Extended Service Contracts on GM Vehicles Still Viable Despite GM Bankruptcy Filing

TALLAHASSEE, Fla.--(Business Wire)--
The Service Contract Industry Council (SCIC), a trade association representing
companies selling and/or administering automobile extended service contracts,
sometimes referred to as extended warranties, said today that extended service
contracts purchased on General Motors vehicles will not be affected by the
company`s Chapter 11 filing.

Extended service contracts are sold to consumers separately and are not to be
confused with "manufacturers` warranties," which are provided to consumers
automatically with the purchase of a new car, the SCIC said.

"GM original manufacturer warranties are backed by the Federal government`s
Warranty Commitment Plan, while the company`s obligations for extended service
contracts sold by GM dealers are backed by highly rated insurance companies that
are regulated by the various state Departments of Insurance," said Timothy J.
Meenan, SCIC executive director. "Any repair work under these extended service
contracts can be performed at authorized GM dealerships or other authorized
repair facilities.

"Additionally, many service contracts purchased on General Motors vehicles are
issued by third-party service contract providers that are separate from GM.
These third-party service contract companies are regulated as providers and, in
most cases, are backed by insurers that are regulated by state Departments of
Insurance," said Meenan. "Like repair work done under both GM manufacturer
warranties and extended service contracts, any claims filed under third-party
extended service contracts also can be performed at authorized dealerships or
other authorized repair facilities."

Consumers seeking repair service with extended service contracts purchased at
dealerships that have closed or are scheduled to close should first attempt to
contact the party obligated under the service contract or the service-plan
administrator, whose names appear on the contract paperwork. Otherwise,
consumers may contact the automaker directly.

"The substantial majority of extended service contract sales take place
face-to-face in a car dealership. We strongly encourage consumers to read the
terms and conditions of the service contract, ask questions to the dealership
representative, and contact the toll-free number of the extended service
contract provider found on the service contract or their Department of Insurance
with any concerns or questions," said Meenan. "Additionally, consumers should
take note of the thirty-day free-look period provided by most extended service
contracts during which time the consumer may elect to return the contract with
no questions asked and receive a full refund if they determine the extended
service contract is not right for them."

The SCIC has worked with state legislatures and regulators since 1989 to
implement consumer protection laws that ensure the viability of extended service
contracts should an auto dealer or manufacturer go bankrupt, and is an advocate
for the regulation of the service contract industry. Nearly 10 million
automobile extended service contracts are sold annually, and approximately
ninety-five percent (95%) of claims submitted to SCIC member companies are
resolved to the customer`s satisfaction.

About SCIC

The Service Contract Industry Council, www.go-scic.com, is a national trade
association that educates consumers about service contracts, encourages its
members to pursue high standards of customer satisfaction, and has developed and
promoted model legislation to regulate the industry with standards designed to
protect the consumer and the industry.

The Service Contract Industry Council (SCIC)
Jane Meehan Lanzillo, 617-244-0448
jmlanzillo@rcn.com
or
Phyllis Laorenza Linnehan, 781-275-7226
phyllisll@verizon.net

Copyright Business Wire 2009