Protecting your most valuable asset—your family’s financial future

NADA is proud to offer all members access to the NADA Dealer Life Insurance Plan, which is underwritten by The Prudential Insurance Company of America and offers you powerful assistance and exclusive benefits.

Additional details about the NADA Dealer Life Insurance Plan

Coverage Cannot Be Canceled Due to Age

It’s reassuring to know that you may continue to participate as long as:

• You and the dealership meet the qualifications listed;
• The life insurance program remains in force; and
• Premiums are paid on time.

Accelerated Benefit Option

Should you become terminally ill, you may elect to receive up to 25 percent of your life insurance benefit (not to exceed $25,000) while you are still living. You can use this money for whatever purpose you wish: put it toward your medical bills, or pay off your mortgage for your family, for instance.

To receive a benefit, you must furnish satisfactory proof that your life expectancy is six months or less, including certification by a qualified physician. Prudential may inquire further to verify your eligibility.

You may receive the funds either in one lump sum or six equal monthly payments. The benefits not paid to you under this option will be payable to your beneficiary upon your death, including any unpaid monthly amounts.

Please note: The acceleration of life insurance benefits offered under this certificate is intended to qualify for favorable tax treatment under the Internal Revenue Code of 1986 (under IRC Section 101 (g)). If the acceleration of life insurance benefits qualifies for such favorable tax treatment, the benefits will be excludable from your income and not subject to federal income taxation. The laws relating to acceleration of life benefits are complex. You are advised to consult with a qualified tax advisor about circumstances under which you could receive acceleration of life insurance benefits excludable from income under federal law.

Special Features

Conversion Benefit

If your coverage terminates, within 31 days of your termination, you may convert your group term coverage to a Prudential individual life policy without a medical examination, provided the dealership remains enrolled in the program.

If the dealership terminates participation in the program, dealers who have been enrolled for at least five years may convert up to $10,000 of their coverage within 31 days. If death occurs during these 31 days, the benefit will be paid whether or not application for an individual policy was made.

When the life insurance reduces, coverage reduces gradually over time—to 75 percent of your coverage at age 65; to 50 percent of your pre-age 65 coverage at age 70; to 35 percent of your pre-age 65 coverage at age 75.

Disability Continuation Benefit

Should you become totally and permanently disabled before age 60, the National Automobile Dealer’s Association Insurance Trust (NADIT) may pay the full cost of your Dealer Life Insurance Program (up to $500,000 in coverage) while you remain totally disabled.

Quality from Prudential

The NADA Dealer Life Insurance Program is underwritten by The Prudential Insurance Company of America, a company known for financial responsibility and high quality service for more than a century.

Notices:

Thank you for choosing The Prudential Insurance Company of America (Prudential) for your insurance needs. Before we can issue coverage we must review your application/enrollment form. To do this, we need to collect and evaluate personal information about you. This notice is being provided to inform you of certain information practices Prudential engages in, and your rights, with regard to your personal information.

We would like you to know that: Personal information may be collected from persons other than yourself or other individuals, if applicable, proposed for coverage; this personal information as well as other personal or privileged information subsequently collected by us may, in certain circumstances, be disclosed to third parties without authorization; you have a right of access and correction with respect to personal information we collect about you; and upon request from you, we will provide you with a more detailed notice of our information practices and your rights with respect to such information. Should you wish to receive this notice, please contact: The Prudential Insurance Company of America, Group Medical Underwriting, P.O. Box 8796, Philadelphia, PA 19176

Any information we obtain regarding a person’s insurability will be treated as confidential. We may, however, make a brief report of it to the Medical Information Bureau (the Bureau), a non-profit membership organization of life insurance companies, which operates an information exchange on behalf of its members.

When you apply for life, disability, or health insurance to any company, including Prudential, which is a member of the Bureau, or submit a claim for benefits to such a company, the Bureau will, on request, give the company the information in its files. In addition, upon receipt of a request from you, the Bureau will arrange disclosure of any information it may have in your file. If the information came from the Bureau and you question the accuracy of the information in the Bureau’s files, you may contact the Bureau and seek a correction in accordance with the procedures set forth in the Federal Fair Credit Reporting Act. The address of the Bureau’s information office is: P.O. Box 105, Essex Station, Boston, MA 02112, (617) 426-3660.

Plan Exclusions

Suicide: The insurance does not cover loss of life of a Participant which results from or is caused by suicide, while sane or insane, within two years from the date the Participant became a covered individual. In the event of such death by suicide, Prudential’s liability shall be limited to the refund of premiums to the Policyholder, the premiums refunded being those paid under this coverage for such covered individual.

Racing Automobiles:† The insurance does not cover loss of life of a Participant which results from activities involved in or related to the racing of automobiles on a professional or amateur basis. These activities include, but are not limited to: (a) driving of such vehicles; (b) servicing of such vehicles; (c) testing of such vehicles, in a formalized, competitive venue or in an informal, unstructured format.

Stunt Exhibition Flying:‡ The insurance does not cover loss of life of a Participant which results from activities involved in or related to the flying of aircraft for stunt or exhibition purposes, on a professional or amateur basis. These activities include, but are not limited to: (a) flying of such aircraft; (b) servicing of such aircraft; (c) testing of such aircraft, in a formalized, exhibition venue or in an informal, unstructured format.

Prudential cannot give legal or tax advice. Please consult your tax or financial advisor. The Dealer Life Insurance Plan is subject to applicable state laws and regulations. The Prudential Insurance Company of America issues the insurance and is authorized to conduct business in all states, the District of Columbia, Guam, Puerto Rico and the United States Virgin Islands. Principal offices are 751 Broad Street, Newark, NJ 07102-3777, (973) 802-6000.

The policy is administered by Gilsbar Insurance Services, P.O. Box 998, Covington, LA 70434, (703) 821-7265. Prudential and the Rock logo are registered service marks of The Prudential Insurance Company of America and its affiliates. Group Contract Series 83500

This Web site is intended to be a summary of your benefits and may not include all policy provisions, exclusions and limitations. A certificate, with complete policy information, including limitations and exclusions, will be provided. If there is a discrepancy between this document and the certificate issued by Prudential, the terms of the certificate will govern.

† Does not apply to residents of Minnesota.

‡ Residents of Minnesota: The insurance does not cover loss of life of a Participant which results from activities involved in or related to the flying of aircraft for stunt or exhibition purposes, on a professional or amateur basis. These activities include, but are not limited to flying in such an aircraft in a formalized exhibition venue; flying in such an aircraft in an informal, unstructured format; servicing such an aircraft, or testing such an aircraft.