pay until the corrections have been made. When permits cannot be obtained due to code, we will have no obligation to pay until the violations have been removed. The cost of bringing any system or component up to code is not a covered expense unless Home Inspection Service Option was selected, then we will pay up to $250.00 per contract term for any covered item.

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You may cancel this Contract at any time for any reason. If You cancel this Contract within the first sixty (60) days of the Covered term, then We will refund the full purchase price less any claims. If You cancel this Contract thereafter, then You will receive a prorated refund based upon the days of remaining coverage (less the cost for service performed if applicable). In all instances, We may retain a cancellation fee where permissible by law. NOTE: All New Construction Program cancellations will receive a full refund if the cancellation occurs prior to the inception of the Contract term.

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If the covered property changes ownership during the contract term, please call 1-866-445-3604 for further information to transfer coverage to the new owner. This contract may be renewed a maximum of nine (9) renewal periods at the option of Warranty Global Group, Inc. and where permitted by state law. In that event, you will be notified of the prevailing rates and terms for renewal.

THIS AGREEMENT IS AMENDED TO COMPLY WITH THE FOLLOWING STATE REQUIREMENTS AND DISCLOSURES:

ALABAMA: The cancellation section of this Contract is amended to include the following: If this Contract is originally delivered to you by mail, you may cancel this Contract within 20 days after the date the Contract was mailed to you and receive a full refund of the Contract price provided no claim has been made under the Contract. If a full refund is due to you under this Contract, a 10% penalty per month will be added to the refund if it is not made within 45 days of return of the Contract to us. If you cancel this Contract after the initial period has expired, we will deduct a cancellation fee of $25.00 from any refund otherwise due.

This contract is non-cancelable by the Administrator, except for non-payment of service fees, fraud or misrepresentation of facts, material to the issuance of this contract. If the contract is cancelled by the Administrator, the contract holder shall be entitled to a pro-rata refund of the paid contract fee for the unexpired term and no cancellation fee shall be deducted.

This Agreement is transferable.

ARIZONA: This contract is non-cancelable by the Administrator, except for non-payment of service fees, fraud or misrepresentation of facts, material to the issuance of this contract. If the contract is cancelled, the contract holder shall be entitled to a pro-rata refund of the paid contract fee for the unexpired term less an administrative fee of $25.00.

Section 13 entitled Arbitration is deleted in its entirety.

COLORADO: Actions under a pre owned home warranty service Agreement may be covered by the provisions of the Colorado Consumer Protection Act or the Unfair Practices Act, Articles 1 and 2 of Title 6, C.R.S., and that a party to such a Agreement may have a right of civil action under such laws, including obtaining the recourse or penalties specified in such laws.

GEORGIA: The administrator may not cancel this Agreement except for fraud, material misrepresentation or non-payment by you or for violation of any terms and conditions of this Agreement, or if required to do so by any regulatory authority. Notice of such cancellation will be in writing and given at least thirty (30) days prior to cancellation. Cancellation will conform to the requirements of Code Section 33-24-44. The holder may cancel at any time upon demand and surrender of the Agreement whereupon the issuer shall refund the excess of the consideration paid for the Agreement above the customary short rate for the expired term of the Agreement.

ILLINOIS: THIS IS NOT AN AGREEMENT OF INSURANCE. This Agreement is cancelable by the service Agreement holder. The Administrator may retain a cancellation fee not to exceed the lesser of 10% of the Agreement provided or $50.00.

NEW HAMSPSHIRE: Any New Hampshire resident who is aggrieved by any act or omission of WARRANTY GLOBAL GROUP, INC. or its agents may register a complaint with the New Hampshire Insurance Department, Concord, New Hampshire 03301, or by phone at 1-800-852-3416.

NEVADA: The following sentence from Section 11 Cancellation/Renewal is hereby deleted “If You cancel this Agreement within sixty (60) days of the date purchased, We will refund the full purchase price less any claims” and replaced with the following: This contract is void and We must refund to You the purchase price of the contract if no claim has been made and You return the contract within 20 days after the date that We mailed the contract to You or within 10 days if We furnish to You a copy of the contract when it is purchased. We shall refund to You the purchase price of the contract within 45 days after the contract has been returned to Us. If We do not refund the purchase price within 45 days, We will pay to You a penalty of 10% of the purchase price for each 30-day period that the refund remains unpaid. This contract is transferable.

If We cancel the contract pursuant to NRS 690C.270, We shall refund to You the portion of the purchase price that is unearned by Us. We may deduct any outstanding balance You have with Us from the amount of the purchase price that is unearned by Us when calculating the amount of the refund. No cancellation fee will be charged if We cancel this contract. No cancellation of a contract may become effective until at least 15 days after the notice of cancellation is mailed to the holder.

Section 7.2 is amended to include the following: If an emergency service involves the loss of heating or cooling, loss of plumbing, substantial loss of electrical service or any other condition which renders a dwelling uninhabitable, repairs will commence within 24 hours after the report of the claim.

NORTH CAROLINA: If the contract is cancelled, the contract holder shall be entitled to a pro-rata refund of the paid contract fee for the unexpired term less an administrative fee not to exceed ten percent (10%) of the amount of the pro rata refund. *The purchase of this agreement is not required to purchase or obtain financing of this home warranty*

SOUTH CAROLINA: If this contract is originally delivered to You by mail, You may cancel this contract within 20 days after the date the contract was mailed to You and receive a full refund of the Agreement price provided no claim has been made under the Agreement. If a full refund is due to You under this contract, a 10% penalty per month will be added to the refund if it is not made within 45 days of return of the contract to Us. This contract is transferable.

Your obligations and duties are outlined in the terms and conditions; there are no additional obligations or duties for you to follow.

TEXAS: THIS AGREEMENT IS ISSUED PURSUANT TO A LICENSE GRANTED BY THE TEXAS REAL ESTATE COMMISSION, AND COMPLAINTS IN CONNECTION WITH THIS AGREEMENT MAY BE DIRECTED TO THE COMMISSION AT P.O. BOX 12188, AUSTIN, TEXAS 78711, 512-465-3917. THE PURCHASE OF A RESIDENTIAL SERVICE AGREEMENT IS OPTIONAL AND SIMILAR COVERAGE MAY BE PURCHASED THROUGH OTHER RESIDENTIAL SERVICE COMPANIES OR INSURANCE COMPANIES AUTHORIZED TO TRANSACT BUSINESS IN TEXAS.

Warranty Global Group, Inc. d/b/a Global Home USA

UTAH: The cancellation section of this Contract is amended to include the following: We may cancel this contract for (1) material misrepresentation; (2) substantial change in the risk assumed; (3) substantial breaches of contractual duties, conditions or warranties. If we cancel this contract for the reasons outlined above, the cancellation is effective no sooner than 30 days after the delivery or first-class mailing of a written notice to You.

The Contract purchase price is payable, in full, at the time of purchase.

Failure to given any notice or file any proof of loss required within the time period specified does not invalidate a claim made under this Plan. This contract is transferable within the period of coverage. Coverage afforded under this contract is not guaranteed by the Property and Casualty Guaranty Association.

WISCONSIN: THIS WARRANTY IS SUBJECT TO LIMITED REGULATION BY THE OFFICE OF THE COMMISSIONER OF INSURANCE. IF SERVICE IS PERFORMED WITHOUT NOTICE TO WARRANTY GLOBAL GROUP, INC. OR WITHOUT WARRANTY GLOBAL GROUP, INC.’S PRIOR APPROVAL, THEN PENDING AN INVESTIGATION OF THE SERVICE WORK REQUIRED, WARRANTY GLOBAL GROUP, INC. MAY NOT REIMBURSE FOR THAT SERVICE.

WYOMING: This Agreement is transferable. This contract is non-cancelable by the Administrator, except for non-payment of service fees, fraud or misrepresentation of facts, material to the issuance of this contract.

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