II. Eligibility

This Plan only covers a new Rug that You purchased and must be:

• Free of stains and damage when delivered to Your U.S. residence.
• For Your personal indoor use only to Your residence. This Plan does not cover a Rug that You rent or lease to others, that is left in the care or custody of others, used commercially, or used for other non-residential purposes.

If Your Rug is under an LTO: Any Replacement, Reselection, Refund, or Cash Settlement described in paragraphs 5.1.3. or 5.1.4. will be arranged with the owner of the Rug at the time the Replacement, Reselection, Refund, or Cash Settlement is made. This will be the Lessor if You have not yet acquired ownership of the Rug through an LTO. The Lessor is responsible for applying any Refund or Cash Settlement toward Your remaining LTO. Any reference to “purchased,” “sold,” or similar terms shall include “rented” and “leased” and their derivatives.

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III. Service Procedures

If Your Rug is stained or damaged during the Term, and the type of stain or damage is covered under this Plan, We will provide service using one or more of the following procedures. Our service begins with Step 1 below. If You decide that Step 1 below does not fully address the stain or damage, We will move to one or more of the other Steps below.

• Step 1. Cleaning Kit for Stains: We may provide You with a cleaning kit or advice on how You may be able to remove the stain, if You would like to try removing the stain Yourself. If You do not, or if You decide that method does not fully address Your covered stain and You inform Us by returning the claim form to Us within thirty (30) days of Your reporting the stain to Us, We will move to one of the next steps below.
• Step 2. Technician Assessment and Service: We may send an authorized technician to assess the stain or damage and perform repairs if the technician determines that the stain or damage can be repaired. All repairs will be performed in a professional and workmanlike manner. If the technician's service does not repair the damage to Your Rug, You must notify Guardsman within thirty (30) days of when the technician serviced Your claim.
• Step 3. Replacement, Reselection, or Cash Settlement: If the technician cannot remedy the stain or damage, then in Our sole discretion, We may arrange to provide a Replacement or, if a Replacement is not available, then a Reselection at the retail store location where You bought the covered Rug, or a Cash Settlement.
• Refund: If We are unsuccessful in repairing the stain or damage to Your Rug, and We are unable to provide a Replacement or Reselection for example, the retail store location where You bought the Plan has closed, no longer carries Guardsman Plans, changed ownership, or stopped selling Rugs, or You have moved from the original location’s operating area since Your purchase, We will provide You a Refund of the purchase price of the Plan rather than a Replacement or Reselection. A Refund will complete Guardsman’s obligations under this Plan for all Rug or Rug set covered by this Plan.

If We provide a Replacement or Reselection, You agree the stained or damaged Rug becomes the sole property of Guardsman. You will surrender possession of the stained or damaged Rug at the time of delivery of the Replacement or Reselection Rug, unless We have agreed to other arrangements with You.

Replacement, Reselection, or Your acceptance of a Cash Settlement will complete the coverage and all our obligations under this Plan for the stained or damaged Rug. A Replacement Rug and Reselection Rug are ineligible for coverage and future claims under this Plan. However, a Rug covered under this Plan continues to be covered, subject to the terms of this Plan.

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IV. What is Covered

This Plan provides coverage for the following accidental stains or damage that arise from a specific occurrence during normal use, except for what is listed in the “What is Not Covered” section.

• Area Rug:
  • Food or beverage stains.
  • Human and Pet bodily fluid/waste stains (not including perspiration, hair oils, or body oils).
  • Border tear up to 6 inches in length.

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V. What is Not Covered

Some causes and some types of stains or damage are not eligible and are therefore excluded from coverage under this Plan. This Plan provides no coverage or service for any of the following.

• Your failure to Perform Your Responsibilities. Any stain or damage, if You have not fulfilled Your responsibilities as described in this Plan.
• When the actions listed in the “How to File A Claim” have not been followed.
• Any stain or damage that is not specifically listed under Section 6, "What is Covered."
• Any stain or damage of unknown origin.
• Wear-and-tear.This Plan does not cover cleaning, maintenance, or stains and damage caused by normal or ordinary wear-and-tear, including but not limited to:
  • Pilling or fraying of Rug.
  • The buildup of stains, soil, or damage that accumulates gradually over time from repeated use, rather than from a particular occurrence. This includes, but is not limited to, stains from perspiration, hair oil, or body oil.
• Manufacturer Quality Issues. This Plan does not cover manufacturer’s product quality issues, including but not limited to the following:
  • Seam separation (the stitching coming apart. Ripping or tearing beside the stitching is not considered seam separation).
  •  Fading, color loss, or color change.
  • Fringe on Rug.
  • Damage resulting from defects in design, materials or workmanship, except for damage specifically listed in the “What is Covered” section.
• Ineligible Rug. This Plan does not cover the following items:
  • Rugs made of leather, vinyl, hides, paper, or viscose.
  • "X” cleaning code and non-colorfast material (material that loses color even when cleaned according to the manufacturer's cleaning instructions).
  • All pre-existing stains or damage to Rug occurring prior to the Term of this Plan, including stains or damage occurring to floor samples or other Rug sold “as-is” before delivery.
  • Non-colorfast Rug (a Rug that loses color even when cleaned according to the manufacturer’s cleaning instructions).
• Other Items Not Covered.
  • Odors, including odors that remain after a visible stain is cleaned.
  • Stains or damage covered under any maintenance plan, manufacturer’s warranty, extended warranty, homeowner’s or renter’s or other insurance policy, credit card protection program, LTO, or other protection plan.
  • Stains or damage caused during Rug delivery, assembly, installation, or transportation.
  • Stains or damage caused by water leaks, including those from skylights, roofs, or water pipes; appliance malfunctions, including but not limited to air conditioners and water heaters; fire, smoke, flood, other natural disaster, or act of God; theft, vandalism, or as a result of any other illegal activity; independent contractors not retained by Guardsman to repair Your Rug, such as but not limited to cleaning or maintenance personnel, painters, or other repair or contractor services.
• Coverage under this Plan is not available while Your Rug is located outside of the U.S. and Canada.

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V. Non-Household Environments

This Plan covers Your indoor Rug while You are using it in Your residence. This Plan does not cover stains or damage that occur in non-household environments, including but not limited to:

• Before the Rug is delivered to Your residence; while the Rug is located somewhere other than within Your residence, including but not limited to, when in storage, being moved to or from storage, or between residences.
• A Rug that is or has been used for business, commercial, institutional, or rental purposes other than an LTO, including but not limited to, a Rug used for a daycare center or a Rug used in premises rented to others, regardless of the length of the rental period.

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VI. Improper Maintenance, Care, or Misuse

It is Your responsibility to take proper care of the Rug as recommended by the manufacturer of the covered Rug. This Plan does not cover stains or damage caused by:

• Your failure to care for and maintain the Rug in accordance with the manufacturer’s recommendations, instructions, or warranty.
• Use of Rug for a purpose other than that for which it was designed.
• Cleaning methods other than those recommended by the Rug manufacturer. This includes color loss or color change.
• Animal damage (such as damage from beaks, teeth, and claws).
• Repeated incidents of human and Pet bodily fluid/waste stains (including, but not limited to, incontinence) are considered non-accidental occurrences and are not covered under this Plan.
• A Rug that shows signs of infestation by insects, bed bugs, termites, cockroaches, rodents, or other vermin.
• Stains or damage caused by, or resulting in, mold or mildew.
• Stains or damage caused by (a) intentional acts or (b) non-accidental acts or omissions which, in our sole discretion, are determined to have been reasonably preventable and are severe, excessive, extreme, or repetitious in nature, such as, but not limited to, cuts, rips, teething marks, tears, ink, paint, crayon, marker, or pencil damage.

GUARDSMAN IS NOT LIABLE UNDER THIS PLAN FOR ANY CONSEQUENTIAL OR INCIDENTAL DAMAGES RELATING TO SERVICES PROVIDED UNDER THIS PLAN OR ANY ITEM COVERED BY THE PLAN.

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Arbitration

READ THE FOLLOWING ARBITRATION PROVISION (“ARBITRATION PROVISION”) CAREFULLY. IT LIMITS CERTAIN OF YOUR RIGHTS, INCLUDING YOUR RIGHT TO OBTAIN RELIEF OR DAMAGES THROUGH COURT ACTION.

You agree that all claims, disputes or controversies of any nature whatsoever arising out of, relating to, or in connection with (1) this Plan and Your purchase thereof and (2) the validity, scope, interpretation, or enforceability of the entire Plan, this Arbitration or any other part of the Plan (“Claim”), shall be resolved exclusively in small claims court or by binding
arbitration in Grand Rapids, Michigan in accordance with the International Institute for Conflict Prevention and Resolution Rules for Non-Administered Arbitration by a single arbitrator, except to the extent prohibited by the applicable laws of Your state of residency when You purchased this Plan, except for ME and OR residents where arbitration is voluntary and must be mutually agreed to. The matters that are the subject of the arbitration shall be governed by the substantive laws of the State of Michigan applicable to contracts made and to be performed therein, without application of any conflicts or choice of law rules, except as expressly stated below, and by the Federal Arbitration Act, 9 U.S.C. § 1, et. seq., as amended (“FAA”). In WI, arbitration will be governed by the Consumer Arbitration Rules of the American Arbitration Association (AAA). The arbitrator shall have no power or authority to order or grant any equitable remedy, or relief or any remedy or relief that a court could not order or grant under applicable law, and, except to the extent prohibited by the applicable laws of Your state of residency when You purchased this Plan, shall have no authority to award punitive, treble, or any other form of enhanced damages. The arbitrator shall render the award in writing and shall include findings of fact and conclusions of law upon which the award is based. Each party shall pay their own attorneys’ fees and expenses relative
to arbitration. All costs and expenses of the arbitration (other than the parties’ attorney’s fees and expenses), including the arbitrator’s fees and expenses, shall be allocated between the parties according to the arbitrator’s discretion as set forth in the award. The arbitrator’s award may be confirmed and entered as a final judgment in any court of competent jurisdiction and enforced accordingly. If any portion of this Arbitration Provision is deemed invalid or unenforceable, it shall not invalidate the remaining portions of the Arbitration Provision. This Arbitration Provision may be enforced by any court of competent jurisdiction, and the party seeking enforcement shall be entitled to recover all costs and expenses, including reasonable attorneys’ fees, against the party against whom enforcement is ordered. Except for WI, (1)You agree that any arbitration proceeding shall proceed solely on an individual basis without any right for any claims to be arbitrated on a class action, multiple plaintiff, consolidated, or similar basis, or on bases involving claims brought by You in a purported representative capacity on behalf of others; (2) The arbitrator’s authority to resolve and make written awards is limited solely to claims between You and Us alone; (3)Your Claims may not be joined or consolidated with any claims or disputes involving others. No arbitration award with respect to Your Claim’s shall have any preclusive effect as to any claims or issues in any disputes with anyone who is not a named party to the arbitration of Your Claims. For CA residents, the Arbitration Provision is amended to include the following: (1) Pursuant to California Civil Code sections 51.7 (Ralph Civil Rights Act) and 52.1 (Bane Civil Rights Act), the option to arbitrate any Claim is solely at Your discretion; (2) If arbitration is elected, this does not waive Your right to file and pursue civil action or complaint; (3) If any statement found within this Plan contradicts this section, this section shall take precedence. For AL residents, Plans purchased in the state of AL shall be governed by the laws of AL. Matters that are the subject of the arbitration shall be held in AL, in the county in which the contract holder lives. For AZ residents, this arbitration provision does not prohibit an Arizona resident from following the process to resolve complaints under the provisions of A.R.S. §20-1095.09, Unfair trade Practices as outlined by the Arizona Department of Insurance. To learn more about this process, You may contact the Arizona Department of Insurance at 100 N. 15th Ave., Suite 261, Phoenix, AZ 85007-2630, Attn: Consumer Protection. You may directly file any complaint with the A.D.O.I. against a Service Company issuing an approved Service Contract under the
provisions of A.R.S. §§ 20-1095.04 and/or 20- 1095.09 by contacting the Consumer Protection Division of the A.D.O.I. at 800-325-2548. For ME residents, arbitration shall take place in the county of the contract holder’s principle Maine location and local rules shall apply. For WA residents, any arbitration proceeding shall be held at a location in closest proximity to the service contract holder's permanent residence. For WI and OR residents, any arbitration proceeding shall be held in a WI and OR venue, respectively. For WI and OR residents, the matters that are the subject of the arbitration shall be subject to governed by the substantive laws of WI and OR respectively.

Coverage afforded under this Plan is not guaranteed by any state Property & Casualty Insurance Guaranty Association.

There is no deductible under the Plan.

Rights under the Plan, including the right to return, cancel or void the Plan, apply only to the original purchaser and may not be sold or transferred.

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Cancellation

We may not cancel this Plan. You have no right to cancel this Plan, except pursuant to any of the following exceptions that apply for your State:

1. Cancellation During the Return Period. Your state may allow You to return Your Plan within a designated period. If You purchased the plan in AL, AR, CO, CT, MA, ME, MN, MO, NJ, NM, NY, NV, OR, SC, UT, WA, or WY and have not made a claim, You may return the Plan to the retailer from whom You purchased within 20 days after Our mailing date of the Plan to You if You received the Plan by mail or 10 days after delivery of the Plan to You at time of sale by the retailer from whom You purchased the Plan for a full refund of its purchase price.
   1. If You have made a claim, Your state may allow You to still return the Plan within a designated period. In CA: within 60 days after Your receipt of the Plan You may return the Plan to the retailer from whom You purchased your Plan for a full refund, but, if You have made a claim under the Plan during the 60 day return period, you must provide written notice of cancellation to Guardsman and the refund will be reduced by the claim amount. In HI: within 30 days after Our mailing date of the Plan to You if You receive the Plan by mail or 20 days after delivery of the Plan to You at time of sale by the retailer or seller from whom You purchased the Plan. In IL: within 30 days after Your purchase of the Plan, reduced by a return fee amount We will charge You which will be the lesser of 10% of the purchase price of the Plan or $50.00. In MD: within 20 days after Our mailing date of the Plan to You if You receive the Plan by mail or delivery of the Plan to You at time of sale by the retailer or seller from whom You purchased the Plan. In OK: If this Plan is canceled within the first sixty (60) days by the warranty holder and no claims have been filed, We will refund the entire Plan charge paid. In TX: within 30 days after Your purchase of the Plan, but, if You have made a claim under the Plan during the 30 day return period, the refund will be reduced by the claim amount. In VT: within 20 days after Your receipt of the Plan. In WI: within 15 calendar days after delivery of the Plan to You.
2. All Other Cancellations. Your state may allow other cancellations not listed above. If You purchased the Plan in AL, AZ, CA, IL, or TX, You must provide written notice of cancellation to Guardsman, and Guardsman will refund You a pro rata portion of the Plan’s purchase price based on the time remaining under its term, less (in AL only) an administrative fee of $25.00. In AZ: A cancellation fee equal to the lesser of 10% of the gross amount You paid for the Plan or $25. In CA: A pro rata refund less any clams paid or cost of repairs previously made under the Plan and a cancellation fee equal to the lesser of 10% of the Plan’s purchase price or $25.00. In IL: A pro rata refund less any clams paid or cost of repairs previously made under the Plan and less a cancellation fee equal to the lesser of 10% of the Plan’s purchase price or $50.00. In OK: If this Plan is canceled by You after the first sixty (60) days or a claim has been filed within the first sixty (60) days, return of premium shall be based upon ninety percent (90%) of the unearned pro-rata premium. This Plan cannot be cancelled by Us. In GA: You must demand cancellation of the Plan and surrender it to Guardsman, and Guardsman will refund You the excess of the Plan’s purchase price above the customary short rate for the expired number of days of the Plan. You are entitled to make a direct claim against the insurer that insures Guardsman’s obligations under the Plan upon Guardsman’s failure to pay any claim or refund amount owed to You within 60 days after proof of loss or notice of cancellation has been filed with Guardsman. In ME: You must provide written notice of cancellation to Guardsman 15 days prior to the date of cancellation of the Plan, containing the date of cancellation and reason for cancellation, and Guardsman will refund You a pro rata portion of the Plan’s purchase price based on the number of days remaining under its term less any claims paid or cost of repairs previously made under the Plan and less a cancellation fee not exceeding 10% of the Plan’s purchase price. In NV: Guardsman will refund You a pro rata portion of the Plan's purchase price based on the time remaining under its term and a cancellation fee equal to the lesser of 10% of the Plan’s purchase price or $25.00. The cost of claims paid or services provided will not, under any circumstances, be deducted from any refund paid pursuant to this Plan.

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Late Refund Penalty

Your state may require Us to pay You a penalty if We do not refund the Plan’s purchase price within a designated period following your cancellation request. In TX: If We do not send Your refund payment within 45 days after You cancel the Plan, We will also pay You interest of 10% per annum on the refund amount due for each month after
that 45 day period until We send Your refund payment. In AL, AR, CO, HI, MA, MD, ME, MN, MO, NJ, SC, TX, or VT: if You are entitled to a return refund and We do not send Your refund payment within 45 days after You return the Plan, We will also pay You a penalty of 10% of the purchase price of the Plan for each month after that 45 day period until We send Your refund payment. In CA, NM, NV, NY, or WA: if You are entitled to a return refund and We do not send Your refund payment within 30 days (CA, NY, and WA) or 45 days (NV) or 60 days (NM) after You return the Plan, We will also pay You interest of 10% per annum on the refund amount due for each 30 day period (or fraction thereof) after that first 30 day period until We send Your refund payment (CA) or a penalty of 10% of the purchase price of the Plan for each 30 day period after that 60 day period until We send Your refund payment (NM) or a penalty of 10% of the purchase price of the Plan for each 30 day period after that 45 day period until We send Your refund payment (NV) or a penalty of 10% of the purchase price of the Plan for each month after that 30 day period until We send Your refund payment (NY and WA).

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Insurance Securing this Plan

THIS IS NOT AN INSURANCE POLICY. This Plan is secured by contractual liability policies provided by Continental Casualty Company (in all states except Washington) and The Continental Insurance Company (in Washington only), and both may be contacted at 151 N Franklin St., Chicago, IL 60606, 1-800-831-4262. If, within sixty (60) days, we have not paid any claim, provided you with a refund or you are otherwise dissatisfied, you may make a claim directly to the insurance companies.

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