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15. LOAN / LEASE GAP COVERAGE (Not Applicable In New York) <br /> A. Paragraph C. Limit Of Insurance of SECTION III — PHYSICAL DAMAGE COVERAGE is amended by <br /> adding the following: <br /> The most we will pay for a "total loss"to a covered "auto" owned by or leased to you in any one "accident" <br /> is the greater of the: <br /> 1. Balance due under the terms of the loan or lease to which the damaged covered "auto" is subject at <br /> the time of the "loss" less the amount of: <br /> a. Overdue payments and financial penalties associated with those payments as of the date of the <br /> "loss"; <br /> b. Financial penalties imposed under a lease due to high mileage, excessive use or abnormal wear <br /> and tear; <br /> c. Costs for extended warranties, Credit Life Insurance, Health, Accident or Disability Insurance <br /> purchased with the loan or lease; <br /> d. Transfer or rollover balances from previous loans or leases; <br /> e. Final payment due under a "Balloon Loan"; <br /> f. The dollar amount of any unrepaired damage which occurred prior to the "total loss" of a covered <br /> "auto"; <br /> g. Security deposits not refunded by a lessor; <br /> h. All refunds payable or paid to you as a result of the early termination of a lease agreement or as a <br /> result of the early termination of any warranty or extended service agreement on a covered "auto"; <br /> i. Any amount representing taxes; <br /> j. Loan or lease termination fees; or <br /> 2. The actual cash value of the damage or stolen property as of the time of the "loss". <br /> An adjustment for depreciation and physical condition will be made in determining the actual cash value <br /> at the time of the 'loss". This adjustment is not applicable in Texas. <br /> B. Additional Conditions <br /> This coverage applies only to the original loan for which the covered "auto" that incurred the 'loss" serves <br /> as collateral, or lease written on the covered "auto"that incurred the 'loss". <br /> C. SECTION V—DEFINITIONS is changed by adding the following: <br /> As used in this endorsement provision, the following definitions apply: <br /> "Total loss" means a 'loss" in which the cost of repairs plus the salvage value exceeds the actual cash <br /> value. <br /> A "balloon loan" is one with periodic payments that are insufficient to repay the balance over the term of <br /> the loan, thereby requiring a large final payment. <br /> Page 6 of 9 ©2021 Liberty Mutual Insurance AC 85 43 08 21 <br /> Includes copyrighted material of Insurance Services Office, Inc., with its permission. <br /> 10/21/2024 66638970 N0177391 EC Insured Copy <br />