3.2 Accidental Damage from Handling
If during the Plan Term you submit a valid claim notifying Apple that the Covered iPhone has failed due
to accidental damage from handling (“ADH”), Apple will subject to the service fee described below either
(i) repair the defect using new or refurbished parts that are equivalent to new in performance and
reliability, or (ii) exchange the Covered iPhone with a replacement product that is new or equivalent to
new in performance and reliability, and is at least functionally equivalent to the original product (both
individually known as a “Service Event”). ADH coverage will expire and all of Apple’s obligations to
you under this section 3.2 will be fulfilled in its entirety before the end of the Plan Term when
Apple, as a result of ADH claims, has provided to you two (2) Service Events. ADH coverage only
applies to an operational or mechanical failure caused by an accident from handling that is the result of
an unexpected and unintentional external event (e.g., drops and liquid contact) that arises from your
normal daily usage of the Covered iPhone as intended for such Covered iPhone. ADH coverage does not
include (a) protection against normal wear and tear, theft, misplacement, reckless, abusive, willful or
intentional conduct associated with handling and use of the Covered iPhone, (b) protection against any
other act or result not covered by the Plan, as described in Section 4.2 below, or (c) any resultant
damage to the Covered iPhone that arises from one or more conditions described in Section 3.2(a) or (b).
You will pay a $49 (U.S.) dollar service fee plus applicable tax for each ADH claim, and may be asked
to provide an explanation of where and when the accident occurred with a detailed description of the
actual event. A claim will be denied if you fail to pay the service fee or fail to provide information relating
to the accident when asked.