HEATING, COOLING & WATER HEATING PRODUCTS Consumer-Direct Labor Protection Plan

Who Is AIG?

We are Insurance Products Specialists Quick Facts: AIG Warranty Company Overview We are Insurance Products Specialists Quick Facts: AIG Warranty Personal Insurance Accident & health, automobile, homeowners, ID theft, private client, and travel Commercial Insurance Umbrella, excess liability, marine & energy, directors & officers, risk finance, and workers' compensation Warranty Provides complete integration for a customized experience tailored for client’s brand OEM, retail, online, consumer-direct 450 million service contracts written to date 80 million active contracts in force in the US AIG Warranty administrates warranty products in over 90 countries Single –Entity Provider: Legal, marketing, sales, administration, underwriting, adjudication A.M. Best “A” rated with over $27B statutory surplus Represents the world’s largest and most respected brands

Key Clients Online Retail Manufacturers

AIG vs. Segmented Model

Consumer Demand

Current Challenges CRITICAL YEARS The critical period in the equipment lifecycle is in the first few years from install Many customers are at risk of receiving labor repair bills 1200 PP contracts (annualized) High price tag of 10-year coverage Previous experience Lack of contractor promotion

Need For Coverage Consumer Demand Brand Protection Results 30% of Consumers Purchase coverage for $800 MA/CE Consumers lack of understanding of 10 Yr OEM Consumers perceive their equipment as new Early Life cycle equipment failures Online reviews Social Media Promotes referrals for contractor and OEM Creates Brand Awareness - Satisfaction Limits Concessionary Spend Retention plan Recurring revenue

3 Year Bumper to Bumper Coverage Consumer Perception 3 Year Bumper to Bumper Coverage 9

Solutions

Point of Registration (POR) New Opportunities Point of Registration (POR) After-Market (AFM) Registration based consumer initiative Completion – Call to action Consumer moves to Rheem/AIG co-branded site 1 & 3 Year full term, multi, or monthly pay. Installing dealer retains future service opportunities Letter sent to all Historical and future registrations Consumers can purchase via phone or web based methods 1 & 3 Year full term, multi, or monthly pay Installing dealer is promoted in letter and retains future service opportunities 11

Informed/Educated Consumers Solutions Consumer Protection Plus First line of defense - Coverage for less than 1% of consumers POR Coverage option for consumers at point of registration AFM Coverage option for all those that were not captured/offered in previous pools Informed/Educated Consumers

How it works

POR Explanation Consumers can also order by phone or mail AIG/Rheem Co-branded site Model/Serial Number Captured Congratulations -> Call to Action Consumer 1 Year – Monthly/Full Term 3 Year – Multi-Pay/Full Term Registration Consumers can also order by phone or mail Payable by credit card or check 14

AFM Explanation Consumers can also order by phone or mail AIG/Rheem Co-branded site Consumer 1 Year – Monthly/Full Term 3 Year – Multi-Pay/Full Term Consumers can also order by phone or mail Payable by credit card or check 15

Historical Lead Solicitation 16

POR Landing Page

How It Works

Rheem and AIG

Select a Plan

Consumer Benefit

Contractor Benefits

Contractor Benefits Improved profitability through mitigating consumer concessions Recurring revenue – Service work, additional sales opportunity, additional products, upgrades Positive consumer reviews Clarity for OEM warranty Future marketing opportunities for additional products/service Lucrative service reimbursement (based upon $125/hr)

Reimbursement Residential Claim Reimbursement Plan 4 Service Call Labor & Part Allowance: Each service call includes a service call rate and a part allowance in addition to the amount from the specific repair code. Plan 4 Service Call $95.00 Part Allowance $35.00 Repair Code Type of Repair Repair Rate Total Reimbursement A Replacement of electrical or mechanical components such as all circuit boards, all relays, water relief valve, thermocouple, thermostat, condenser fan blade, fan limit switch, door switch, control transformer. $141.00 $271.00 B Replacement of electrical or mechanical components such as blower motor, blower wheel, condenser fan motor, condenser fan motor and blade, heater package and heat strips, gas valve, fuel pump, burner ignition transformer, oil burner motor. $219.00 $349.00 C Replacement of electrical or mechanical components such as shaft and bearings, gas burners, blower motor assembly, variable speed blower motor, variable speed module. $282.00 $412.00 D Minor repairs to sealed system such as TXV, factory joint leaks. (Repair code includes leak search, refrigerant recovery time, refrigerant replacement & dryer) $438.00 $568.00 E Major repairs to sealed system such as heat exchanger, compressor, reversing valve, condenser/evaporator/hydronic coil replacement, accumulator or muffler. (Repair code includes leak search, refrigerant recovery time, refrigerant replacement & dryer) $688.00 $818.00

Claims Process Consumer will call AIG for service AIG will dispatch installing contractor (AIG will call and email installing dealer) AIG requests response time within 4 hours Contractor contacts consumer and sets service appointment (no pre-authorization) Claims can be submitted via email, fax, or mail (contact info on claim form) Average claims processing is currently 14 days (payment received)

Claim Form Consumer information Servicer information Model/serial number Select repair code Scan and email, or fax Work order and part invoice must be sent along with claim form

Enrollment Form Contractor contact information Hours of operation Insurance documentation FEIN # W-9 & Certificate of liability insurance required

Contractor Opt out Contractor contact information Reason for opt out Distributor information – Sales manager sign off Rheem approval DSM RSM Corporate approver Email/Fax to AIG

Points of Interest Enrollment required before service (enrollment form, W-9, proof of liability insurance) – (866-212-3750 call for info) Installing contractors have first right of refusal for service work AIG will find another area Rheem contractor if installing contractor refuses the service call All mechanical and electrical failures are covered (see program T&Cs)

Senior HVAC Operations Manager Thank You! Presented By: Tom Gilmore Senior HVAC Operations Manager AIG Warranty