Common use of Providing Service Clause in Contracts

Providing Service. 1. No claim forms are used, but we must pre-approve service by an authorized, independent service contractor. If an authorized service contractor is not available in your area, we will ask that you call your preferred service contractor and request that they evaluate your problem, but they must call us for authorization prior to performing service. Your service contractor must be licensed and insured. 2. In some instances we may pay cash instead of performing a repair or replacement service, when: (i) the cost of completing a repair or replacement exceeds the stated “DOLLAR LIMIT”; or (ii) even after repair or replacement, the system or appliance remains non-compliant with laws, regulations or code requirements; or (iii) the system or appliance is subject to a manufacturer’s recall for a defect unrelated to the covered breakdown. a. If we elect payment, the amount will equal the lesser of: (i) what the ordinary customer would pay after negotiating the best price for such services in your area and without the benefits of this Service Agreement; or (ii) the amount we would pay for parts and labor for covered service based upon our contracts with independent service contractors (this amount is usually less than retail cost or your actual cost); or (iii) the “DOLLAR LIMIT” reduced by the service fee paid to the service contractor by you. b. We are not obliged to extend such an offer in any particular instance. Such offers are typically made subject to restrictions. Some or all of such a payment may be made to you or a service contractor. We are not responsible for work performed by you when cash has been paid in lieu of services.