Common use of Silver Clause in Contracts

Silver. Each RTO/LTO® Dealer receives excess contingent liability insurance of $1,000,000.00 (one million) per occurrence. The customer’s insurance policy and/or the Dealer’s excess contingent liability policy DOES NOT cover excluded drivers. The financial responsibility then falls on the dealer. It is, therefore, at the discretion of the dealer whether to issue a contract to a customer whose policy contains excluded drivers. The excess contingent liability policy DOES NOT cover leased drivers listed on the contract if there is no primary insurance with them listed on their insurance policy. When the Dealer obtains the Northland excess contingent liability insurance coverage, the Dealer will comply, in a timely manner, with certain vehicle restrictions, customer type restrictions, reporting requirements, payment requirements, claims requirements and other requirements, the terms and provisions of which will be duly communicated to the Dealer by Northland, the Insurance Companies, or both. Such requirements may be changed by the Insurance Companies or Northland at any time. Failure to comply with such requirements or with the requirements of any applicable insurance policy providing such excess contingent liability coverage will result in immediate termination of the Dealer, and will subject the Dealer to cancellation of such coverage by the insurance company in accordance with any policy providing such coverage. In addition, Northland reserves the right to cancel the Dealer Agreement pursuant to the termination notice contained herein. The Dealer authorizes Northland to withdraw payments directly from the designated checking account or credit card that has been selected for insurance premiums once a month, at the beginning of the month, for each motor vehicle to be so insured as follows: