HEATING, COOLING & WATER HEATING PRODUCTS - PowerPoint Presentation

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

Who Is AIG?

Company Overview Personal Insurance Accident & health, automobile, homeowners, I D theft, private client, and travel Commercial Insurance Umbrella, excess liability, marine & energy, directors & officers, risk finance, and workers' compensationWarrantyProvides complete integration for a customized experience tailored for client’s brandOEM, retail, online, consumer-direct 450 million service contracts written to date80 million active contracts in force in the USAIG Warranty administrates warranty products in over 90 countriesSingle –Entity Provider: Legal, marketing, sales, administration, underwriting, adjudicationA.M. Best “A” rated with over $27B statutory surplusRepresents the world’s largest and most respected brands Quick Facts: AIG Warranty We are Insurance Products Specialists

Online Retail Manufacturers Key Clients

AIG vs. Segmented Model

Consumer Demand

Current Challenges The critical period in the equipment lifecycle is in the first few years from installMany 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 CRITICAL YEARS

Need For Coverage 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 reviewsSocial MediaPromotes referrals for contractor and OEMCreates Brand Awareness - SatisfactionLimits Concessionary SpendRetention planRecurring revenue Consumer Demand Brand ProtectionResults

3 Year Bumper to Bumper Coverage Consumer Perception 9

Solutions

New Opportunities Point of Registration (POR) 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 After-Market (AFM)Letter sent to all Historical and future registrationsConsumers can purchase via phone or web based methods1 & 3 Year full term, multi, or monthly payInstalling dealer is promoted in letter and retains future service opportunities11

Solutions Informed/Educated Consumers

How it works

Model/Serial Number Captured Congratulations -> Call to Action 1 Y ear – Monthly/Full Term 3 Year – Multi-Pay/Full Term AIG/ Rheem Co-branded siteConsumerPOR ExplanationRegistration14Consumers can also order by phone or mailPayable by credit card or check

1 Y ear – Monthly/Full Term 3 Year – Multi-Pay/Full Term AIG/ Rheem Co-branded siteConsumerAFM Explanation15Consumers can also order by phone or mailPayable by credit card or check

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/serviceLucrative service reimbursement (based upon $125/hr)

Reimbursement Residential Claim Reimbursement 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 Plan 4Repair CodeType of RepairRepair RateTotal ReimbursementAReplacement 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 BReplacement 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 M odel/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 outDistributor information – Sales manager sign offRheem approvalDSMRSM 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 workAIG will find another area Rheem contractor if installing contractor refuses the service call All mechanical and electrical failures are covered (see program T&Cs)

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