Definitions

Administrator refers to Interstate National Dealer Services, Inc.

Contract refers to this Service Contract which You purchased from Us to protect Your Craft.

Coverage refers to the component protection You have chosen, as shown on the Identification Card.

Craft refers to the watercraft which is described on the Identification Card, which cannot be used for emergency, for hire or rental

Deductible refers to the Deductible type and amount You will need to pay, as shown on the Identification Card, for covered Failures.

Failure refers to a Failure of a defective part or faulty workmanship as supplied by the Manufacturer or Dealer, but does not include gradual reduction in operating performance due to wear and tear or damage resulting from Failure of non-covered parts.
Identification Card refers to the numbered card which becomes part of this Contract. It gives information about You, Your Craft, Coverage chosen and other significant data.

We, Us, Our refers to the entity who is obligated to perform under this Contract, as indicated on the Identification Card.

You, Your refers to the Contract holder named on the Identification Card or the person to whom this Contract was properly transferred.

Terms & Conditions

The following represents the Coverage, Benefits, Cancellations, What to do in the Event of a Failure and Exclusions of Your Craft Service Contract. If You do not receive Your Identification Card within 60 days, phone the customer service number listed on page 5. This document is an Application for the Service Contract and does not constitute a Contract until accepted by Administrator.

1. CONTRACT PERIOD: Coverage under this Contract begins immediately and will expire according to the term of the Contract selected, whichever occurs first, as shown on the Identification Card.

a) A New Contract expiration is measured from the Original Factory Warranty In-Service Date.

b) A Used Contract expiration is measured from the Contract purchase date which must coincide with the delivery date of the watercraft/engine.

2. FAILURE OF COVERED PARTS: We will pay or reimburse You for reasonable costs to repair or replace a Failure of a part included in Your Coverage. Replacement parts may be new, remanufactured or replacement parts of like kind and quality.

3. TERRITORY: This Contract is limited to Failures which occur, and repairs that are made, within the territorial waters of the United States of America and Canada.

4. LIMIT OF LIABILITY

a) The Maximum limit of liability per loss shall be equal to the lesser of the aggregate limit of liability (see below) or the actual cash value of the Craft at the time of repair.

b) The Aggregate limit of liability for each Service Contract shall not exceed the lesser of $15,000 or the selling price of Your Craft.

5. OUR RIGHT TO RECOVERY: If We pay anything under this Contract and You have a right to recover from another party, Your rights will become Our rights up to the amount We paid. You will do whatever is necessary to enable Us to enforce these rights.

6. TRANSFER RIGHTS: This Contract is for the benefit of the original Contract holder and is transferable subject to a transfer fee and inspection providing:

a) Proof of transfer of the remaining manufacturer's warranty is provided, if applicable.

b) Contract is being transferred to a subsequent private purchaser of Your Craft. (Transfer rights are voided when Craft is either traded, sold or put on consignment to an individual or entity engaged in the wholesale or retail sale, leasing or rental of Craft.)

You must submit the following:

a) Transfer application (Available from Administrator).

b) Bill of sale showing sale date.

c) $50.00 Transfer fee ($25 in CA) made payable to the Administrator within thirty (30) days of the transfer of Craft ownership.

7. MAINTENANCE REQUIREMENTS: You must maintain Your Craft according to the manufacturer's recommendations as outlined in the owner's manual. You must be sure only the proper grade of lubricants and coolants, as recommended by the manufacturer, is used in Your Craft. It is necessary for You to retain verifiable receipts for all parts and materials necessary to perform the required maintenance. If necessary, this documentation will be verified by the Administrator. Damage caused by inadequate fluid levels are not covered by this Contract. Check Your fluid levels when refueling.

8. ARBITRATION: If We and You do not agree on the settlement of any claim, either party may make a written request for arbitration. In this event, each party shall select an arbitrator. The two arbitrators shall select a third. If they cannot agree on a third within thirty (30) days, either may request that the selection be made by a judge of a court having jurisdiction. Each party shall pay the expenses they incur, and bear the expenses of the third party arbitrator equally. A decision agreed to by any two of the arbitrators shall be binding on both parties.

Outboard / DI Outboard / Verado Coverage

ENGINE

Internally lubricated parts contained within the block to include: pistons, piston rings and pins, main and rod bearings, crankshaft, connecting rods, camshaft, camshaft bearings, valves, valve springs, guides and seats, reeds and reed blocks. Timing chain, gears and/or belts. Seals and gaskets of a covered component if defective. Engine head(s), engine block and/or cylinder barrels, intake manifolds only if damaged beyond repair as a result of a mechanical breakdown of one of the above covered components.

LOWER UNIT

Internally lubricated parts contained within the gear case. (Gear case if damaged beyond repair by a covered component). Seals and gaskets of a covered component if defective.

JET DRIVE

Internally lubricated parts contained within the pump housing. (Pump housing if damaged beyond repair by a covered component). Seals and gaskets of a covered component if defective.

FUEL DELIVERY

Fuel delivery pump (mechanical/diaphragm), carburetor body, air box (silencer), electric choke solenoid (enrichener). Seals and gaskets of a covered component if defective.

ELECTRICAL

Alternator/stator, voltage regulator/rectifier, engine mounted terminal blocks, engine mounted wiring harness, starter motor, starter armature, starter field windings, starter magnets, brush holder and brushes, end caps and bushings, starter drive, starter solenoid.

IGNITION

Power Pack/Switch Box, Amplifier, ignition high output coil, ignition trigger coil, spark plug wires.

POWER TRIM

Power trim motor, power tilt motor, power trim cylinders, including cylinder rams, cylinder seals, cylinder mounts and pivots, power trim motor actuator solenoids, power trim wiring harness, power trim master control switches, reverse lock valve, manual trim cylinder, manual trim cable, and control valve.

CONTROLS

Shift and throttle control box parts to include: cams, eccentrics, shafts, pivots, bushings, housing, control arms/levers and knobs, shift control cable, throttle control cable, ignition switch.

MECHANICAL STEERING

Control helm assembly, control rack and yoke assembly, power steering pump, power steering cylinder, steering wheel, steering wheel mounting hub. (Excludes cables). Seals and gaskets of a covered component if defective.

HYDRAULIC STEERING (MANUAL SYSTEMS)

Hydraulic steering head, hydraulic steering lines, hydraulic steering cylinder, hydraulic steering flow valves, steering yoke. (Excludes cables). Seals and gaskets of a covered component if defective.

OIL INJECTION SYSTEMS

Oil injection pump, oil pump drive gear, oil pump drive shaft, oil tank, oil tank cap, oil level sensors, oil level warning horns and lights, oil injection lines, oil injection check valves, oil injection metering system.

EFI/DFI COMPONENT COVERAGE

Electric fuel delivery pumps (high and low pressure), fuel injectors, fuel distributors, ECU module, throttle position sensor, manifold air temperature sender, idle speed control, mass air flow sensor, detonation/knock sensor, ignition pick-up sensor. Seals and gaskets of a covered component if defective.

Engine Only Coverage

If Engine Only Box is checked off under Options on the Administrator copy of the Application, Coverage will ONLY apply to ENGINE and LOWER UNIT components as indicated above.

Optional Accessory Programs

Accessory Programs are available as options on Your Service Contract provided that the option purchased is so noted on the Administrator copy of Your Service Contract application. Should the Stand-alone option box be checked on the Administrator copy of Your Service Contract application, coverage will be limited to components listed in the Optional Pak checked on Your application.

CRUISING PAK

Air Conditioner: Compressor, condenser, capacitor, relays, water pump, fans, heat exchanger, evaporator, thermostat.

Heating Unit: Heating elements, control panel, thermostat.

Interior Lighting: Light switches, lighting fixtures.

12-Volt/24-Volt Electrical: Battery charger/converter.

Shore Power: Onboard receptacle, cap, shore power main switch, circuit panel, circuit breakers.

Appliances (Built-in): Refrigerator, range/cook top, oven, L.P. regulator, clothes washer, clothes dryer, microwave, ice-maker, disposal.

Water System: water pump, water heater, compressor, drain system, sump pump, fittings, faucets.

Waste System: shower, toilet, sink(s), holding tanks, macerator, gate valves, connections, electric flush control, vacuum pump. Note: pipes and leaks from piping and vacuum accumulations are excluded.

Dual Station/Tower Control Set: Helm control, steering wheel, throttle/shift control box.

Horns: Air horns, air horn compressor, air solenoids, control panel, electric horn and control.

Electrical: Battery main switch, battery isolator, battery selector switch, battery box, fuse block/fuse holders, chart light, windshield wiper motor, transom light, bow light, docking lights, courtesy lights, accessory switches.

Anchor: Winch, electric windlass motor, bow pulpit guide, control panel.

Depth Finder: Depth sounder, transducer, mounting brackets and control cable. (Applies to one factory installed unit only).

Instrument Panel: (Factory installed only) Tachometer, speedometer, volt gauge, hour meter, oil pressure gauge, trim gauge, fuel gauge, temp gauge.

Stereo: CD Player, CD changer, amplifier, cassette tape deck, AM/FM tuner. (Factory installed units only).

Compass: Compass head, mounting brackets (excludes digital model).

Remote Spotlight: Control panel, horizontal/vertical control motors, light housing.

Planing/Trim Tabs: Pump, trim cylinders, planing plates.

Hardware: Deck rails, grab rails, hand rails, bow eyes, rope cleats, anchor chocks, cockpit steps, top slides, door hinges and latches, deck plates, storage cover sockets and supports.

*Blockage: Blocking coverage per foot of hull length per covered mechanical breakdown, up to $50.00 on covered claims.

*Dockside Assistance: (26 foot vessels and over only). Dockside Assistance covers up to $50.00 of service call charges when in water repair is needed.

*Not included if Cruising Pak is purchased as a Stand Alone option.

SPORT FISH PAK

Electric Trolling Motor** Armature, fields, brushes, brush holders, wiring harness, control cables, foot control unit and switches. Planitary/ armature housing if damaged beyond repair by one of the above.

Gas Trolling Motor (up to 15 HP)*: All internally lubricated parts contained within the engine block; fuel pump, carburetor; wiring harness, control cables, foot control unit and switches.

Electrical System: Battery main switch, battery isolator, battery selector switch, battery box, fuse block/fuse holders, chart light, electric horn, windshield wiper motor, transom light, bow light, docking lights, voltmeter.

Water System/Washdown: water pumps, drain system, fittings, faucets.

Live Wells: fill, pumps, aerator, manual valves, timer.

Power Transom/Jack Plate: Motor bracket, slides, jack screws, cylinder, control panel.

Planing/Trim Tabs: Pump, trim cylinders, planing plates.

Anchor: Winch, guide (Excludes anchor rope, cable or chain).

Digital Depth Finder: Depth sounder, transducer, mounting brackets and control cable. (Applies to one factory installed unit).

Fish Finder: Fish finder, transducer, speed and temperature sensors, mounting brackets, control cable. (Applies to one factory installed unit).

Battery Charger: (Factory installed unit only).

Speedometer: Speedometer head, speed log, mounting brackets and control cable.

Lakewater Temp Gauge: Temperature gauge, temp sensor and control cable (Hull mounted only).

Compass: Compass head, mounting brackets (Excludes digital models).

Boat Hardware: Deck rails, grab rails, hand rails, bow eyes, rope cleats, anchor chocks, cockpit steps, rod holders, top slides, door hinges and latches, deck plates, storage cover sockets and supports.

Trailer: Brakes, brake drums, master cylinder and hydraulic brake actuator. Frame rails, wheel bearings, spindles and springs, winch stand, welds, axle, hubs, backing plates, coupler, bunks and roller cradles. (Excludes damage due to overloading and bending or bearing failures due to water entry or debris).

** One motor only as originally equipped.

RUNABOUT PAK

Digital Depth Sounder: Depth finder, transducer, mounting brackets and control cable. (Applies to one factory installed unit).

Fish Finder: Fish finder, transducer, speed and temperature sensors, mounting brackets, control cable. (Applies to one factory installed unit).

Electrical: Interior courtesy lights, docking/bow lights, stem light, dual battery switch, cabin light fixtures, electric horn, windshield wiper motor.

Planing/Trim Tabs: Pump, trim cylinders, planing plates.

Waste System: shower, toilet, sink(s), holding tanks, macerator, gate valves, connections. Note: pipes and leaks from piping and vacuum accumulations are excluded.

Water System/Washdown: water pumps, drain system, fittings, faucets.

Stereo: CD Player, amplifier, cassette tape deck, AM/FM tuner. (Factory installed units only).

Appliances (Built-in): Galley sink and faucet, ice box, stove top.

Hardware: Stainless steel deck railings, grab rails, bow eyes, rope cleats.

Instrument Panel (Factory installed): Tachometer, speedometer, volt gauge, hour meter, oil pressure gauge, trim gauge, fuel gauge, temp gauge.

Trailer: Brakes, brake drums, master cylinder and hydraulic brake actuator. Frame rails, wheel bearings, spindles and springs, winch stand, welds, axle, backing plates, coupler, bunk and roller cradles. (Excludes damage due to overloading and bending or bearing failures due to water entry or debris).
SKI BOAT PAK

Digital Depth Finder: Depth finder, transducer, mounting brackets and control cable. (Applies to one factory installed unit).

Electrical: Interior courtesy lights, docking/bow lights, stem light, dual battery switch, cabin light fixtures, electric horn, windshield wiper motor.

Stereo: CD Player, amplifier, cassette tape deck, AM/FM tuner. (Factory installed units only).

Water/Ballast System/Washdown: water pumps, drain system, fittings, faucets.

Hardware: Stainless steel deck railings, grab rails, bow eyes, rope cleats.

Instrument Panel (Factory installed): Tachometer, speedometer, volt gauge, hour meter, oil pressure gauge, trim gauge, fuel gauge, temp gauge.

Trailer: Brakes, brake drums, master cylinder and hydraulic brake actuator. Frame rails, wheel bearings, spindles and springs, winch stand, welds, axle, backing plates, coupler, bunk and roller cradles. (Excludes damage due to overloading and bending or bearing failures due to water entry or debris).
NAV PAK

Navigation System: Radar, GPS, GPS Map Receiver, LORAN, Plotter, Loran Antenna, Auto Pilot, VHF Radio.

GENERATOR PAK

(Coverage is limited to the first 1500 hours of use for New Craft and 750 hours of use for Used Craft)

Engine: Internally lubricated parts contained within the cylinder block to include: Pistons, piston rings and pins, main bearings and rod bearings, crankshaft, connecting rods, camshaft, camshaft bearings, timing chain, gears and/or belt, valves, valve springs, valve guides and seats, valve push rods, lifters, oil pump. Rocker arm cover, harmonic balancer, oil pan, engine mounts. Distributor housing, shaft and bearings. Seals and gaskets of a covered component if defective. Engine head(s), engine block and/or cylinder barrels, intake manifolds only if damaged beyond repair as a result of a mechanical breakdown of one of the above covered components.

Electrical: Switch box/amplifier, alternator, voltage regulator/rectifier, ignition coil, starter motor, solenoid, engine mounted wiring harness.

Closed Cooling System: Engine water coolant circulating pump and heat exchangers. (For closed cooling system only).

Generator Electrical: Armature, fields, brushes, end frame and housing, generator mounted control panel, rectifier. (Does not include installation and/or removal of unit).

TRAILER PAK

Trailer: Brakes, brake drums, master cylinder and hydraulic brake actuator. Frame rails, wheel bearings, spindles and springs, winch stand, welds, axle, backing plates, coupler, roller cradles. (Excludes damage due to overloading and bending, and bearing failures due to water entry or debris).

Benefits

HOIST/HAUL-OUT: The Contract will pay up to $100.00 for the actual cost of Hoist/Haul-Out anytime a covered component fails requiring Hoist/Haul-out to facilitate diagnosis or repairs (except where prohibited by law). Any reimbursement shall be the actual Hoist/Haul-Out charges in excess of any applicable reimbursement from any other party, including but not limited to, a manufacturer, association or insurer.

TOWING: The Contract will pay up to $100.00 for towing anytime a covered component fails causing the Craft to be towed either in water or on land (except where prohibited by law). Any reimbursement shall be the actual Towing charges in excess of any applicable reimbursement from any other party, including but not limited to, a manufacturer, association or insurer. Towing must be performed by a valid marine towing company or authorized marine service facility.

PICK-UP/DELIVERY: The Contract will pay up to $100.00 for the actual cost of Pick-Up/Delivery for Craft up to 25 feet anytime a covered component fails requiring Pick-Up/Delivery to facilitate diagnosis or repairs (except where prohibited by law). Any reimbursement shall be the actual Pick-Up/Delivery charges in excess of any applicable reimbursement from any other party, including, but not limited to, a manufacturer, association or insurer.

What to do in the Event of a Failure

1. Prevent Further Damage - You should use all reasonable means and precautions to protect Your Craft from further damage. This Contract will not cover damage caused by not securing a timely repair of the failed component.
2. If Your Craft breaks down, return to the Issuing Dealer during normal service department hours. If this is not possible, take Your Craft to the licensed repair facility of your choice (You may contact Administrator for assistance in locating a repair facility).
3. Instruct the repair facility that they must obtain an authorization number from Administrator prior to proceeding with repairs. The amount so authorized is the maximum that will be paid. Any additional amounts need prior approval.
4. In some cases, You may be required to authorize the repair facility to inspect or tear down Your Craft to determine the cause and cost of the repair. You will be responsible for these charges if Failure is not covered by this Contract. We reserve the right to require an inspection of Your Craft prior to any repair being performed.
5. After Administrator has been contacted, review with the repair facility components that will be covered by this Contract.
6. Administrator will reimburse the repair facility or You for the cost of authorized repairs performed on Your Craft. All repair orders and necessary documentation must be submitted to Administrator within thirty (30) days to qualify for payment.

Service Department Guidelines for Claims Handling

Follow these steps when handling a claim:

1. Advise Contract holder that evaluation of a Failure does not mean that the repair is covered under this Contract. All covered repairs must receive prior authorization by Administrator.
2. Have Contract holder authorize inspection/tear down of the Craft to determine Failure's cause and cost to repair. Save all components, including fluids and filters, should Administrator require outside inspection. Notify Contract Holder that cost of tear down will not be paid if it is determined that Failure is not covered under this Contract.
3. Determine the cause of Failure, correction required and cost of the repairs.
4.

Contact Administrator's Claims Advisor at 800-526-0929 to get authorization to proceed with the claim. Be prepared with the following when placing the call:

a. Customer's Name and Contract Number.

b. Cause of Failure and recommended correction.

c. Cost of repair.

5.The Claims Advisor will verify coverage and do one of the following:

a. Approve Claim - If approved, You will be given an authorization number to be recorded on the repair order. The authorized amount is the maximum that will be paid. Additional amounts must receive prior approval.

b. Require Additional Evaluation, Inspection or Tear Down - Administrator may require an inspection prior to repair being completed. If a tear down is required to determine cause of Failure, Contract holder must authorize same. Notify Contract holder that if the repair is not covered, then Contract holder will be responsible for cost of the tear down. Repair facility should save all components requiring inspection, including fluids and filters. The Claims Advisor will arrange for the inspection. If inspection is not made within forty-eight (48) hours, contact the Claims Advisor.

c. Deny the claim and provide the reason for the denial.

6. Review Administrator's findings with Contract holder as well as what will be covered by Contract and what portion of the repairs, if any, will not be covered.

7. Obtain Contract holder's authorization to complete repairs. All repair orders must have customer's signature to qualify for payment.

8. Submit repair order(s) which should contain Contract number, authorization number and authorized amount to Administrator within thirty (30) days at the following address:

Interstate National Dealer Services, Inc., 333 Earle Ovington Boulevard, Uniondale, NY 11553

800-526-0929, Claims Fax - 516-745-1986, http://www.inds.com/, e-mail: claims@inds.com

Cancellation of Service Contract

1. You may cancel this Contract by notifying Us. A cancellation form indicating the date of cancellation and the date of request will be required.

2. We may cancel this Contract for non-payment of the Contract charge, or for intentional misrepresentation in obtaining this Contract or in submitting a claim.

3. If Your Craft and this Contract has been financed, the lienholder may cancel this Contract for non-payment, or if Your Craft has been declared a total loss or has been repossessed. The rights under this Contract are transferred to the lienholder and the lienholder is also entitled to any resulting refund.

4. If this Contract is canceled within the first sixty (60) days if Craft was purchased new or thirty (30) days if Craft was purchased used and no claim has been filed, the entire Contract charge paid will be refunded. After sixty (60) days for new or thirty (30) days for used, or if a claim has been filed, an amount of the unearned Contract charge will be refunded according to the pro-rata method based on the term of Contract and the date when Coverage began.

5. A $50 ($25 in AL, CA, WA) service charge will be deducted from all refunds after sixty (60) days for new and thirty (30) days for used Craft Contracts.

6. In the event of cancellation, the lienholder, if any, will be named on the cancellation refund check.

Exclusions

Parts not listed are not covered. This Service Contract Provides NO Coverage or Benefits for the following:

1. Failures WHICH occur, or repairs performed, outside the territorial waters of the United States and Canada.
2. Repair or replacement of any component parts not specifically covered by the CONTRACT.
3. Repairs of covered components required as a result of the Failure of a non-covered component.
4. Repairs required as a result of other than a manufacturer's defect, such as a design defect or normal wear.
5. Repair to pistons, rings and/or pins due to carbon or "coking" condition.
6. Repair to valves due to carbon, dished, tuliped or stuck condition.
7. Loss as a result of water ingestion through the intake manifold, carburetor, or exhaust system.
8. Repair or replacement of any component covered by insurance or the manufacturers limited warranty or recall policies after the limited warranty expires WHETHER COLLECTIBLE OR NOT.
9. Damage as a result of impact, COLLISION or grounding.
10. Maintenance services specified in the owner's literature supplied with the product and the parts used in connection with such services such as adjustments, spark plugs, oil or fluids, belts, hoses, oil filters and clamps, miscellaneous and shop supplies.
11. Use of equipment and accessories not installed by the manufacturer or dealer, or improper installation of these items by the manufacturer or dealer. Loss or damage arising out of wiring, cabling, piping and fittings such as hose clamps is excluded.
12. Loss of detonation, overheating, pre-ignition, or lean or improper fuel mixture unless caused by the Failure of the oil injection system (carburetors are not covered). Loss caused by foreign substance in the fuel and/or oil not recommended by the manufacturer.
13. Loss caused by external water inlets, or outlets and/or internal water passages being closed or restricted, or motor/drive improperly mounted.
14. Repairs required as a result of (a) Failure to properly care for or maintain the product: (b) fire, accident, abuse, negligence or Act of God; (c) Failure to properly operate the product; (d) modification or any alteration to product not recommended or approved by the manufacturer; (e) using the product for speed events such as races or acceleration trials; (f) rust, cosmetic or paint changes; electrolysis or corrosion; (g) inadequate or improper haul-out; launch, towing and storage (including rack storage); (h) freezing or ice damage; (i) water damage due to submersion; (j) reverse polarity; (k) aquatic growth, seaweed, algae, barnacles or zebra mussels; (l) overheating (regardless of cause), deterioration, condensation and contamination; (m) the Failure or loosening of external fasteners and/or bolts.
15. Unauthorized repairs performed by other than authorized dealers and repairs required as a result of parts used other than those recommended by the manufacturer.
16. Additional service work requested by you other than necessary to satisfy the CONTRACT covered repairs.
17. Charges for installation of appropriate carburetor jets or gears to meet local altitude requirements.
18. Removal and/or replacement of CRAFT bulkheads, deck, hull, gear, equipment or any material for necessary access to the product.
19. Bodily injury or property damage arising or allegedly arising out of a defect in the design, manufacture, materials or workmanship of a covered component.
20. Propeller(s) and any damage to covered components, if damage was caused by propeller(s).
21. Any and all damage to hull, or parts of the Craft not a part of the covered components.
22. Similar repairs to the same component within a 90-day period.
23. Replacement of seals and gaskets due to seepage or overheating. Minor loss of fluid is not a mechanical Failure.
24. Any damages to the Craft arising from the Failure of the trailer.
25. Repairs to parts of the craft not specifically indicated under the "What is Covered" section of this CONTRACT.
26. Incidental and consequential damages are excluded. Implied warranties of fitness and merchantability are excluded or limited as allowed by law. Any implied warranty of workmanship and/or seaworthiness are excluded
27. MerCruiser Dry Sump Drives; Supercharged Stern Drives.