Legal Expense Insurance FAQ for IFB Member Agents

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1 Legal Expense Insurance FAQ What is Legal Expense Insurance (LEI)? Legal Expense Insurance (LEI) is an insurance product provided by DAS Canada that protects individuals in case of unforeseen legal events by covering legal costs and giving policyholders access to experienced lawyers. Your LEI policy: Provides you with financial coverage for a variety of potential legal events, Empowers you to pursue or defend your legal rights, and Provides you with unlimited access to general telephone legal advice. What do legal costs include? Legal costs include lawyers fees, charges for disbursements, and the opponent s legal costs should you lose your case and be required to pay them. Will my LEI policy cover any legal dispute? Our policies are designed to provide legal guidance and expense coverage for a wide range of common legal issues. Be sure to read your policy carefully in order to fully understand the details of your coverage. Our telephone legal advice helpline will offer general advice on any legal matter, even if it is not covered by the policy. What happens if my own lawyer begins work on my dispute, before I notify DAS Canada? If you think you may have a claim, call the legal advice helpline to speak to a DAS lawyer first. Do not ask any lawyer outside of DAS for advice unless DAS has advised you to do so. If you instruct a lawyer outside of DAS before speaking to us, and we ultimately proceed with your claim, we will not be able to honour any costs incurred before your claim was opened with us. There is also a chance that your claim could be prejudiced by not taking and following our advice from the moment you became aware of the dispute. Does tax protection also apply to US citizens or dual citizens who live and reside in Canada and are now required to file US income tax? Your DAS policy is limited to disputes within Canada. Unfortunately, this means that we are unable to assist with any disputes with US tax authorities.

2 If I have a legal issue before my policy starts, will it be covered? Only legal issues where the date of occurrence is after the start of your policy are covered. What does reasonable prospects mean? It is not in anyone s best interests to support a frivolous lawsuit or a claim which has little chance of success. For civil claims, DAS and the appointed lawyer must agree that it is more likely than not that you will be successful in your case in order for us to proceed. This is what the term reasonable prospects means. Reasonable prospects must exist throughout the duration of a civil claim. If I call the legal advice helpline, does it automatically trigger a claim? No; our advice lawyers will first discuss your situation with you. If your issue is not covered by the policy, the lawyer will advise you on potential next steps to resolve it. If the advice lawyer believes you are facing a potentially claimable legal event, your file will be referred to the DAS Claims Department for a determination of coverage. If your legal issue is claimable, a panel lawyer will be assigned and will handle the case until its conclusion. What happens if my legal costs end up going over my limit of indemnity? The indemnity limit shown in your policy is the maximum amount of legal fees that DAS will cover for any one claim or for the annual policy period. Any legal fees incurred over your indemnity limit will not be covered by DAS and must be paid by you. We will inform you if it appears likely that the legal costs incurred will exceed your limit of indemnity. My policy suggests that some issues may be negotiated rather than simply pursued or defended in court. Why is this? Going to court can be stressful, time-consuming, and expensive. It is often more beneficial for both parties to settle out of court. In fact, the majority of legal disputes are settled by negotiation. Our goal is to provide the most appropriate and efficient solution to your legal issue. Does my policy cover the defence of criminal charges (ex. I am criminally charged with assault)? Our policy will only cover the defence of criminal charges that are related to your employment if it was not willfully committed.

3 What if I am not happy with the way the appointed lawyer is dealing with my claim? After reviewing your file, we assign a legal professional to your case. However, if you are unhappy with your appointed lawyer, we will work with you to resolve the issue and address your concerns. Will I ever meet with the lawyer face to face, or is everything done over the phone? The initial contact with the DAS legal advice line and the appointed lawyer will be over the phone. If you wish, you can meet with your assigned lawyer face to face afterward. What are your privacy protection rules? Please visit to view our privacy policy. What does DAS stand for? Deutscher Automobil Schutz (German Automobile Protection). This name reflects the German roots of Legal Expense Insurance and our parent company. If my child is away at university, are they still covered under the LEI policy? Yes, they are covered while they are a university student. What are customers saying about DAS? Please pass on my professional thank you to everyone that was involved on the insurance and adjusting side of things. Our policy provided some reassurance and comfort during a chaotic time. Trust me, there was enough on my plate that having the response and assistance I received from your side of things made a huge difference, at the end of each day. Glenn, a DAS customer from Ohsweken My son was ticketed for driving without his N decal [required by law for new drivers], which was stolen from his car while he was in a movie theatre at night. I called our legal advice line - and the lawyer called back, did some research, called back again and gave us step by step instructions to follow. We did, my son had his ticket thrown out (saving him a few hundred dollars and points on his licence). It was a great experience for our family! Shari, a DAS customer from Vancouver What number do I call for legal advice? Please call the legal advice helpline number on your wallet card. For more information, please contact: Roberta Tasson, The Magnes Group Inc rtasson@magnesgroup.com

4 Legal Expense Insurance YOUR ACCESS TO JUSTICE Can you afford a legal dispute? Canadians face a variety of legal risks on a daily basis. From a dispute with a neighbour to a tax audit, legal issues can have a significant impact on your family and personal finances. Legal costs by the numbers $407 Average hourly rate of an experienced lawyer 1 $31,330 Average cost of a two day civil trial 1 55% of Canadians did not have legal representation when accessing the legal system 2 A DAS Legal Expense Insurance (LEI) policy helps fill the gaps in your existing insurance coverage and: Protects you from costly legal expenses Empowers you to defend or pursue your legal rights Provides you with unlimited access to general legal advice at any time A DAS LEI policy offers you peace of mind and allows you to focus on what matters most. 1 Canadian Lawyer Magazine Survey, June

5 How will an LEI policy protect and empower you? Employment disputes Alexa is dismissed from her job without cause or appropriate compensation. DAS will provide a lawyer and cover legal costs to take action against the employer for wrongful dismissal. Legal Defence Daniel, a financial broker, gets into a heated exchange with his client during a meeting. The next day, the police visit Daniel s office to investigate an alleged assault. DAS will provide legal representation to defend Daniel. Contract disputes Michelle hires a contractor to repair her kitchen sink. Shortly after, the sink starts leaking. As a result, significant water damage extends to her living room. Property protection Sally s neighbour cuts down a hedge that is shared with her property without consulting her first. The neighbour refuses to pay for a new hedge. DAS will retain a lawyer to recover damages on Michelle s behalf. DAS will assign a lawyer and cover legal costs to negotiate with the neighbour. Tax protection (business & personal) Oliver receives a letter from the CRA advising him of an audit of his business expenses and demanding an on-site review of Oliver s records. DAS will provide legal tax advice and cover legal costs after the first $500. Limits of indemnity Limit per claim: $25,000 Limit per insured per policy term: $50,000 Unlimited Telephone Legal Advice You have unlimited access to a general legal advice helpline to discuss any legal matter - even if it is not covered by the policy. For more information, please contact: Roberta Tasson, The Magnes Group Inc rtasson@magnesgroup.com *The above scenarios are examples only. Coverage is subject to the terms, conditions, and exclusions of the policy.

6 Summary of Legal Expense Insurance Coverage Elements of Coverage What does it cover? Examples Major Exclusions Employment Disputes Pursuit or defence of your legal rights in a dispute relating to a contract of employment or future employment. You are dismissed from your job without cause or appropriate compensation. Any claim relating to your employers disciplinary hearings or internal grievance procedures. Any claim relating solely to your death, illness or bodily injury. Contract Disputes Disputes arising from the buying or selling of goods or the obtaining of services. *The amount in dispute must exceed $350 You hire a contractor to repair your kitchen sink. Shortly after, the sink starts leaking, resulting in significant water damage to your living room. Any claim relating to construction work, design or structural renovation any building where the amount in dispute exceeds $10,000. Any claim relating to the settlement payable under an insurance policy. Any claim relating to a dispute arising from any loan, mortgage, pension, investment, borrowing or any other financial product. Any claim relating to a contract involving a motor vehicle. Employee Legal Defence Defence of your legal rights if you are prosecuted for an alleged criminal offence arising from your work as an Independent Financial Broker. You get into a heated discussion with a client during a meeting. The following day, the police visit your office to investigate an alleged assault. Any claim relating to a motor vehicle. *The above scenarios are examples only. Coverage is subject to the terms, conditions, and exclusions of the policy in the policy wording booklet.

7 Summary of Legal Expense Insurance Coverage Elements of Coverage What does it cover? Examples Major Exclusions Property Protection Pursuit of your legal rights in relation to: a nuisance a trespass or if someone has caused physical damage to your property. Your neighbour cuts down a shared hedge without consulting you first, and refuses to pay for a new one. Any claim relating to a contract. Disputes with governmental or public authorities (except accidental physical damage). Any claim relating to a motor vehicle. The first $500 in legal costs of any claim for legal nuisance or trespass. Tax Protection (Personal & Business) Legal costs related to a personal or business tax appeal or audit. You receive a notice of audit from the Canada Revenue Agency. The first $500 for a tax audit. Limit of $25,000 in legal costs for a tax audit or appeal. Any claim arising from a tax avoidance scheme or fraudulent activity. Unlimited Telephone Legal Advice Unlimited general legal advice on any legal issue, including those not covered by the policy. There is no limit to the number or duration of calls. Keep in mind that calls are not considered claims and will not impact premium. Limit of Indemnity and Deductibles Territorial Limits: Limits of Indemnity: Deductibles: Canada $25,000 per claim $50,000 in aggregate per policy period The first $500 for a tax audit The first $500 in legal costs of any claim for legal nuisance or trespass For more information, please contact: Roberta Tasson, The Magnes Group Inc rtasson@magnesgroup.com *The above scenarios are examples only. Coverage is subject to the terms, conditions, and exclusions of the policy in the policy wording booklet.