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 Apples 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.