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Breakdown Reimbursement Coverage (Terms and Conditions)

A SERVICE OVERVIEW

1. In accordance with the terms of the Service Contract, HomeMembership, hereinafter referred to as HM, We, Us, or Our, agrees to repair or replace systems and appliances mentioned as covered for the Seller, Buyer, Direct Consumer (Homeowner), FSBO, hereinafter referred to as You, Your, They, Member, Client, Holder. HM offers home service contracts, which are not warranties. Terms may vary by state. HM reserves the right to revise this agreement at any time and you are deemed to be apprised of and bound by any changes to this agreement.
2. HM will provide service on listed covered systems or appliances that:
   1. are installed and located within the perimeter of the Main Foundation and Garage (attached). Additional living space in garages or separate from main home are not covered unless additional Option chosen. Systems or appliances located on the exterior or the outside of the home (including porch and patio) are not covered. Any additional detached structures are not covered unless specified as an Option.
   2. were properly installed, and are in good and safe working order on the Effective Date of this Contract.
   3. have become inoperable due to normal usage after the Effective Date of this Contract.
   4. are reported during the term of this Contract.
   5. Are listed on the coverage chart in the brochure. Any items not listed on the chart is not covered or eligible for reimbursement.
   6. Only one central heating and air system is covered per dwelling. Unless additional units have been added on. If a member has a claim and more than one unit is noted, coverage will default to the system supplying area closest to ground level.  Units that were not added from the inception of coverage would not be eligible for coverage until renewal. (PTAC, Mini Splits and Geothermal units excluded from coverage).
3. This Contract does not cover defects known prior to the Effective Date of coverage. Known defects are excluded from coverage until proof of repair(s) is received by us.
4. For direct to consumer plans only (not applicable to real estate closings) claims filed within the first 30 days of the contract effective date only have access to half of the coverage limits listed on the coverage chart.  After the first 30 days full coverage chart limits would apply to all covered claims.
5. All monthly pay contracts are annual contracts, if a claim is filed and approved, any outstanding contract payment/s will be deducted from the reimbursement/claim amount until the contract is paid in full. Once the annual cost is paid in full all approved future reimbursements and payouts will only have its contract deductible applied.
6. Homes that have an active warranty in place cannot be vacant for more than 30 consecutive days for coverage to apply. Home must be lived in continuously, If property was not lived in continuously for a period beyond the initial 30 days any claims can be denied by the warranty company.
7. Where the premises covered by this Contract are a condominium or multiple units, obligations are limited to the confines of the unit. Common equipment is not eligible for coverage. Damage to items in your unit are not covered if caused from other units in condominium complex.
8. This contract does not cover or reimburse any additional taxes, fee’s, permits or any other city or state regulatory fees or haul away charges.
9. If the part or service required does not affect the functioning of the working unit, it is not covered. This Contract covers only the items mentioned as covered in the coverage chart and excludes all others. Coverage is limited to one system or appliance (part) (unless specifically noted) additional add-on coverage’s are available at check out.  Only one (1) item listed in the coverage chart is covered per contract term (1 year), unless specifically listed as covering multiples. In the event of a unit or system replacement HM would cover one of the broken part and it’s corresponding labor as assigned on your coverage chart. HM would still need an official invoice and diagnoses from your service provider recommending replacement over repair and any accompanying before and after photos for coverages possessing the photo icon before reimbursement can be made. Part must be listed on coverage chart as a covered item.  This money can be used to contribute in purchasing a new unit. Buyers (Real Estate) and Direct Consumer (Homeowner) may purchase Optional Coverage up to 30 days after the Effective Date of Coverage; however, coverage shall commence upon receipt of payment and will expire one year after the Effective Date of Coverage. New Construction Contract: Optional Coverage must be purchased within 30 days after Close of Sale and becomes effective one year after the Close of Sale. For service or to order additional Buyer Options please call or process online.
10. Coverage for primary part only as shown on coverage chart. Additional parts or labor within the primary part are not covered unless specifically listed. Labor-Only Service or Maintenance Not Covered
11. Payment made on this contract authorizes HM to contact you by phone, mail, and/or electronically for any other products or services offered by HM.
12. We may contact our members via social media or other outlets including but not limited to; Phone, Email, Text, Voicemail, Direct Mail, and others.
13. This contract is not a replacement cost insurance policy or a manufacturers full replacement warranty. This is a service contract that will reimburse specific amounts, for specific parts that breakdown including specified labor costs.  All covered items that are eligible for reimbursement are listed in the coverage chart including labor reimbursement.  Any item not included in the coverage chart would not be eligible for reimbursement under this contract.
14. If service provider charges a service fee, reimbursement will only apply if the first hour of service is included in service fee. Labor hours can only be used per item per occurrence. Service Fee will not be reimbursed for diagnosis only. Service Fee/Labor Hour reimbursement only applies to actual work performed and submitted with invoice.
15. Receipts/Invoices for reimbursement must come from a licensed active business in your state; invoices must contain the business name, business number, business address, current state license number, official diagnosis of part that failed, part cost, hourly labor cost, and payment information/confirmation (i.e., Check #, Confirmation #, Credit Card Transaction #, etc.). Please include all the above-mentioned items in one centralized receipt/invoice to avoid claim denial. HM does not accept screenshots from third-party services as payment confirmations. HM reserves the right to hold reimbursement funds until payment and verification of service is confirmed by the service provider. For a claim to be eligible for reimbursement, submitted invoices must be clear and legible.
16. Upon Request members may qualify for HM to pay service provider direct when an official diagnostic invoice has been submitted and as long as the part needing repair / replacement is listed on the coverage chart.  Half of the cost of repairs to be paid by HM up front (estimate to be listed on diagnostic invoice) and the final half would be paid once the before and after pictures were uploaded along with the final amount owed on the invoice from  members service provider. Only parts $500 or over would qualify for these payments terms.
17. HomeMembership is not responsible for scheduling appointments with the third-party servicer or the time frame in which the appointment can be set up in. The service and the time it may take for the service to be done is solely between you and service provider. We are not responsible for examining or evaluating any services offered by any third parties whose icons, products, advice, services, or hyperlinks appear on the site. We make no representations, warranties, or conditions regarding the offerings of any third party. Further, we do not assume any responsibility or liability for the products, advice, damages, services, and actions of any third parties. You understand that the purchase, payment, warranty, guarantee, delivery, maintenance, and all other matters concerning the merchandise, services, or information ordered or received from a third party is solely between you and the third party. We do not endorse, warrant, or guarantee such products, advice information or services and are not liable for the accuracy, completeness or usefulness of such information or the quality or availability of such products, advice, or services. You further understand that we will not be a party to or in any way be responsible for monitoring any transaction between you and a third party. As with any monetary endeavor, before purchasing goods or services from any third party, you should verify with the service provider all information (particularly the price) that impacts your decision to make a purchase. You should use your best judgment and exercise caution when purchasing a product from a third party. We are not involved in any actual transaction between any site user (including any so-called “expert”, “moderator”, “blog-editor” or the like) and third party, nor are we the agent of either for any purpose. As such, we will not be involved in resolving any disputes between any site user and third party relating to or arising out of any transaction between such parties. We urge site users and third parties to cooperate with one another to resolve any such disputes.
18. For Real Estate transaction coverage (between buyer/seller) to apply purchaser must have had a home inspection performed no more than 60 days before closing. Pre-existing conditions are not covered under this contract.
19. Only items noted by the home inspector to be in good operational condition are covered on real estate transactions. Any covered items the inspector recommends being repaired, replaced, further evaluated, stated less than good or marginal would not be covered unless the seller or buyer has proceeded with the repair/replacement of said items or can provide a paid invoice showing an evaluation of approval by a licensed company.
20. HM discloses to the purchaser of this warranty, and the purchaser consents and acknowledges by his/her signature that the employing broker may receive a minimal fee for services rendered if service is necessary and distinct from required other real estate duties. Also, the purchaser and (or) receiver were made aware of their option to shop around to get pricing from other home warranty vendors and/or they could choose not to purchase a home warranty. All parties involved in this transaction have read the Terms & Conditions of this home warranty and are aware of what will and will not be covered in this warranty.
21. Sellers (listing) coverage has a combined total limit of $500 for covered items that break down due to normal wear and tear.  Repair receipts should be sent to HM at [email protected] within (1) week after closing in addition to the home inspection report for reimbursement. These items should not have been listed on the request for repairs or cited in the home inspections report.
22. Depending on the contract you have, the following add-ons (if) included in your contract will have the following aggregate limits per contract term (1 year). Pool(Fresh Water Only)($600 Total Agg.Limit), Septic($500 Total Agg.Limit), Roof ($450 Total Agg.Limit), Radon Fan($400 Total Agg.Limit), Deep Freezer($400 Total Agg.Limit), Water Softener ($400 Total Agg.Limit), $18,345 in Additional Coverage ( applies only to plumbing, electrical and appliances.)
23. If a contract was purchased using an affiliate code and is  canceled before the term is up, will have any fees associated with the account deducted from the refund amount.
24. HM reserves the right to deduct from a reimbursement owed to a contract holder any balance on the warranty account if they are on monthly bill plan.  After the contract balance is paid, the remainder of the reimbursement will be sent to the contract holder.  The warranty will be credited as paid in full until the renewal of the contract term.

B CONTRACT EFFECTIVE DATES

1. Buyer’s Coverage (New real estate closings only): becomes effective at Close of Sale and is in effect for one full year unless other payment terms were selected by member. (Payment must be received within 14 days after Close of Sale for coverage to be active. An order made via the HM website, portal, phone app, or call in, is only active if payment is received within 14 days after closing.) If payment is not received within 14 days after closing, coverage will not be active on property and any pre-existing claims will not be covered. If payment is received at a later date, the new effective date will be the day the check is received by HM. It is the responsibility of the closing company and the real estate agents involved to confirm payment has been received by HM.

C TO REQUEST SERVICE

1. We are available to accept service requests 24 hours a day, 365 days a year. All service requests should be made through our website or through our customer portal.  Any question or inquiry on an existing claim or general claim questions should be sent to [email protected] or via the customer portal.
2. When you submit a Service Request, we will log your claim and you are free to contract your own service provider for the repair. (HM does not dispatch or have our own service providers, these should be contracted by you, they work directly for you, the homeowner) Homeowner should refer to the coverage chart in the brochure to determine what part/s and systems HM covers and is eligible for reimbursement.
3. After repair is made and paid (by you) you must have an itemized receipt prepared by your provider listing the reason for the breakdown, each part replaced (specify name of part) and labor hour/s associated with it with a total in order to receive reimbursement. Paid invoices received more than fourteen days after repairs are made will not be eligible for reimbursement. Reimbursement receipts should be sent to [email protected], or uploaded in the customer portal.
4. All repair reimbursements for HVAC will need to include the make and model of the unit, any repairs that total over $500 should have a before and after photo of the part/s or system sent to us in addition to the paid itemized receipt. HM reserves the right to ask for additional information before reimbursement is issued. HM may hold or deny all reimbursement funds until specific information is received by member.
5. Each Service Request placed will pertain to one covered item, up to two parts in the same system/coverage class will be included in the (1^st) deductible charge, every third part within the same Service Request will be subject to an additional deductible. HM does not cover or reimburse any additional taxes, permits, city or state regulatory fees, haul away charges, drive time, service fee, consult Fee, diagnosis fee or any other fee’s other than those that included in coverage chart. Reimbursements are subject to a $1250 maximum per occurrence limit.

D THIS CONTRACT DOES NOT COVER:

1. Repairs or replacement of parts required as a result of Fire, Freeze, Flood or other Acts of God, Accidents, Vandalism, Improper Installation, Cosmetic Defects, Design Flaws, Manufacturers’ Defects, Structural Defects, Power Failure, Shortage, Surge, Overload or Inadequate Capacity, Rust or Corrosion, Water Damage, Self-diagnoses and/or repair.
2. Failure to Clean or Maintain, Improper Previous or Attempted Repair, Routine Maintenance, Odors, Gas leaks, Noises, Damage due to Pests or Pets, Neglect, Misuse, Abuse, Missing Parts, or Adjustments or Age.
3. HM does not cover Mini Split Systems, Zone Control Systems, PTAC Systems, Boilers or Geothermal units. Freon is only reimbursed as the remedy to the original claim (i.e. Low Freon). New installs or replacement equipment needing new freon or labor associated with old freon would not be covered.
4. HM is not responsible for Consequential or Secondary Damage (including Consequential Damages due to a service provider’s conventional repair efforts of the primary item) Reimbursement of subsequent covered parts and labor, caused from the malfunction or breakdown of covered item are not covered under this warranty.
5. HM does not cover systems or appliances classified by the manufacturer as Commercial, Commercial Equipment modified for domestic use, or single-family dwellings used for commercial purposes.
6. You are responsible for providing Maintenance and Cleaning on covered items as specified by the manufacturer to ensure continued coverage on such items, for example: heating and air conditioning systems require periodic cleaning and/or replacement filters and cleaning of evaporator and condenser coils. HM will not clean or maintain regular maintenance to any covered item.
7. HM is not, under any circumstances, responsible for the diagnosis, repair, removal or remediation of Mold, Mildew, Rot or Fungus, or any damages resulting from or related to Mold, Mildew, Rot or Fungus, Water Damage, even when caused by or related to the malfunction, repair or replacement of a covered system or appliance.
8. HM is not responsible for additional charges to remove or install systems, appliances, or non-related equipment in order to make a covered repair; nor do we cover the cost of restoration of drywall, plaster, wall coverings, floor coverings, countertops, etc.
9. HM does not cover cost for cranes or other lifting equipment.
10. No accumulation of coverage’s towards replacement. Only actual items broken or in need of repair are covered.
11. CODE UPGRADES /PERMITS/DISPOSAL: HM does not reimburse for any upgrades associated with the breakdown of the original part, any subsequent parts that breakdown or are damaged because of the original breakdown would not be covered. Any systems that need to be upgraded to be compatible due to the breakdown and replacement of original part is not covered or eligible for reimbursement.  The additional charges to bring a system up to code and make compatible would be the responsibility of the homeowner. HM does not reimburse to haul away an old system or pay delivery or shipping charges for part/s.  This contract is exclusive for parts and labor only that are listed in the coverage chart.
12. For coverage to apply to New Home Closings, REO, Bank Owned, Short Sale, or Foreclosed properties: Buyer would need to complete a home inspection and have the Seller repair or replace any pre-existing conditions. If Seller will not repair or replace items that were deemed insufficient in the home inspection report, these items would not be covered during the life of the Service Contract. HM reserves the right to request a copy of the home inspection at any time.
13. HM is not responsible for upgrades, components, parts, or equipment required due to the incompatibility of the existing equipment with the replacement system, or appliance, or component, or part thereof, or with new type of chemical or material utilized to run the replacement equipment; including but not limited to, differences in technology, refrigerant requirements, or efficiency as mandated by Federal, State, or Local Governments.
14. If the service provider recommends a system or appliance replacement/upgrade, or you’ve already performed a system or appliance replacement/upgrade. Home Membership will only reimburse you for the actual part that has failed and is listed on the coverage chart. (We also recommend you get a second opinion prior to install when a system replacement/upgrade is recommended.)
15. Coverage’s, incentives, or promotional packages that were offered, but have since expired.
16. Heating and Cooling warranty coverage’s only cover breakdowns or failure to operate. HM does not warrant temperature differential, insufficient capacity, or failure of the HVAC system to maintain temperatures in extreme weather. Nor do we cover inadequate insulation or reimbursement of subsequent deductibles because of items listed above. Geo-thermal systems are not covered under this warranty plan.
17. Cost associated to access hard to reach A-Coils, Furnaces, or any other covered items deemed not accessible by service provider.
18. Additional Hours in the same coverage class that were unused cannot be used be used for for a new claim.
19. Only the primary HVAC unit for the home is covered under this plan unless additional units were paid for at checkout. This plan does not cover multiple HVAC units, primary system only.
20. HM does not cover any system under a manufacturer’s warranty.
21. Any home inspection recommending a home warranty for a specific unit by the home inspector, will be considered pre-existing and not be eligible for coverage under this warranty.

• FRIENDS AND FAMILY COVERAGE

Coverage is limited to one claim/reimbursement per contract term for any covered item listed on the coverage chart up the the maximum limit of $500.

ELECTRONIC TRANSMISSION/RENEWAL / TRANSFER / CANCELLATION (Service Contracts are Annual)

• ELECTRONIC TRANSMISSION

Electronic transmission of a home warranty constitutes delivery to the warranty holder. The electronic will notify the warranty holder of his or her right to receive the home warranty via United States mail rather than electronic transmission. If the warranty holder communicates to the home warranty association electronically or in writing that he or she does not agree to receipt by electronic transmission, a paper copy of the home warranty shall be provided to the warranty holder.

• DISPUTE:

Any dispute arising from this contract shall be brought in a court of competent jurisdiction located in applicable county. The parties further agree that any such action shall be governed exclusively by state law and that such dispute shall be brought within 6 months from the date that the dispute arose.

• DISCLOSURE:

The real estate agent offering this program does so as a service to protect their client’s best interest. They may receive a commission or compensation from HM provided a service is necessary and distinct from required other real estate duties. Obligations for repair or service under this agreement are solely those of the service provider and are not the obligation of any real estate firm. The purchase of a residential home warranty service agreement is optional and similar coverage may be purchased through other residential service companies.

• AGREEMENT:

Signatures by Seller or Buyer are not required to make this Contract binding. Seller accepting Buyer/Seller coverage during listing period and/or offering to purchase home warranty for Buyer acknowledges consent of home warranty. Buyer accepting this home warranty is also expressing consent of said warranty. Seller also acknowledges that he or she has read this home warranty service agreement, including all terms and conditions. Seller hereby represents that known pre-existing defects have been declared to the Buyer and that all items for which coverage is provided are in satisfactory operating condition. Buyer acknowledges that he or she has read this home warranty service agreement, including all terms and conditions, and understands that the services obligation to perform hereunder is conditional upon the truth and accuracy of the statements made in these declarations and upon full performance hereunder by the Seller and the Buyer. Buyer and/or Seller also agree to provide a copy of the home inspection report for warranted property if requested by HM.

DISPUTE / DISCLOSURE / AGREEMENT

• TRANSFER: This Contract is transferable for a $40 Administration Fee. You must notify HM of this transfer by calling 502-365-9805 or 1-888-365-9805.
• SELLER LISTING COVERAGE: The Listing/Escrow Period becomes effective the day the application is received by us, and continues until the expiration of the Initial Listing Period (up to 180 days), Close of Sale, or Listing Termination,(whichever occurs first). Seller’s Coverage is not available on multiple units. In the event Close of Sale does not occur in the 180-day period, we may, at our sole discretion, extend the Seller’s Coverage period. Should close of sale not occur, any charges or claims filed will be charged in full to the Seller less any deductibles. Pre-existing conditions are not covered for the Seller. Seller’s coverage does not extend to items the Buyer asks Seller to repair or replace as part of the Buyers request for repairs.

.• RENEWALS:

This Contract may be renewed at our discretion. In that event, you will be notified of the prevailing rate and terms of Renewal. Payment Rates may increase upon Renewal. To ensure there is no lapse of coverage, payment must be received prior to Contract expiration. HM has the right to non-renew after first year of coverage. If a two-year contract is in place, the contract holder will receive a refund for 100% of the discounted second year. Memberships issued as part of a real estate closing (Buyer or Seller) that are renewed by member, will convert to a Direct Consumer (Homeowner) membership.

• RENEWAL CONTRACT / INSTALLMENT BILLING:

If monthly or annual payment contract was previously selected and we elect to renew your Contract, you will be automatically renewed for an additional one-year coverage term unless you notify us in writing prior to expiration sent to [email protected]. In certain cases, you may be permitted, at our sole and exclusive discretion, to pay for your coverage on an installment basis. Should you suffer a mechanical failure covered by this Agreement at a time when there are unpaid installments due from you, whether or not such payments are due or overdue, we reserve the right to deduct all or any portion of any unpaid amounts from the amount of loss covered by this agreement for such incident, or to require payment of the entire remaining unpaid balances prior to covering the loss for you as we deem necessary or desirable. Our failure to exercise any such right on one occasion shall not be deemed a waiver of such right on other occasions. If HM is unsuccessful in debiting monthly funds from Contract Holder’s checking account because of insufficient funds, Contract Holder will be responsible for payment of any additional fees charged by HM or Contract Holder’s bank because of insufficient funds. Some forms of payment may incur a handling fee or other service-related fee.

• POST REAL ESTATE CLOSING / FUTURE RENEWAL MONTHLY INSTALLMENTS:

If a member has just closed on a property and has signed up to pay monthly installments towards next year’s renewal, the monthly payments are fully refundable if non-renewed prior to expiration. If cancellation occurs after yearly expiration date then any excess funds will be returned to the client on a pro-rata basis for the remaining term. Any balance, monies owed to contractors or owed deductibles will be subtracted from the pro-rata funds returned to member.

• CANCELLATION:

1. a) HM may not cancel this Contract during the initial term for which it was issued, except for any of the following reasons: (1) the Contract Holder does not pay a fee or charge due under the terms of this Contract; (2) the Contract Holder engages in fraud or misrepresentation of facts material to the issuance of the Contract; (3) an interest in the residential property covered under this Contract is sold, and the Contract is contingent on an interest in the property not being sold, (4) HM and Contract Holder have mutually agreed to a refund of Contract cost in lieu of repairs or to cover dispute. (5) HM may cancel this contract for abuse, misuse, suspicion of fraud or misrepresentation of facts to receive compensation or services on a past or open claim. A return of premium shall be based upon 100 percent of premium, less any claims paid on the agreement throughout the contract term. Any deductibles previously paid would be non-refundable. If Contract is cancelled by a homeowner who purchased the warranty themselves, that is not a part of a real estate transaction and they decide to cancel, they should be entitled to a pro rata refund of the paid Contract fee for the unexpired term, less a $100 administrative fee, and any actual service costs incurred by HM. Contract holder is to submit notice of cancellation via email or letter.
2. b) If Contract was purchased by Seller for Buyer as part of a Real Estate Transaction, Contract cannot be cancelled by Buyer for a refund. If Contract is cancelled by a homeowner who purchased the warranty themselves, that is not a part of a real estate transaction and they decide to cancel, they should be entitled to a pro rata refund of the paid Contract fee for the unexpired term, less a $100 administrative fee, and any actual service costs incurred by HM. Contract holder to submit notice of cancellation via email or letter.
3. c) If Contract is cancelled by us, cancellation will be effective no sooner than 10 days for paragraph a.1, and 30 days for a.2 and a.3 after delivery by email or first class mailing of a written notice to the Contract Holder.
4. d) HM service contracts are annual, but if member has opted to sign up for monthly installments to pay their annual term and member wants to cancel, member will have coverage until the last day of the cancelling month and will incur a $100 cancellation fee. If member has had a claim(s) and the amount incurred by HM to service the claim is more than what has been paid in monthly installments, the balance of the claim(s) up to the annual contract amount, will be added to cancellation fee. If the member has paid for the service contract in full and would like to cancel, contract will be canceled at the end of current month they are in and prorated refund will be issued for the remainder of months that would have been left on the contract minus the $100 cancellation fee.

Kentucky Residents Only: This is not a contract of insurance, however, a surety bond written by Great American Insurance Company at 100 2nd Ave. South, Suite 150, Edmonds, WA 98020, guarantees the performance of this agreement. If the service fails to pay any valid claim within 60 days after proof of loss has been filed, a claimant is entitled to make a claim directly against Great American Insurance Company at the address shown above.

Ohio Residents Only: This Contract is non-cancelable by purchaser or person entitled to benefit under this Contract.

ALABAMA RESIDENTS ONLY

• The administrative fee and cancellation fee is limited to $25 in Alabama
  following the initial period.
• Service contracts purchased in the state of Alabama shall be governed
  by the laws of Alabama.
• Any dispute arising from the contract shall be brought in a court of
  competent jurisdiction located in the applicable county.

FLORIDA RESIDENTS ONLY

• All warranty contracts sold in the state of Florida disclose that the rates charged for the contract are not subject to regulation by this office.

UTAH RESIDENTS ONLY

• This service contract or warranty is subject to limited regulation by
  the Utah Insurance Department. To file a complaint, contact the Utah
  Insurance Department.
• Coverage afforded under this contract is not guaranteed by the Property
  and Casualty Guaranty Association.
• This contract shall reimburse for emergency repairs covered under
  the contract by emailing the paid itemized receipt to claims@homemembership.
  com , or uploaded into the member portal at https://homemembership.homeonewarranty.com/customerportal/signin/
• The cancellation provision is deleted and replaced with the following
  Grounds for cancellation include nonpayment, material misrepresentation,
  substantial change in risk, and substantial breaches of contractual
  duties effective no sooner than 30 days after the delivery or first
  class mailing of a written notice to the contract holder. Cancellation
  for nonpayment is effective no sooner than 10 days after delivery or
  first class mailing of written notice to the contract holder. After a contract
  has been in force for more than 60 days; fraud, abuse, misuse,
  and suspicion of fraud are not acceptable grounds for cancellation.