Warranty Solutions Dealer Procedure Manual

Dealer Procedure Manual

Table of Contents The Warranty Solutions Dealer Procedure Manual

2

Important Telephone Numbers

3

Contract Entry

4

Completing the VSC Application or GAP Waiver

4

Submitting Payments for VSC/GAP Contracts

5

Vehicle Classifications

5

Rates 6 VSC Coverage Types

6

VSC Benefits

6

VSC Deductible Options

6

Vehicle Plan Types

7

VSC Suitability Problems

7

Vehicle Inspections and Reconditioning

7

Modified, Altered, and Other Excluded Vehicles

7

VSC Transfers

8

VSC and GAP Cancellations

8

VSC Claims Submission

8

VSC Claims Payment Remit

9

How to Collect a VSC Claims Payment

9 10

GAP Claims Payment

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1

GAP Claims Submission

The Warranty Solutions Dealer Procedure Manual The Warranty Solutions Dealer Procedure Manual was created to help assist your dealership by providing guidelines and instructions in the sale of our Vehicle Service Contracts (VSC), Guaranteed Asset Protection Contracts (GAP), and the processing of claims for our VSC and GAP contract holders.

It is not intended to be an all-encompassing procedure manual, yet it will provide general information for procedures related to VSC and GAP programs.

This manual is updated regularly so please check for updates or newer versions frequently on the Warranty Solutions website.

This manual is instructional and is to be used in conjunction with your Dealer Agreement, Agreement Addenda, Rate Cards, eRate systems, Vehicle Classification Charts, and the VSC and GAP contracts.

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Warranty Solutions — Dealer Procedure Manual

Important Telephone Numbers Dealer Number Agent Name Agent Number

VSC & GAP VSC Claims/Customer Service Calls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800-322-3933

Claims Submission and Payment Questions — Option 1

6:00 a.m. – 6:00 p.m. (MT) M–F

Contract Processing and Accounts Receivable — Option 2 or 3

7:00 a.m. – 5:00 p.m. (MT) M–F

Client Relationship Managers and Sales — Option 4

7:00 a.m. – 5:00 p.m. (MT) M–F

Roadside Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 866-434-4357 Claim Payment Fax . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800-324-2807 GAP Claims/Customer Service Calls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 866-648-2475

Ancillary Claims/Customer Service Calls — Option 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . 888-210-4142 Roadside Assistance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 844-773-5237

Website: www.warrantysolutions.com Contact the CRM team to obtain User IDs and Passwords to access the Warranty Solutions website.

• • • • • •

Vehicle Service Contract Rating Vehicle Service Contract and GAP Submission and Generation Vehicle Service Contract and GAP Cancellation Dealer Statement and Invoice Generation — Please print and submit payment at least monthly Claim Submission Reference Materials

Address

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Warranty Solutions P.O. Box 140057 Denver, CO 80214

Warranty Solutions — Dealer Procedure Manual

Contract Entry Warranty Solutions provides the following methods to generate VSC and GAP contracts: •

eGen: Contracts are keyed, generated, and printed at the point of sale in the finance and insurance (F&I) office.

•

Back office entry: Paper contracts are issued to the consumer at the point of sale and then keyed into the Warranty Solutions online system shortly after the sale by dealer personnel or agent.

•

eGen with Dealer Management System (DMS) integration: The Warranty Solutions system is linked directly to the Dealer’s in-house DMS. Contract information is extracted from the DMS into the Warranty Solutions website and contracts are generated from that information.

You and your agent will decide which contract entry system best meets your needs.

You are required to retain a signed copy of all VSC/GAP contracts. We may at any time request copies from you.

Completing the VSC Application or GAP Waiver The information provided below is for paper forms. However, eGen is very similar and the online system will prompt you through the different required fields. Back office entry will also require the same information as it will be taking the information from the paper forms.

The VSC application (schedule) and GAP waiver must be completed correctly. Failure to provide all necessary information may delay the processing or cause the possible rejection of a VSC or GAP contract. The required information is as follows: Application number: The VSC and GAP contracts are preprinted with unique numbers. The application/waiver number becomes the contract number upon acceptance by the administrator. eGen will generate its own unique number once all the required information is entered into the system.

VSC/GAP contract holder information: List the information including name, address and telephone number of the contract holder in the boxes. If the VSC contract (does not include GAP) is being sold to a company name, the primary driver name (owner operator for non-fleet/commercial VSCs) must be provided.

Vehicle description: List the vehicle information requested in the boxes. Always list the vehicle identification number (VIN).

Effective date, odometer reading, and term: As these definitions change between different VSC and GAP contracts, please refer to the actual product for definitions of what will be required.

Dealer/Account number: This is your dealer’s unique identification number that Warranty Solutions has assigned to you.

Price and lienholder information: Fill in the contract price and lienholder name (if applicable).

For GAP you will also need to provide, financed amounts, terms of the financial agreement, interest rate, etc. Failure to provide this information, at a minimum, may cause delays in processing the VSC/GAP contract and/or claims.

Dealer information: List your dealer information in the boxes provided.

Plan type (if multiple coverage options on one form): Mark the correct check box for the coverage chosen. Only one type may be chosen. If there is any ambiguity because one of the check boxes is not clearly marked, more than one check box is marked, or the check mark is located between two check boxes, the lower level of plan coverage will be given.

Additional coverage options, deductible options, and vehicle surcharges: coverage options vary by plan type. Refer to the actual VSC/GAP contract for any optional coverages/surcharges available. All surcharges, options, and deductibles must be checked at the time the VSC/GAP contract is sold otherwise they will not apply at the time of a claim and a claim may be denied.

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Warranty Solutions — Dealer Procedure Manual

Optional coverages and surcharges may have eligibility guidelines that may need to be met. Please refer to the VSC/ GAP contract and/or vehicle classification charts for this. Certain surcharges, such as Diesel or V-10, even if not marked at the time of sale, will be identified and the dealer will be charged back for these surcharges.

Signature: Both the consumer and the dealer representative must sign. Make sure the new VSC/GAP holder has read the disclosures shown prior to signing. Note: In some states the new VSC/GAP holder may be required to sign or initial check boxes that are included with the Application/Waiver. If the Application/Waiver is not properly signed and/or initialed, the VSC/GAP contract may get rejected.

Use these guidelines for all forms of contract generation as they apply.

Submitting Payments for VSC/GAP Contracts Payment for contracts is due by the 15th of the month following the contract sale.

Example: Contract sold between January 1 and January 31. Payment due Warranty Solutions by February 15.

1. Access the Warranty Solutions website.

2. Click on the link for Dealer Statements.

3. Your Dealer Statement will display all unpaid contracts for which payment is due.

4. Print both copies of the Dealer Statement, keep one for your records and submit the other with your payment.

Except for eGen VSC/GAP contracts, include all contract copies listed on the Dealer Statement with your remittance.

Remittance instructions will be displayed at the bottom of the Dealer Statement.

Failure to remit the due amount within 30 days of the due date may result in the cancellation of the VSC/GAP contract for non-payment (notification of this cancellation will be sent to effected VSC holders), shutting off dealer access to our website, turning off your rates, rejection of any new business, and other collection efforts available to us.

Note: Payment terms and due dates are subject to change at any time.

Vehicle Classifications Warranty Solutions uses vehicle classifications as part of the contract price rating process. Differing rate classes are used ranging from the least expensive class to the most expensive class. Vehicle classification charts can be viewed or downloaded from warrantysolutions.com. When using the online system, vehicles are classified automatically by year, make, and model.

Certain vehicles are excluded from coverage. The vehicle classification chart lists excluded vehicles. If a vehicle is not listed or is excluded on the chart, it is not eligible for a VSC. Certain listed vehicles may require a “class adjustment” because of equipment or options. For example, a vehicle equipped with a diesel engine may be adjusted up one class from that listed on the chart. Refer to the vehicle classification charts for more details.

Also, please note that a VSC/GAP contract also excludes certain types of vehicles. Since it is impossible for Warranty Solutions to know if a vehicle might be excluded from coverage due to one of those vehicle exclusions, it is up to you, the Selling Dealer, to make sure that at the time of sale of a vehicle and the sale of a VSC/GAP contract that the vehicle in question is not excluded from coverage. If a dealer sells a VSC/GAP contract on a vehicle that is excluded, at the time of the sale of the VSC/GAP Contract, the dealer may be responsible for those claims that arise. Please refer to the Dealer Agreement for further explanation.

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Warranty Solutions — Dealer Procedure Manual

Rates The rate, or cost to the dealer, of the VSC is determined by the vehicle class, whether the vehicle is new or pre-owned, the mileage on the vehicle, the term of the contract and any applicable options or surcharges (deductible, coverage or equipment options, and so forth).

Florida dealers are required to use only WS approved retail rates when selling VSCs. These rates determine the exact amount that a dealer must charge the consumer for the VSC. This is highly regulated. If you do business in Florida, make sure you are familiar with the laws regarding the sale of VSCs. The following are ways that rates can be obtained for a specific vehicle: •

eRate online: When using eGen, eGen back office, or eGen with DMS integration, the Warranty Solutions system automatically provides the rate for the VSC based on year, make, model (or VIN), and optional coverages and surcharges.

•

eRate Auto: Complete rates can be downloaded onto an individual desktop computer by your agent from a link on warrantysolutions.com. The dealer can then obtain the rate for the VSC by entering the year, make and model (or VIN), information into the rate calculating tool.

VSC Coverage Types Warranty Solutions offers many levels of coverage to meet your customer’s needs. Exclusionary, Stated and Wrap plans are included.

Exclusionary Coverage: All components on the vehicle are covered unless specifically excluded in the VSC’s General Contract Exclusions or Limit of Liability sections. This is the closest coverage to the manufacturer’s standard warranty.

Stated Coverage: Only the components listed in the VSC are covered. General Contract Exclusions and Limits of Liability apply. Warranty Solutions offers many levels of Stated Coverage.

Wrap Coverage: A Wrap contract can be either exclusionary or stated. However, Wrap contracts do not cover powertrain components. These are ideal with Certified Pre-owned (CPO) programs or extended factory powertrain coverage. It is important to choose the correct time and mileage terms on the Wrap contract to match the underlying manufacturer or CPO warranty.

Some VSC contracts will have optional parts coverage or optional coverage that will allow certain vehicle characteristics or a certain type of vehicle use and is offered at an extra cost. These optional coverages must be chosen at time of the sale of the VSC contract. Failure to do so may result in the denial of a claim and possibly could result in having no future coverage on that vehicle. Please refer to the applicable VSC for these optional coverages.

VSC Benefits Many VSC also provide additional benefits such as roadside assistance, rental reimbursement, or trip interruption. Please refer to the VSC contract that you are selling to see if it provides for these benefits and what the limits are.

VSC Deductible Options The standard deductible for most VSC is $100 and is assessed on a “per visit” basis. The VSC application will list optional deductibles, if any. Please refer to the VSC for any optional deductibles available and for an explanation of the benefit of these other deductible options.

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Warranty Solutions — Dealer Procedure Manual

Vehicle Plan Types Warranty Solutions offers multiple plans for both new and pre-owned vehicles. Some VSC have optional plan types in conjunction with the optional coverage types. In general, the following definitions apply: New Plan: An approved vehicle, at the time of sale of the VSC, is no more than 5 model years old and has less than or equal to 60,000 miles.

Pre-owned Plan: Any approved vehicle is eligible for a pre-owned VSC. However, pre-owned terms generally are more limited.

Please note that when a New Plan or Pre-owned Plan option is available it is important that you select the correct plan as the different plans can change how the effective and expiration date of the VSC is applied and calculated. An example of this is most New Plans expire when the vehicle’s odometer reaches the mileage of the term purchased, e.g. Term Miles on the Schedule shows 100,000 miles, and the VSC will then expire when the vehicle’s odometer reads 100,000 miles. The term miles purchased is NOT added to the mileage on the odometer at the time of sale. However, on Pre-owned Plans the mileage of the term purchased is added to the mileage on the odometer at the time of purchase. Please make sure and refer to the “Contract Definitions” of the VSC being sold for further explanation.

VSC Suitability Problems A dealer may run into a suitability issue when the VSC sold provides little to no value to the customer. Examples of suitability issues are as follows: •

Selling a Wrap contract where the term sold is longer than the manufacturer’s powertrain, leaving the consumer exposed with no powertrain coverage.

•

Selling a 3 Star (powertrain only) VSC with a term less than or equal to the manufacturer powertrain. Selling a term less than or equal to the full manufacturer warranty.

•

Selling a 36/60 new term on a new vehicle with 49,000 miles at the time of purchase, leaving the consumer with less than 11,000 miles of coverage.

It is your dealership’s responsibility to make sure the terms chosen are correct and to make sure that they do offer the purchaser some benefit.

Vehicle Inspections and Reconditioning It is in your dealership’s best interest to perform thorough vehicle inspections and to perform any repairs to a vehicle that are needed to bring the vehicle into proper working order to alleviate any pre-existing conditions that the vehicle may have, prior to the sale of a VSC. By not performing thorough inspections and any needed repairs, it will decrease your customer’s satisfaction with the vehicle. Also, a VSC will not cover or assist with any claims or costs in the event a claim is determined to be the result of a condition existing prior to the sale to the consumer (pre-existing condition). These claims will be denied and the customer will be directed to contact your dealership.

In the event your dealership is in a state that does not allow a claim denial for pre-existing conditions, the VSC contract holder will be referred back to your dealership and your dealership will be responsible for needed repairs that would have been covered by the VSC had there not been the pre-existing condition.

Modified, Altered, and Other Excluded Vehicles Just like pre-existing conditions, if your dealership puts a VSC on a modified, altered or otherwise excluded vehicle, at the time we are made aware of this (usually during the processing of a claim) we will deny any claims and the VSC contract holder will be directed back to your dealership.

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Warranty Solutions — Dealer Procedure Manual

VSC Transfers Some VSC may be transferred once through a private party sale. Please refer to the VSC Terms and Conditions for a further explanation, and instructions if applicable. Transfers cannot be used for consignment, purchases made to bolster inventory (such as from an auction) or by an intermediary to the sale (such as a bank following repossession or broker).

VSC and GAP Cancellations Most VSC and GAP contracts can be cancelled. The VSC/GAP contract may be cancelled by the VSC/GAP contract holder or their lienholder. We will direct contract holders to your dealership to process cancellations and refunds. Per the terms and conditions of the contract, the contract holder they can submit cancellation requests to the administrator. Please refer to the applicable VSC/GAP contract for what is needed to process a cancellation.

Except in Florida, your dealership is responsible for refunds that are due to the VSC/GAP contract holder or their lienholder.

Refunds must be remitted to the VSC/GAP contract holder or their lienholder within 30 days from receipt of the cancellation request. Not providing this refund in a timely manner may result in penalties or late fees due to the VSC holder. Most VSCs will show how these penalties and late fees are calculated. However, state regulatory agencies may have rules/laws that govern this and may provide for penalties and late fees even if not stated on the VSC/GAP contract.

Your dealership is credited for the cancellation once the request is processed. Therefore, your dealership will be solely responsible for any penalties or late fees if not refunded within the allowed time frame.

Be advised Warranty Solutions does not allow any dealer to charge a consumer a separate cancellation fee above any amount specifically stated in the VSC/GAP. Most states regulate cancellation fees and it violates our company policy as stated above. Failure to abide by this policy may result in termination of your Dealer Agreement.

VSC Claims Submission The Administrator observes all major U.S. holidays and is closed Saturday and Sunday Claims may be submitted to Warranty Solutions one of two ways.

1. The preferred method is online claims submission done through our website at: warrantysolutions.com. When submitting claims through the website please follow all prompts.

2. You may call our claims department telephone number as listed on the VSC. Below are a few helpful hints to make the claims process faster and to make sure you have all the needed information: 1. Inform us of all of the complaints mentioned when the vehicle was brought in.

2. Make sure all diagnosis is completed, the cause for all of the problems are known, and what the extent of damage is.

3. Have a completed estimate with: a. All parts listed separately with each individual price. b. All part numbers c. Labor times broken down between actual repair time and any diagnosis time you are requesting. d. If there was a check engine or MIL lamp on, make sure all codes are documented and freeze frame data is available. e. If the problem involves a lubricated part, obtain all maintenance service records from the VSC contract holder that are related to the lubricated part failure (example- rod bearing failure will require all oil change records and possibly air filter change records for the time the VSC contract holder has owned the vehicle.)

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Warranty Solutions — Dealer Procedure Manual

Please note that at the time of a claims submission and in the investigation of a claim we may request to have the vehicle inspected by an independent inspection company to verify the cause and the extent of the problem that you are reporting to us. It is your repair facility responsibility to prove the cause and extent of the failures to the independent inspector.

If repairs are completed without receiving prior authorization, except as provided by the VSC, the claim will be denied.

Claims are authorized in accordance with the terms and conditions of the VSC. The VSC terms and conditions allow us to utilize aftermarket, rebuilt and used parts in the repair of a VSC contract holder’s vehicle. We may request your repair facility locate and use these alternative type of parts or, at times, we may locate and ship the part to you. There are times a VSC contract holder may not wish to use one of these alternative parts and in those cases the VSC contract holder may opt to pay the difference between the cost of the alternative part and the part the VSC contract holder would rather have (betterment offer).

At no time will we pay above and beyond the manufacturer suggested retail price for a part or labor times requested that cannot be verified in a listed approved labor time guide.

VSC Claims Payment Remit To ensure prompt claims payment, after all repairs are completed, follow these guidelines: •

Make sure the VSC contract holder signs the repair order. Submission of a repair order without the consumer’s signature will cause a significant delay.

•

Make sure the VSC number and the claim authorization number are on all claim-related documents.

•

Collect the deductible, if applicable, plus your charges for any items not covered by the VSC.

•

Fax all documents (repair order, rental bills, sublet bills, and so forth) to the Administrator at 1-800-324-2807.

How to Collect a VSC Claims Payment Below are the ways to receive payment for authorized claims: •

Through an automated credit card payment process that allows your dealership to receive payment instructions by fax.

Follow the instruction on the fax to retrieve the claim payment.

•

Automated Clearing House (ACH) or check payment, see your agent for additional information.

Requirements for payment processing: To ensure prompt processing of your claim payment, after the repairs are completed, submit a complete, legible repair order to us by fax to 1-800-324-2807. All repair orders must be signed by the contract holder including the rental agreement.

Note: Charging any amount other than the amount authorized for payment will cause credit card to decline the payment.

Also, please run the MasterCard payment within 2 days of submitting the repair order to the administrator to prevent payment delays.

Credit card fraud is a federal crime. All instances of attempted or committed fraud will be reported in accordance with state and federal interstate credit card fraud laws. Credit card fraud is a felony and Warranty Solutions/ Heritage Indemnity Company will prosecute each case to the fullest extent of the law.

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Warranty Solutions — Dealer Procedure Manual

GAP Claims Submission The Administrator observes all major U.S. holidays and is closed Saturday and Sunday.

To initiate a GAP claim please call 866-648-2478 and follow the prompts to speak with a GAP claim adjuster.

The following information will be required to start the GAP claims process.

1. The last eight digits of the VIN. 2. GAP contract holder’s name.

3. Year, make and model of the vehicle.

4. The date the primary insurance carrier deemed the vehicle a total loss.

Once a claim is started, a request will be mailed to all required parties asking for the following information: •

Finance Agreement (Lienholder/Dealer/GAP contract holder)

•

Payment history from the start of loan to the date of the loss (Lienholder)

•

Police or Incident report (Primary Insurance/GAP contract holder)

•

Copy of primary insurance settlement check (Primary Insurance/Lienholder/GAP contract holder)

•

Settlement breakdown (Primary Insurance/GAP contract holder)

•

Valuation with options (Primary Insurance)

•

Estimate of repairs with photos (Primary Insurance GAP contract holder)

•

Copy of service contract, credit insurance, and all other cancellation refund checks (Lienholder/ Dealer)

•

Bookout sheet/Manufacturing invoice (Lienholder/Dealer)

•

Vehicle purchase Bill of Sale (Lienholder/Dealer/GAP contract holder)

The GAP claims process is highly dependent on how fast the requested information is supplied to the GAP claims adjuster.

Not providing all the information requested only delays the process and all the requested information is required before a claim determination can be made.

GAP Claims Payment Once the GAP claim is finalized and it has been determined that there will be assistance, a claim will be authorized and payment for the authorized amount will be remitted to the lienholder. Letters will then be mailed to all proper parties to notify them of the claim finalization.

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www.warrantysolutions.com

AD18CM254 (0818) Vehicle Service Contracts issued by WS Aftermarket Services Corporation and administered by Warranty Solutions Management Corporation.

In Florida, Wisconsin, Arizona and Alaska, issued and administered by Warranty Solutions Administrative Services, Inc. (Florida License #60079). In Louisiana, issued by AMT Warranty Corp. and administered by Warranty Solutions Management Corporation. Also issued by Heritage Mechanical Breakdown Corporation in Florida (Florida License #60072). All contracts insured by Heritage Indemnity Company (CA C of A #08549), P.O. Box 140057, Denver, CO 80214-0057. Warranties are administered by Warranty Solutions Management Corporation.

Wesco Insurance Company (Wesco) is the underwriter for the Warranty Solutions GAP program and Warranty Solutions Protection programs.