Certificate of Insurance

Transcription

1 Certificate f Insurance BMO Mrtgage Prtectin Plan (the Plan ) is an ptinal insurance plan underwritten and issued by Sun Life Assurance Cmpany f Canada ( the Insurer, we, us, r ur ) under Grup Plicy n G Part B fr Life Insurance and Grup Plicy n fr Critical Illness Insurance; and Grup Plicy n G Part C fr Disability and Jb Lss Insurance (cllectively the Plicy ) t BMO Bank f Mntreal (the the Bank r BMO ). This Certificate f Insurance ( Certificate ) represents the general terms f the Plicy. If there is a cnflict between the Plicy and the Certificate, the Plicy will take precedence. Insurance under the Plan is subject t the terms and cnditins f the Plicy, yur cmpleted and signed Applicatin, the Cverage Summary, this Certificate, the letter f apprval frm the Insurer and any infrmatin yu have prvided t assess yur Applicatin. Fr mre infrmatin, yu can call Sun Life Assurance Cmpany f Canada at: r write t: 227 King Street S., P.O. Bx 638, Stn. Waterl, ON N2J 4B8. This Certificate includes infrmatin n all insurance cverage available under the Plicy, including thse yu may nt have selected r been apprved fr by the Insurer. Yur Cverage Summary cnfirms all cverages in effect. 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 never have been in frce. What the terms mean Fr all cverages: Amunt fr Insurance means the amunt used t calculate premiums under this Certificate. Fr Balance Prtectin, Amunt fr Insurance is calculated as yur Mrtgage Amunt multiplied by the Percentage f Balance Cvered. Fr Payment Prtectin, the Amunt fr Insurance is equal t the Mrtgage Payment multiplied by the Percent f Payment Cvered. Applicatin means the cmpleted, printed, electrnic, and/r telephnic Applicatin fr BMO Mrtgage Prtectin and any evidence f insurability prvided in writing, by telephne r electrnically. Cverage Effective Date means, fr each type f insurance yu have applied fr, the date shwn n yur Cverage Summary. Cverage Summary means the mst recent versin f the frm issued t yu by the Bank t cnfirm the cverages fr which yu have been apprved r applied; and fr each cverage, the effective date, the premium, and the Percent f Balance Cvered r Percent f Payment Cvered. Maximum Insurable Limit means the maximum cverage amunt yu can apply fr and the maximum benefit yu can receive per Mrtgage fr each cverage type as stated in the What are the Maximum Insurable Limits sectin f this Certificate. Mrtgage means the Mrtgage agreement that exists between yu and the Bank. Mrtgage des nt include mrtgages n cmmercial prperties. Mrtgage Payment means the amunt yu have agreed t pay t the Bank, cmprising f principal, interest, and prperty taxes if yu have selected the ptin t include prperty taxes in the Mrtgage Payment. The Mrtgage Payment may be weekly, bi-weekly, semi-mnthly, r mnthly in frequency. Mrtgage Amunt means yur Mrtgage amunt n the latest f: the date yur Mrtgage is funded, the date yu submit yur insurance Applicatin fr each cverage, r 1

2 the date the Insurer pays a Balance Prtectin benefit under yur insured Mrtgage that des nt terminate yur cverage. Percent f Balance Cvered means the percentage f yur Mrtgage Amunt that yu chse t insure at the time cverage is issued r as may be adjusted under the terms f this Certificate as a result f exceeding the applicable Maximum Insurable Limit, the payment f a Balance Prtectin benefit that is less than the amunt wed t the Bank, r the granting f Recgnitin f Prir Cverage. Percent f Payment Cvered means the percentage f yur Mrtgage Payment that yu chse t insure at the time cverage is issued r as may be adjusted under the terms f this Certificate as a result f exceeding the applicable Maximum Insurable Limit r the granting f Recgnitin f Prir Cverage. This percentage is als subject t change if yur Mrtgage Payment changes at time f mrtgage renewal. Recgnitin f Prir Cverage means the terms and cnditins fund in the Recgnitin f Prir Cverage (ROPC) sectin f this Certificate. Yu r yur means yu if yur Applicatin has been apprved fr the cverage described n yur mst recent Cverage Summary. What are the cverages BMO Mrtgage Prtectin ffers tw types f prtectin: Balance Prtectin and Payment Prtectin. Balance Prtectin is designed t reduce r pay ff the Mrtgage balance wing t BMO in the event f death r a Cvered Critical Illness. Payment Prtectin helps maintain yur regular Mrtgage Payments in the event f Disability r Jb Lss. If yu are eligible, yu have the fllwing cverage ptins under this Certificate: Balance Prtectin Life Insurance; r Life Insurance with Critical Illness Insurance, cmbined. Payment Prtectin Disability Insurance; r Disability Insurance with Jb Lss Insurance, cmbined. A maximum f eight peple per Mrtgage may apply fr cverage. Wh can apply fr cverage Yu can apply fr BMO Mrtgage Prtectin when yu first apply fr a Mrtgage r anytime after if yu are: Fr all cverages: the brrwer r c-brrwer n a Mrtgage; a Canadian resident; and at least 18 years ld. Fr Life Insurance, yu are als: less than 65 years ld n the date the Applicatin is signed and submitted. Fr Critical Illness Insurance, yu als meet the fllwing cnditins are less than 55 years ld n the date the Applicatin is signed and submitted; and have applied fr Life Insurance. Fr Disability Insurance, yu are als: less than 65 years ld n the date the Applicatin is signed and submitted; and 2

3 actively wrking, which means yu are regularly wrking a minimum f 25 hurs per week and are able t perfrm the regular duties f yur jb. Fr seasnal wrkers, yu must be capable f perfrming yur regular duties. Fr Jb Lss Insurance, yu als meet the fllwing cnditins: be less than 55 years ld n the date the Applicatin is signed and submitted; have applied fr Disability Insurance; have been cntinuusly emplyed fr 6 mnths with the same emplyer and are eligible t receive Emplyment Insurance Benefits; nt be self-emplyed, an independent cntractr r wrking fr a family business r a business in which yu have a cntrlling interest; and nt been advised f yur pending unemplyment. Hw t apply Yu may, when applying fr insurance, elect t insure 50% r 100% f the Mrtgage Amunt r Mrtgage Payment. The percent f cverage yu select will be autmatically adjusted if yur selectin exceeds the applicable Maximum Insurable Limit as shwn in the What are the Maximum Insurable Limits sectin f this Certificate. Nte: If yu are applying fr Critical Illness Insurance, yu cannt select a higher percentage f cverage fr Critical Illness Insurance than yu selected fr Life Insurance. Similarly, if yu are applying fr Jb Lss Insurance, yu cannt select a higher percentage f cverage fr Jb Lss Insurance than yu selected fr Disability Insurance. IMPORTANT: If yu select Balance Prtectin cverage, please see the What happens if a Balance Prtectin benefit desn t fully pay ut yur Mrtgage sectin f this Certificate. When yur Insurance is apprved Fr each cverage type, yu are autmatically apprved if yur Mrtgage Amunt multiplied by yur Percent f Balance Cvered r Percent f Payment Cvered is $50,000 r less. Fr each cverage type, if yur Mrtgage Amunt multiplied by yur Percent f Balance Cvered r Percent f Payment Cvered is mre than $50,000, and yu have answered NO t the Health Status Questin(s) applicable t the cverage yu are requesting, the insurance is autmatically apprved. Fr each cverage type, if yur Mrtgage Amunt multiplied by yur Percent f Balance Cvered r Percent f Payment Cvered is mre than $50,000, and yu have answered YES t the Health Status Questin(s) applicable t the cverage yu are requesting, yur Applicatin will be sent t the Insurer fr medical underwriting. The Insurer will infrm yu in writing if the cverage yu have requested is apprved r declined. 3

4 When yur insurance begins Fr each cverage type, insurance cverage begins n the Cverage Effective Date, which is the latest f the fllwing dates: the date yu submit yur insurance Applicatin; the date f the insurer s written ntice f apprval, if medical underwriting is required; r the date yu accept a frmal Mrtgage cmmitment issued by the Bank. Once cverage is in effect, n benefit may be paid until after the Bank has advanced the Mrtgage funds. What are the Maximum Insurable Limits Fr each insured persn, the Maximum Insurable Limit under yur Mrtgage is: Fr Balance Prtectin $600,000 Under Balance Prtectin, the Maximum Insurable Limit fr each cverage type is: Life Insurance $600,000 Critical Illness Insurance $450,000 Fr Payment Prtectin $3,000 (mnthly equivalent) Under Payment Prtectin, the Maximum Insurable Limit fr each cverage type is: Disability Insurance $3,000 (mnthly equivalent) Jb Lss Insurance $3,000 (mnthly equivalent) In n event will the Insurer pay mre than the amunt wed t the Bank under yur Mrtgage, regardless f the number f persns insured. Examples: Aut adjustment f Percent f Balance/Payment Cvered due t Maximum Insurable Limit Cverage type Life Insurance Disability Insurance Amunt f Mrtgage/Mrtgage Payment at the time f Applicatin $800,000 $6,500 (mnthly equivalent) Percent f cverage selected 100% 50% Maximum Insurable Limit $600,000 $3,000 (mnthly equivalent) Percent f Balance/Payment Cvered Step 1: Find the lesser f: a) $800,000 x 100% = $800,000 r b) $600,000 Step 2: $600,000 / $800,000 = 75% Step 1: Find the lesser f: a) $6,500 x 50% = $3,250 r b) $3,000 Step 2: $3,000 / $6,500 = 46% What the Insurer pays If yur claim fr insurance is apprved, the Insurer will pay the applicable benefit t the Bank. The benefit payable by the Insurer may nt cver the entire balance that yu we r are required t pay t the Bank under yur Mrtgage. BALANCE PROTECTION Life Insurance Please refer t yur Cverage Summary t cnfirm whether this benefit sectin applies t yu. 4

5 Subject t the terms and cnditins f this Certificate, if yu die, the Insurer will pay the Life Insurance Benefit t the Bank. Amunt f Life Insurance Benefit The Life Insurance Benefit is equal t the sum f the fllwing amunts: unpaid Mrtgage balance at the time f yur death multiplied by yur Percent f Balance Cvered, unpaid interest that has accrued t the date f benefit payment, prperty tax arrears, if yu chse t have prperty taxes paid as part f Mrtgage Payments, applicable fees, interest rate charges, and/r penalties required t discharge yur Mrtgage. Example: Benefit calculatin using Percent f Balance Cvered Cverage type Life Insurance Amunt f Mrtgage at the time f insurance Applicatin $400,000 Percent f Balance Cvered 50% Mrtgage balance at the time f death $300,000 Life Insurance Benefit $300,000 x 50% = $150,000, plus applicable fees r charges Critical Illness Insurance Critical Illness Insurance can nly be available if yur Life Insurance is in effect. Please refer t yur Cverage Summary t cnfirm whether this benefit sectin applies t yu. Terms specific t Critical Illness Insurance and what they mean: Diagnsis r Diagnse means a written diagnsis made by a Physician r Specialist. Any Diagnsis will be effective as f the date it is established by the Physician r Specialist, as supprted by the insured persn s medical recrds. Physician means a legally and prfessinally qualified medical practitiner practising in Canada r the United States f America. The Physician must nt be yu, a relative f yurs, r a persn wh nrmally resides in the same husehld as yu. Specialist means a licensed medical practitiner wh has been trained in the specific area f medicine relevant t the Cvered Critical Illness cnditin fr which a Critical Illness Benefit is being claimed, and wh has been certified by a speciality examining bard. In the absence r unavailability f a Specialist, and as apprved by us, a cnditin may be diagnsed by a qualified medical practitiner practising in Canada. The Specialist must nt be yu, a relative f yurs, r a persn wh nrmally resides in the same husehld as yu. Surgery means a medical peratin perfrmed n yu and recmmended by a Physician r Specialist, licensed and practicing in Canada. Cvered Critical Illness The term Cvered Critical Illness include nly the fllwing Illnesses, medical cnditins r prcedures: 5

6 Cancer Cancer means a definite Diagnsis f a tumur characterized by the uncntrlled grwth and spread f malignant cells and the invasin f tissue. The Diagnsis f Cancer must be made by a Specialist. Exclusins N Critical Illness Benefit will be payable fr a recurrence r metastasis f an riginal cancer, which was diagnsed prir t the Cverage Effective Date. N Critical Illness Benefit will be payable under this cnditin fr the fllwing nn-threatening cancers: Carcinma in situ; r Stage 1A malignant melanma (melanma less than r equal t 1.0 mm in thickness, nt ulcerated and withut Clark level IV r level V invasin); r, Any nn-melanma skin cancer that has nt becme metastasized; r, Stage A (T1a r T1b) prstate cancer. Mratrium Perid Exclusin: N Critical Illness Benefit will be payable fr Cancer if, within 90 days f the Cverage Effective Date, yu have any f the fllwing: signs, symptms r investigatins, that lead t Diagnsis f Cancer (cvered r excluded under this cverage), regardless f when the Diagnsis is made, a Diagnsis f Cancer (cvered r excluded under this cverage). In this case, yur Critical Illness cverage will be vided and any premiums refunded. The infrmatin described abve must be reprted t us within 6 mnths f the date f Diagnsis. If this infrmatin is nt prvided, we have the right t deny any claim fr Cancer r, any Critical Illness caused by Cancer r its treatment. Heart attack Heart attack means a definite Diagnsis f the death f heart muscle due t bstructin f bld flw that results in a rise and fall f bichemical cardiac markers t levels cnsidered diagnstic f mycardial infarctin, with at least ne f the fllwing: heart attack symptms; new electrcardigram (ECG) changes cnsistent with a heart attack; r, develpment f new Q waves during r immediately fllwing an intra-arterial cardiac prcedure including, but nt limited t, crnary angigraphy and crnary angiplasty. The Diagnsis f Heart attack must be made by a Specialist. Exclusins Heart attack des nt include: Elevated bichemical cardiac markers as a result f an intra-arterial cardiac prcedure including, but nt limited t, crnary angigraphy and crnary angiplasty, in the absence f new Q waves; r, ECG changes suggesting a prir mycardial infarctin, which d nt meet the Heart attack definitin as described abve. Strke Strke (cerebrvascular accident) means a definite Diagnsis f an acute cerebrvascular event caused by intracranial thrmbsis r haemrrhage, r emblism frm an extra-cranial surce, with: acute nset f new neurlgical symptms; new bjective neurlgical deficits n clinical examinatin; and persisting fr mre than 30 days fllwing the date f Diagnsis. 6

7 These new symptms and deficits must be crrbrated by diagnstic imaging testing. The Diagnsis f Strke must be made by a Specialist. Exclusins N Critical Illness Benefit will be payable fr: transient ischaemic attacks; intracerebral vascular events due t trauma; r lacunar infarcts which d nt meet the definitin f Strke as described abve. Crnary artery bypass surgery Crnary artery bypass surgery means the underging f heart Surgery t crrect narrwing r blckage f ne r mre crnary arteries with bypass graft(s), excluding any nn-surgical r trans-catheter techniques such as balln angiplasty r laser relief f an bstructin. The Surgery must be determined t be medically necessary by a Specialist. Subject t the terms and cnditins f this Certificate, if yu are Diagnsed with r have Surgery fr a Cvered Critical Illness, the Insurer will pay the Critical Illness Insurance Benefit t the Bank. Amunt f Critical Illness Benefit The Critical Illness Benefit is equal t the sum f the fllwing amunts: unpaid Mrtgage balance n the date f Diagnsis r Surgery multiplied by yur Percent f Balance Cvered, unpaid interest that has accrued t the date f benefit payment, prperty tax arrears, if yu chse t have prperty taxes paid as part f yur Mrtgage Payments, applicable fees, interest rate charges, and/r penalties required t discharge yur Mrtgage. In n event will the Insurer pay mre than ne Critical Illness Insurance Benefit fr yu under yur Mrtgage. What happens if a Balance Prtectin benefit desn t fully pay ut yur Mrtgage If yu are the claimant: If the Insurer pays a Critical Illness Benefit fr yur Cvered Critical Illness that des nt fully pay ut the amunt wed t the Bank under yur Mrtgage: Yur Life Insurance cverage will cntinue in frce if yur Percent f Balance Cvered fr Life Insurance is greater than yur Percent f Balance Cvered fr Critical Illness. Yur Life cverage remains in frce as shwn n the Cverage Summary the Bank will issue at such time and will be adjusted as fllws: the new Mrtgage Amunt is calculated by deducting the amunt the Insurer paid t the Bank frm the Mrtgage balance as n the date f yur Diagnsis r Surgery; the new Percent f Balance Cvered is the balance f the Mrtgage n the date f Diagnsis r Surgery multiplied by the Percent f Balance Cvered fr Life cverage reduced by the amunt f claim paid and then divided by the new Mrtgage Amunt; yur new Amunt fr Insurance is yur new Percent f Balance Cvered fr Life Cverage multiplied by the new Mrtgage Amunt; and yur premium rate fr Life Insurance cntinues t be determined by yur age n the date f Applicatin and whether the multi-insured discunt rate applies. If yur Percent f Balance Cvered fr bth Life Insurance and Critical Illness Insurance are equal n the date f yur Diagnsis r Surgery, yur Life cverage terminates n payment f yur Critical Illness Benefit because the amunt paid is equal t the prprtinate amunt f the Mrtgage balance fr which yu were insured fr under this Certificate. If yur c-brrwer is the claimant: If the Insurer pays yur c-brrwer s Life Insurance Benefit r Critical Illness Benefit and the benefit des nt fully pay ut the amunt wed t the Bank under yur Mrtgage, yur Balance Prtectin cverage(s) remain in frce and will be adjusted as fllws: 7

8 the new Mrtgage Amunt is calculated by deducting the amunt the Insurer paid t the Bank frm the Mrtgage balance as n the date f Lss ( Lss means yur insured c-brrwer s Diagnsis, Surgery r death as applicable.); the new Percent f Balance Cvered is the balance f the Mrtgage n the date f Lss multiplied by the Percent f Balance Cvered per cverage, and then divided by the new Mrtgage Amunt (In n event will the new Percent f Balance Cvered exceed 100% f the new Mrtgage Amunt.); yur new Amunt fr Insurance is yur new Percent f Balance Cvered per cverage multiplied by the new Mrtgage Amunt; and yur premium rate cntinues t be determined by yur age n the date f Applicatin. The multiinsured discunt rate will cease t apply if yu are the nly persn wh remains insured fr a particular benefit. The Bank will issue a new Cverage Summary t reflect the abve adjustments. PAYMENT PROTECTION Disability Insurance Please refer t yur Cverage Summary t cnfirm whether this benefit sectin applies t yu. Terms specific t Disability Insurance and what they mean: Disability r disabled means a sickness, injury, r cmplicatins due t pregnancy, and any related medical cnditins that prevent yu frm perfrming all r substantially all f the essential duties f yur wn jb. T be cnsidered disabled, yu cannt be engaged in any ccupatin r emplyment fr wage r prfit. Qualifying Perid means the 30-day perid f cntinuus Disability beginning n the date yu becme disabled and ending n the date yu qualify fr Disability Benefits. Subject t the terms and cnditins f this Certificate, if yu have a Disability that cntinues beynd the Qualifying Perid as defined in this Disability Insurance sectin f the Certificate, the Insurer will pay yur Disability Benefit t the Bank. Amunt f Disability Benefit The Disability Benefit is equal t the sum f: the Mrtgage Payment as at the date f Disability, multiplied by yur Percent f Payment Cvered; and all insurance premiums wing under yur Mrtgage. If yu are disabled fr part f the Mrtgage Payment perid, a prprtinate amunt f the Disability Benefit will be paid. If a Disability ccurs within 6 cnsecutive mnths f a previus Disability and this Disability arises frm r is related t the same cause, such Disability will be cnsidered a cntinuatin f the previus Disability (the Recurring Disability ) and the 24 mnth perid will be calculated as an aggregate ttal. The Disability Benefit will nt exceed the maximum perid f 24 mnths per Disability, whether paid ver 24 cnsecutive mnths r in aggregate. If mre than ne persn is cvered under the same Mrtgage, benefits payable under Payment Prtectin will nt exceed the Mrtgage Payment, regardless f the number f persns insured. Yu are respnsible t make up any deficiency between yur Mrtgage Payment and the Disability Benefit. Mrtgage Payments and premium payments wing during the Qualifying Perid are nt cvered by the Disability Insurance under this Certificate. 8

9 Nte: Yu are respnsible t make Mrtgage and premium payments during the Qualifying Perid and while the Insurer is assessing yur claim. Any premium paid and later determined t be part f the Disability Benefit will be credited t yur accunt. N Disability Benefit is payable t the Bank fr yur Disability if yu are receiving Jb Lss Benefits. Start and end f Disability Benefit payments Disability Benefit will be paid in arrears beginning n yur first scheduled Mrtgage Payment date after the Qualifying Perid. A Recurring Disability is nt cnsidered a new Disability and is nt subject t anther Qualifying Perid. During the perid f Disability, Disability Benefits will cntinue t be paid t the Bank n each date that a Mrtgage Payment is due and will end n the earliest f the fllwing dates: the date 24 mnths f Disability Benefit payments fr the Disability claimed have been made n yur behalf; the date yu n lnger meet the definitin f Disability r return t wrk; the date yu becme engaged in a business, ccupatin r undertaking fr wages r expectatin f prfit; the date yu refuse t submit t a medical exam by a licensed Physician selected by the Insurer; the date yu fail t prvide prf f cntinuing Disability satisfactry t the Insurer; r the date yur cverage under this Certificate ends as described in sectin When yur cverage ends. Jb Lss Insurance Jb Lss Insurance can nly be available if yur Disability Insurance is in effect. Please refer t yur Cverage Summary t cnfirm whether this benefit sectin applies t yu. Terms specific t Jb Lss Insurance and what they mean: Jb Lss means a cmplete invluntary separatin frm yur emplyment; this includes lay ff, dismissal withut cause, a uninized labur dispute, a legal strike r a lckut. Qualifying Perid means the 60-day perid f cntinuus cmplete invluntary separatin frm yur emplyment beginning n the date f yur Jb Lss and ending n the date yu qualify fr Jb Lss Benefits. Subject t the terms and cnditins f this Certificate, if yu have a Jb Lss that cntinues beynd the Qualifying Perid as defined in this Jb Lss Insurance sectin f the Certificate, the Insurer will pay yur Jb Lss Benefit t the Bank. Amunt f Jb Lss Benefit The Jb Lss Benefit is equal t the sum f: Mrtgage Payment as at the date f yur Jb Lss, multiplied by yur Percent f Payment Cvered; and all insurance premiums wing under yur Mrtgage. The Jb Lss Benefit will be paid fr the same perid yu are receiving Emplyment Insurance Benefits, up t a maximum perid f 6 mnths per Jb Lss, crrespnding with yur apprved Emplyment Insurance Benefits. If yu have a Jb Lss fr nly part f a Mrtgage Payment perid, a prprtinate amunt f the Jb Lss Benefit will be paid. If mre than ne persn is cvered under the same Mrtgage, benefits payable under Payment Prtectin will nt exceed the Mrtgage Payment regardless f the number f persns insured. Yu are respnsible t make up any deficiency between yur Mrtgage Payment and the Jb Lss Benefit. Mrtgage Payments and premium payments during the Qualifying Perid are nt cvered by this Jb Lss Insurance. 9

10 Nte: Yu are respnsible t make Mrtgage and premium payments during the Qualifying Perid and while the Insurer is assessing yur claim. Any premium paid and later determined t be part f the Jb Lss Benefit will be credited t yur accunt. N Jb Lss Benefit is payable t the Bank fr yur Jb Lss if yu are receiving Disability Benefits. Start and end f Jb Lss Benefit payments The Insurer will pay the Jb Lss Benefit in arrears beginning n yur first scheduled Mrtgage Payment date after the Qualifying Perid. During the perid f Jb Lss, Jb Lss Benefits will cntinue t be paid t the Bank n each date that a Mrtgage Payment is due and will end n the earliest n the fllwing dates: the date 6 mnths f Jb Lss Benefits fr the Jb Lss claimed have been paid t the Bank n yur behalf; the date yu refuse t prvide prf f cntinuing Emplyment Insurance Benefits t the Insurer; the date yu n lnger qualify fr Emplyment Insurance Benefits; r the date all cverage under this Certificate ends as described in sectin When Yur cverage ends. Recgnitin f Prir Cverage When yu refinance r apply fr a new Mrtgage t replace an existing insured Mrtgage (the riginal Mrtgage ), yu need t reapply fr BMO Mrtgage Prtectin t insure the refinanced r new Mrtgage. If yur Applicatin n the new r refinanced Mrtgage is declined due t a health cnditin r due t age eligibility, the Insurer will, in recgnitin f yur prir cverage ( ROPC ) under the Plicy, grant cverage n the new r refinanced Mrtgage, prvided that yur cverage was in frce n the date immediately prir t the date f replacement r refinancing. The Insurer will send yu written ntice that yur Applicatin has been declined and the Bank will send yu a Cverage Summary cnfirming insurance in frce and premium payable as n the date f replacement r refinancing Fr Life and Critical Illness Insurance, the Percent f Balance Cvered f the new r refinanced Mrtgage when insured in ROPC is based n the pr-rated clsing balance f the riginal Mrtgage in relatin t the amunt f the new r refinanced Mrtgage. Fr Disability and Jb Lss Insurance, the Percent f Payment Cvered f the new r refinanced Mrtgage when insured in ROPC is based n the pr-rated Mrtgage Payment befre the date f the new r refinanced Mrtgage in relatin t the Mrtgage Payment n the date the new Mrtgage r refinancing agreement cmes int effect. Nte: The applicatin f ROPC t a refinanced Mrtgage may result in a reduced Percent Balance/Payment Cvered and applicable benefits will be calculated based n the adjusted Percent Balance/Payment Cvered. In n event will cverage under ROPC exceed the amunt wed t the Bank. Premiums fr cverage under this sectin f the Certificate will be based n the Amunt fr Insurance f the new r refinanced Mrtgage and yur premium rate will be determined by yur age n the date f the Applicatin under which yu were last apprved fr the applicable cverage. Example: ROPC n Life and Disability Insurance Insured Insured 1 Cverage type n riginal Mrtgage Life Insurance Disability Insurance Clsing Mrtgage balance / Payment befre refinance $225,000 $1,500 Percent f Balance / Payment Cvered befre refinance 100% 100% New Mrtgage balance / Mrtgage Payment after refinance Percent f Balance / Payment Cvered after refinance (in relatin t the new Mrtgage balance / Payment after refinance) $300,000 $225,000 / $300,000 = 75% $1,875 (mnthly equivalent) $1,500 / $1,875 = 80% 10

11 Hw t calculate yur premium Yur mnthly premium rate is based n yur age at the date yu apply fr insurance and will nt change as yu age. Premiums are charged fr each persn insured. If tw r mre persns are insured, a multi-insured discunt rate will apply, based n the age f each persn insured. Prvincial sales tax may apply. Yur insurance premiums, plus any applicable prvincial sales tax are charged in arrears and cllected by the Bank with yur Mrtgage Payment. Premium rates per insured Fr Life and Critical Illness Insurance, mnthly premium rates are per $1,000 f Amunt fr Insurance as n yur premium billing date. Fr Disability and Jb Lss Insurance, mnthly premium rates are per $100 f the ttal f the Amunt fr Insurance plus any Balance Prtectin insurance premiums as n yur premium billing date. PREMIUM RATE TABLE (mnthly cst)* Balance Prtectin Payment Prtectin Life Insurance Critical Illness Insurance Disability Insurance Jb Lss Insurance Age** Single Multi Single Multi Single Multi Single Multi Premium is subject t prvincial sales tax, where applicable. * See table belw t cnvert mnthly cst t ther payment frequencies. ** Yur age n date f Applicatin. If Mrtgage Payments are made in a frequency ther than mnthly, ne f the fllwing cnversins will apply: T cnvert mnthly cst t Multiply by weekly bi-weekly semi-mnthly 0.5 Example: Premium calculatin Insured Insured 1 Insured 2 Cverage type Life Insurance Life Insurance Disability Insurance Age Premium rate $0.11 $0.17 $2.40 Persnal details Mrtgage Amunt/ Payment Percent f Balance / Payment Cvered $200,000 $1,500 50% 100% 100% Amunt fr Insurance Balance Prtectin $200,000 x 50% = $100,000 $200,000 x 100% = $200,000 Mnthly Balance Prtectin premiums ($100,000 /1000) x $0.11 = $11.00 ($200,000 / 1000) x $0.17 = $34.00 Balance Prtectin premium $ $34.00 = $

12 subttal Amunt fr Insurance Payment Prtectin Mnthly Payment Prtectin premiums Ttal Mnthly Mrtgage Prtectin premiums ($ $34.00) + $37.08 = $82.08 ($1,500 X 100%) ($1,500 + $45) / 100) X $2.40 = $37.08 Nte: Premium rates are subject t change upn at least 30 days written ntice and will apply t all insureds under the Plicy. GRACE PERIOD Sun Life grants a 90-day grace perid fr the payment f yur premium. If the premium has nt been paid within 90 days f the expected payment date, the insurance will be cancelled. When yur cverage ends All insurance cverages n yur Mrtgage will terminate, withut ntice t yu, n the earliest f the fllwing dates: the date yur insured Mrtgage is paid in full, refinanced, discharged r assumed by anther persn; the date yu are n lnger a brrwer r c-brrwer n the Mrtgage; the date yur insured Mrtgage is transferred t anther financial institutin; the date yur insurance premium is mre than 90 days in arrears; the date the Bank receives yur written request t cancel yur cverage; 30 days after the Insurer r the Bank gives yu written ntice f the terminatin f the Plicy; r the date yu die. Fr age, in the case f Jb Lss Insurance cverage will als terminate n yur birth date in the year in which yu turn 60. Fr all ther cverages under this Certificate, cverage will als terminate n yur birth date in the year in which yu turn 70. If yur Percent f Balance Cvered fr Life Insurance and Critical Illness are equal, all Balance Prtectin cverage under this Certificate will als end n the date the Insurer pays yur Critical Illness Benefit, whether r nt the benefit paid t the Bank cvers all amunts wed by yu and any c-brrwer under yur Mrtgage. Yur Critical Illness Insurance cverage will als terminate n the earlier f the fllwing dates: the date yur Life Insurance ends; r the date f Diagnsis r Surgery, if the Insurer pays yur claim fr a Cvered Critical Illness. 12

13 Imprtant Infrmatin Cverage Limitatins and Exclusins When the Insurer will nt pay the applicable insurance benefit Fr Life Insurance, Critical Illness Insurance and Disability Insurance The Insurer will nt pay any insurance benefit if: yu give any false r incmplete respnses t requests fr infrmatin that we require t apprve yur insurance, r assess any change t yur cverage. This applies t any respnses in yur Applicatin and t any ther infrmatin we receive frm yu, whether in writing, electrnically, r by telephne; r yu were nt eligible fr cverage under this Certificate when yu applied. In additin t the general exclusins, the specific exclusins and limitatins apply t the fllwing cverage types: Pre-Existing Cnditins and cverage fr Life Insurance, Critical Illness Insurance and Disability Insurance The Insurer will nt pay: a Life Insurance Benefit if yu die; a Critical Illness Insurance if yu are Diagnsed with r have Surgery fr a Cvered Critical Illness; r a Disability Insurance Benefit if yu are Disabled, if yu were nt required t answer any health questins when applying fr the applicable cverage and such lss ccurs within the first 12 mnths f the Cverage Effective Date fr the applicable cverage and yur claim is due t a Pre-existing Cnditin. A Pre-existing Cnditin is defined as a cnditin r health prblem fr which, in the 12 mnths befre yur insurance cverage began, yu cnsulted with r received advice, treatment, care and/r service by r frm a licensed Physician r health care practitiner, r yu tk medicatins r injectins. Fr Life Insurance N Life Insurance Benefit will be payable if yur death results frm: events directly r indirectly relating t, arising frm r fllwing yur participatin r attempted participatin in a criminal ffence; civil disrder r war, whether r nt war was declared, unless yu are n active military duty as a member f the Canadian Armed frces r Canadian Frces Reserve; suicide r self-inflicted injury, whether Yu are sane r insane, where cverage has been in frce fr less than 24 mnths; r events directly 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 arises r results frm yur impairment. Fr Critical Illness Insurance N Critical Illness Benefit will be payable if: the exclusins and limitatins set ut under the Critical Illness Insurance sectin f this Certificate apply t yu; r yur Diagnsis f r Surgery fr a Cvered Critical Illness resulted directly r indirectly frm the intentinal taking f drugs, except where prescribed by a Physician r Specialist. Fr Disability Insurance N Disability Benefit will be payable if: yur Disability results frm: self-inflicted injuries r attempted suicide, while sane r insane; events directly r indirectly relating t, arising frm r fllwing yur participatin r attempted participatin in a criminal ffence; civil disrder r war, whether r nt war was declared, unless yu are n active military duty as a member f the Canadian Armed Frces r Canadian Frces Reserve; 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 Disability 13

14 arises r results frm yur impairment; elective csmetic r experimental surgery r treatment; nrmal pregnancy; yu are nt under the active and cntinuus care f a licensed Physician r health care practitiner apprved by the Insurer; yu refuse t submit t a medical exam by a licensed Physician selected by the Insurer; yu fail t prvide prf f cntinuing Disability satisfactry t the Insurer; r yu are receiving Jb Lss Benefits at the time f yur Disability. Fr Jb Lss Insurance N Jb Lss Benefit will be payable if: yur Jb Lss is the result f a maternity r paternity leave allwed by law r agreed t with yur emplyer; yur Emplyment Insurance claim is nt paid fr any reasn; yu fail t prvide prf f Emplyment Insurance Benefits t the Insurer; yu are receiving Disability Benefits at the time f yur Jb Lss; r yur lss f emplyment des nt meet the definitin f Jb Lss. Misstatement f age If the date f birth was misstated, we will adjust the premium r applicable benefits based n yur true age. Subject t applicable law, if yu did nt meet the eligibility criteria at time f Applicatin, the insurance shall be vid. Limitatin f actins 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. Changes The terms f this Certificate, including premium rates, are subject t change upn at least 30 days written ntice. Any such change will apply t all persns insured under the Plicy. Hw t make a claim Claim frms and detailed instructins n hw t submit a claim are available frm any branch f the Bank A claim shuld be made as sn as pssible, but n later than the fllwing dates: fr Life Insurance, within ne year frm the date f death; fr Critical Illness Insurance, within 180 days f being diagnsed with a Cvered Critical Illness. Yu will als need t prvide written prf frm a Physician r Specialist f the Diagnsis f a Cvered Critical Illness; fr Disability and Jb Lss Insurance within 120 days frm the date f Disability r Jb Lss. The Insurer will nt pay any claims made after these deadlines. Any regular Mrtgage Payments and insurance premium payments required must cntinue t be made until such time as yur claim is apprved. Any required prf relating t a claim is at the expense f the claimant. The Insurer may require that a licensed Physician r health care practitiner, apprved by the Insurer, examines yu t validate a Critical Illness. The Insurer will nly pay applicable benefits after these requirements are satisfied. Other Imprtant Infrmatin Yu have the right t examine and btain a cpy f the Plicy and certain ther written statements r recrds yu have submitted t the Insurer (if any), in applying fr insurance, subject t certain access limitatins. The first cpy will be prvided at n cst t yu but a fee will be charged fr subsequent cpies. All requests fr cpies shuld be directed t the Bank. 14

15 Privacy statement Message frm Yur Insurer Respecting Yur Privacy At Sun Life Financial, prtecting Yur privacy is a pririty. We maintain a cnfidential file in ur ffices cntaining persnal infrmatin abut Yu and Yur cntract(s) with us. Our files are kept fr the purpse f prviding yu with insurance prducts. Access t Yur persnal infrmatin is restricted t thse emplyees, representatives and third party service prviders wh are respnsible fr the administratin, prcessing and servicing f Yur cntract(s) with us, ur reinsurers r any ther persn whm Yu authrize. In sme instances these persns may be lcated utside Canada, and Yur persnal infrmatin may be subject t the laws f thse freign jurisdictins. Yu are entitled t cnsult the infrmatin cntained in ur file and, if applicable, t have it crrected by sending a written request t us. T find ut abut ur Privacy Plicy, visit ur website at r t btain infrmatin abut ur privacy practices, send a written request by t privacyfficer@sunlife.cm r by mail t Privacy Officer, Sun Life Financial, 225 King St. West, Trnt, ON M5V 3C5. 15