Insurance.

Various provisions in this policy restrict coverage. Read the entire policy carefully to determine rights, duties and what is and is not covered. Throughout this policy, the words “you” and “your” refer to the Named Insured shown in the Declarations. The words “we”, “us” and “our” refer to the company providing this insurance. Other words and phrases that appear in quotation marks have special meaning. Refer to SECTION F – DEFINITIONS.

IT IS A CONDITION OF THIS INSURANCE THAT YOU ACTIVATE THE FORTRESS^℠ APP ON YOUR “COVERED DEVICE” AND REGISTER FOR THIS INSURANCE. YOU MUST ALSO MAINTAIN AND KEEP THE FORTRESS^℠ APP ACTIVATED THROUGHOUT THE POLICY PERIOD. IF YOU INTENTIONALLY CANCEL OR DO NOT RENEW THE FORTRESS^℠ APP FOR ANY REASON, THIS WILL BE CONSIDERED CANCELLATION OR NON-RENEWAL OF THIS POLICY BY YOU, AND INSURANCE UNDER THIS POLICY SHALL END ON THE SAME DATE OF TERMINATION OF THE FORTRESS^℠ APP.

IF YOU CANCEL THE FORTRESS^℠ APP IN ERROR, THEN THIS INSURANCE WILL REMAIN IN EFFECT UNTIL THE POLICY ENDS. HOWEVER, IF THE FORTRESS^℠ APP IS NOT ACTIVATED AT THE TIME OF LOSS, THEN YOU WILL PAY THE HIGHER DEDUCTIBLE AMOUNT FOR THEFT OR DISAPPEARANCE COVERAGE AS SHOWN IN THE DECLARATIONS (IF SUCH COVERAGE IS PART OF YOUR COVERAGE PLAN).

THERE ARE THREE DIFFERENT COVERAGE PLANS FOR YOUR “COVERED DEVICE” AS DESCRIBED UNDER SECTION A – COVERAGE. THE PLAN THAT APPLIES TO YOUR “COVERED DEVICE” IS SHOWN IN THE DECLARATIONS.

THIS INSURANCE POLICY CONTAINS A MANDATORY BINDING ARBITRATION PROVISION THAT REQUIRES THE SUBMISSION OF ALL DISPUTES (EXCEPT WHERE EXPRESS STATE EXEMPTIONS ARE PROVIDED) TO ARBITRATION OR SMALL CLAIMS COURT IN ACCORDANCE WITH THE PROVISIONS SET FORTH IN THE ARBITRATION AGREEMENT CONDITION OF THIS INSURANCE POLICY.

Section B:  Exclusions

We will not repair or replace your “covered device” caused directly or indirectly by any of the following causes or events listed below, even if such cause or event contributes concurrently or in any other sequence together with an otherwise covered cause of loss.

1. Unidentified Identification Number

The inability to identify the International Manufacturer’s Equipment Identification (IMEI) number, Electronic Serial Number (ESN), Unique Device Identifier (UDID) number, serial number or other unique identification number of your damaged “covered device”.

2. Loss Or Damage To SIM Or Memory Card

Any loss or damage solely to the SIM or memory card of your “covered device”.

3. Depreciation

Depreciation, depletion, deterioration, obsolescence or “wear and tear”.

4. Intentional Loss

Any intentional, dishonest, fraudulent or criminal act committed by you or by your family members or by anyone entrusted with your “covered device”.

5. War

• War, including undeclared or civil war;
• Warlike action by a military force, including action in hindering or defending against an actual or expected attack, by any  government, sovereign or other authority using military personnel or other agents; or
• Insurrection, rebellion, revolution, usurped power, or action taken by governmental authority in hindering or defending against any of these.

6. Nuclear Hazard

Nuclear reaction or radiation, or radioactive contamination, however caused.

7. “Cosmetic Damage”

Any “cosmetic damage”.

8. Governmental Authority

Seizure or destruction of property by order of governmental authority.

9. Neglect, Misuse Or Abuse

Neglect, misuse or abuse of your “covered device” by you or by your family members or by anyone entrusted with your “covered device”, including not following the original equipment manufacturer’s guidelines for operations and use, or any act that voids the manufacturer’s warranty.

10. Pollution

The discharge, dispersal, seepage, migration or escape of pollutants. Pollutants means any solid, liquid, gaseous or thermal irritant or contaminant including smoke, vapor, soot, fumes, acid, alkalis, chemicals, artificially produced electric fields, magnetic field, electromagnetic field, sound waves, microwaves, and all artificially produced ionizing or non-ionizing radiation and waste. Waste includes materials to be recycled, reconditioned or reclaimed.

11. “Computer Virus”

Any “Computer virus”.

12. Delay, Loss of Use

Indirect or consequential loss or damage, including loss of use, interruption of business, loss of service, loss of market, loss of time, loss of profits, inconvenience or delay in repairing or replacing your “covered device”.

13. Recall

Manufacturer’s recall.

14. Costs Recoverable Under Warranty

Costs which are recoverable under any product or manufacturer’s warranty or extended warranty.

15. “Mechanical Or Electrical Breakdown”, Faulty Construction, “Pre-existing Conditions” Or Design Error

Loss or damage caused by “mechanical or electrical breakdown”, faulty construction or materials, “pre-existing conditions” or error or omission in design, programming or system configuration.

16. Unauthorized Repair Or Replacement

Loss or damage caused by unauthorized repair or replacement.

17. Exposure to Physical Environment

Loss or damage caused by the physical environment such as dust, condensation or evaporation, dampness, dryness, cold or heat including rust or corrosion caused by any of these factors, or vermin or insects. This exclusion includes but is not limited to continuous or repeated exposure to the same general harmful conditions.

18. Loss To Data Or Accessories

Loss or damage to your “covered device’s” data, personal information managers, ring tones, contact lists, video, documents, music, books, photos, games, screen savers, stylus, headphones, phone chargers or other accessories.

19. Modifications

Any modifications that have been made from the original specifications of your “covered device”. This includes but is not limited to adding gems, precious metals or upgrading the hardware of your “covered device”.

20. Voluntary Parting

Voluntary parting by you or by your family members or by anyone entrusted with your “covered device”, to another person, whether or not induced to do so by any fraudulent scheme, trick, device or false pretense.

Section C:  Limits of Insurance

The most we will spend during the policy period to repair or replace your “covered device” for any one claim is the Maximum Per Claim Limit of Insurance for Theft, Disappearance or Accidental Damage Claims shown in the Declarations.

If the Ultimate coverage plan is shown in the Declarations, we will also pay for the “unauthorized use” of your “covered device” during the period from the moment of the “theft” or “disappearance” of your “covered device” until 24 hours after you discovered it missing, up to the Maximum Limit of Insurance for Unauthorized Use Claims shown in the Declarations. The Maximum Limit of Insurance for Unauthorized Use Claims shall be in addition to the Maximum Per Claim Limit of Insurance for Theft, Disappearance or Accidental Damage Claims.

You are limited to the maximum number of claims for which we have repaired or replaced your “covered device” in any one policy period, shown as the Aggregate Limit per Policy Period in the Declarations. When this limit is exhausted, coverage will cease immediately for the remainder of the policy period.

Section D:  Deductible

A non-refundable deductible, as set forth in the Declarations, is payable at the time a repair or replacement is approved by us for each repair or replacement. Deductible means the amount payable by you to us for each repair or replacement.

Section E:  Conditions

1. Activation And Maintenance Of Fortress^℠ App

The features of the Fortress^℠ App are an important part of this insurance. In order to be eligible for this insurance, you must keep active the Fortress^℠ App during the policy period. You must register your “covered device” for this insurance through the Fortress^℠ App. If, at any time, you intentionally cancel or non-renew the Fortress^℠ App, then you will no longer be eligible for this insurance.  If you intentionally cancel or non-renew the Fortress^℠ App, then you will be cancelling this insurance as set forth under the Cancellation condition. This also means that you will not be able to submit a claim for loss or damage to your “covered device” on or after the effective date of your cancellation or non-renewal of the Fortress^℠ App.

If you cancel the Fortress^℠ App or delete the Fortress^℠ App from your “covered device” in error, your insurance under this policy will remain in effect until it expires. However, if the Fortress^℠ App is not activated at the time of loss or damage to your “covered device”, then you will pay the higher deductible amount for theft or disappearance coverage as shown in the Declarations (if such coverage is part of your Coverage Plan). Further, any renewal of this policy will be conditioned upon the reactivation of the Fortress^℠ App.

2. Policy Period

This policy applies only to loss or damage which first occurs during the policy period shown in the Declarations.

3. Coverage Territory

This policy applies only to loss or damage which occurs within the Coverage Territory. If the Coverage Plan that applies to your “covered device” is:

• Basic, then the Coverage Territory is the United States of America (including its territories and possessions) and Puerto Rico and Canada; or
• Premium or Ultimate, then the Coverage Territory is worldwide.

We will require any claims occurring outside the United States of America (including its territories and possessions) and Puerto Rico to be processed in the United States.

4. Duty of Care

You shall take all reasonable precautions and exercise due care to protect your “covered device” against loss or damage, and shall maintain the “covered device” in a proper state of repair at all times.

5. Duties After Loss or Damage

In case of loss or damage, we have no duty to provide coverage under this policy unless there has been full compliance with the following duties:

• In case of loss by “theft” or “disappearance” of your “covered device”, you must notify your wireless service provider as soon as possible to suspend service;
• In case of loss by “theft”, notify the police as soon as possible and obtain confirmation of this notification;
• Report the loss or damage to our authorized representative within 30 days of the loss or damage. If you do not report the loss or damage within 30 days, you will have forfeited your claim. You must submit all claims through our authorized representative for our approval prior to repair or the delivery of replacement equipment. Any claims that are not submitted through our authorized representative for our approval will not be honored or fulfilled;
• Do what is reasonably necessary to minimize the loss or damage and to protect your “covered device” from any further loss or damage;
• When asked by us, provide us with a detailed and signed, sworn proof of loss statement, a police report case number, a copy of the police report and all other necessary information required to approve your claim for repair or replacement of your “covered device”. You must do so within 60 days of the date the loss or damage is reported and prior to repair or receipt of replacement equipment. In the event of loss or damage, you may be required to provide proof of ownership, including bill of sale, invoice, cancelled check or credit card receipt;
• In case of loss by “accidental damage”, you must, if possible, remove your SIM card and any accessory that is not standard as part of your “covered device” and return the damaged device to us;
• Cooperate with us in the investigation and settlement of a claim;
• As often as we reasonably require:
  1. Provide us with records and documents we request and permit us to make copies; and
  2. Submit to examination under oath;

• Your failure to take delivery of repaired or replaced equipment within 60 days of our claim approval will result in forfeiture of the repaired or replaced equipment;
• Satisfy the applicable non-refundable deductible; and
• In the event we arrange for the repair of your “covered device”, you are required to mail or deliver your “covered device” for repair as directed by us.

6. Loss Settlement

In the event of loss or damage covered by this policy, the following applies:

• We will arrange for the repair, or at our sole option, the replacement, of your “covered device” by a service facility authorized by us.
• You will not be entitled to receive cash. However, we may elect to provide a cash settlement in order to reimburse you for the cost of repair or replacement of your “covered device”.
• At our option, we may either:
  1. Repair your “covered device” with substitute parts; or
  2. Replace your “covered device” with another device;   That is of like kind and quality; and
     • Is either new or refurbished, and contains original and manufacturer authorized parts; or
     • May be a different brand, model or color in case of our inability to repair or replace the same brand, model or color of your “covered device”.

• With respect to Unauthorized Use Coverage, if applicable, we will pay your wireless service provider once you provide us with proof of the additional unauthorized charges incurred.

7. Concealment, Misrepresentation Or Fraud

We will not repair or replace your “covered device” or pay any amount for any loss or damage if you at any time intentionally conceal or misrepresent a material fact or commit fraud concerning:

• This policy;
• Your “covered device”, including its value reported to us;
• Your interest in your “covered device”; or
• A claim under this policy.

8. Cancellation

• You may cancel this policy by mailing or delivering to us advance notice of cancellation in writing, by email or by fax, or through the secure, online portal on the Fortress^℠ website. If you intentionally cancel or non-renew the Fortress^℠ App, then you are cancelling this insurance as of the date and time of the cancellation or non-renewal of the Fortress^℠ App.
• We may cancel this policy by mailing or delivering to you written notice of cancellation at least:

  1. 10 days before the effective date of cancellation if we cancel for nonpayment of premium; or

  2. Replace your “covered device” with another device;

• We will mail or deliver our notice to your last mailing address known to us, or if you have consented to receive notices from us electronically, we will send you an email to the last email address known to us.
• Notice of cancellation will state the effective date of cancellation. The policy period will end on that date.
• If this policy is cancelled and the premium was not paid on your behalf by another organization, then we will send you any premium refund due. In such case, if we cancel, the refund will be pro rata, and if you cancel, the refund may be less than pro rata. The cancellation will be effective even if we have not made or offered a refund.
• If notice is mailed, proof of mailing will be sufficient proof of notice. If notice is sent to you electronically, a record of the notice being sent to the email address provided shall be sufficient proof of notice.

9. Non-renewal

We may elect not to renew this policy. We may do so by delivering to you, or mailing to you at the last mailing address known to us, or if you have consented to receive notices from us electronically, an email to you at the last email address known to us, written notice at least 30 days before the expiration date of this policy. Proof of mailing will be sufficient proof of notice. If such notice is sent to you electronically, a record of the notice being sent to the email address provided shall be sufficient proof of notice.

10. Other Insurance

If there is other insurance covering the same loss or damage, the insurance provided by this policy shall apply as primary insurance.

11. Action Against Us

No action can be brought against us unless:

• There has been full compliance with all of the terms of this policy; and
• The action is brought within two years from the date when you have knowledge of the loss or damage.

12. Liberalization

If we adopt any revision that would broaden the coverage under this policy without additional premium within 60 days prior to or during the policy period, the broadened coverage will immediately apply to this policy.

13. Subrogation

If we repair or replace your “covered device” under the terms of this policy, and you have rights to recover damages from another, those rights are automatically transferred to us. You must do nothing after loss or damage to impair such rights of recovery. You agree to:

• Sign and deliver all related papers and cooperate in every way possible to assist with our effort to recover our cost of repair or replacement; and
• Do nothing to jeopardize or interfere with our ability to recover our cost of repair or replacement.

14. Waiver or Change of Policy Provisions

This policy contains all of the agreements between you and us concerning the insurance afforded. This policy’s terms can be amended or waived only be endorsement issued by us and made a part of this policy.

15. Salvage

Any “covered device” which we replace is our property.

16. Transfer or Assignment of Your Rights and Duties Under This Policy

Your interests, rights and duties under this policy may not be transferred or assigned without our prior written consent.

17. Premiums

• If the premium was paid for the first year of insurance on your behalf, then you are not responsible for the payment of premium for the level of insurance that was purchased for you. This means that if you cancel the Fortress^℠ App as described in the Cancellation condition or we cancel this insurance as described in such condition, you will not receive any return premium.
• If you elect to purchase additional insurance coverage than what was paid for on your behalf by another organization for your “covered device”, you are responsible for the payment of that additional premium; and will be the payee for any return of that additional premium we pay.
• Upon renewal of this insurance or if the first year of insurance was not paid by another organization on your behalf, you:
  1. Are responsible for the payment of all premiums; and
  2. Will be the payee for any return premiums we pay.

• The premium shown in the Declarations was computed based on rates in effect at the time the policy was issued. On each renewal, continuation or anniversary of the effective date of this policy, we will compute the premium in accordance with our rates and rules then in effect.

18. Conformance with State Law

If part of this policy does not comply with the laws of the state in which it is written, that part is amended to comply with those laws.

19. Conformance to Trade Sanctions Law

This policy does not apply to the extent that trade or economic sanctions or other laws or regulations prohibit us from providing insurance.

20. Arbitration Agreement

Please read this Arbitration Agreement carefully. It affects your rights. Most of your concerns about this policy can be addressed simply by contacting us at the toll-free telephone number provided with your policy. In the unlikely event we cannot resolve any disputes, including any claims under this policy, that you or we may have, YOU AND WE AGREE TO RESOLVE THOSE DISPUTES THROUGH EITHER BINDING ARBITRATION OR SMALL CLAIMS COURT INSTEAD OF THROUGH COURTS OF GENERAL JURISDICTION. YOU AND WE AGREE THAT ANY ARBITRATION WILL TAKE PLACE ON AN INDIVIDUAL BASIS ONLY. YOU AND WE AGREE TO WAIVE THE RIGHT TO A TRIAL BY JURY AND TO PARTICIPATE IN CLASS ARBITRATIONS AND CLASS ACTIONS. Arbitration is more informal than a lawsuit in court. Arbitration uses a neutral arbitrator instead of a judge or jury. It has more limited discovery than in court and is subject to limited review by courts. Arbitrators can award the same damages and relief that a court can award.

For the purpose of this Arbitration Agreement, references to “we”, “us” and “our” includes the Company shown in the Declarations and their respective parents, subsidiaries, affiliates, agents, employees, successors and assigns. This policy evidences a transaction in interstate commerce, and thus the Federal Arbitration Act governs the interpretation and enforcement of this Arbitration Agreement. This Arbitration Agreement shall survive the termination of this policy.

This Arbitration Agreement is intended to be interpreted broadly, and it includes any dispute:

• Arising out of or relating in any way to the policy or to the relationship between You and Us, whether based in contract, tort, statute, fraud, misrepresentation or otherwise;
• That arose either before this Arbitration Agreement or policy was entered into by you and us or that arises after this Arbitration Agreement or policy is terminated; and
• That currently is the subject of a purported class action litigation in which you are not a member of a certified class. Notwithstanding the foregoing, this Arbitration Agreement does not keep you from beginning an individual action in small claims court or from informing any federal, state or local agencies or entities of your dispute. Such agencies or entities may be able to seek relief on your behalf.

If you or we intend to seek arbitration you and we must first send to the other a written Notice of Claim (“Notice”) by certified mail. Your Notice to us should be sent to the address provided with your policy. The Notice must describe the dispute and state the specific relief sought. If you and we do not resolve the dispute within 30 days of receipt of the Notice, you or we may initiate an arbitration proceeding with the American Arbitration Association (“AAA”). You can obtain the forms necessary to initiate an arbitration proceeding by visiting www.adr.org or by calling 1-800-778-7879. After we receive notice that you have commenced arbitration, we will reimburse you for payment of any filing fee to the AAA. If you are unable to pay a required filing fee, we will pay it if you send a written request by certified mail to the address provided with your policy. The arbitration shall be administered by the AAA in accordance with the Commercial Arbitration Rules and the Supplementary Procedures for Consumer Related Disputes (the “Arbitration Rules”) in effect at the time the arbitration is initiated and as modified by this Arbitration Agreement. You can obtain a copy of the Arbitration Rules by visiting www.adr.org or by calling 1-800-778-7879.

The arbitrator appointed by the AAA to decide the dispute is bound by the terms of this Arbitration Agreement. All issues are for the arbitrator to decide, including the scope of this Arbitration Agreement, with the exception that issues relating to the enforceability of this Arbitration Agreement may be decided by a court. Unless you and we agree otherwise, any arbitration hearings will take place in the county or parish of your billing address. If your dispute is for $10,000 or less, you may choose to conduct the arbitration hearings either by submitting documents to the arbitrator or by appearing before the arbitrator in person or by telephone. If your dispute is for more than $10,000, the right to arbitration hearings will be determined by the Arbitration Rules. We will pay all filing, administration and arbitrator fees for any arbitration initiated pursuant to this Arbitration Agreement, unless your dispute is found by the arbitrator to have been frivolous or brought for an improper purpose under Federal Rule of Civil Procedure 11(b). In that case, the payment of such fees shall be governed by the Arbitration Rules.

At the conclusion of the arbitration hearings, the arbitrator shall issue a written decision which includes an explanation of the facts and law upon which the decision is based. If the arbitrator finds in your favor and issues a damages award that is greater than the value of the last settlement offer made by us or if we made no settlement offer and the arbitrator awards you any damages, we will:

• Pay you the amount of the damages award or $7,500, whichever is greater; and
• Pay your attorney, if any, twice the amount of the attorney’s fees and the actual amount of any expenses reasonably incurred when pursuing your dispute in arbitration. You and we agree not to disclose any settlement offers to the arbitrator until after the arbitrator has issued the written decision. The arbitrator may resolve any disputes regarding attorney’s fees and expenses either during the arbitration hearings or, upon request, within 14 days of the arbitrator’s written decision. While the right to the attorney’s fees and expenses discussed above is in addition to any right you may have under applicable law, neither you nor your attorney may recover duplicate awards of attorney’s fees and expenses. Although we may have the right under applicable law to recover attorney’s fees and expenses from you if we prevail in the arbitration, we hereby waive the right to do so.

To the extent either declaratory or injunctive relief is sought in the arbitration, such relief can be awarded only to the extent necessary to provide the relief warranted by a party’s individual claim. YOU AND WE AGREE THAT EACH MAY BRING CLAIMS AGAINST THE OTHER ONLY IN AN INDIVIDUAL CAPACITY AND NOT AS A PLAINTIFF OR CLASS MEMBER IN ANY PURPORTED CLASS OR REPRESENTATIVE PROCEEDING. Unless you and we agree otherwise, the arbitrator may not consolidate the dispute of another person with your or our dispute and may not preside over any form of a representative or class proceeding. If this specific provision of this Arbitration Agreement is found to be unenforceable, then the entirety of this Arbitration Agreement shall be null and void.

Section F:  Definitions

1. “Accidental Damage” means an unexpected and unintentional external event that results in physical damage to your “covered device”. The damage shall not be foreseeable and shall be beyond your control or the control of anyone you entrusted with your “covered device”.

2. “Computer virus” means any unauthorized intrusive codes or programming that are entered by any means into covered equipment, software, programs, systems or records, and interrupt the operations of your “covered device”.

3. “Cosmetic damage” means damage to the physical appearance of your “covered device” that does not impede or hinder the normal operational function of the “covered device”, including but not limited to scratches, cracks, abrasions, chipping or change in color, texture or finish.

4. “Covered device” means the device covered by this policy as shown in the Declarations.

5. “Disappearance” means your “covered device”:

• Is accidentally or unintentionally left at a known location and it has then disappeared;
• Is at a known location, but you are not reasonably able to retrieve it; or
• Has disappeared and you have no knowledge as to the place, time or manner of its loss.

6. “Mechanical or electrical breakdown” means the failure of a covered part due to faulty workmanship or faulty materials supplied by the original manufacturer or distributor when operated according to the manufacturer’s instructions.

7. “Pre-existing condition” means failures, defects, damages or loss which you should have reasonably known to be present prior to the effective date of this policy.

8. “Theft” means the unlawful taking or removing of your “covered device” without your consent and with the intent to deprive you of such property. This includes burglary and robbery.

9. “Unauthorized use” means the use of your “covered device” by an unauthorized person or persons after the “theft” or “disappearance” of your “covered device”, to make phone calls or use the “covered device’s” data plan resulting in unauthorized network charges (airtime and data) by your wireless service provider.

10. “Wear and tear” means damage to your “covered device” arising out of routine use and exposure that is not attributable to an external, sudden or unforeseen event.