SWAPALEASE, INC.
LEASE TRANSFER PEACE OF MIND PLAN sm
This plan
is designed to help protect against
potential losses or liabilities resulting from a new lessee defaulting on
their lease agreements. As with any
protection plan, you must read the entire plan carefully to determine rights,
duties and defined coverage.
Various provisions in this plan restrict responsibility of
coverage. Please read the entire plan carefully to determine rights, duties
and what is and is not covered.
Throughout this plan words and phrases that appear in bold have special
meaning. Please refer to Section V – Definitions Section.
By accepting this plan you agree that the statements on
the Plan and those made in your application are true. We have issued this Plan based on the truth
of these statements. We will provide the
loss protection described in this Plan in return for the fee and compliance
with all applicable provisions of this Plan.
SECTION I - WHAT THE SWAPALEASE PLAN COVERS
We will, at Our option, reimburse you or pay the Lessor,
when the Assuming Lessee Defaults on any of the following Financial
Obligations:
1. The remaining
lease monthly payments owed to the Lessor.
Our maximum limit of liability is the Original Monthly Payment
multiplied by the Remaining Months of the Lease Agreement as shown on the
Declarations Page.
2. The amount assessed for Excess Wear and/or Physical Damage as defined in the Assigned
Lease Agreement (up to $2,000 in total claims)
3. The Disposition
Fee as shown on the Declarations Page
(up to $500)
4. The amount assessed for Excess Mileage as defined in the Assigned Lease Agreement. (up to $2,000 in total claims)
Section
II – what our program does NOT COVER
The following conditions are not covered under this
plan. Please bear in mind that these
fees would be assessed after all
other conditions above are met. Each of
these fees are assessed differently based on the lending institution they are
held by.
1. Any
loss, cost or expense arising out of any:
a. Fines, late fees;
b. Returned check charges;
c. Administrative charges;
d. Early termination fees;
e. Non-payment surcharges;
f. Acquisition, attorney or collection
fees;
g. Court costs;
h. Damages;
i. Vehicle maintenance charges;
j. Official fees and taxes; or
k. Repossession, storage or transporting
fees.
2. Subsequent assignment of the lease by the
Assuming Lessee.
Additionally, this Plan does not provide coverage when the
Assuming Lessee’s Default is caused by or resulting from any of the
following. Such loss is excluded
regardless of any other cause or event that contributes concurrently or in any
sequence to the Assuming Lessee’s Default.
1. Nuclear
Hazard – the explosion of any weapon employing atomic fission or fusion,
nuclear reaction, radiation, or radioactive contamination, however caused.
2. War, including the following and any
consequence of any of the following:
a. Undeclared
war, civil war, insurrection, rebellion or revolution;
b. Warlike
act by a military force or military personnel; or
c. Destruction,
seizure or use for a military purpose.
Discharge of a nuclear weapon will be deemed a warlike act
even if accidental.
3. Commercial
Use of the Vehicle at any time prior to the Scheduled Termination date of
the Lease Agreement (this includes the “Remaining Months of the Lease
Agreement” time period, as shown on the Declarations Page, after assignment to
Assuming Lessee).
Section
III – Lease transfer default protection plan conditions
when
the plan applies:
Coverage
applies when:
1. You have complied with the “YOUR DUTIES
WHEN YOU RECEIVE A BILL FROM LESSOR” section of this Plan;
2. You have received a bill from Lessor; and
3. Not otherwise excluded.
Coverage under the plan is available only if purchased
within 60 days after assignment of Lease Agreement to Assuming Lessee.
your duties when you receive a bill from lessor:
You must
notify Us within ninety (90) days of receipt of bill for eligible charges from
Lessor.
cancellation:
We may cancel this Plan by mailing notice to You at Your
last known address. We will state the
reason for cancellation in the notice.
Proof of mailing will be sufficient proof of notice.
We won’t cancel the Plan unless:
1. You don’t pay the fee; or
2. You obtained the Plan through a material misrepresentation or concealment
of material fact; or
3. You made an intentional material misrepresentation, concealed a material fact,
collaborated with the Assuming Lessee in encouraging or submitting a claim; or
4. The odometer
has been tampered with, altered or disconnected or in any way misrepresents
the actual miles prior to assignment of Vehicle to Assuming Lessee.
If We cancel because You didn’t pay the premium when it
was due, the date of cancellation will be at least 10 days after the date of
mailing. If We cancel for any other
reason, the date of cancellation will be at least 30 days after the date of
mailing. Cancellations will be effective
even if the refund is not made immediately.
Section iv – general conditions
Bankruptcy or Insolvency:
The bankruptcy or insolvency of You or Your estate or the Assuming
Lessee will not relieve Us of any obligation under this Plan.
Assistance and Cooperation:
When We ask, You must help Us in investigations and settlements and in
enforcing any rights We may have against any manufacturer, repairer, or
Assuming Lessee that may be responsible for any Excess Wear and/or Excess
Mileage charges, Disposition Fee(s), remaining lease payments, or charges for
damage to the vehicle.
Changes:
This Plan may not be changed unless We approve the change in
writing. None of Our representatives
have the authority to change or waive any provision of this Plan.
Conformity to State Statutes:
If any Plan provision conflicts with the law of the state for which this
Plan was issued, the law of that state applies.
In that event, this Plan will provide coverage only up to the minimum
requirement of that state.
If You Have Any Other Insurance:
This Plan provides coverage only in excess of other applicable and valid
policies of insurance and warranties and service contracts that You have or
under which You can recover from third parties.
Appraisal:
If We disagree about the amount of the claim for Excess Wear, Excess
Mileage, or damage to the Vehicle, We may demand an appraisal of the Vehicle
before agreeing to pay the assessed charges.
Arbitration:
Any other dispute about this Plan’s interpretation may be resolved by
arbitration upon the written request of either party. Arbitration will take place under the rules
of the American Arbitration Association unless either party objects. Within 60 days after You receive written
notice from Us that a claim has been denied or that a dispute cannot be
otherwise resolved, You must notify Us in writing that You intend to seek
arbitration. If either party objects to
the rules of the American Arbitration Association, the following method of
arbitration will be used instead:
You will select one arbitrator. We will select another. The two arbitrators will select a third. If they can’t agree on a third arbitrator
within 30 days, a judge of a court of record in the county of the jurisdiction
where the arbitration is pending will appoint the third arbitrator. The written decision of any two arbitrators
will determine the issues. You will pay
the arbitrator You select. We will pay
the one We select. The expense of the
third arbitrator and all other expenses of arbitration will be shared equally
between You and Us.
Actions Against Us: You may not sue Us under this
Plan unless You have fully complied with all Plan Terms.
No Benefit to Bailee:
We will not recognize any organization holding, storing or transporting
property for a fee regardless of any other provisions of this Plan.
Our Right to Recover from Others:
When We pay under this Plan, Your right to recovery from anyone else
becomes Ours up to the amount We have paid.
You must protect these rights and help Us to enforce them. We shall recover only the excess after You
are fully compensated for Your loss above the amount of the Plan’s deductible,
if applicable.
Fraud or Misrepresentation:
This Plan will be considered void from its inception if any of the below
conditions are met. In the event these
conditions are met, the Plan premium will not be refunded.
1. Intentionally
conceal, omit or misrepresent a material fact;
2. Have made
fraudulent statements or engaged in fraudulent conduct:
3. In
any way collaborate with the Assuming Lessee to encourage a claim relating to
this Plan.
whom to
contact:
For Plan coverage questions, or for questions concerning
arbitration, claims or cancellations contact us at:
SwapaLease, Inc.
1-866-792-7669
section V – definitions used throughout the
Plan
The following definitions apply throughout the Plan. Defined words are printed in italicized type.
1. Assigned Lease Agreement: The Lease Agreement originated by You and
assigned to the Assuming Lessee with approval of your bank.
2. Assuming Lessee: The person or persons to whom You assign Your
original Lease Agreement. The Assuming
Lessee agrees to comply with all of the terms and conditions of the lease
including but not limited to lease payments, Vehicle maintenance and use,
insurance, and Vehicle disposition.
Subsequent assignment of the lease by Assuming Lessee is not permitted
and renders this indemnity void unless the Lessee also buys indemnity.
3. Commercial Use: Use of the Vehicle for any commercial
purpose. This includes, but is not
limited to, deliveries, service or repair calls, route work, job site
activities, construction, hauling, taxi, livery, rental, carrying passengers
for hire, towing or road repair operations, police or emergency service, lowing
snow, competitive driving, racing or on off road or principally off road use,
whether or not the Vehicle is licensed for any commercial purpose or registered
to a corporation.
4. Default(s): An Assuming Lessee has defaulted when all
attempts by the Lessor to collect on monies owed from the Assuming Lessee are
not successful and Lessor has taken possession of the vehicle.
5. Disposition Fee(s): The fee specified in the Lease Agreement to
cover the selling cost of the Lessor at the end of the lease.
6. Excess Mileage: The actual mileage in excess of the total
mileage allowance provided in Your original Lease Agreement, subject to the
limitations and exclusions of this Plan.
7. Excess Wear: Damage to the Vehicle exceeding the criteria
specified in the “Standards for Wear and Use” or similarly titled section of
Your original Lease Agreement.
8. Excess Wear Physical Damage: Damage to the Vehicle that would otherwise
have been covered by the Assuming Lessee’s Standard Automobile Plan.
9. Financial Obligations: Means the remaining lease payments, Excess
Wear and Mileage surcharges, and/or Disposition Fee(s) as specified in Your original Lease Agreement
which is then assigned to the Assuming Lessee.
10. Lessor:
The leasing company, who owns the Vehicle, named on the Lease Agreement,
and its subsequent assigns.
12. Original Lessee: The person or persons named as the Lessee or
co-Lessee on the original Lease Agreement and named on the Plan Declarations
page as the Planholder.
13. Original Monthly Payment: The amount the Original Lessee paid the
Lessor to cover depreciation plus other costs, such as profit and fees.
14. We, Us, or Our: Swapalease.com, Inc.
15. Vehicle:
The vehicle described on the application.
16. You or Your: The person or persons named on the
application as the Plan holder. The Plan
holder must be the Original Lessee of the Vehicle.