Sample Contract

CONSUMER HOME WARRANTY

A. COVERAGE OVERVIEW

1. Coverage includes only the items stated as covered,

excluding all others and is subject to the limitations, exclusions

and provisions stated in this contract. For your speciﬁc

coverage and selections see your Contract Agreement pages,

which are incorporated into this contract by reference. Please

read your contract carefully.

2. Coverage under this contract includes normal wear and tear

malfunctions during the contract term (as deﬁned in Section B).

Coverage under this contract also includes malfunctions of covered

items which occur during the contract term resulting from the

following situations prior to and during the contract term:

a. Insucient maintenance, rust, corrosion, or sediment;

b. Improper installations, repairs, or modiﬁcations; except as

set forth in section G;

c. Mismatched systems where the indoor and outdoor units

were not properly matched to each other in capacity or

eciency for proper operation; and

d. Undetectable pre-existing conditions which are defects

or mechanical failures that could not have been detected

by a visual inspection and/or simple mechanical test. A

visual inspection of the covered item veriﬁes that it appears

structurally intact and without damage or missing parts

that would indicate inoperability. A simple mechanical test

is deﬁned as turning the item on and o to ensure that it

is operational. While turned on, the item should operate

without causing damage, irregular sounds, smoke, or other

abnormal outcomes.

When completing an American Home Shield (AHS)

approved repair or replacement, AHS will pay the cost to:

e. Dismantle and remove defective equipment; and

f. Recapture, reclaim and dispose of refrigerant.

3. The covered items must be:

a. Installed for diagnosis within the conﬁnes of the main

foundation of the home or attached or detached garage

with the exception of (if selected): air conditioning, heating,

electrical panel, water heater, pressure regulator, exterior

well pump, septic tank and related sewage ejector pump,

or pool and/or spa equipment. These exceptions must

be installed for diagnosis and must be manufactured for

outside use or be located in a structure which fully protects

items from the elements.

b. Domestic grade or commercial grade items that

are speciﬁed by the manufacturer for use in a

residential application.

4. For covered malfunctions, unless otherwise speciﬁed in this

contract, AHS will repair or replace the covered item. AHS has the

sole right to determine, according to the terms of this contract,

whether a covered item will be repaired or replaced. When

making repairs, AHS reserves the right to rebuild existing parts

or components and/or to install rebuilt parts or components.

When making replacements, AHS is responsible for installing

replacement equipment and parts of similar features, capacity,

and eciency, but not for matching dimensions, brand or color.

AHS is not responsible for matching any features of an existing

item that does not contribute to the primary function of that item.

5. AHS’s cash payment policies and procedures:

a. In instances where the combined cost of diagnosis and

repair or replacement is estimated to exceed a stated contract

dollar limit, AHS will not provide repair or replacement services

but will instead pay an amount equal to the contract dollar

limit minus the cost incurred to diagnose the malfunction.

b. Instances beyond AHS’s control may prevent AHS from

providing repair or replacement of a covered item. In these

instances, AHS will provide you cash-in-lieu of the repair or

replacement services. The amount will be based on what a

consumer without this contract would pay after negotiating

the best price for such services in your area. These instances

are when:

(i) Following a response to a covered malfunction, an

item would remain non-compliant with laws, regulations

or code requirements;

(ii) An item has a covered malfunction unrelated to a

manufacturer’s recall on that item; or

(iii) An item is not repairable and a replacement item is

no longer available.

c. In some instances, AHS may oer you the option of

accepting cash-in-lieu of repair or replacement services.

This amount oered is based on what AHS would expect

to pay (which is substantially less than retail cost) for parts

and labor for covered items less the incurred cost of the

contractor’s diagnosis. AHS is not obliged to extend such

an oer and you are under no obligation to accept such an

oer. If you accept such an oer, you are required to repair

the item or provide a new replacement and send acceptable

proof of your actual itemized costs to AHS before any

reimbursement amount will be paid.

6. AHS will not repair or replace malfunctions covered by a

manufacturer, distributor, builder, or an extended warranty.

7. This contract covers single family homes (including

manufactured housing), new construction homes, and

condominiums/townhomes/mobile homes under 5,000 square

feet, unless an alternative dwelling type (i.e. 5,000 square feet

up to 10,000 square feet, guest unit, or multiple units) is applied

for, and the appropriate fee is paid. Coverage is for owned

or rented residential property, not commercial property or

premises converted into a business.

Sample Contract

Revision date: 1/14/21

Provider/Obligor is American Home Shield Corporation

150 Peabody Place, Memphis, TN 38103

Certain items and events are not covered by this contract. Please refer to

the exclusions, restrictions, and limitations in boldfaced type in this document.

Sample Contract

B. CONTRACT TERM AND PLAN FEE

NOTE: Contract Terms and Plan Fees vary for each customer

classiﬁcation listed below. See your Contract Agreement pages

for your speciﬁc Contract Term and Plan Fee.

1. FIRST YEAR CUSTOMER

First Year Customer contract term begins upon the date stated

on your Contract Agreement pages and continues for one year

from that date (unless AHS approves an alternative contract

term in writing) and provided Plan Fees are received by AHS.

2. RENEWAL CUSTOMER

Renewal Customer is an existing AHS customer whose contract

AHS has oered to renew. Renewal Customer contract term

begins upon expiration of previous contract term and continues

for one year (unless AHS approves an alternative contract term

in writing) provided plan fee is received by AHS within 45 days

after expiration. (See Section K. RENEWAL)

3. TRANSFER OF OWNERSHIP

If the covered property changes ownership during the contract

term, you are required to call the Sales phone number on the

Contract Agreement pages to transfer coverage to the new owner.

C. REQUESTING SERVICE

1. AHS must be notiﬁed as soon as the malfunction is discovered

and prior to expiration of the contract term. (Refer to your Contract

Agreement pages for details on how to request service.)

a. AHS will accept service requests 24 hours a day,

7 days a week.

b. AHS will not provide service until all past due Trade

Service Call Fees and Plan Fees are paid in full.

c. AHS will not reimburse for services performed

without its prior approval.

2. AHS has the right to select an AHS authorized service

contractor (Service Contractor) to perform the service.

a. AHS will initiate services under normal circumstances by

contacting a Service Contractor within 48 hours after your

service request to AHS.

b. The Service Contractor will contact you to schedule your

service appointment. The appointment will be scheduled for

service to be performed during normal business hours.

c. AHS reserves the right to obtain a second opinion at its

expense. In the event that AHS informs you the malfunction

is not covered under this contract, you have the right to

request a second opinion of the cause of the malfunction.

You must ask AHS for a second opinion from another

Service Contractor within 7 days from AHS informing

you the malfunction is not covered. In the event that the

outcome of the second opinion is dierent than the ﬁrst

opinion, then AHS may, in its discretion, decide whether

to accept coverage under this contract. If you request a

second opinion, you will be responsible for the payment of

an additional Trade Service Call Fee only if the outcome of

the second opinion is the same as the initial opinion.

3. In the event AHS authorizes or requests you to contact an

independent service contractor to perform a covered service,

AHS will provide reimbursement for an authorized amount of the

cost you incur for the repair or replacement services. Acceptable

proof of the repair and your actual itemized costs must be provided

to and approved by AHS before any reimbursement will be paid.

D. TRADE SERVICE CALL FEE

NOTE: The amount of your Trade Service Call Fee is listed on

your Contract Agreement pages.

1. You are required to pay a Trade Service Call Fee for each

trade service request you submit to AHS.

2. If a particular repair or replacement fails within 30 days, AHS

will send a Service Contractor to repair the failure and you will

not be charged an additional Trade Service Call Fee.

E. ShieldSilver

™

AIR CONDITIONING AND HEATING NOTE: Coverage available

on Heating and Air Conditioning units up to a 5-ton capacity.

AHS will pay up to $1,500 per contract term for access,

diagnosis and repair or replacement of any geothermal and/

or water source heat pumps, glycol, hot water, or steam

circulating system. Where covered repairs require access to

Air Conditioning and Heating ductwork, AHS will provide

access to ductwork only through unobstructed walls, ceilings

or ﬂoors, and will return access openings to a rough ﬁnish.

If the Air Conditioning and Heating ductwork is accessible

only through a concrete ﬂoor, wall or ceiling, AHS will pay

up to $1,000 per contract term for access, diagnosis, repair

or replacement of such ductwork, including returning access

openings to a rough ﬁnish. During an Agreement Term, AHS

will pay for access, diagnosis, and replacement related to

necessary or required Heating and Air Conditioning system

eciency and other upgrades except: (1) costs associated with

plenums and refrigerant line sets and (2) any other Heating

and Air Conditioning-speciﬁc limitations and exclusions in

your Agreement. A “necessary or required upgrade” is a

replacement improving manufacturer speciﬁcation energy

eciency or system performance due to circumstances beyond

the control of you or AHS (such as inability to obtain parts/

equipment or government mandated system modiﬁcations).

1. AIR CONDITIONING INCLUDING DUCTWORK

COVERED: All components and parts of the following air

conditioning systems: Ducted central electric split and package

units – Geothermal – Wall air conditioners – Mini-splits. With

regard to ductwork, except as otherwise noted herein, the

following are covered: Plenums – Dampers – Damper-only

controls – Leaks or breaks in ductwork (sheet metal, duct board,

and ﬂex duct including vapor barrier) from heating and/or air

conditioning unit(s) including registers or grills.

Sample Contract

1. AIR CONDITIONING INCLUDING DUCTWORK

(CONTINUED)

NOT COVERED: Outside or underground piping, well pump,

and well pump components for geothermal and/or water source

heat pump – Window units – Water towers – Chillers, chiller

components, and water lines – Legally mandated diagnostic

testing when replacing heating or cooling equipment.

NOTE: Please refer to the AIR CONDITIONING

AND HEATING NOTE above.

NOTE: AHS will pay up to $10 per pound per occurrence for

refrigerant. Customer is responsible for payment of any costs in

excess of $10 per pound.

2. HEATING INCLUDING DUCTWORK

COVERED: All components and parts of the following heating

systems: Forced air (gas, electric, oil) – Geothermal – Wall mounted

heaters – Floor furnaces – Package units – Heat pumps – Mini-splits

– Hot water or steam circulating heat – Electric baseboard – Room

heaters – Cable heat (if main source of heat to the home or room).

With regard to ductwork, except as otherwise noted herein, the

following are covered: Plenums – Dampers – Damper-only controls

– Leaks or breaks in ductwork (sheet metal, duct board, and ﬂex

duct including vapor barrier) from heating and/or air conditioning

unit(s) including registers or grills.

NOT COVERED: Outside or underground piping, well pump,

and well pump components for geothermal and/or water

source heat pump – Fuel storage tanks – Portable units –

Fireplace, grain, pellet, or wood heating units (even if only

source of heating) – Legally mandated diagnostic testing when

replacing heating or cooling equipment.

NOTE: Please refer to the AIR CONDITIONING

AND HEATING NOTE above.

NOTE: AHS will pay up to $10 per pound per occurrence for

refrigerant. Customer is responsible for payment of any costs in

excess of $10 per pound.

3. ELECTRICAL

COVERED: All components and parts, including Direct Current

(D.C.) wiring, and built-in exhaust/vent/attic fans, except:

NOT COVERED: Audio/video/computer/intercom/alarm or

security wiring or cable – Telephone wiring – Circuit overload –

Face plates – Lighting ﬁxtures.

4. PLUMBING

COVERED: Leaks and breaks of water, drain, gas, waste or vent

lines – Toilets and related mechanisms, toilet wax ring seals,

faucets, shower heads, shower arms, valves for shower, tub, and

diverter, angle stops, risers and gate valves (similar features of

ﬁnish and style used when replacement is necessary) – Hose bibs

– Basket strainers – Permanently installed sump pumps (ground

water only) – Built-in bathtub whirlpool motor, pump, and air

switch assemblies – Pressure regulators – Expansion tanks –

Sewage ejector pump (septic system sewage ejector pumps

are not covered unless optional coverage H.3 is purchased) –

Clearing of sink, bathtub, shower, and toilet stoppages – Clearing

of mainline drain and sewer stoppages through an accessible

cleanout up to 100 feet from access point – Clearing of lateral

drain line stoppages up to 100 feet from access point including

accessible cleanout, p-trap, drain or overﬂow access points.

NOT COVERED: Stoppages caused by collapsed, damaged

or broken drain, vent or sewer lines outside the home’s main

foundation – Lines broken, inﬁltrated or stopped by roots or

foreign objects, even if within the home’s main foundation

– Bathtubs – Sinks – Showers – Shower enclosures and base

pans – Toilet lids and seats – Jets – Caulking or grouting –

Septic tanks – Water ﬁltration/puriﬁcation system – Holding

or storage tanks – Saunas or steam rooms – Costs to locate

or access cleanouts not found or inaccessible, or to install

cleanouts – Access through roof vents.

NOTE: Where covered repairs require access to plumbing, AHS

will provide access to plumbing only through unobstructed

walls, ceilings or ﬂoors, and will return access openings to

a rough ﬁnish. If the plumbing is accessible only through a

concrete ﬂoor, wall or ceiling, AHS will pay up to $1000 per

contract term for access, diagnosis, repair, or replacement of

such plumbing, including returning access openings to a rough

ﬁnish. Customer is responsible for payment of any costs in

excess of $1,000.

5. WATER HEATERS

COVERED: All components and parts, including tankless water

heaters and circulating pumps, except:

NOT COVERED: Auxiliary holding or storage tanks – Noise –

Fuel storage tank and energy conservation unit.

6. GARAGE DOOR OPENERS

COVERED: All components and parts, including springs, except:

NOT COVERED: Door or door track assemblies.

7. DOOR BELLS

COVERED:

All components and parts, except:

NOT COVERED: When part of the intercom system.

8. CEILING FANS

COVERED: All components and parts.

9. REKEY

COVERED: Re-key up to 6 keyholes for properly

functioning standard cylinder door locks and

deadbolts, including 4 copied keys.

NOT COVERED: Lock picking - lock-out service.

NOTE: An additional fee may be applicable if existing copies

of the key are not present. You will be responsible for payment

directly to the locksmith for any additional services. Trade

Service Call Fee for Rekey service will be $100 regardless of

TSCF for selected plan.

Sample Contract

required permits to eect a covered repair/replacement,

b. Six thousand dollars ($6,000) per Covered Item

malfunction for access, diagnosis, and repair/replacement of

any covered Appliance outlined in Section F and

c. All costs for refrigerant for covered Air Conditioning or

Heating units outlined in Section E (if ShieldPlatinum is

purchased, refrigerant limit noted in Sections E.1 and E.2 do

not apply).

ROOF LEAK REPAIR

COVERED: Roof leaks.

NOT COVERED: Metal roofs; partial or full green roofs (eco

roofs); items penetrating the roof (such as skylights, chimneys,

and vents); roof-mounted installations (such as solar panels)

and leaks associated with their attachment to the roof; gutters

and downspouts.

NOTE: AHS will pay up to one thousand five hundred dollars

($1,500) total per Agreement Term for repair of roof leaks.

Roof Leak Repair coverage is not available in Hawaii.

H. OPTIONAL COVERAGE

Optional coverage may be purchased up to 60 days after

the beginning of the contract without an inspection. After

the 60th day, optional coverage may be purchased provided

an inspection is performed (at customer’s expense) and the

inspection results are approved by AHS. New Construction

Customer may add optional coverage during the contract term

for brand new items providing proof of purchase is received

by AHS. Optional coverage, regardless of date of purchase,

continues only through the contract term.

NOTE: Roof Leak Repair coverage is available as an option for

the ShieldSilver and ShieldGold.

1. ROOF LEAK REPAIR

See section G.2 above

2. POOL AND/OR INGROUND SPA EQUIPMENT

Shared equipment is covered. If equipment is not shared, then

only one or the other is covered unless an additional fee is paid.

COVERED ITEMS: Above ground components and parts of the

heating, pumping, and ﬁltration system including: Pool sweep

motor and pump – Pump motor – Blower motor and timer –

Plumbing pipes and wiring – Plumbing and electrical.

NOT COVERED: Portable or above ground spas – Access to

pool and spa equipment – Lights – Liners – Jets – Ornamental

fountains, waterfalls and their pumping systems – Auxiliary

pumps – Pool cover and related equipment – Fill line and ﬁll

valves – Built-in or detachable cleaning equipment including,

without limitation, pool sweeps, pop-up heads, turbo valves,

skimmers, chlorinators, and ionizers – Fuel storage tanks –

Disposable ﬁltration mediums – Heat pump – Multi-media centers

– Dehumidiﬁers – Salt water generators and components.

NOTE: AHS will pay up to three thousand dollars ($3,000)

total per Agreement Term for access, diagnosis, and repair/

replacement of pool equipment including, but not limited to,

pool heaters.

F. ShieldGold

™

ShieldGold includes coverage of

all items listed as covered under

Sections E and F.

NOTE: AHS will pay up to three thousand dollars ($3,000) per

Covered Item malfunction for access, diagnosis, and repair/

replacement of any covered Appliance.

1. REFRIGERATORS

COVERED: All components and parts, except:

NOT COVERED: Free standing freezer – Multi-media centers –

Wine chillers.

2. CLOTHES WASHERS

COVERED: All components and parts.

3. CLOTHES DRYERS

COVERED: All components and parts.

4. RANGES/OVENS/COOKTOPS

COVERED: All components and parts.

5. DISHWASHERS

COVERED: All components and parts.

6. BUILT-IN MICROWAVE OVENS

COVERED: All components and parts.

7. GARBAGE DISPOSALS

COVERED: All components and parts.

8. INSTANT HOT/COLD WATER DISPENSERS

COVERED: All components and parts.

G. ShieldPlatinum

™

ShieldPlatinum includes coverage

of all items listed as covered under

Sections E, F, and G.

1. COVERAGE BOOSTS

AHS will pay up to:

a. One thousand dollars ($1,000) per contract term to

make necessary duct, plenum, electrical, and plumbing

modiﬁcations, including necessary relocation of covered

equipment and/or the correction of code violations and

Sample Contract

H. OPTIONAL COVERAGE (Continued)

3. WELL PUMP

COVERED: All components and parts of a well pump used as a

source of water to the home, except:

NOT COVERED: Above or underground piping, cable or

electrical lines leading to or from the well pump, including

those that are located within the well casing – Well casings –

Pressure switches not located on the pump – Holding, storage

or pressure tanks – Booster pumps – Redrilling of wells – Well

pump and all well pump components for geothermal and/or

water source heat pumps.

NOTE: AHS will pay up to $1,500 per contract term for access,

diagnosis and repair or replacement. Customer is responsible

for payment of any costs in excess of $1,500.

4. SEPTIC SYSTEM PUMPING & SEPTIC SEWAGE

EJECTOR PUMP

COVERED: Mainline stoppages that can be cleared through an

existing access or clean out without excavation – The septic

tank will be pumped once during the contract coverage term if

the stoppage is due to septic back up – Sewage ejector pump

for septic system only.

NOT COVERED: Broken or collapsed sewer lines outside the

foundation – Stoppages or roots that prevent the eective use of

any externally applied sewer machine cable – Cost of ﬁnding or

gaining access to the septic tank or sewer hook-ups – Disposal of

waste – Chemical treatment of the septic tank and/or sewer lines –

Tanks – Leach lines – Cesspool – Any mechanical pump or systems.

I. LIMITATIONS AND EXCLUSIONS

NOTE: The following limitations and exclusions apply:

General Exclusions from Coverage

1. This contract does not cover:

a. Routine maintenance (you are responsible for providing

maintenance and cleaning of covered items as speciﬁed by

the manufacturer);

b. Flues, venting, chimneys, and exhaust lines;

c. Repair or remediation of cosmetic defects;

d. Electronic, computerized, or home management systems;

e. Radon monitoring systems, ﬁre sprinkler systems, and

solar systems and components;

f. Repair, replacement, installation, or modiﬁcation of

any component or part thereof, that has been, or is,

determined to be defective by the Consumer Product Safety

Commission or for which a manufacturer has issued, or

issues, a warning, recall, or determination of defect; or

g. System or appliance upgrades, or repairs or

replacements required:

(i) when the malfunction is due to missing components,

parts, or equipment;

(ii) when the malfunction is due to lack of capacity in

the existing system or appliance;

(iii) when the malfunction is due to under or oversized

systems in relation to the square footage of the area

being heated or cooled; or

(iv) to comply with any federal, state, or local laws,

regulations or ordinances, utility regulations, or building

or zoning code requirements, except as otherwise

speciﬁed in this contract.

2. AHS is not responsible or liable for performing service, or

paying remediation costs, involving hazardous or toxic materials.

3. In regard to mold, mildew, bio-organic growth, rot, fungus, or

pest damage, AHS is not responsible or liable for:

a. Damages from such causes;

b. Diagnosis, removal or remediation of such conditions; or

c. Repairs or replacements necessitated by such causes.

Partial Exclusions from Coverage and

Certain Additional Fees

4. Except as otherwise speciﬁed in this contract, AHS is not

responsible or liable for:

a. Providing or closing access to covered items;

b. Costs of construction, carpentry, or other modiﬁcations

necessary to remove, relocate, or install equipment; or

c. Restoration of any wall or ﬂoor coverings, cabinets,

counter tops, tiling, paint, or the like.

5. You may be charged an additional fee by the Service

Contractor if cranes or lifting equipment are needed to

install or remove any equipment.

Coverage Exceptions Applicable to Certain

Breakdowns

6. AHS is not responsible or liable for repairs or replacements

when the malfunction is due to:

a. Misuse, abuse, or mistreatment, including but not limited

to, removal of parts and damage by people, pests, or pets;

b. Accidents, ﬁre, freezing (except roof leaks), water

damage, electrical failure or surge, or excessive or

inadequate water pressure;

c. Lightning, mud, earthquake, soil movement, storms, or

acts of God; or

d. A manufacturer’s improper design, improper materials or

formulations, a defective manufacturing process, or other

manufacturing defects.

General Limitations of Liability

7. AHS will not be liable for any violations of federal, state and

local laws, regulations or guidelines prior to the beginning of

the contract term and will not perform repairs or replacements

that violate any current federal, state and local laws,

regulations or guidelines.

Sample Contract

8. AHS is not responsible or liable for secondary, incidental,

and/or consequential loss or damage resulting from the

malfunction of any covered item, or a Service Contractor’s

neglect or delay in providing, or failure to provide, repair or

replacement of such item, including, but not limited to, food

spoilage, loss of income, utility bills, additional living expenses,

personal and/or property damage.

9. AHS is not responsible or liable for any delay in service

or failure to provide service caused by conditions beyond

AHS’s control.

10. In the event you threaten to harm or actually harm the

safety or well-being of:

(i) AHS;

(ii) any employee of AHS;

(iii) a Service Contractor; or

(iv) any property of AHS or the Service Contractor, you will

be in breach of this contract.

In the event you breach this or any other obligation under this

contract, AHS may refuse to provide service to you and may

cancel this contract.

J. SHARED SYSTEMS AND APPLIANCES

1. If this contract is for a duplex, triplex, or fourplex dwelling, then all

units within the dwelling must be covered by one AHS contract for

coverage to apply to shared systems and appliances.

2. If this contract is for a multi-unit dwelling other than those

speciﬁed in Section J.1, then only items contained within the

conﬁnes of each individual unit are covered. Shared systems and

appliances are not covered.

3. Except as otherwise provided in this Section, shared systems

and appliances are not covered.

K. RENEWAL

AHS may, in its sole discretion, elect to renew this contract for a

one-year contract term, unless otherwise approved by AHS. In

the event we elect to renew your contract, you will be notiﬁed

of the terms within 60 days prior to expiration of your contract.

Unless you notify AHS prior to expiration of your contract, your

contract will be automatically renewed and you will be charged

the applicable Plan Fees.

L. CANCELLATION

1. This contract may be cancelled by AHS for the following reasons:

(a) nonpayment of contract fees or other breach of this

contract by the customer;

(b) fraud or misrepresentation by the customer and/or

customer representative of facts material to AHS’s issuance

of this contract; or

eect on the business of AHS or AHS’s ability to fulﬁll its

obligations under this contract.

2. The customer may cancel this contract at any time and for

any reason.

3. If the customer or AHS cancels the contact within the

ﬁrst 30 days following the beginning of the contract term:

(a) if AHS has not provided any services, the customer will

receive a full refund of all contract fees paid;

(b) if AHS has provided services and the amount of the

service costs incurred by AHS is less than the contract fees

paid, the customer will receive a refund of the contract fees

paid, less the service costs incurred by AHS;

service costs incurred by AHS is greater than the contract

fees paid, the customer shall pay AHS the lesser of

(i) the amount by which the service costs incurred by

AHS exceeds the contract fees paid; or

(ii) the amount by which the annual rate listed on

the Contract Agreement pages exceeds the contract

fees paid.

4. If the customer or AHS cancels the contract after the 30th day

following the beginning of the contract term:

(a) if AHS has not provided any services, the customer will

receive a pro rata refund of the contract fees paid for the

unexpired term;

(b) if AHS has provided services and the amount of the

service costs incurred by AHS is less than the contract fees

paid, the customer will receive a pro rata refund of the

contract fees paid for the unexpired term, less the service

costs incurred by AHS;

service costs incurred by AHS is greater than the contract

fees paid, the customer shall pay AHS the lesser of

(i) the amount by which the service costs incurred by

AHS exceeds the contract fees paid; or

(ii) the amount by which the annual rate listed on the

Contract Agreement pages exceeds the contract fees

paid; and

(d) Additionally, customer shall be responsible for an

administrative fee of the lesser of

(i) your Plan Fee for one month of coverage under this

contract or

(ii) such amount as is permitted by law.

M. MISCELLANEOUS

1. The obligations of AHS under your Agreement are backed by

the full faith and credit of AHS.

Sample Contract

2. DISPUTE REMEDY. Any claim, dispute or controversy,

regarding any contract, tort, statute, or otherwise (“Claim”), arising

out of or relating to this Agreement or the relationships among the

parties hereto shall be resolved by one of the following means:

Either party may seek binding arbitration by one arbitrator

administered by the American Arbitration Association (“AAA”),

under the AAA Consumer Rules in eect at the time the Claim is

ﬁled (“AAA Rules”). Copies of the AAA Rules and forms can be

located at www.adr.org or by calling 1-800-778-7879.

The arbitrator’s decision shall be ﬁnal, binding, and non-

appealable. Judgment upon the award may be entered and

enforced in any court having jurisdiction. This clause is made

pursuant to a transaction involving interstate commerce and

shall be governed by the Federal Arbitration Act. Neither party

shall sue the other party other than as provided herein or for

enforcement of this clause or of the arbitrator’s award; any

such suit may be brought only in Federal District Court for the

District or, if any such court lacks jurisdiction, in any state court

that has jurisdiction. The arbitrator, and not any federal, state, or

local court, shall have exclusive authority to resolve any dispute

relating to the interpretation, applicability, unconscionability,

arbitrability, enforceability or formation of this Agreement

including any claim that all or any part of the Agreement is void

or voidable. However, the preceding sentence shall not apply to

the clause entitled “Class Action Waiver.”

3. CLASS ACTION WAIVER. Any Claim must be brought in

the parties’ individual capacity, and not as a plainti or class

customer in any purported class, collective, representative,

multiple-plainti, or similar proceeding (“Class Action”). The

parties expressly waive any ability to maintain any Class

Action in any forum. The arbitrator shall not have authority

to combine or aggregate similar claims or conduct any Class

Action nor make an award to any person or entity not a party

to the arbitration. Any claim that all or part of this Class Action

Waiver is unenforceable, unconscionable, void, or voidable may

be determined only by a court of competent jurisdiction and

not by an arbitrator. THE PARTIES UNDERSTAND THAT THEY

WOULD HAVE HAD A RIGHT TO LITIGATE THROUGH A COURT,

TO HAVE A JUDGE OR JURY DECIDE THEIR CASE AND TO BE

PARTY TO A CLASS OR REPRESENTATIVE ACTION, HOWEVER,

THEY UNDERSTAND AND CHOOSE TO HAVE ANY CLAIMS

DECIDED INDIVIDUALLY THROUGH ARBITRATION.

Sample Contract