DISTRIBUTION GUIDE. Insurer s Contact Information: Distributor s Contact Information:

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1 DISTRIBUTION GUIDE Name of the Insurance Product: Product Protector Type of Insurance Product: Provides coverage consisting of two benefits: Property Coverage and Extended Warranty Insurer s Contact Information: Aviva Canada Insurance (herein called "Aviva") 2206 Eglinton Avenue East Scarborough, Ontario M1L 4S8 Telephone: or call collect at (416) Fax: (416) Distributor s Contact Information: Canadian Tire Financial Services Limited 555 Prince Charles Drive Welland, Ontario L3C 6B5 Telephone: Responsibility of l Autorité des marchés financiers L Autorité des marchés financiers does not express an opinion on the quality of the product offered in this guide. The insurer alone is responsible for any discrepancies between the wording of the guide and the policy.

2 Table of Contents Introduction Description of the product offered Property Coverage - Summary of the specific features Extended Warranty - Summary of the specific features Cancellation Change in Premiums and Coverage How Do I Claim? Appeal of Aviva s Decision and Recourses Do You Need to Know Anything Else? Similar Products Referral to l' Autorité des marchés financiers du Québec Notice of cancellation of an insurance contract

3 INTRODUCTION PRODUCT PROTECTOR is an insurance programme available to Canadian Tire MasterCard Cardmembers. You, your, yours mean the person who holds a valid Canadian Tire MasterCard and is the primary Cardmember who receives the monthly account. Cardmember means you and all supplementary Cardmembers. This guide provides you with information on this insurance. It will help you decide if this insurance is suitable for your needs. DESCRIPTION OF THE PRODUCT OFFERED a) Nature of the Coverage PRODUCT PROTECTOR consists of two benefits: PROPERTY COVERAGE Personal Property purchased by a Cardmember and charged in full to the Canadian Tire MasterCard is insured against all risks of direct physical loss or damage for 90 days from the date of purchase. EXTENDED WARRANTY Extended Warranty automatically doubles the original period of warranty for items purchased by a Cardmember and charged in full to the Canadian Tire MasterCard. Note that there are conditions and exclusions. b) Summary of the Specific Features of Property Coverage What Does It Do For the Cardmember? Property Coverage automatically insures new items of personal property for 90 days, beginning on the date of purchase, when the full purchase price is charged to the Canadian Tire MasterCard. It does not matter if the item is lost, damaged, or stolen; it does not matter where in the world you are when it happens. It will be at the sole discretion of Aviva whether the covered item will be replaced or repaired, or whether you will be reimbursed for the original purchase price of the item (including any applicable taxes). Property Coverage is not designed to act as a replacement for other insurance. As such, it provides coverage for what is not covered by your homeowner s or tenant s policy, or other applicable insurance. / The trademarks of Canadian Tire Corporation, Limited are used under licence. Product Protector is a trademark of Canadian Tire Financial Services Limited. Mastercard is a registered trademark of MasterCard International, Incorporated, used under licence. 3

4 What Kind of Purchases Are Covered? CAUTION All items that are for personal use (not for a business or commercial use) are eligible for coverage except: cash, travellers cheques, securities or any other negotiable instrument; tickets or documents; jewellery, gems, watches and furs, or garments trimmed with fur, while it is contained in your baggage while travelling, unless such baggage is with a Cardmember or a travelling companion at all times; living plants, animals, or any perishables such as food or liquor; bullion, rare or precious coins, art objects or antiques; used or pre-owned items; automotive parts and accessories NOT purchased at Canadian Tire; tires of any kind, purchased anywhere; automobiles, boats or any other motorized vehicles which are used for personal transportation. If the covered item(s) belongs to a pair or set, then Property Coverage will repair or replace the pair or whole set (or reimburse you for the purchase price) only if the individual items or components cannot be replaced individually, or cannot be used individually. Otherwise, the benefit will be proportional to the cost of the lost, damaged or stolen piece or component, compared with the cost of the complete pair or set. How Broad Is the Coverage? CAUTION Property Coverage provides coverage if an eligible item is lost, damaged, or stolen, but excludes: fraud; abuse; organized hostilities such as war, invasion, rebellion, or insurrection; confiscation by authorities; any illegal activity committed by the Cardmember; normal wear and tear, including damage to sports equipment during the normal course of use of such equipment; mechanical breakdown; radioactive contamination; disappearance of an item that is unexplained, or marked by an absence of evidence of the wrongful act of another. Consequential damages - something that happens as a consequence of loss or damage to an eligible purchase - are not covered by Product Protector. In no event shall Aviva, or Canadian Tire Financial Services Limited, be liable for any personal injury or damages, which represents a loss in excess of the purchase price of the covered item. 4

5 Benefit Maximums The total of all your Property Coverage claims may not exceed $10,000 in any calendar year. c) Summary of the Specific Features of Extended Warranty What Does It Do For the Cardmember? The original warranty will be doubled, up to a maximum of two additional years. However, the maximum length of the original warranty, plus Extended Warranty is seven years. In addition, lifetime warranties are not covered. The term of extended coverage begins upon the expiration of the eligible product s original manufacturer s warranty or Canadian Tire warranty whichever is later. Here s a chart of a few examples to make it easier. Original Warranty 6 months 1 year 2 years 3 years 6 years Extended Warranty Coverage 6 months 1 year 2 years 2 years 1 year Total Warranty Protection 1 year 2 years 4 years 5 years 7 years In the case of a warranty which provides coverage for a certain number of months or a certain number of kilometres (whichever occurs first), Extended Warranty will extend both the time period and kilometres on an equal percentage basis. For example, if the original warranty covered 5 years or 100,000 kilometres, by charging the cost to your Canadian Tire MasterCard the warranty would be extended to 7 years or 140,000 kilometres. The period during which Aviva provides coverage, as described above, is referred to herein as the "Extended Warranty Period." If a covered item fails as a result of a mechanical breakdown during the Extended Warranty Period, Aviva will pay to have it repaired or replaced. Such failure or breakdown must also have been covered during the original warranty period. It will be at Aviva s sole discretion whether the covered item, or parts, will be replaced or repaired, or whether they will reimburse you for the original purchase price of the item (including any applicable taxes). Extended Warranty is not a substitute for other insurance or warranty coverage and covers Cardmembers only to the extent a claim for an eligible product exceeds the coverage of other insurance or warranties and for the amount of the deductible of such other insurance. What About Pro-Rata Warranties? Some products, such as automotive batteries, may have "pro-rata" warranties that extend beyond the full replacement warranty period. The following illustrates how your Extended Warranty claim, and the credit for the pro-rata coverage will be coordinated. 5

6 Original Full Extended Total Full Cost of Replacement Full Replace- Of Purchases Replace- Are Covered? ment What Item Kind Period ment Period Period Total Full Replacement & Pro-Rata Period If Product Fails in Month Pro-Rata Calculation You Pay the Store Aviva pays you $ months 12 months 24 months 60 months 22 22/60 times $150 $55.00 $55.00 $75 12 months 12 months 24 months 36 months 18 18/36 times $75 $37.50 $37.50 $ months 12 months 24 months 60 months 48 48/60 times $175 $ $0 1 1 Extended Warranty doubles the full replacement period only, for a total full replacement coverage period of 24 months in this example. Since the failure occurred after month 24, no benefit is payable. CAUTION It doesn t matter where in the world the purchase is made, as long as the warranty is valid and honoured in North America. All such purchases with a written warranty from either the manufacturer or from Canadian Tire are covered, except for: parts normally designed to be replaced periodically during the life of the product; services of any kind, including installation or labour, products purchased and/or used commercially; used or pre-owned items; automotive parts and accessories NOT purchased at Canadian Tire; tires of any kind purchased anywhere; automobiles, boats or any other motorized vehicles which are used for personal transportations; perishables, animals or living plants; items or components subject to "Lifetime" warranties or warranties for terms specified by period of ownership. 6

7 What is Not Covered? CAUTION Extended Warranty will not cover loss or damage resulting from: abuse, misuse or the operation of a product under conditions other than those for which it was designed; failure to provide the manufacturer s recommended maintenance; improper installation or alteration; inherent product defects; any illegal activity committed by the Cardmember; normal wear and tear, including damage to sports equipment during the normal course of use of such equipment; radioactive contamination. Consequential damages - something that happens as a consequence of loss or damage to an eligible purchase - are not covered by Product Protector. In no event shall Aviva, or Canadian Tire Financial Services Limited, be liable for any personal injury or damages, which represents a loss in excess of the purchase price of the covered item. Aviva is not responsible for any loss or damage arising during the term of the original warranty, whether or not the original warranty is honoured by the manufacturer. Benefit Maximum The dollar value of your benefits is unlimited but, as stated earlier, there are limits to the length of the extension of the warranty. d) Summary of Specific Features Common to Both Property Coverage and Extended Warranty How Much Does it Cost? The aggregate premium for both benefits is $0.99 per $100 of outstanding balance in your account, to a maximum of $3.95 per month. No premium will be charged in any month where the outstanding balance on your Canadian Tire MasterCard account is less than $5.00. Any applicable sales taxes are extra. If you do not have a balance, and therefore, do not receive a statement, no premium will be payable, yet there will be no interruption of the coverage on your purchases. When Does the Insurance Begin? Your coverage begins on the date you are enroled in Product Protector. The coverage in respect of supplementary Cardmembers begins when their card is activated. When Does the Insurance End? The insurance is monthly, for the same period as your card statement. It renews automatically each month, unless Aviva advises you that your insurance will not be renewed. 7

8 Your coverage will remain in effect for all eligible purchases made until the first to occur of the following: 1. the date on which you request that coverage be terminated; 2. the date on which your account is terminated; 3. the date on which your account becomes 90 days in arrears; however, your insurance will automatically be reinstated when your account is once again in good standing; or 4. the date on which Aviva terminates or does not renew your insurance, provided that you are given 30 days advance notice. The coverage in respect of a supplementary Cardmember terminates automatically on the date your coverage terminates. It also terminates when the supplementary card is cancelled. In the event that coverage is terminated, whether by you or by Aviva, Aviva will honour the insurance for all purchases charged in full to the Canadian Tire MasterCard prior to the date of termination. Cancellation Cancellation in the first 30 days You have the right to cancel the insurance within the 30 days following the date you are enroled under the coverage. To do so, you must send a notice of cancellation to Aviva by registered mail to the address below. You may use the form attached hereto in Schedule 1 for this purpose. Attention: You should also forward to Aviva a copy of Schedule 1, which represents your proof of receipt, by registered mail. This cancellation takes effect as soon as Aviva receives your notice of cancellation. Also cancellation can be made by calling toll free at The premium that has been charged to your account will be refunded. Cancellation after the first 30 days You can also cancel the insurance at any time, even after more than 30 days following the date you are enroled under the coverage, by sending Aviva a notice to this effect to the address below. Attention: You should also forward to Aviva a copy of Schedule 1, which represents your proof of receipt, by registered mail. Also, cancellation can be made by calling toll free at If a premium was paid in excess, Aviva will refund it. Send your cancellation notice to the address below: Aviva Canada Insurance Howe Street Vancouver BC V6Z 2Y6 8

9 Change in Premiums and Coverage The premium and the other terms and conditions of coverage may be amended by Aviva upon renewal of your insurance, provided that we give you 30 days advance notice. Are There Any Other Conditions? The Cardmember shall do all things reasonable to avoid or minimize any loss or damage to eligible purchases. As a condition to the payment of any claim, the Cardmember may be required to transfer the covered item to Aviva and assign to Aviva all legal rights of ownership which the Cardmember has against any others for the loss. Product Protector is only for the benefit of the Cardmember. The Cardmember shall not assign benefits without Aviva s prior written approval. However, items purchased by a Cardmember and given as a gift will be covered while owned by the original recipient of the gift, provided the recipient complies with all of the terms and conditions of the insurance. How Do I Claim? All claims must be made by you. If you need to make a claim, simply call or , between 9:00 a.m. and 8:00 p.m., EST, Monday through Friday, prior to proceeding with any action or repairs and a representative will direct you to an appropriate service centre in your area or authorize replacement or reimbursement. Unauthorized repairs can invalidate your coverage. Also, you must make your initial report of a claim within 45 days of becoming aware of the facts giving rise to the claim. Please be sure to keep copies of all manufacturers warranties, Canadian Tire MasterCard statements, and proof maintenance (where applicable), as proof-ofpurchase and evidence of your coverage. You may be required to submit these documents when making a claim. Aviva s Reply Aviva will advise you of their decision, and the reasons for it, within 5 business days of receipt of all required information. If Aviva elects to have the covered item repaired, service will be provided at an authorized Aviva service centre in Canada. All products to be serviced or repaired must be delivered to the service centre and picked up from the service centre, unless in-home service is deemed to be necessary by Aviva. The Cardmember is responsible for the costs of transporting the item to and from the service centre. Repairs will be carried out during normal business hours, and Aviva will arrange to pay the service centre directly. In the event there is no appropriate service centre located within a reasonable distance, you may be required to initially pay for the required repairs and submit the invoices to Aviva for reimbursement. The following chart summarizes the details of how your claims will be processed. 9

10 Call to report your claim; Aviva will mail a Claim Form that must be completed & returned Additional Validation Enclosures If Item is Lost Claim Form to include: date of purchase date of loss how loss occurred witness to loss evidence of other insurance other documentation/proof reasonably required by Aviva In special circumstances, a notarized Proof of Loss may be required Denial letter from other insurance company (e.g. homeowner s insurance) Original sales receipt and/or account statement If Item is Stolen Claim Form to include: date of purchase date theft occurred where & how theft occurred witness to theft or evidence of report to authorities evidence of other insurance other documentation/proof reasonably required by Aviva Aviva may require a copy of a Police Report concerning the theft, which will be obtained at Aviva s cost Suspicious and/or high value claims will be fully investigated, i.e. by an independent claims adjuster Denial letter from other insurance company (e.g. homeowner s insurance) Original sales receipt and/or account statement If Item is Damaged Claim form to include: date of purchase date of damage where & how damage occurred witness to damage evidence of other insurance other documentation/proof reasonably required by Aviva Photo of damaged item; or return of item to Aviva Denial letter from other insurance company (e.g. homeowner s insurance) Original sales receipt and/or account statement If Item Fails during the Extended Warranty Period Information to be provided when reporting your claim: date of purchase nature of product problem/failure estimate of repair cost from authorized service centre other documentation/proof reasonably required by Aviva Confirmation from authorized service centre that problem would have been covered under original warranty Original sales receipt and/or account statement Original warranty Before proceeding with repair or replacement Aviva will confirm coverage Aviva will confirm coverage Aviva will confirm coverage Aviva will confirm coverage Resolution Replacement receipt Replacement receipt Repair invoice or replacement receipt Repair invoice or replacement receipt Appeal of Aviva s Decision and Recourses If you are not satisfied with Aviva s decision, ask them to review their decision and provide them with additional information that would allow them to change their decision. If you are still not satisfied, you may communicate with the Autorité des marchés financiers du Québec or consult your own legal adviser. Do You Need to Know Anything Else? Please call or between 9:00 am and 8:00 pm EST, Monday through Friday, or write: Howe Street Vancouver BC V6Z 2Y6 Phone toll free or Fax toll free Similar Products Other insurance that may include coverage similar to Product Protector may exist on the market. REFERRAL TO THE AUTORITÉ DES MARCHÉS FINANCIERS DU QUÉBEC For all other information on Aviva or Canadian Tire Financial Services, you may contact Autorité des marchés financiers du Québec, at 10 Autorité des marchés financiers 800, Square Victoria, 22e étage C.P. 246, Tour de la Bourse Montréal (Québec) H4Z 1G3 Telephone: Metro Quebec: (418) Montréal: (514) Elsewhere in Quebec: Website: renseignements-consommateur@lautorite.qc.ca

11 Schedule 1 NOTICE OF CANCELLATION OF AN INSURANCE CONTRACT NOTICE GIVEN BY A DISTRIBUTOR Section 440 of the Act respecting the distribution of financial products and services THE ACT RESPECTING THE DISTRIBUTION OF FINANCIAL PRODUCTS AND SERVICES GIVES YOU IMPORTANT RIGHTS. The Act allows you to cancel the insurance without penalty, within 10 days of its signature. The insurer offers you 30 days after the date of enrolment to cancel this insurance product. To do so, you must give the insurer notice by registered mail within that delay. You may use the attached form for this purpose. Despite the cancellation of the insurance contract, the first contract entered into will remain in force. Caution, it is possible that you may lose advantageous conditions as a result of this insurance; contact your distributor, the insurer or consult your contract. After the expiry of the 30-day delay, you may cancel the insurance at any time; however, penalties may apply. For further information, contact l Autorité des marchés financiers at (418) or NOTICE OF CANCELLATION OF AN INSURANCE CONTRACT To: Aviva Canada Insurance Howe Street Vancouver BC V6Z 2Y6 Date: (date of sending of notice) Canadian Tire MasterCard Account # Pursuant to section 441 of the Act respecting the distribution of financial products and services, I hereby cancel the insurance policy which has the same number as my account number: (name of client) (signature of client) This document must be sent by registered mail. Sections 439, 440, 441, 442 and 443 of the Act must be reproduced on the back of this notice. 11

12 439. A distributor may not subordinate the making of a contract to the making of an insurance contract with the insurer specified by the distributor. The distributor may not exercise undue pressure on the client or use fraudulent tactics to induce the client to purchase a financial product or service A distributor that, at the time a contract is made, causes the client to make an insurance contract must give the client a notice, drafted in the manner prescribed by regulation, stating that the client may cancel the insurance contract within 10 days of signing it A client may cancel an insurance contract made at the same time as another contract, within 10 days of signing it, by sending notice by registered or certified mail. Where such an insurance contract is cancelled, the first contract retains all its effects No contract may contain provisions allowing its amendment in the event of cancellation or termination by the client of an insurance contract made at the same time. However, a contract may provide that the cancellation or termination of the insurance contract will entail, for the remainder of the term, the loss of the favourable conditions extended because more than one contract was made at the same time A distributor that offers financing for the purchase of goods or services and that requires the debtor to subscribe for insurance to guarantee the reimbursement of the loan must give the debtor a notice, drawn up in the manner prescribed by regulation, stating that the debtor may subscribe for insurance with the insurer and representative of the debtor s choice provided that the insurance is considered satisfactory by the creditor, who may not refuse it without reasonable grounds. The distributor may not subordinate the making of the contract of credit to the making of an insurance contract with the insurer specified by the distributor. No contract of credit may stipulate that it is made subject to the condition that the insurance contract subscribed with such an insurer remain in force until the expiry of the term, or subject to the condition that the expiry of such an insurance contract will entail forfeiture of term or the reduction of the debtor s rights. The rights of the debtor under the contract of credit shall not be forfeited when the debtor cancels, terminates or withdraws from the insurance contract, provided that the debtor has subscribed for insurance with another insurer that is considered satisfactory by the creditor, who may not refuse it without reasonable grounds. MCC E /05