Good Driver Mutuality Program
Terms and Conditions

 

Last Updated: April 24, 2024

                                                                                                                                           

Ⅰ. Introduction of Good Driver Mutuality Program

The Good Driver Mutuality Program (“Mutuality Program”) set forth herein provides the terms and conditions that the Members should acknowledge, accept and comply with if they choose to participate and stay with the Mutuality Program. The Mutuality Program  is a program that Members jointly formulated with the purpose of creating a community of Members dedicated to the achievement of the following common goals: (i) fostering good driving habits and reducing auto accidents; and (ii) raising and processing sharings for Members who have suffered losses resulting from auto accidents.

The capitalized terms not defined in this Section I shall have the meaning set forth in Section II below.

The Members entrusted use of the Good Driver Mutuality App (“Mutuality Platform” or “Platform”) to support the execution and operation of the Mutuality Program.

Good Driver Mutuality Inc. (“Good Driver”) administers the operation of the Mutuality Program (“Administrator”) by cooperating with third-party service providers such as Designated TPA, Payment Processor and Auto Repair Body Shop.

The terms and conditions of the Mutuality Program (these “Terms and Conditions”) identify the services to be provided to the Members by the Administrator, the Designated TPA, the Payment Processor, Auto Repair Body Shop, and other service providers.

THE MUTUALITY PROGRAM IS NOT INSURANCE AND DOES NOT OFFER A PROMISE OF INDEMNITY THAT IS INTENDED TO SHIFT THE RISK OF LOSS TO A THIRD PARTY SUCH AS AN INSURANCE COMPANY. AS SUCH, THE MUTUALITY PROGRAM DOES NOT PROVIDE A GUARANTY OF PAYMENT UPON THE OCCURRENCE OF ANY EVENT, SUCH AS A PAYMENT FOR DAMAGE OR REPAIRS TO YOUR AUTO.  IN OTHER WORDS, THERE EXISTS NO ASSURANCE THAT ANY MEMBER WILL RECEIVE ANY DIRECT OR INDIRECT DISTRIBUTION, ANY REPAIRS TO THEIR VEHICLE OR ANY OTHER MONETARY OR NON-MONETARY BENEFITS IN THE EVENT OF ANY DAMAGE TO THEIR AUTO. RATHER, THE MUTUALITY PROGRAM COLLECTS, MANAGES AND PROCESSES SHARINGS AMONG MEMBERS. THESE SHARING CONTRIBUTIONS ARE FULLY VOLUNTARY. 

The Terms and Conditions applicable to the Mutuality Program are set forth herein, the accompanying Appendix, the Terms of Service and such other documents published and acknowledged by the Members on the Mutuality Platform.

PLEASE READ THESE TERMS AND CONDITIONS CAREFULLY, PAYING SPECIAL ATTENTION TO THOSE SET FORTH IN BOLD FONT, BEFORE DECIDING TO PARTICIPATE IN THE MUTUALITY PROGRAM. ONCE YOU ACKNOWLEDGE AND ACCEPT THESE TERMS AND CONDITIONS, YOU ARE DEEMED TO FULLY UNDERSTAND, CONSENT TO AND AGREE TO BE BOUND BY, AND COMPLY WITH, THESE TERMS AND CONDITIONS, ALONG WITH THE TERMS AND CONDITIONS SET FORTH IN THE ACCOMPANYING APPENDIX, THE TERMS OF SERVICE AND SUCH OTHER DOCUMENTS PUBLISHED AND ACKNOWLEDGED BY THE MEMBERS ON THE GOOD DRIVER PLATFORM. YOU SHALL NOT CLAIM THAT THESE TERMS AND CONDITIONS ARE INVALID AND NOT BINDING ON YOU ON THE GROUNDS THAT YOU DID NOT READ THESE TERMS AND CONDITIONS AND OTHER DOCUMENTS IDENTIFIED ABOVE.

Ⅱ. Definitions

Except as may be specifically defined in other sections of these Terms and Conditions, the capitalized terms used in these Terms and Conditions shall have the meanings described below. For those capitalized terms not defined anywhere in these Terms and Conditions, the definitions provided in the Terms of Service or other documents published and acknowledged by the Members on the Mutuality Platform shall apply.

1. “Actual Cash Value” is the replacement cost of the auto or property less Depreciation or Betterment.
2. “Actual Total Sharing Contribution Amount” is the actual amount members collectively share in a sharing contribution cycle. Actual Total Sharing Contribution Amount equals to the total Authorized Sharing Amount of a Sharing Contribution Cycle minus the available balance in the Designated Account at that Sharing Contribution Cycle minus the Good Driver’s Sharing Contribution of that Sharing Contribution Cycle (if any).
3. “App” means the Good Driver Mutuality application that the Member is required to download on their smartphone to join the Mutuality Program and complete certain actions to fulfill their roles and responsibilities under these Terms and Conditions.
4. “Applicant” means a member who submitted a Sharing Request upon occurrence of an Eligible Event.
5. “Authorized Loss Amount” means the loss amount that is attributable to the Mutuality Program and that is determined by the Administrator for each Eligible Event. Please refer to Section III.3. (iv) of the Appendix for the formula used to calculate Authorized Loss Amount.
6. “Authorized Sharing Amount” means the amount of Sharing an Applicant is entitled to receive under the Mutuality Program, determined by the difference between the Authorized Loss Amount and the Remaining Pledge Balance.
7. “Authorized Transportation Assistance Amount” means the transportation expenses incurred due to the loss of vehicle usage resulting from any of the Eligible Events.
8. “Auto Repair Body Shop” means a network of body shops undertaking the auto repair requests of the Members.
9. “Betterment” is improvement of the auto or property to a value greater than its pre-loss condition.
10. “Contamination (including radioactive contamination)” refers to the defacement or, deterioration in the condition, of the Planned Auto , or personal injury or death due to the leakage, splash, discharge, scattering, etc. of oil, exhaust gas, goods or other pollutants during the normal use of the Planned Auto.
11. “Contribute” or “Contribution” means the dollar amounts voluntarily transferred by a member to the Good Driver Mutuality Program for continued participation in the Mutuality Program. Because participation in the Mutuality Program is not a contract for insurance and participation is voluntary, contributions are not a “demand for payment” for a service.
12. “Custom parts or equipment” means equipment, furnishings, and parts upon or in a Planned Auto, other than original manufacturer or dealer installed equipment, furnishings, or parts. This includes but is not limited to a.) special carpeting or insulation, b.) furniture or bars, c.) height extended roofs, d.) body, engine, exhaust or suspension enhancers, e.) winches, f.) anti-roll or anti-sway bars, g.) custom wheels, tires, or spinners, h.) custom grilles, louvers, side pipes, hood scoops or spoilers, i.) custom chrome, paint, murals, decals, or other graphics, j.) caps, covers, and bedliners. This also includes any electronic equipment, antennas, and other devices used exclusively to send or receive audio, visual, or data signal, or to play back recorded media, other than those which are original manufacturer installed, that are permanently installed in the Owned Auto or newly acquired vehicle using bolts or brackets, including slide-out brackets.
13. “Depreciation” means a decrease or loss in value to the auto or property because of use, disuse, physical wear and tear, age, obsolescence or other causes.
14. “Designated Account” means the account opened with the Payment Processor that is used to facilitate the Sharings.
15. “Designated TPA” means a certain third-party administrator appointed by the Administrator to determine the Authorized Loss Amount in response to a Member’s report of an auto damage incident.
16. “Effective Period” means the period during which Members enjoy rights and assume obligations under his/her Mutuality Plan.
17. “Eligible Event” means any direct and accidental loss for which a Member is eligible to file a Sharing Request as provided by these Terms and Conditions. Please refer to the Appendix for the details of an Eligible Event.
18. “Farm auto” means a truck type vehicle (i) that has a gross vehicle weight of 15,000 pounds or less, and (ii) is not used for commercial purposes other than farming.
19. “Individual Shared Amount” means the pro-rata Member Pledge Amount that the Member elects to share within each Sharing Cycle of the Mutuality Program,. For the specific pro-rata formula used to calculate the Individual Shared Amount, please refer to Section V.2.(iii) of these Terms and Conditions.
20. “Limit of Authorized Loss Amount” means the highest auto repair costs the Member is entitled to apply under his/her Mutuality Plan for each Eligible Event. The specific provisions of the Limit of Authorized Loss Amount for each Eligible Event are set forth in Section III.3 of the Appendix to these Terms and Conditions.
21. “Listed Driver” means one or more regular users of the Planned Auto, other than the Member, that are listed in a Mutuality Plan. Each Mutuality Plan can have one Member and up to four Listed Drivers.
22. “Member” refers to a user who joined the Mutuality Program and whose Mutuality Plan is still within the Effective Period.
23. “Mutuality Plan” refers to specific contractual terms and conditions applicable to each Member and his/her Planned Auto upon the Member’s enrollment in the Mutuality Program.
24. “Mutuality Plan Account” refers to the account ledger maintained on the Platform, documenting the transactions of each Member, which include but are not limited to, the Pledge Amount, sharing contribution made and received, and the projected account balance, among others.
25. “Natural Disaster” refers to a sudden and terrible event in nature that can cause loss of life or property damage, including lightning strikes, storms, rainstorms, floods, tornadoes, hail, typhoons, hurricanes, tropical storms, tsunamis, ground subsidence, cliff collapses, landslides, mudslides, avalanches, ice subsidence, blizzards, icicles, sandstorms, earthquakes and their secondary disasters.
26. “Non-owned Auto” means a private passenger, farm or utility auto or trailer not owned by or furnished for the regular use of either the Member or his/her relatives, except a Temporary Substitute Auto. Member or Member’s relative must be using the auto or trailer within the scope of permission given by its owner. An auto rented or leased for more than 30 days will be considered as furnished for regular use.
27. “Owned Auto” means any vehicle described in the Mutuality Plan that is owned by a Member as evidenced by the property title issued by the jurisdiction in which the vehicle was sold to the Member.
28. “Out-of-Pocket Expenses” means the amount of money that the Applicant is responsible for paying toward a loss amount of each Eligible Event. The amount of Out-of-Pocket Expenses is a certain amount of US dollar set forth in the Platform and subject to the option of the Members when joining the Mutuality Program. For partial losses that only involve glass repair work, the Out-of-Pocket Expenses is waived.
29. “Outstanding Contribution” refers to the amount of money that a member of Good Driver Mutuality Program is required to pay, but has not yet settled, either for their weekly Sharing Contribution or for the Remaining Pledge Balance associated with their own eligible event. This may arise when a member fails to make timely payments as per the agreed terms of the membership. Members with an Outstanding Contribution are granted a grace period to rectify their payment status. This is a designated amount of time provided to the member from the date of the first notification to address and clear their due payments. Failure to settle an Outstanding Contribution within the grace period may result in automatic withdrawal from the Mutuality Program. The concept of an Outstanding Contribution highlights both the responsibility and the cooperative spirit embedded within the Mutuality Program community. It encourages timely financial participation by all members, ensuring mutual support and the smooth functioning of the mutuality benefits.
30. “Payment Instrument” means the payment methods including bank card or bank account that each Member provides when the Member joins the Mutuality Program, which will be used by such Member to perform the Member’s rights and obligations of the Mutuality Plan such as making and receiving Sharing Contributions.
31. “Payment Processor” means the third-party payment processing company to process Sharing Contribution charge from Members and payment to those Members who request Sharing Contributions and to applicable Recipient.
32. “Permissive Driver” refers to a Planned Auto driver not specifically a resident within the Member’s household and has been given permission by the Member to temporarily drive the Planned Auto.
33. “Planned Auto” means the auto defined in Section I. 2. of the Appendix.
34. “Pledge Amount” means the maximum sharing amount that a Member is committed to share during one Effective Period of the Mutuality Plan so he/she can fulfill the sharing commitment according to these Terms and Conditions. The Pledge Amount will be determined when the Member applies to join/renew the Mutuality Program. The Pledge Amount is for reference purpose only and the actual sharing amount each Sharing Cycle of each Member can only be determined at the applicable Sharing Cycle.
35. “Quote” is a statement provided to a prospective member that specifies the Pledge Amount and the service fee payable to the Administrator for the Mutuality Plan Effective Period in which the member is interested in joining.
36. “Quote Amount” is the amount shown in a Quote. The Quote Amount equals the sum of the Pledge Amount and the service fee payable to the Administrator.
37. “Recipient” means Member who suffered from Total Loss and all third-party service providers which contributed to repairing or recovering the losses such as the Auto Repair Body Shop, glass specialty repair facilities, electronic re-calibration facilities, as the case may be.
38. “Remaining Pledge Balance” is a financial measure used to determine the remaining committed funds to a specific Mutuality Plan. The Remaining Pledge Balance equals to the Pledge Amount minus the cumulative total of all Individual Shared Amount of one Member in the context of a Mutuality Plan’s Effective Period. As each Sharing Cycle occurs, Sharing Contributions made are subtracted from the Pledge Amount, and the Remaining Pledge Balance is updated to reflect the remaining funds designated for future Sharing Contributions.
39. “Share” or “Sharing ” means the activities of Members voluntarily giving a certain amount of funds to support the auto repair of other Members. Note that once a sharing is made, it is deemed that the Sharing Contributions have been donated to other Members and cannot be claimed back from other Members.
40. “Sharing Cycle” means every specific period starting as of the launch date of the Mutuality Program. The Sharing Cycle initially is one week and might be adjusted based on the operation status of the Mutuality Program for improvement of customer experience.
41. “Sharing Request” means a request to the Members for a sharing contribution through the Platform upon the occurrence of an Eligible Event during each Sharing Cycle based on these Terms and Conditions stated herein.
42. “Temporary Substitute Auto” means an automobile or trailer, not owned by a Member, temporarily used with the permission of the owner. This vehicle must be used as a substitute for the Owned Auto or trailer when withdrawn from normal use because of its breakdown, repair, servicing, loss or destruction.
43. “Total Loss” includes actual total loss and constructive total loss. If a Planned Auto is lost after an Eligible Event or is severely damaged and completely loses its original shape and utility, or cannot be restored to pre-loss condition, or can no longer be owned by the Member, or is legally required to have a branded or salvage title, it is an actual total loss; If it is considered that the actual total loss is inevitable, or the cost to restore to pre-loss condition exceeds or is close to the Actual Cash Value, and the Administrator negotiates with the Members to apply for the Sharing Contribution in the form of total loss, it is a constructive total loss.
44. “Trailer” means a non-powered vehicle towed by another vehicle and designed for use with a private passenger auto and not used as a home, office, store, display or transport of passengers.
45. “Traffic Hit and Run” refers to the act of fleeing from the scene of a road traffic accident by driving or abandoning a vehicle or absconding and hiding in order to evade legal responsibility after the occurrence of such road traffic accident.
46. “Total Loss Event” means the incident causing the Total Loss.
47. “Utility Auto” means a vehicle, other than a Farm Auto, with a gross vehicle weight of 15,000 pounds or less of the pick-up body, van or panel truck type not used for commercial purposes.

Ⅲ. Program Participation

1. Become a Member

In order to protect all Members’ interests, the Administrator will review a prospective Member’s driving history and the conditions of his/her Planned Auto to determine whether he/she is eligible to enroll in the Mutuality Program according to the qualification provisions of the Appendix set forth in Section I. 2.. If he/she and the Planned Auto meet the qualification criteria, he/she is eligible to become a Member of the Mutuality Program.
A prospective Member becomes a Member after passing the review of the Administrator and upon effectiveness of his/her Mutuality Plan. Please refer to Section IV.3 for the effective date of the Mutuality Plan. A Member enjoys the right to submit a Sharing Request for the Planned Auto following an Eligible Event and may choose whether or not to contribute when other Members experience an Eligible Event.

2. Number of Planned Auto

A Member is entitled to enroll multiple Planned Auto in the Mutuality Program. When a Member elects to enroll multiple Planned Autos in the Mutuality Program, the rights and obligations of the Member under the terms of the Mutuality Program shall be assessed independently for each Planned Auto. This includes but not limited to, the determinations concerning Pledge Amount, Authorized Loss Amount, Authorized Sharing Amount and any other rights and obligations pertaining individually to each Planned Auto, independently and without bearing on the rights and obligations associated with any other Planned Autos owned by the Member.

3. Representations and Warranties concerning a Planned Auto for which a Member does not have a certificate of title

If the Member applies to have a Planned Auto enrolled in the Mutuality Program as to which the Member does not have a certificate of title, the Member represents and warrants the following:

(i) he/she has obtained the Planned Auto title owner’s express acknowledgement and consent to have the Planned Auto enroll the Mutuality Program

(ii) he/she has obtained the auto title owner’s express acknowledgement and consent to have the Designated TPA and/or Administrator verify the owner’s identity and the title to the auto in the case of Eligible Event; and

(iii) he/she has obtained the auto title owner’s express acknowledgement and consent to have the Authorized Sharing Amount to transfer to the Member’s Payment Instrument.

The Member acknowledges and agrees that should any of the aforementioned representations be found to be false, or the Member breaches any of the aforementioned representations, then the Member’s Sharing Request will be rejected.

Ⅳ. Mutuality Plan 

1. Pledge Amount

When a Member enrolls in the Mutuality Program, he/she shall maintain a valid Payment Instrument designated for the Payment Processor to charge the Individual Shared Amount, Remaining Pledge Balance and transaction fees. The Pledge Amount may vary from Member to Member, based on factors such as make and model of Planned Auto, driving record and sharing record. The Member’s Pledge Amount may change when he/she renews the Mutuality Program after the expiration of his/her previous term of the Mutuality Plan in accordance with the Mutuality Program’s prevailing pricing mechanism.

The Member should make sure that his/her Payment Instrument remains valid and always has sufficient funds or credit amount to pay Individual Shared Amount needed in each Sharing Cycle. If the Member’s Payment Instrument does not have sufficient funds or credit amount, then the Platform will notify the Member and the Member has 15 days (the “Grace Period”) to rectify such a situation. The Platform will continuously try to charge the Individual Shared Amount during the Grace Period. At the beginning of the Grace Period, any associated rights conferred by these Terms and Conditions shall be forfeited accordingly unless that the Member pays the Individual Shared Amount during the Grace Period. At the end of the Grace Period, if the Platform still cannot successfully charge the full amount of the Individual Shared Amount, then the relevant Member shall be deemed to have withdrawn from the Mutuality Plan and ceased to be a Member. The Member who fails to remit the Individual Shared Amount shall be deemed indebted to the community, and the Platform is hereby authorized to initiate collection efforts to recover such Outstanding Contribution from the defaulting Member. The Individual Shared Amount recovered within the Grace Period will be used to offset the Authorized Amount of the next Cycle and will be stored at the Designated Account.

2. Effectiveness and Invalidity of Mutuality Plan

(i) Effectiveness of Mutuality Plan: The Mutuality Plan shall take effect on the date selected by the Member after the Member pays the service fee to the Administrator.

(ii) The Effective Period of the Mutuality Plan is 6 months unless it terminates earlier according to the provisions provided under these Terms and Conditions.

(iii) A Member’s Mutuality Plan will be renewed automatically provided that he/she satisfies the qualification criteria of the Mutuality Plan at the time of the renewal.

(iv) Invalidity of the Mutuality Plan: Notwithstanding anything else provided in these Terms and Conditions, the Mutuality Plan becomes invalid (i) when the Effective Period of the Mutuality Plan expires, (ii) when the Member elects not to participate in a Sharing Contribution, (iii) subject to Section IV.1., when the Member fails to contribute to Individual Shared Amount prior to the end of the Grace Period, or (iv) subject to Section VI. 2. (iv), when the Member fails to pay part or all of the Remaining Pledge Balance prior to the end of the Grace Period in the event that he/she filed the Sharing Request. The date of invalidity starts from 11:59 pm on any of the earlier dates mentioned above.

4. Sharing Contributions

The Pledge Amount committed by each Member will be used for Sharing Contributions during the Effective Period of the Mutuality Plan. When there is an Eligible Event and the Sharing Request approved during each Sharing Cycle, the Member can elect whether or not to participate in sharing.

Ⅴ. Sharing Request, Authorized Sharing Amount and Auto Repair Procedures

1. Prerequisite of Applying for Sharing Request

(i) When a Member’s Planned Auto has an Eligible Event within the time period described below, the Member is entitled to submit a Sharing Request for that Eligible Event.

(a) any Eligible Event occurred before 11:59 pm on the expiration date of the Effective Period of the Mutuality Plan.

(b) any Eligible Event occurred before 11:59 pm on the application date of withdrawal from the Mutuality Plan, provided that the Effective Period of Mutuality Plan applicable to the Planned Auto has yet to expire. For the provisions concerning withdrawing from the Mutuality Plan earlier, please refer to Section VI.1.

(ii) When a Member submits a Sharing Request for an event of a Planned Auto, the Designated TPA and/or the Administrator will determine whether it falls into the scope of the Eligible Event and determine the Authorized Loss Amount.

(iii) Only the Administrator is authorized to evaluate and rule upon a Sharing Request. As a result, Members must notify the Administrator to verify the Eligible Event and the Authorized Loss Amount. If the Member has repaired the Planned Auto prior to notifying the Administrator, then the Member is not eligible to submit a Sharing Request.

2. Sharing Request and Authorized Sharing Amount

(i) Upon satisfaction of the prerequisite provided in Section V.1. above, the Member is entitled to submit a Sharing Request.

(ii)If the Member’s Authorized Loss Amount is less than the Remaining Pledge Balance as recorded in such Member’s Mutuality Plan Account, then the Member’s Payment Processor by Power of Attorney will charge from the Member an amount equivalent to the Authorized Loss Amount and transfer to the Recipient directly or to the general contractor if the Recipient has not opened an account with the Payment Processor. Under the foregoing circumstances, the Member is not entitled to obtain any Authorized Sharing Amount.

(iii) If the Member’s Authorized Loss Amount is more than the Remaining Pledge Balance as recorded in such Member’s Mutuality Plan Account, then: (a) the Payment Processor by Power of Attorney will charge all Remaining Pledge Balance. and transfer to the Recipient directly or to the general contractor if the Recipient has yet to open an account with the Payment Processor; (b) the Member shall be eligible to receive an Authorized Sharing Amount subject to this provision and Section V. 2. (v) below – i.e., the gap between the Authorized Loss Amount less the Remaining Pledge Balance; and (c)the aggregate Remaining Pledge Balance and the Authorized Sharing Amount will be transferred to the Recipient directly or to the general contractor if the Recipient has not opened an account with the Payment Processor.

Under the foregoing described scenario, each Member’s pro-rata Individual Shared Amount shall be calculated by following below formula:

A. Each Member’s Individual Shared Amount = the Remaining Pledge Balance multiply the shared ratio applied.

B. The shared ratio is calculated by dividing the Actual Total Sharing Contribution Amount by the cumulative Remaining Pledge Balance across all members’ Mutuality Plan Accounts at that time.

If the then total remaining balance of the Pledged Amount in all Members’ Mutuality Plan Account is less than the Authorized Donation Amount of that Donation Cycle,then the available total remaining balance of the Pledged Amount shall be allocated pro-rata to Members of that Donation Cycle. The percentage of each Member obtained equals to his/her Authorized Donation Amount over the total Authorized Donation Amount of that Donation Cycle.

(iv) Notwithstanding the provisions set forth in Section V. 2. (ii) and (iii) above, such provisions shall not absolve the Member of the obligation to maintain responsible driving behaviors. Specifically, it is incumbent upon the Member to satisfy any Authorized Loss Amount by firstly utilizing the entirety of the Remaining Pledge Balance at the time when such Authorized Loss Amount is approved. The Member is obligated to ensure that his/her Payment Instrument has sufficient funds to pay the Out-of-Pocket Expenses and the Remaining Pledge Balance. On the date of picking up the repaired auto, the Member should pay the Out-of-Pocket Expenses to the Auto Repair Body Shop directly. The Payment Processor by power of attorney will charge the Remaining Pledge Balance and pay the same together with the Authorized Sharing Amount (if any) to the applicable Recipient in accordance with these Terms and Conditions. Should the Member defaults on the sufficiency of the Remaining Pledge Balance, he/she will be given a 15-days Grace Period, and the Payment Processor will try to charge the Remaining Pledge Balance continuously during the Grace Period. At the beginning of the Grace Period, any associated rights conferred by these Terms and Conditions shall be forfeited accordingly unless that the Member pays the Remaining Pledge Balance during the Grace Period. At the end of the Grace Period, the insufficiency of the Remaining Pledge Balance shall effectuate an automatic withdrawal of the Member from the Mutuality Plan. Meanwhile, the Platform is entitled to engage a third party to collect the Remaining Pledge Balance from the defaulting Member in due course. In such circumstances, the Member breaches the Terms and Conditions herein and his/her credit score may be affected negatively. In the event of seeking re-enrollment in the Mutuality Program, the Member shall be required to pay any outstanding shortage of the Remaining Pledge Balance. Under no circumstances as aforementioned shall the Administrator be obligated to discharge any insufficiency of the Remaining Pledge Balance on behalf of the Member.

(v) Notwithstanding the provisions provided in the Section V. 2. (iii), to promote responsible driving among its Members, Good Driver commits a one-off contribution of US$1,000,000 to the Mutuality Program (“Good Driver’s Contribution”) during its initial launch. Members’ Sharing Contribution shall be up to a cap of 7.5% of their respective Pledge Amount per Sharing Cycle to fund s for Authorized Sharing Amount if the Members decide to share Contribution. If the Authorized Sharing Amount of a Sharing Cycle surpasses the then combined 7.5% of the Pledge Amount across all Members’ Mutuality Plan Account, Good Driver will provide up to 7.5% of Good Driver’s Contribution to meet the surpassed amount. It is important to note that Good Driver’s Contribution is a singular gesture and will not be replenished once exhausted over the course of the Mutuality Program under any circumstances. Notwithstanding the sharing contribution cap provided above for the Members, Members have the right to withdraw from the Mutuality Program at any time; but a Member’s decision not to withdraw from the Mutuality Program and instead continue participating in the Mutuality Program constitutes the Member’s authorization to have funds withdrawn from the Member’s Payment Instrument as a voluntary sharing contribution up to a cap of 7.5% of their respective Pledge Amount per Sharing Cycle to fund s for an Authorized Sharing Amount. Upon dissolution of the Mutuality Program, if there is any remaining balance of the Good Driver’s Contribution, Good Driver retains the right to reclaim such remaining funds.

(vi) In the event that the combined Sharing Contribution from Members and Good Driver is less than the Authorized Sharing Amount of a Sharing Cycle, then the available total Sharings shall be allocated on a pro-rata basis among the Members of that Sharing Cycle. The proportionate share attributable to each Member shall be equivalent to his/her Authorized Sharing Amount in relation to the aggregate Authorized Sharing Amount designated for that respective Sharing Cycle. The Member requesting the Sharing Contribution shall be individually liable for the resultant shortfall.

3. Auto Repair Procedures

(i) The Administrator is empowered to facilitate the appointment of a Designated TPA for the purpose of loss assessment, and to orchestrate with authorized Auto Repair Body Shops for the execution of auto repair services. The Administrator is developing artificial intelligence to participate in the loss assessment process. When the artificial intelligence technology is ready to employ, the Administrator may conduct the loss assessment by itself or by working with the Designated TPA. The Administrator shall not be responsible for any actual expenditures incurred by the Auto Repair Body Shop. These expenditures shall be shared by all Members participating in the Mutuality Program and be allocated in accordance with the stipulations set forth in these Terms and Conditions and its Appendix.

(ii) The Planned Auto, if it suffers an accident and is repairable, must be repaired at the contracted Auto Repair Body Shop designated by the Administrator, unless no contracted shop is available within a 25-mile radius range from the member’s current address. There will be a direct contractual relationship between the Member and the Auto Repair Body Shop concerning auto repair, quality, service fee, warranty, etc. even there might be a general contractor occasionally to accept the repair requests of Members. Notwithstanding the above, if the contracted Auto Repair Body Shop is more than 25 miles away from the Member’s current address, then the Member can elect to either receive the Authorized Sharing Amount directly or to have the Planned Auto repaired by the Auto Repair Body Shop. In the former case, the Member shall be responsible to repair the Planned Auto by himself/herself.

(iii) In the event that the Auto Repair Body Shop conducts repair, the Planned Auto will be repaired using alternative (non-OEM) parts whenever available for alternative parts and cost-effective, with the exclusion of safety components such as Safety Restraint Systems. The majority alternative parts will be supplied by the contracted national alternative parts supplier and the Administrator will endeavor to contract such suppliers. The alternative parts will be available to the Auto Repair Body Shop through the approved estimating systems.

(iv) Members should confirm service completion on the Platform in a timely manner after the completion of the repair of the Planned Auto. If confirmation is not completed within three days but the vehicle has been collected from the Auto Repair Body Shop, and no confirmation or feedback is provided following the Platform prompts notification again, it will be assumed that the Planned Auto has been repaired to a condition satisfactory to the Member.

(v) Once the repair costs are incurred, the repair details, including information about the accident, the geographic location of the Eligible Event, associated photograph(s), the causation adjudicated by the Designated TPA and/or the Administrator, parts involved, and an estimated itemized breakdown of costs, will be promptly shared with Members on the Platform. Please refer to the Privacy Policy for details of the information to be published. The publication announcement period is 7 days. On the next Monday following the public announcement period, the Payment Processor or the general contractor will facilitate the Members distribute the repair fee in the Authorized Sharing Amount or in a lesser amount to the Auto Repair Body Shop and other Recipient (if any) in accordance with Section V.2(iii)(iv). In the Total Loss Event, the Authorized Sharing Amount will be disbursed to the Member. During the announcement period, if any Member does not agree to share contribution, he/she shall be deemed to have withdrawn from the Mutuality Program and shall follow the withdrawal procedures provided under Section VI.1.(ii). If the Members don’t withdraw from the Mutuality Program after the announcement period ends, it will be deemed that those Members have approved the Authorized Sharing Amount announced by the Platform.

(vi) Please be aware that for any Eligible Event, the repair expenses can be divided into initial estimated costs and the variance between those estimates and the actual costs. The associated Sharing Contribution will align with the frequency at which the Auto Repair Body Shop and other applicable RecipientsRecipient collect these costs.

(vii) The Mutuality Program may need a general contractor to handle auto repair. General contractor is entitled to outsource the auto repair to third-parties such as Auto Repair Body Shop, glass specialty repair facilities, and electronic re-calibration facilities. Note that the Administrator may play the role of general contractor at the initial stage of the Mutuality Program. The general contractor will charge 0.6% of the auto repair costs that it contracted as service fee.

VI. Withdraw and Renew

1. Withdrawal

(i) Withdrawal on Expiration Date

(a) Upon the expiration date of the Effective Period, the Mutuality Plan will terminate automatically.

(b) A Member shall enjoy the rights and obligations arising from the Mutuality Plan of the Planned Auto before 11:59 pm on the expiration date of the Effective Period. For example, a Member can elect to participate in sharing or not for the Eligible Event occurred before 11:59 pm on the expiration date of the Effective Period, and a Member can submit a Sharing Request for the Planned Auto within 365 days if the Eligible Event occurs before 11:59pm on the expiration date of the Effective Period.

(c)  If there is a pending Sharing Request under the Mutuality Plan after 11:59 pm on the expiration date of the Effective Period, then the Mutuality Plan shall duly expire on the expiration date of the Effective Period and the Member is not eligible to submit Sharing Request. The related Mutuality Plan Account will be put on hold until the day after the upcoming Sharing Cycle, allowing the Member to receive the Authorized Sharing Amount before the aforementioned date.

(ii) Withdrawal Before Expiration Date of the Effective Period

(a) A Member can apply to withdraw from the Mutuality Plan at any time within the Effective Period. Such Members shall still enjoy the rights and obligations under the Mutuality Plan of the Planned Auto until 11:59 pm on the withdrawal application date. For example, a Member can elect to participate in sharing or not for the Eligible Event occurred until 11:59 pm on the application date, and a Member can submit a Sharing Request for the Planned Auto until 11:59 pm on the application date. If a Member elects not to share a contribution, such Member will withdraw from the Mutuality Plan automatically.

(b) Subject to the provisions set forth in Section IV. 1. and Section VI. 2. (iv), if the Member fails to contribute his/her Individual Shared Amount or Remaining Pledge Balance attributable to him/her after elapse of the Grace Period, the Member is deemed to have withdrawn from the Mutuality Plan automatically.

(c) If there is any pending Sharing Request under the Mutuality Plan before 11:59 pm on the withdrawal date of the Mutuality Plan, then the Mutuality Plan shall duly expire on the withdrawal application date and the Member is not eligible to file for Sharing Request. The related Mutuality Plan Account will be put on hold until the day after the upcoming Sharing Cycle, allowing the Member to receive the Authorized Sharing Amount before the aforementioned date.

(iii) Termination on Total Loss

The Mutuality Plan shall be subject to an early termination in the event of a Total Loss. The termination will take effect upon the completion date of the Total Loss Event. Prior to the completion date of the Total Loss Event, the Member shall still enjoy the rights and obligations under the Mutuality Plan. For example, a Member can elect whether or not to participate a sharing contribution for the Eligible Event occurred before the completion date of the Total Loss Event.

(iv) Withdrawal due to an Abnormal Event

(a) If the Member’s Payment Instrument is in abnormal status and cannot withdraw Outstanding Contributions during the Grace Period, then the Member is unable to fulfill its obligations under these Terms and Conditions, the Member is deemed to have withdrawn from the Mutuality Program automatically.

(b) In order to continuously comply the applicable law and ensure the smooth operation of the Mutuality Program, the Administrator is entitled to amend these Terms and Conditions such as Member enrollment qualifications, Pledge Amount rules and the type of Payment Instrument acceptable, the Members concerned shall take actions necessary to follow the changed Terms and Conditions. Otherwise, the Administrator will deem the Member is ineligible to the Mutuality Program and can suspend the services to such Member or terminate the Member’s membership in the Mutuality Program.

(c) Upon occurrence of any of the events described below, the Mutuality Plan of the Members concerned shall terminate immediately. For the Members who have already obtained the Authorized Sharing Amount, the Administrator is entitled to recover the Authorized Sharing Amount from the applicable Members and thus reduce the loss caused to the community. The Administrator and Members retain the rights to pursue the legal liabilities of the defaulting Member.

A. Member, Sharing Request applicant, driver or other interested parties intentionally provide false information/material about the occurrence of the incident;

B. Member, Sharing Request applicant, driver or other interested parties intentionally cause the incident;

C. After the occurrence of the incident, Member, Sharing Request applicant, driver or other interested parties falsify certain material or other evidence, falsify the causation of the auto accident and traffic accident scene, alter or change parts on the Planned Auto, or exaggerate the loss of the incident.

2. Renewal of Mutuality Plan

(i) The Mutuality Plan will be renewed automatically. A renewal notice specifying the Pledge Amount for the renewed term will be provided to the Member through email and on the Platform 30 days prior to the expiration of the existing Mutuality Plan provided that Planned Auto meets the Mutuality Program renewal qualification criteria set out in Section I.2 of the Appendix. If the Member has any objection to the renewal terms, please contact the Administrator. If the Member does not raise any objection, the Mutuality plan will be renewed based on the new terms specified in the renewal notice.

(ii) The Pledge Amount of the new Mutuality Plan will be adjusted based on factors including, without limitation, the Eligible Event of the Member in the previous term. If there is any Remaining Pledge Balance as recorded in the Mutuality Plan Account, it will be accounted for as the Pledge Amount of the new Mutuality Plan and the Member is only obligated to commit an amount equivalent to the gap between the new Pledge Amount and the Remaining Pledge Balance.

(iii) In the event that a vehicle applied as a Planned Auto fails to satisfy the qualification criteria provided in Section I.2 of the Appendix, then the proposed Member shall not be eligible to join (or renew) the Mutuality Program until such time as the vehicle meets the qualification criteria as a Planned Auto.

(iv) A Member is prohibited from renewing the Mutuality Plan if the Member previously withdrew from the Mutuality Plan due to an abnormal event as previously described in Section VI.1. (iv).

VII. Rights and Obligations of the Members

(i) Rights. In addition to the rights identified elsewhere in these Terms and Conditions, Members shall have the following rights:

(a) To file a Sharing Request for an Eligible Event as the principal of the Mutuality Plan. If an Authorized Sharing Amount is applied in response to a Sharing Request, Members then shall have the right to decide whether to participate in the Sharing.

(b) To obtain information and material provided by the Platform, to review the record of the Mutuality Plan such as Remaining Pledge Balance and Contributions of each Sharing Cycle, to understand the Eligible Event for which a Sharing Request is eligible to make and to question the Administrator the qualifications of the Eligible Event.

(c) To authorize the Administrator to recover the Authorized Sharing Amount in the event that a certain Member obtains the Authorized Sharing Amount through the submission of fraudulent material and/or information. Funds that are recovered will be deposited into the Designated Account and used to offset the Authorized Sharing Amount for the subsequent Sharing Cycle.

(ii) Obligations. In addition to the obligations identified elsewhere in these Terms and Conditions, Members shall have the following obligations:

(a)The obligations to provide true, valid and complete identity and Planned Auto information and to notify the Administrator when the information changes promptly. A Member shall authorize the Administrator to reject his/her Sharing Request if the Member fails to provide true, valid and complete information or fails to update the information thus provided. Further, any dispute and the loss caused by the Member’s failure to provide foregoing information shall be assumed by the Member concerned.

(b) The obligations to provide true, valid and complete information to the Administrator as soon as reasonably possible upon occurrence of Eligible Event if the Member decided to file a Sharing Request under the Mutuality Program. The Administrator is entitled to reject the Sharing Request if the Member fails to provide the above-mentioned information on time.

(c) The obligation to maintain a valid Payment Instrument to make and receive sharing contributions.

(d) To review, acknowledge and accept the Terms And Conditions relevant to the Mutuality Program.

(e) Members shall acknowledge and accept the Terms of Service of the service providers such as the Administrator, the Platform, the Designated TPA, the Payment Processor and provide know- your-customer material as requested by the service providers.

(f) The obligation to read the information pushed by the Platform concerning an alleged Eligible Event and the publicity information, read the amendment to these Terms and Conditions and its Appendix. Members shall not request that any person take any liabilities because he/she did not review any public information on the Platform or pushed by the Platform.

(g) The obligation to securely save a Member’s user name and the password of the Platform. All operations using username, password, private key to log in the Platform or account are deemed to be the activities of the Member and the Member shall assume all liabilities arising therefrom.

(h) To authorize the Administrator to, at its sole discretion, terminate the usage of any password or user account, or to discontinue certain services, and to remove or delete any content provided by the Member who has breached these Terms and Conditions or the Appendix, or has failed to perform certain obligations stipulated within these Terms and Conditions, or has gained undue advantages through fraudulent measures, thereby violating these Terms and Conditions or infringing upon the interests of other Members.

(i) To recognize and concur that the Administrator may, without prior notification, immediately deactivate or remove a Member’s account on the Platform, along with any associated information and documents, and temporarily or permanently restrict the Member’s usage of said documents or account upon the detection of unlawful activity.

(j) To acknowledge and agree that payment processing and the use of Payment Processor is integral to the service and the Administrator will exchange information with Payment Processor to facilitate the services.

(k) To consult with your tax advisor whether your Sharing Contribution is subject to any tax deduction or eligible for tax recognition. Good Driver makes no representation as to whether any or all of your Sharing Contribution is tax deductible or eligible for tax credits or treatment of similar nature.

Ⅷ. The Service Scope and the Service Fee of the Administrator, Designated TPA and Other Service Providers

(i) Scope of Work:

(a) The Administrator develops the internet infrastructure/Platform utilized by the Mutuality Program and provides technical support accordingly.

(b) The Administrator develops technology and risk control measures to screen high risk auto, guide the good driving behavior and automate loss assessment.

(c) The Administrator establishes a network of service providers, comprising Designated TPA, Auto Repair Body Shop, Payment Processor, pricing data providers, on spot survey to assist the Members.

(d) The Administrator manages the operation of the Mutuality Program and the Platform.

(e) The Administrator initiates the first version of these Terms and Conditions of the Mutuality Program and is entitled to amend and supplement the Terms and Conditions based on the feedback of Members and the improvement points identified during the operation of the Mutuality Program. The Terms and Conditions are deemed to have taken effect upon publication on the Platform.

(f) The Administrator assesses whether a prospective Member has fulfilled the enrollment criteria of the Mutuality Program and shall decide the admission of such prospective Member. The Administrator possesses exclusive authority in determining admissions to the Mutuality Program and thus holds the final decision-making power regarding such matters.

(g) The Administrator will disclose each Eligible Event on the Platform. Members should acknowledge and consent that pertinent details of the Eligible Event, including anonymized vehicle information, the Authorized Loss Amount, the Authorized Sharing Amount, accident handling procedures, and photographs, Member’s name, vehicle plate number, and VIN (excluding Mobile number, identity card number, and driver’s license number), will be made available for public scrutiny on the Platform.

(h) The Administrator can reject a Sharing Request pertaining to an incident which does not comply with these Terms And Conditions.

(i) For the approved Sharing Request, the Administrator is entitled to charge fund from each Member’s Payment Instrument to obtain the Individual Shared Amount and the Remaining Pledge Balance from the Applicant whose Sharing Request is approved in accordance with Section Section V. (iv) and transfer the same to the Auto Repair Body Shop by working with the Payment Processor it cooperated with in accordance with the Terms and Conditions set forth herein.

(j) The Administrator is entitled to cooperate with a qualified Payment Processor to manage the fund flow of the Pledge Amount and the Authorized Loss Amount payment to the applicable Recipient.

(k) The Administrator and/or the Designated TPA will judge whether an alleged event by the Member meets the criteria of an Eligible Event, and will determine the loss amount, the Authorized Loss Amount and the Authorized Sharing Amount if it is an Eligible Event.

(l) Auto Repair Body Shop will provide a guarantee and warranty of repairs and workmanship for as long as the Member owns the Planned Auto. Auto Repair Body Shop will cooperate with the Administrator and the Designated TPA during the repair process for any issues that may arise during the repair process and after repairs have been completed. Auto Repair Body Shop will interact and conduct business with the Member in a professional and courteous manner.

(m) Contracted alternative parts suppliers agree to provide a limited lifetime warranty on their KeysIQ products. Contracted alternative parts supplier guarantees its parts to be free of defects in material and workmanship for as long as the Member owns the vehicle. If a warranty request is pre-approved by the contracted alternative parts supplier, a replacement part will be provided and reimbursement for installation labor will be included.

(ii) Service Fee

(a) The Administrator shall charge service fee from each Member at an amount of 20% of the Quote Amount of each Mutuality Plan. Unless otherwise provided in these Terms and Conditions, the service fee of the Mutuality Plan shall be charged when the Member joins and renews the Mutuality Program each time. The service fee of the Mutuality Plan will not be refunded because the Administrator has provided certain services to the Members when the Member joins the Mutuality Program.

(b) In addition to other usages set out in these Terms and Conditions, the 20% service fee charged by the Administrator will also be used to cover the loss assessment service fee and pricing data usage fee.

Ⅸ. Rights and Obligations of Administrator, Designated TPA and Other Service Providers

(i) Rights

(a) If the Administrator cannot continually manage or serve Members, it will serve 90-days prior notice to members.

(b) The operation of the Mutuality Program relies on the internet and may encounter instability due to technological and security challenges. The Administrator, the Designated TPA, and other service providers do not guarantee continuous service and are not liable for any interruption or failure to meet Member requests, any losses, or any consequential damages incurred by Members. This includes, but is not limited to, the Member’s inability to send, receive, or correctly interpret information; loss or theft of a Member’s account assets arising from events beyond our control, such as force majeure, computer viruses, or hacker intrusions; system instability; the Member’s geographic location; the Member disconnecting from the network; or any issues related to technology, the internet, or telecommunications.

(c) If the system that the Platform or the Mutuality Program is based on has an incident and therefore affects the normal operation of the Mutuality Program, the Administrator will attempt to coordinate with the community and developers to fix the incident, to the extent possible. The Administrator may not be able to fix or cause to be fixed any such incident. In addition, the Administrator reserves the right to suspend any and all services without prior notice for purposes of system maintenance, upgrade, etc.

(d) The dispute among Members not related to any Eligible Event shall be resolved by Members themselves, the Administrator, the Designated TPA, and other service providers will not involve or take any liabilities for the disputes.

(e) The Administrator, the Designated TPA and other service providers are solely providing services to the Members in relation to Sharing Request and they are not liable to pay for any Authorized Sharing Amount to the Members under any circumstances.

(f) None of the Administrator, the Designated TPA and other service providers will make any commitment regarding whether Members are willing to share contribution and/or the Authorized Sharing Amount the Members can obtain.

(ii) Obligations

(a) All service providers are obligated to keep Member’s information confidential but have no obligation to verify whether the information provided by the Members is true or false.

(b) All service providers shall notify a Member to supplement the missing certificate and material all at once if they deem that the certificate and material are not complete.

Ⅹ. Fund Management

1. General Rules of Fund Management

(i) The usage of the Authorized Loss Amount is public, transparent and subject to the supervision of the Members. The Administrator represents and warrants that it will not misappropriate the Authorized Loss Amount and will regularly publicize the usage status of the Authorized Loss Amount on the Platform.

(ii) When a Member files a Sharing Request, the Administrator is entitled to calculate the Authorized Sharing Amount according to Section V of these Terms and Conditions, and notify the bank and/or third-party Payment Processor to deduct fund from the applicable Payment Instrument of those Members who elect to participate in sharing and make distribution to the applicable Recipient in the event of partial loss, to the Member in the event of Total Loss. The deduction of fund from the Payment Instrument shall be subject to the power of attorney of the Members.

(iii) The transaction fee relating to the sharing contribution, including without limitation to credit or debit transactions, sharing contribution disbursement, transfer and payment shall be paid by each applicable Member himself/herself.

(iv) The Member shall ensure that their Payment Instrument remains valid and possesses adequate funds or credit to cover Sharings. It is important to note that in the event of a failed transaction or an overdraft, the bank will impose fees for which the Member shall be solely responsible.

(v) When the Administrator calculates any amount mentioned in these Terms and Conditions, it will be accurate to the nearest digit. If the amount is less than 1 cent US dollar, it will be automatically rounded up.

2. Account Details

(i) The Member shall maintain a Payment Instrument with the bank or digital bank that cooperated with the Payment Processor.

(ii) The Administrator shall open a platform account with the same Payment Processor to serve the sole function of receiving Sharing Contributions and have it paid to Auto Repair Body Shops or other service providers.

XI. Dissolution

The Administrator will track the Pledged Amount data on daily basis and shall immediately inform Members if the accrued total Authorized Donation Amount surpasses the elapsed total Pledged Amount determined based on the elapsed portion of the Mutuality Plans’ Validity Period (i.e., the average elapsed period of Mutuality Plans/Validity Period of Mutuality Plans* total Pledged Amount). If necessary, the Administrator may dissolve the Mutuality Program early. Upon dissolution, Member’ sole remedy is to utilize/withdraw the remaining Pledged Amount in his/her respective Mutuality Plan Account. Subsequently, all rights and obligations between the Administrator and Members will terminate automatically, with no further obligations whatsoever on the Administrator to the Members.

In the event that the Administrator cannot manage or serve the Platform, or the number of Members stays below1200 for more than 18 months, the Administrator reserves the right to shut down the Platform. In this scenario, the rights and obligations of the Administrator will terminate accordingly.

XII. Composition of the Terms and Conditions and Effectiveness

1. The Terms and Conditions including its Appendix can be amended in the event that laws and regulations are amended or for the purpose of providing better customer experience to Members. Once the amended Terms and Conditions and its Appendix are published on the Platform, they will take effect immediately.

2. The Member should exercise his/her rights and obligations based on these Terms and Conditions. If any Member does not accept the Terms And Conditions and its amendment from time to time, he/she shall immediately terminate the Mutuality Plan, stop using the Platform and exit from the Mutuality Program. If the Member continually uses the services stipulated in these Terms and Conditions, then he/she is deemed to accept and be bound by these Terms and Conditions.

3. Should there be any inconsistency between these Terms and Conditions and its Appendix, the contents of the Appendix shall prevail.

 

 

Good Driver Mutuality Program

Appendix to the Terms and Conditions

 

Ⅰ. General Rules of Good Driver Mutuality Program Appendix 

1. Introduction

This Appendix is attached to the Good Driver Mutuality Program Terms and Conditions and has the same legal effect as these Terms and Conditions.

2. Qualifications of a Planned Auto

To reduce car accidents and protect the rights of all Members, Planned Auto enrolling the Mutuality Program must meet the following requirements:

(i)Model Year:Domestic and European Coupes & Sedans – 15 years or newer; all other brands & models – 20 years or newer
(ii)Allowed Body Styles: Sedan, Coupe, SUV, Truck, Trailer, or Van with no more than 9 seats
(iii) Allowed Brands: Acura, Alfa Romeo, Audi, BMW, Buick, Cadillac, Chevrolet, Chrysler, Dodge, Fiat, Ford, GMC, Genesis, Honda, Hyundai, Infiniti, Jaguar, Jeep, Kia, Land Rover, Lexus, Lincoln, Mazda, Mercedes-Benz, Mercury, Mini, Mitsubishi, Nissan, Oldsmobile, Pontiac, Plymouth, Ram, Scion, Smart, Subaru, Suzuki, Tesla, Toyota, Volkswagen, Volvo
(iv)Original retail value: $100,000 or less
(v) Expected annual mileage: 30,000 miles or less
(vi)Accidents history: No more than 1 accident in the past 6 months
(vii) Vehicle usage: The auto is not intended for commercial use. Vehicles that are or will be used for ride sharing purposes, such as Uber and Lyft, must disclose these purposes at the time of joining
(viii)Liability Insurance: must maintain valid state-mandated liability insurance throughout the entire duration of the Mutuality Plan; and
(ix)The auto must not have a salvage or branded title, prior damage exceeding the state-mandated total loss threshold, significant body, fire, or flood damage, be unregistered, stolen, illegally obtained, or banned from public roads

Additional Exclusions from the Planned Auto include:

a) Antique and classic vehicles

b) Motorcycles, all-terrain vehicles, recreational vehicles, golf carts, snowmobiles, jet skis, boats, buses, commercial vehicles, emergency and first-responder vehicles, heavy equipment, and farm equipment

c) Luxury brands: including Arrinera, Aston Martin, Bentley, Bollinger, Bugatti, Canoo, DeLorean, Ferrari, Fisker, Hennessey, Hummer, Ineos, Karma, Koenigsegg, Lamborghini, Lordstown Motors, Lotus, Lucid, Maserati, Maybach, McLaren, Noble, Pagani, Pininfarina, Polestar, Porsche, Rimac, Rivian, Rolls Royce, Saleen, Saturn, Spyker, SSC, VinFast, W Motors, Zenvo

d) Custom “kit” vehicles: a vehicle that is a set of parts that a manufacturer sells, with some parts sourced from used vehicles or other vendors, and the buyer assembles into a functioning vehicle

e) Gray market vehicles: any vehicle imported into the United States through a channel other than a manufacturer’s authorized distributor, and therefore does not have an express warranty that is valid in the United States

f) Fully autonomous vehicles to include Alphabet Waymo, GM Cruise, and Hyundai Motional Ioniq5.

g) Luxury / sporty vehicle models from allowed brands:

1) BMW: all M Series models, XM, i8

2) Mercedes Benz: AMG GT sedan and coupe models, SL Roadster

3)  Audi: R8 Coupe and R8 Spyder, all RS models

4) Tesla: Model X & Model S

5) Chevrolet: Camaro ZL1 1LE, all Corvette C8 models

6) Cadillac: Escalade V-Series, CT5 V-Series, CT4 V-Series

7) Ford: Mustang GT350 and GT500 models, Bronco Raptor, Ranger Raptor, F150 Raptor

8) Dodge: Challenger Hellcat and Demon models, Charger Hellcat and Demon models, Durango SRT

9) Jeep: Grand Cherokee Trackhawk

10) Nissan: GT-R

Below circumstance are not eligible to renew the Mutuality Program:

a) The Auto age exceeds 18 model years for domestic and European coupe/sedans or 23 model years for all other vehicles;

b) Applied and received 2 times or more sharing contributions in the past 6 months; or

c) There is evidence of fraud or suspicion of fraud as judged by the Administrator

 

Ⅱ. Generic Terms of the Appendix 

1. Effective Period of the Mutuality Plan

The Effective Period of the Mutuality Plan is 6 months, starting from the date selected by the Member when joining the Mutuality Plan, unless terminated earlier according to the Terms and Conditions.

2. Qualifications for Applying for Authorized Loss Amount

 (i) In the event of an Eligible Event, Member and/or driver should take reasonable and necessary measures to mitigate against further damages resulting from the loss and notify the Administrator as soon as reasonably possible after the Eligible Event if the Member decided to file a Sharing Request under the Mutuality Program. Any additional damages caused by the failure of the Member and/or driver to protect the Planned Auto do not qualify for applying Authorized Loss Amount.

(ii) At the request of the Designated TPA and/or the Administrator, the Member will make the Planned Auto available for inspection.

(iii) In the event of a loss or vehicle theft, vandalism or fire, the Member shall report the incident to the local police immediately after the Member knows or should know the Eligible Event and notify the Administrator.

(iv) When reporting the Eligible Event, the Member should provide information and materials such as the time, location, nature, reason, degree of loss, any witness name and address and phone number.

(v) The Member shall provide a valid liability insurance policy, loss item list, relevant incurred expenses, and the driver’s license of the person who was driving at the time of the accident.

(vi) If a Member and/or driver choose to settle the traffic accident by reaching a mutual agreement with the counterparty, the Designated TPA/the Administrator will contact the Member to confirm auto damage/loss details.

(vii) In the event that the Planned Auto was stolen and not recovered, when the Member files for a Auto Repair Application, he/she shall provide a loss item list, relevant expense documentation, properly signed and executed vehicle title, and police report indicating the Planned Auto was stolen.

(viii) If the Designated TPA and/or the Administrator cannot confirm an event’s eligibility due to the reasons attributable to Members, the event will be ineligible for Sharing by default.

(ix) If the Planned Auto requires parts to be replaced, the use of alternative parts (non-OEM) will be required when reasonably available. The exception will be the use of OEM parts for safety items such as SRS (Safety Restraint Systems) to include but not limited to airbags, clocksprings, seat belts, and tensioners. Alternative parts must first be acquired through the contracted national alternative parts supplier, then from other alternative parts suppliers if the contracted alternative parts supplier does not have the part in stock or cannot provide the part in a timely manner. Alternative parts must have certifications such as CAPA-certified, if the designation applies to the specific part.

3. No commitment

All activities undertaken by the Administrator and the Designated TPA, including but not limited to coordinating the handling of Eligible Events, investigating accidents, assessing losses, engaging in litigation, explaining and communicating about the event, requesting certificates and materials from the Member, and offering professional advice to the Member, do not represent any obligation or commitment on the part of the Administrator and/or the Designated TPA to make Sharing Contributions to Members.

4. Auto Transfer

During the Effective Period of the Mutuality Plan, if the Planned Auto’s title transfers to others, the Member shall notify the Administrator within 72 hours, the Member’s rights under the Mutuality Plan are terminated immediately. If a Member withdraws from the Mutuality Plan and wants to rejoin, then he/she shall initiate a new application.

5. Eligible Event

Ⅲ. Detailed Provisions

1. Exclusions and Conditions

Losses arising from any of the following scenarios will not qualify for Sharing Contributions from Mutuality Program:

(i)Excluded damage and losses:

(a)Existing damage: damage that exists before the occurrence of the incident

(b)Loss of personal items such as cash, clothes, phones etc.

(c)Loss of detachable items such as tape, wire, CD player, media devices, radar, laser detector ect.

(d)Loss on Custom parts or Equipments

(e)Non-accident related tire loss, such as flat tires or worn out tires

(f)Any liability assumed under other contract or agreement

(g)Normal wear and tear, decay or corrosion. Parts malfunction, quality defect, mechanical or electrical breakdown or failure

(h) Losses caused by and limited to wear and tear, freezing, mechanical or electrical breakdown or failure, unless that loss results from an eligible theft incident

(i)Trailers when used for business or commercial purposes with vehicles other than private passenger, farm or Utility Autos

(j)Damage to a vehicle involved in, or in preparation for, any type of racing, speed contests, demolition events, stunting activities, driver training, or skill events

(k)Without prior approval from the Administrator, damage and losses not inspected by the Administrator, or not repaired by the designated body shops pre-selected by the Administrator

(l)Only specific parts or attachments of the vehicle are stolen or vandalized, rather than the entire vehicle

(m)The Depreciation resulting from market price fluctuations or repair

(ii)Loss or damage resulting from:

(a)War, military conflicts, terrorist acts, riots, Contamination (including radiation), nuclear reactions and exposures, or explosions, as well as any resulting fires, radiation, or Contamination

(b)Biochemistry attack or exposure to biochemical substance

(c)Any governmental, legal or other action to return an auto to its legal, equitable, or beneficial owner, or any claiming an ownership interest in the vehicle

(d)Destruction, impoundment, confiscation, or seizure of the vehicle by government or civil authorities, due to its use in illegal activities

(e)A third party which is liable to compensate the Member’s loss or damage

(f) The acquisition of a stolen auto

(g)The operation of a Non-owned Auto or Temporary Substitute Auto that is designed for use principally off public roads and that is not registered for use on public roads

(iii)The Member, the Listed Driver or the Permissive Driver has any of the following behaviors or situations：

(a)intentionally causes the incident, destroys or stages the accident scene, falsified evidence after the incident, or to obtain improper benefits through deceptive measures

(b)Traffic Hit and Run after the incident

(c)Drive under the influence of alcohol, drugs or controlled substances at the time of incident

(d)Unlicensed, or has a driver’s license that is suspended, revoked or canceled at the time of incident

(e)Fails to notify the Administrator in a timely manner, making it difficult to determine the nature, cause, and extent of the damage

(f)Intentionally provides false, invalid, incomplete or omits key information when enrolling in the Mutuality Program including addresses, annual mileage, Listed Drivers, Permissive Drivers, non-personal use etc.

(iv)The Planned Auto has any of the following conditions at the time of incident:

(a)is withheld, seized or confiscated

(b)is being repaired, maintained or refitted

(c)is used for illegal activities due to the intention or gross negligence of the Member or the driver

(d)is overloaded: the vehicle exceeds its maximum occupancy limit as specified by safety regulations or the manufacturer’s guidelines

(e)is used to carry persons or property for compensation or a fee, including, but not limited to, pickup or delivery of food or groceries. Unless clearly reported as a ride-sharing member at the time of joining

(f)was sold, transferred, refitted, installed with new devices or changed the usage without notifying the Administrator

(g)Vehicle registration is expired or canceled

(h）fails to take necessary and reasonable preventive actions which caused further damage

 

2. Limit of Authorized Loss Amount

The Limit of Authorized Disbursement Amount will be the lesser of the:

(a) Actual Cash Value of the Planned Auto at the moment of incident. Actual Cash Value shall be determined by the authorized third party based on market fair price, taking into consideration depreciation and physical condition; or

(b) The amount necessary to repair or replace the damaged property to restore the Planned Auto to pre-loss condition. If a repair or part(s) replacement results in better than like kind and quality, Betterment may be applied to that amount.

(c) The personal effects arising out of one occurrence is $0 — loss of personal property is not eligible for Sharing Contribution.

(d) To a Trailer not owned by the Member is $500.

3. Limit of Authorized Transportation Assistance Amount

(a) Maximum limit: $40 per day for no more than 30 days, with a maximum of $1,200

(b) For drivable Planned Auto, Transportation Assistance will be provided for the days starting from the day the Planned Auto is sent to the Auto Repair Body Shop for repairs until the day the Planned Auto is ready for pickup, not to exceed the maximum limit.

(c) For non-drivable Planned Auto, Transportation Assistance will be provided for the days starting from the occurrence of the Eligible Event until the day the Planned Auto is ready for pickup, not to exceed the maximum limit.

4. Handling of Eligible Event

(i) After occurrence of the Eligible Event, the Administrator shall provide the service as specified in these Terms and Conditions. The Administrator,acting as the representative of the Members, introduces the service providers to manage incidents. Certain service providers have direct contractual relationships with the Members concerning Authorized Sharing Amount receipt and payment, towing and recovery, and etc. The Administrator is only responsible for entering framework agreements with service providers but will not take any obligations and liabilities towards the services and the services shall be directly provided by the service providers to Members. The service providers include but are not limited to the Auto Repair Body Shop, towing and recovery company, and the Payment Processor.

(ii) The damaged Planned Auto suffered Eligible Event shall be repaired by taking best efforts. Members shall apply for Authorized Loss Amount before repair. For those Members who repaired the Planned Auto before applying for the Authorized Loss Amount, Members are entitled to reject the Authorized Loss Amount.

(iii) The salvage of the Planned Auto shall be recycled by the service provider. Members shall support the service provider accordingly, including without limitation to salvage parts recycle, salvaged auto auction and demolition.

(iv) The loss of the Planned Auto shall be calculated as below:

(a) Total Loss
Authorized Loss Amount of the Total Loss Event = Limit of Authorized Loss Amount less any compensation amount obtained from third party and less the Out-of-Pocket Expenses and plus Authorized Transportation Assistance Amount (if any).
The Authorized Loss Amount of the Total Loss Event will be disbursed to the Member who suffered Eligible Event.
For the Planned Auto under the Total Loss Event, Members should work with service providers to dispose of the salvage. The auction amount or the discounted portion, after deducting advance charges and administrative fees, belong to the Administrator and the Administrator shall contribute the amount to the Designated Account to offset the Authorized Sharing Amount of a Sharing Cycle.
For the Total Loss Event arising out of an auto theft, if the Planned Auto is recovered at a later date, the Administrator shall subject the Planned Auto to auction. The funds thus obtained shall be contributed to the Designated Account to offset the Authorized Sharing Amount of a Sharing Cycle.

(b) Partial Loss
The partial loss of the Planned Auto and the relevant Authorized Loss Amount shall be determined by the Administrator and paid within the Limit of Authorized Loss Amount.
Authorized Loss Amount of the partial loss = Actual loss amount less any compensation amount obtained from third party and less the Out-of-Pocket Expenses and plus Authorized Transportation Assistance Amount (if any).
The Authorized Loss Amount of the partial loss will be paid to the Auto Repair Body Shop. Auto Repair Body Shop name list shall be provided on Good Driver Platform.

(c) Towing and Recovery fees
If the recovered property contains any property out of the scope of the Mutuality Plan, the Member shall apply for Sharing Contribution according to the ratio of the property within the eligibility of the Mutuality Plan to the total recovered property.
The towing and recovery fee below the Limit of the Authorized Loss Amount will be paid to the service provider according to the procedure described in this Good Driver Mutuality Program.