DATE: July 9, 2002

TO: Dealers, General Managers and F&I Managers

FROM: Mark S. Krejci

RE: New CNA Vehicle Service Contract Product Enhancements


I am excited to announce new product enhancements for the CNA Vehicles Service Contracts, which will become effective August 1, 2002. They are as follows:

1. Two "wrap" coverage's for new vehicles: Factory+Plus Preferred Care (APC without powertrain components) and Factory+Plus Advantage Care (MAC without powertrain components).

-All Preferred Care Contracts are exclusionary coverages - only lists what is not covered.
-All Advantage Care Contracts are stated component coverage contracts.

2. New "wrap" coverages for certified used vehicles: Factory+Plus Preferred Care and Factory+Plus Advantage Care.

3. Elimination of 24,000-mile guideline for near-new vehicles. Now dealers can sell a near-new contract anytime during the full factory warranty.

4. Elimination of the business use surcharge. If a vehicle is not ineligible based on its use or equipment, it qualifies for coverage at no extra cost.

5. Disappearing deductible added - This can also be extended to sister stores within a participation group at the dealer's request.

6. New $150 deductible option.

We will be giving you the new policies during the month of July. Please be aware that no programming changes are necessary.

Thank you for allowing us to serve you. If you have any questions please feel free to give me a call at (813) 223.0085 x25.

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