HOW YOUR PREMIUMS ARE CALCULATED. Commercial Term Loans

Transcription

1 Grup Plicy N The Cmmercial Lan Insurance Plan is prvided by The Canada Life Assurance Cmpany (Canada Life) under Grup Plicy n (the Plicy ) issued t BMO Bank f Mntreal (the Bank ). This Certificate represents the general terms f the Plicy. DEFINITIONS Accident refers t a sudden, unexpected and external actin, ccurring independently f any cnditins that directly causes bdily injury r death. Applicant refers t a persn applying fr cverage under the Plicy and is als referred t as I and my and yu r yur. Applicatin means the cmpleted printed applicatin fr BMO Bank f Mntreal Cmmercial Lan Insurance Plan and any evidence f insurability prvided in writing, by telephne r electrnically. Amunt f Insurance Requested refers t the ttal amunt f insurance yu requested under this Applicatin, if n further apprval frm Canada Life is required fr cverage t cme int frce. Where Canada Life s apprval is required, Amunt f Insurance Requested means the amunt f cverage Canada Life apprves yu fr. The Amunt f Insurance Requested, plus the amunt f insurance n all existing lans under the Plicy (if any), will never exceed the Maximum Insurable Limit. Lan is a lan that can be insured under the Plicy. They are Cmmercial Mrtgages, Term Lans, Reducing Nn- Revlving Demand Lans and Breeder Lans (cllectively Cmmercial Term Lans ); OR lans withut a specific repayment schedule as determined by the Bank which include Feeder Lans (cllectively Operating Lans r Lines f Credit ). Lan Amunt means the amunt f the lan indicated n the applicatin. Maximum Insurable Limit refers t the maximum aggregate amunt f cverage in respect f all lans fr which yu are insured under the Plicy. Percentage Cverage means the percentage f the Lan insured under the Applicatin; determined as a prprtin f the Amunt f Insurance Requested in relatin t the Lan Amunt. Fr example, the Lan Amunt = $100,000. The Amunt f Insurance Requested is $25,000. The Percentage Cverage = 25, ,000 = 25% Pre-existing Cnditin means any illness, disease, injury r physical cnditin fr which medical advice, cnsultatin, diagnsis r treatment was required r recmmended by a physician during the twelve (12) mnths prir t the date yur insurance begins. This limitatin des nt apply if yu have been cntinuusly insured fr twelve (12) mnths. Ttal Amunt fr Insurance means the sum f the amunt set ut in sectin 2(c) in the Applicatin, plus the amunt f insurance requested under the Applicatin. WHO CAN APPLY Yu are eligible t apply fr insurance cverage if, n the date f Applicatin Yu are a Canadian resident between 18 and 64 years ld. Yu must als be: a BMO individual business brrwer r spuse f a brrwer; a guarantr f the Lan; a directr r fficer f a brrwing crpratin, r an individual whse rle is essential t the ability f the brrwer t meet their financial bligatins. If yur Lan is an Operating Lan r Line f Credit, it must be btained t perate a small business, ranch, fishery r farm HOW TO APPLY Yu can apply fr cverage under the Plicy when yu first apply fr yur Lan r anytime after. Depending n the Ttal Amunt fr Insurance and yur age, yu may have t cmplete the health status questins n the Applicatin. WHEN YOUR INSURANCE BEGINS Yur insurance cverage begins n the later f the fllwing dates: The date Canada Life apprves yur Applicatin; r The date the funds are advanced r the Operating Lan r Line f Credit is authrized HOW YOUR PREMIUMS ARE CALCULATED Cmmercial Term Lans The mnthly premium is based n the fllwing factrs: The premium rate per $1,000 f the Amunt f Insurance Requested. The premium rate is based n yur age, gender, smking status n the date the Applicatin is signed, and the amrtizatin perid f the Lan. Yur premium des nt increase with age but cntinues until the Lan is fully repaid r refinanced. Yur premium des nt change until such time the Lan is replaced r refinanced. Prvincial sales tax (where applicable). T calculate yur premium, multiply yur applicable rate by the Amunt f Insurance Requested, then divide by 1,000. Fr example, fr a female nn-smker, age 31, wh is insured fr $25,000 n her Lan which is amrtized ver a perid f 36 mnths, the premium is $0.07 x $25,000 1,000 = $1.75, plus prvincial tax, if any.

2 Grup Plicy N TABLE OF PREMIUM RATES n Cmmercial Term Lans Male: Mnthly Rate per $1,000 f the Amunt f Insurance Requested Nn-Smker Amrtizatin Perid (number f mnths) Smker Amrtizatin Perid (number f mnths) Age Age $0.06 $0.07 $ $0.11 $0.15 $ $0.08 $0.10 $ $0.13 $0.18 $ $0.13 $0.17 $ $0.23 $0.31 $ $0.18 $0.23 $ $0.32 $0.44 $ $0.27 $0.36 $ $0.51 $0.70 $ $0.42 $0.55 $ $0.82 $1.08 $ $0.58 $0.70 $ $1.20 $1.50 $1.66 Female: Mnthly Rate per $1,000 f the Amunt f Insurance Requested Nn-Smker Amrtizatin Perid (number f mnths) Smker Amrtizatin Perid (number f mnths) Age Age $0.05 $0.06 $ $0.09 $0.11 $ $ 0.07 $ 0.08 $ $0.11 $0.14 $ $ 0.11 $ 0.13 $ $0.19 $0.24 $ $ 0.15 $0.19 $ $0.27 $0.33 $ $ 0.22 $0.27 $ $0.42 $0.52 $ $ 0.35 $0.42 $ $0.68 $0.81 $ $ 0.49 $0.55 $ $0.90 $1.02 $1.14 Operating Lans r Lines f Credit The mnthly premium is cllected in arrears and is based n the fllwing factrs: The premium rate is per $1000 f the Amunt f Insurance Requested. The premium rate is based n yur age, gender and smking status. Yur premium will autmatically increase n the anniversary f the date cverage starts if n that date; yu are in a different age band. Prvincial sales tax (where applicable). T calculate yur premium, multiply yur applicable rate by the Amunt f Insurance Requested then divide by 1,000. Fr example, fr a female, nn-smker, age 31, wh is insured fr $25,000 n her authrized credit limit, the premium is $0.10 x $25,000 1,000 = $2.50, plus prvincial tax, if any. TABLE OF PREMIUM RATES n Operating Lans r Lines f Credit: Mnthly Rate per $1,000 f the Amunt f Insurance Requested Age Male Nn-Smker Male - Smker Female Nn-Smker Female Smker $ 0.10 $ 0.15 $ 0.09 $ $ 0.12 $ 0.17 $ 0.10 $ $ 0.18 $ 0.31 $ 0.14 $ $ 0.30 $ 0.49 $ 0.22 $ $ 0.43 $ 0.72 $ 0.31 $ $ 0.64 $ 1.09 $ 0.46 $ $ 1.04 $ 1.54 $ 0.74 $ $1.70 $2.55 $1.18 $1.72. MAXIMUM INSURABLE LIMIT The Maximum Insurable Limit fr the Plicy is $1,000,000. WHO IS THE BENEFICIARY OF THE BENEFIT The Bank is the Beneficiary f the amunt(s) payable t reduce r pay ff yur Lan, any amunt in excess n an insured perating lan, line f credit r feeder lan is payable t yur estate. In Quebec, the excess is payable t the Beneficiary yu designate n the Applicatin, r if yu d nt designate a Beneficiary (r if the designated Beneficiary predeceases yu), the excess is payable t yur estate. TEMPORARY INSURANCE WHILE YOUR APPLICATION IS UNDER REVIEW - ACCIDENTAL DEATH BENEFIT If yu die as a result f an accidental injury after the Bank apprves and funds the Lan, but befre the date yur Applicatin is apprved r declined, Canada Life will pay t the Bank the amunt f insurance requested n the applicatin, subject t the Maximum Insurable Limit. The accidental death benefit cverage will end n the earlier f the fllwing dates: the date that yu are either declined r apprved fr the insurance under this Certificate, r the 31 st day after Canada Life receives yur applicatin.

3 Grup Plicy N WHAT YOUR COVERAGE INCLUDES Life Insurance Benefit: If yu die and all the terms and cnditins f this Certificate are met, Canada Life will pay the Life Insurance Benefit in the amunts defined belw: Fr a Cmmercial Term Lan : If the Amunt f Insurance Requested is equal t the Lan Amunt, the Life Insurance Benefit is the unpaid balance f the Lan at the date f death (including accrued interest up t a maximum f 60 days). If yur Amunt f Insurance Requested is a percentage f the Lan identified as Percentage Cverage n the Applicatin (due t yur electing a Percentage Cverage r due t the Amunt f Insurance Requested being subject t reductin because f the Maximum Insurable Limit): the Life Insurance Benefit will be determined by applying the Percentage Cverage t the utstanding balance wing t the Bank n the date f death. Accrued interest fr up t a maximum f 60 days will be payable in the same prprtin as the Percentage Cverage. Fr example, if yu have a $400,000 cmmercial mrtgage f which yu have selected t insure 25% (based n a Percentage Cverage calculated as ($100,000 $400,000 x 100. If at time f claim yur utstanding balance is $200,000, the Life insurance Benefit that will be paid is 25% f $200,000 = $50,000 Fr an Operating Lan r Line f Credit: If the Amunt f Insurance Requested is equal t the Lan Amunt, the Life Insurance Benefit is the authrized limit f the Operating Lan r Line f Credit, regardless f the utstanding balance (including accrued interest up t a maximum f 60 days). If the Amunt f Insurance Requested is a percentage f the Lan identified as Percentage Cverage n the Applicatin, (due t yur electing a Percentage Cverage r due t the Amunt f Insurance Requested being subject t reductin because f the Maximum Insurable Limit), the Life Insurance Benefit is equal t the Amunt f Insurance Requested. RECOGNITION OF PRIOR COVERAGE (ROPC) when replacing r refinancing a Lan If at the time f replacing r refinancing yur Lan, yur Applicatin fr insurance is declined due t a health cnditin r the fact that yu are 65 but less than 70 years f age, Canada Life will recgnize yur prir cverage. Fr a Cmmercial Term Lan, the ROPC Amunt f Insurance Requested, Percentage Cverage and the Life Insurance Benefit under the new Lan will be calculated as fllws: The ROPC Amunt f Insurance Requested n the new lan is the utstanding balance x Percentage Cverage n the riginal Lan Yur Percentage Cverage n the new Lan is the ROPC Amunt f Insurance Requested new Lan balance x 100. The Life Insurance Benefit n the new Lan is the utstanding balance at time f death x Percentage Cverage Fr example, yu have a cmmercial mrtgage insured under this plan with an utstanding balance f $100,000 with a Percentage Cverage f 50%. Yu refinance, and the Lan is increased t $200,000, but yur applicatin fr insurance is declined. The insurance cverage amunt remaining n yur riginal Lan becmes the ROPC Amunt f Insurance Requested, which in this example is $50,000. T btain yur new Percentage Cverage the ROPC Amunt f Insurance Requested is divided by the new Lan amunt ($50,000 $200,000 x 100 = 25%). Yur Life Insurance Benefit at time f death will nw be the utstanding balance n the Lan at time f claim, multiplied by the new Percentage Cverage. In this example if at death the utstanding Lan balance is $100,000, the Life Insurance Benefit that will be paid is (25% x $100,000 = $25,000). Fr an Operating Lan r a Line f Credit Lan, the ROPC Amunt f Insurance Requested f the New Lan; and the Life Insurance Benefit payable n the new Lan will be equal t the Amunt f Insurance Requested f the riginal Lan. ROPC Premium: Premium fr the replaced r refinanced Lan will be n the ROPC Amunt f Insurance Requested and recalculated based n yur age, gender and smking status at the time the Lan is refinanced r replaced. Accidental Dismemberment and Specific Lss: If yu suffer a specific lss under the Plicy, because f an accidental injury, Canada Life will pay t the Bank the lesser f: An amunt that is calculated as described in the sectin Life Insurance Benefit; r $50,000. In all cases the maximum amunt payable is $50,000 in the event yu sustain mre than ne specific lss due t the same accidental injury. M /12 1 CANADA LIFE 2 BRANCH 3 APPLICANT

4 Grup Plicy N A Lss is cvered under the Plicy if it meets the fllwing cnditins: Slely and directly caused by an accident; and Occurs within 365 days f the accident; and Is beynd remedy by surgical r ther means; and Is ne f the Specific Lsses listed belw. Specific Lsses: Lss f bth arms Lss f ne arm and ne leg Lss f ne leg and sight in ne eye Lss f ne arm and sight in ne eye Lss f bth legs Lss f sight in bth eyes Lss f use f bth legs r all limbs due t paraplegia r quadriplegia Lss f use f an arm and leg n ne side f the bdy due t hemiplegia The Lsses are defined as fllws: Arm means the limb is severed at r abve the elbw jint; Leg means the limb is severed at r abve the knee jint; Sight means the ttal and irreversible lss f visin in the eye as cnfirmed by an phthalmlgist, with crrected visual acuity being 20/200 r less; Paraplegia means the cmplete and irrecverable paralysis f the legs and lwer part f the bdy; Quadriplegia means the cmplete and irrecverable paralysis f the bdy frm the neck dwn; and Hemiplegia means the cmplete and irrecverable paralysis f ne side f the bdy. WHAT YOUR COVERAGE DOES NOT INCLUDE EXCLUSIONS AND LIMITATIONS MISSTATEMENT This Certificate is issued n the basis n representatins and declaratins yu made n the Applicatin. Any cncealment, misrepresentatin, r false declaratin cncerning this Applicatin may result in yur cverage being vid and yur claim nt being paid. If the insurance is issued in the nn-smker rating class and it is subsequently determined that the insured smking s status has been a misrepresented, Canada Life may at its discretin, vid the insured s cverage. General Exclusins: N benefits will be paid if yur claim is due t: Events directly r indirectly relating t, arising frm r fllwing yur participatin r attempted participatin in a criminal ffence; Events directly r indirectly relating t, arising frm, r fllwing yur impairment by alchl while yur bld alchl cncentratin is higher than the legal limit r by illegal r illicit drugs, regardless f whether yur death r lss arises r results frm yur impairment; Civil disrder r war, whether r nt war was declared, unless the applicant is n active military duty as a member f the Canadian Armed Frces r Canadian Frces Reserve Exclusins and Limitatins fr Life insurance: N benefit will be paid if yu die and yur death is due t: a Pre-existing Cnditin and yur Applicatin did nt require yu t answer Health Status Questins and yu die within 12 mnths f the date yur insurance began. A Pre-existing Cnditin means any illness, disease, injury r physical cnditin fr which medical advice, cnsultatin, diagnsis r treatment was required r recmmended by a physician during the twelve (12) mnths prir t the date yur insurance begins. suicide r self inflicted injury where cverage has been in frce fr less than 24 mnths, whether sane r insane. The Life Insurance Benefit will be reduced by an amunt paid under the Accidental Dismemberment and Specific Lss insurance benefit, If mre than ne persn is insured fr the same Lan and simultaneus deaths ccur, nly ne death benefit will be paid. Exclusins and Limitatins fr Accidental Dismemberment and Specific Lss: N benefits will be paid fr an accidental lss due t: self-inflicted injury while sane r insane; viral r bacterial infectins; any illness r physical r mental infirmity; medical r surgical treatment. In all cases the maximum amunt payable is $50, 000 in the event yu sustain mre than ne specific lss due t the same accidental injury. Payment f benefits will cmpletely release Canada Life frm any further liability. M /12 1 CANADA LIFE 2 BRANCH 3 APPLICANT

5 Grup Plicy N CANCELLATION OF INSURANCE Yu may cancel yur insurance at any time. If yu cancel within 30 days f the date yur insurance begins yu will receive a full refund f any premiums paid, and the insurance cverage will be deemed never t have been in frce. Cancellatins requested after the 30- day perid will nt receive a premium refund. T cancel yur insurance yu must send a written ntice t: The Canada Life Assurance Cmpany, Creditr Insurance, 330 University Avenue, Trnt, ON, M5G 1R8. In rder t avid cllectin f excess premiums, yu must ntify Canada Life f any early repayment f yur insured Lan by btaining the Terminatin f Premium Payment frm frm yur lcal BMO Bank f Mntreal branch, cmpleting it and sending it t Canada Life. WHEN YOUR INSURANCE TERMINATES Yur insurance terminates n the earliest f these dates: the first premium due date after yur 70th birthday; fr an Operating Lan and Line f Credit the date the Lan is cancelled, assigned t anther creditr, refinanced r replaced; fr a Cmmercial Term Lan the date the Lan is fully repaid, assigned t anther creditr r assumed by anther debtr, refinanced r replaced; the date yu die; the date the mnthly premium is thirty (30) days verdue; the date the Grup Plicy terminates; the date Canada Life receives yur written request t cancel the insurance n the Lan. Grace Perid Canada Life grants a 30 day grace perid fr the payment f yur premium. If the premium has nt been paid within 30 days f the expected payment date, the insurance will be cancelled autmatically. HOW TO MAKE A CHANGE TO YOUR SMOKING STATUS If yu riginally applied fr cverage n the basis that yu were a smker and it has been twelve (12) mnths r mre since yu last smked r used a prduct cntaining tbacc, yu can apply fr nn-smker rates by cmpleting and sending the Cmmercial Lan Insurance Plan Smking Status Change frm available at yur lcal BMO Bank f Mntreal branch. HOW TO MAKE A CLAIM T make a claim, yu r yur representative may btain a claim frm at yur lcal BMO branch r Canada Life.. The cmpleted claim frm and any ther necessary supprting dcumentatin must be submitted t Canada Life n later than twelve (12) mnths frm the date f death r six (6) mnths frm the date f Accidental Dismemberment and Specific Lss. Canada Life may nt pay claims that are made after the time limit. LIMITATION PERIOD FOR LEGAL ACTION Every actin r prceeding against an insurer fr the recvery f insurance mney payable under the cntract is abslutely barred unless cmmenced within the time set ut in the Insurance Act, r must be cmmenced within the shrtest applicable time limit established by law in the prvince r territry in which yu reside. ASSIGNMENT This Certificate may nt be assigned. OTHER IMPORTANT INFORMATION Yu have the right t examine and btain a cpy f the Plicy and certain ther written statements r recrds Yu have submitted t Canada Life (if any), subject t certain access limitatins. All prvisins f Grup Plicy N issued by Canada Life t the Bank apply t the insurance described in this Certificate whether stated in this Certificate r nt. N emplyee r agent f the Bank is authrized t amend, alter, mdify r waive the terms f this Certificate, r any cntract f Insurance issued. Fr mre infrmatin call Canada Life at: r write t: The Canada Life Assurance Cmpany, Creditr Insurance, 330 University Avenue, Trnt, ON, M5G 1R8. At The Canada Life Assurance Cmpany (Canada Life), we recgnize and respect the imprtance f privacy. When yu apply fr cverage, we establish a cnfidential file that cntains yur persnal infrmatin. This file is kept in the ffices f Canada Life r the ffices f an rganizatin authrized by Canada Life. Yu may exercise certain rights f access and rectificatin with respect t the persnal infrmatin in yur file by sending a request in writing t Canada Life. Canada Life may use service prviders lcated within r utside Canada. We limit access t persnal infrmatin in yur file t Canada Life staff r persn authrized by Canada Life wh requires it t perfrm their duties, t persns t whm yu have granted access, and t persns authrized by law. Yur persnal infrmatin may be subject t disclsure t thse authrized under applicable law within r utside Canada. We cllect, use and disclse the persnal infrmatin t administer the plan, including investigating and assessing claims, and creating and maintaining recrds cncerning ur relatinship. Canada Life r its reinsurers may als release infrmatin t ther life insurance cmpanies t whm yu apply fr life r health insurance, r t whm yu submit a claim fr benefits. The cmpany will nt, hwever reveal t anther cmpany the actin taken n the basis f yur current request fr insurance. Fr a cpy f ur privacy Guidelines, r if yu have questins abut ur persnal infrmatin plicies and practices (including with respect t service prviders), write t Canada Life s Chief Cmpliance Officer r refer t PLEASE KEEP THIS CERTIFICATE ALONG WITH YOUR COPY OF THE APPLICATION IN A SAFE PLACE.