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

2. Who Is AIG?

3. 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

4. Key Clients
Online
Retail
Manufacturers

5. AIG vs. Segmented Model

6. Consumer Demand

7. 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

8. 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

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

10. Solutions

11. 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

12. 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

13. How it works

14. 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

15. 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

16. Historical Lead Solicitation16

17. POR Landing Page

18. How It Works

19. Rheem and AIG

20. Select a Plan

21. Consumer Benefit

22. Contractor Benefits

23. 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)

24. 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

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

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

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

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

29. Points of Interest
Enrollment required before service (enrollment form, W-9, proof of liability insurance) – ( 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)

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