Associate Coverage Item to Model Line

Summary:

We are using the standard out-of-the-box Coverage Service feature.
Our BOM structure is shown below. Accidental Damage Protection (ADP) is a coverage product.

However, when we try to associate it with an item, the Model Line does not appear in the Associate Products LOV. 

Is this expected behavior? Are there any settings that allow us to assign Model Line as the covered item?

Content (please ensure you mask any confidential information):

Version (include the version you are using, if applicable):

Code Snippet (add any code snippets that support your topic, if applicable):