Pay online by August 14, Sign onto MyWeb at

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1 Pay online by August 14, Sign onto MyWeb at In compliance with subsection 11(3) of Ontario Regulation 579/05, I have chosen to make my insurance payment in the amount of $ by the due date of August 14, 2015 OR in the amount of $ after the due date by: Cheque payable to RECO VISA or MasterCard NO payments by American Express RECO Registration No.: Registrant Name (please print): Address for Service: PAYMENTS ARE NOT ACCEPTED BY TELEPHONE Credit Card Number: ONLY VISA or MasterCard Expiry Date: Cardholder's Name (please print) : Cardholder's Signature: M M Y Y Address: This is my primary address for electronic communications with RECO: Errors & Omissions, Commission Protection & Consumer Deposit Insurance coverage for the period from September 1, 2015 to September 1, Pay online or detach top portion and return with payment. Registrant Name: Real Estate Council of Ontario Registration No.: Errors & Omissions, Commission Protection & Consumer Deposit Insurance coverage for the period from September 1, 2015 to September 1, Total Insurance Premium Premium Stabilization Fund Program Expenses PST (8%) The actual cost of the insurance related to losses plus the fees of the insurance broker, actuarial consultant, and professional claims manager to provide the services of arranging and negotiating the program renewal terms, completing actuarial studies, monitoring claim services and compiling loss data reports based on this information. A fund established to protect registrants against future significant increases in insurance premiums, or for other events that may impact registrants such as changes in program coverage. Covers the ongoing expenses related to the administration of the program including issuance of certificates and documentation to all registrants, risk management to control or reduce claims, and claims management activities. Charged on Insurance Premium $ HST (13%) Charged on Program Expenses (RECO HST NO RT 0001) 1.81 Payment due August 14, 2015 Insurance program payments are non-refundable in whole or in part. Payment is due unless your registration has been terminated, or will terminate, prior to September 1, NOTE: NSF or returned cheques will be subject to a $35.00 fee. $ Payment required after the due date: $ Pay online Sign onto MyWeb at Payment options & insurance program information are available on page 2 Receipts for Income Tax & Certificates of Insurance will be available online through MyWeb approximately 5 business days after your payment has been made. Office/Courier Address RECO Insurance Department 3300 Bloor Street West West Tower, Suite 1200 Toronto ON M8X 2X2 Registrants become part of the suspension process when they fail to make their insurance payment by the due date. These registrants are required to pay an additional $35.00 (30.97 Program Expenses HST) for expenses related to the administration of the suspension process. RECO DOES NOT ACCEPT PAYMENTS BY TELEPHONE Phone: or Fax: or insurance@reco.on.ca Website: Payment required after the due date: $ Page 1 of 2

2 PAYMENT MUST BE MADE BY AUGUST 14, 17, PAYMENTS PAYMENTS ARE ARE NOT NOT ACCEPTED ACCEPTED BY TELEPHONE. IN CASH Registrants are requested to make their insurance payment by credit card An effective method of making your insurance payment is by credit card through MyWeb, RECO's exclusive through web MyWeb, portal for RECO's registrants. exclusive Log on to web portal for registrants. to access the site. You may also view the status of your payment or access your receipt for income tax and certificate of insurance approximately five (5) business five days (5) business after your days payment after has your been payment made. has been made. Log on to to access the site. You may also view the status of your payment or access your receipt for income tax and certificate of insurance approximately five (5) business days after your payment has been made. PAYMENT OPTIONS Pay online by Credit Card at MyWeb Go to: or and sign onto MyWeb Once signed in, follow the prompts to make your insurance renewal payment by VISA or MasterCard For assistance with MyWeb, Cheque Payments & Money Orders Cheques and money orders should be made payable to RECO Print your name and RECO registration number on the front of the payment Mail using to RECO's enclosed office envelope (allow 3 (allow weeks 3 for weeks mail delivery) for mail delivery) Uncertified cheques may take from 5 to 21 days to process NSF or returned cheques will be subject to a $35.00 fee Courier Packages Courier packages are accepted at the RECO office: Monday to Friday between 8:30am 4:30pm Bloor St. West, West East Tower, Suite 600, 1200, Toronto ON ON M8X 2X9 2X2 IMPORTANT INSURANCE PROGRAM INFORMATION POLICY DOCUMENTATION By paying the insurance premium you receive protection in accordance with the terms and conditions of the September 1, Master Policy form issued to RECO, available at or INSURANCE IS A REQUIREMENT OF REGISTRATION Your insurance payment of $417 $ must be paid by the due date of August 12, 14, Failure of uncertified cheques to be cleared by the bank by the due date may result in a notice of suspension sent to your attention. CONSEQUENCES OF NON-PAYMENT Failure of your payment to be made by the due date results in the suspension of your registration and the right to trade in real estate effective September 1, The Registrar is obliged by statute to initiate the suspension process immediately after the due date. The suspension of your registration for non-payment of insurance amounts will be made available to the public on the RECO website. If at any time you are suspended or cease to be registered with RECO to trade in real estate, your insurance coverage immediately lapses. This includes, but is not limited to, failure to renew your registration by the expiry date. Insurance program payments are non-refundable in whole or in part. The insurance payment is the minimum payment regardless of the term of your insurance. This ensures the most cost-effective insurance program for all registrants, because it keeps individual premiums and administrative costs as low as possible. Your Errors & Omissions insurance policy continues to cover you, at no extra cost, for a period of five years from the date of your leaving the business for claims resulting from activities while you were registered (subject to the terms of the insurance policy). HELPFUL HINTS In Send an effort Credit to reduce Card Information Insurance Program for Processing expenses, registrants Credit card will information be required will to be make processed their insurance online by payment a RECO by representative. credit card through MyWeb, RECO's web portal for registrants Fill in the credit in card information on page 1 of this invoice including the credit card type, card number, expiry date, RECO cardholder s representatives name and will signature not be in a position to input payments Submit online by fax in to: 2016 on behalf of registrants. However, RECO representatives or will be available to help registrants input Or their mail payments using enclosed online. envelope (allow 3 weeks for mail delivery) Cash payments are no longer accepted for insurance program payments Cash Payments at RECO. Exact change only Cash payments can be made at the RECO office: RECO Monday does to not Friday accept between payments 8:30am by telephone. 4:30pm Bloor St. West, East West Tower, Suite Suite 600, 1200, Toronto Toronto ON ON M8X M8X 2X92X2 RECO s office is located in the Sun Life Financial Centre on the North East Corner of Bloor Street West and Islington Avenue Credit card payments are not accepted by telephone RECO does not accept American Express To avoid duplicate payments, check with your employer to ensure that only one payment is sent for processing You can check the status of your payment online by signing onto MyWeb at Due to the high volume of insurance transactions, duplicate payments can not be refunded until completion of the renewal payment process Claim and incident reporting forms are available online at or Page 2 of 2

3 Insurance Renewal July 2015 Real Estate Council of Ontario (RECO) Insurance payment due August 14, 2015 The total cost of insurance, including taxes and expenses is $417 for the policy period. Payments are due by August 14, How to make a payment You can make your payment online. Over 83% of registrants make their insurance payments through MyWeb, RECO s exclusive web portal for registrants. If you do not already have a MyWeb account, creating one is easy and free; simply visit to sign up. Use your MasterCard or Visa to pay your insurance online for immediate processing and confirmation of payment. Cash payments are no longer accepted In an effort to reduce insurance program expenses and enhance security, payments are not accepted in cash or by phone. You are requested to make your payment through MyWeb. RECO moving to electronic reminders Effective August 1, 2015, RECO will begin sending electronic registration renewal reminders and phasing out the post card reminder. Going electronic will allow RECO to provide registrants with multiple reminders, to help everyone renew on time, avoiding any unnecessary interruptions to registration. Please verify that RECO has your up-to-date address by visiting MyWeb. Policy changes for Effective September 1, 2015 the policy has been expanded to provide some bodily injury coverage. Registrants will now have up to $25,000 of coverage under certain circumstances in the event a consumer makes a claim for bodily injury arising out of Professional Services (as defined in the policy), where the registrant accompanies the consumer to a property in connection with the purchase or sale of that property. This change also includes coverage for claims related to mental anguish or distress after the purchase or sale of a property where it is alleged the registrant failed to disclose an adverse condition relating to that property. Bodily injury claims not pertaining to Professional Services are not covered by the RECO insurance program. The insurance program does not include general liability coverage. Ask your insurance broker about general liability coverage and review all your coverages frequently as changes in the insurance marketplace can occur at any time. The policy has also been modified to allow the insurer to settle claims without consent. This does not change the program s commitment to keep you informed about settlement offers, or negate your opportunity to provide input on them. Whenever reasonably possible, the program is committed to seeking your consent for any settlement. This change is especially important in instances where registrants are unable to give their consent due to serious illness. New regulations under the Estate Administration Tax Act have no effect on the existing coverage. Registrants will continue to be covered when providing an opinion of value for estate valuations (subject to the terms of the insurance policy). Opinions for the purposes of financing continue to be excluded.

4 Can I park my registration? There is no provision under the Real Estate and Business Brokers Act, 2002 that permits a parked or non-active registration status. You must either be registered to trade in real estate - which involves renewing your registration every two years, fulfilling all education requirements and paying your yearly insurance renewal fee - or you may choose to terminate your registration. If you are planning to leave the business, consider terminating your registration prior to renewing your insurance policy because insurance payments are non-refundable. There are two ways to terminate your registration: 1. Send a completed Notice of Employee Change: TERMINATION form, found on RECO s website under Real Estate Professionals > Resources > Forms, and a copy of your resignation letter to RECO s Registration Department by August 1, 2015 to avoid becoming part of the suspension process (Terminations will be processed on a first come first served basis); or 2. Have your Broker of Record or Branch Manager complete the termination process for you on MyWeb prior to August 14, 2015 to avoid becoming part of the suspension process. See RECO s website for further details. If you decide to return to your career in real estate, you have 24 months from your date of termination to reinstate your registration. You will be required to complete your educational requirements, submit an Application for New/Reinstatement: Broker/ Salesperson form, found on RECO s website, and pay the prescribed registration and insurance fees. Suspension Process: What happens if my insurance payment is late? Registrants who fail to make their insurance payment by the due date of August 14 will become part of the suspension process and will be required to pay an additional $35 for expenses related to administration of the suspension process. The total insurance payment after the due date of August 14 is $452. Failure to make an insurance payment results in the suspension of your registration and the right to trade in real estate effective September 1, About the insurance program RECO works with insurance broker Alternative Risk Services to negotiate and secure the best insurance coverage and rates for you year after year. RECO s insurance program provides essential protection for you and your clients and customers through its Errors & Omissions, Commission Protection and Consumer Deposit insurance coverage. I would like some more information To learn more about RECO s insurance program, visit the information website To pay your insurance online: For assistance with MyWeb: insurance@reco.on.ca or Insurance payments are non-refundable because after September 1, the insurer considers the insurance payment earned, partly because your Errors and Omissions insurance policy continues to cover you, at no extra cost, for a period of five years from the date of your leaving the business for claims resulting from activities while you were registered (subject to the terms of the insurance policy). Real Estate Council of Ontario 3300 Bloor Street West West Tower Suite 1200 Toronto ON M8X 2X2 Phone: Toll Free: Fax: or insurance@reco.on.ca

5 RECO Insurance Program presented by Alternative Risk Services Introduction The RECO Insurance Program provides three great coverages wrapped up in a single policy. The policy is made up of three parts, Part A provides coverage for Registrant Errors and Omissions, Part B protects Registrant commissions, and Part C provides coverage to consumers to protect their deposits. The RECO Insurance Program is managed independently from RECO by Alternative Risk Services and insured by Lloyd s Underwriters. Claims for Errors and Omissions and Commission Protection are reported to the Program s adjuster, ClaimsPro LP and claims for Consumer Deposits are reported to RECO. For more information, including claim reporting forms, visit the Program website: claims.ca Summary of What s Covered Coverage Errors and Omissions Consumer Deposit Commission Protection What s Covered Covers you for mistakes you make, such as: Forgetting a key clause in the APS Making a mistake with respect to taxes Using the wrong form Under or overpricing a property Or, none of the above groundless accusations can lead to expensive Covers consumers deposits against: A Registrant becoming insolvent (i.e. brokerage goes bankrupt) Theft, fraud, misappropriation, or wrongful conversion by a Registrant Covers loss of commissions against: A Registrant becoming insolvent (i.e. brokerage goes bankrupt) Theft, fraud, misappropriation, or wrongful conversion by a Registrant claims Limit Per Claim $1,000,000 $100,000 $100,000 Limit Per Year $3,000,000 n/a n/a Limit Per Event n/a $1,000,000 $1,000,000 Deductible $2,500 (damages only) Increased by $2,500 for each additional claim where damages are paid in a 3 year period $0 $250 Errors and Omissions What s Not Covered Fraud Bodily Injury, except under $25,000 in certain circumstances Property damage over $25,000 (subject to a $500 deductible) Appraisals for the purposes of financing Commission disputes Deposit disputes Fines, penalties, taxes, etc. Property management (where it represents more than 35% of gross revenue of the individual or the firm) Mortgage brokering Personal Interest [read carefully!] Claims related to properties or businesses you have a personal interest in are excluded, unless the appropriate disclosures to the buyer/seller are made per the Act and Regulations including full disclosure of all facts within the registrant s knowledge that affect or will affect the value of the real estate Claims involving personal interest are significantly more difficult to manage, and hiring another sales person to sell your property is strongly recommended. At all times, the coverage applicable in any given situation will be determined by the particular circumstances and allegations of the claim or potential claim asserted against an insured, and will be subject to all of the terms, conditions, limitations and exclusions of the policy and the obligation of each insured to fully comply with all of its duties and obligations under the policy. Nothing in this document is intended to be, nor should it be interpreted as, an assurance of coverage for future and unknown claims that might arise. RECO Insurance Program Presentation Handout (September 2015) Alternative Risk Services is a division of Canada Inc.

6 RECO Insurance Program presented by Alternative Risk Services Top 5 Causes of Claims Below is a list of the five most common causes of claims. Watch out for these situations, and remember: document everything! 1. Miscommunication/Non Disclosure Failure to disclose property conditions that would affect sale price. 2. Foundations Claims arising out of leaky basements, unfit foundations, walls collapsing. Often involves some sort of concealment. Home inspections are key to managing this issue. Hot market exacerbates this issue pushing for unconditional offers in bidding wars. 3. Incomplete Sale Unable to close due to financing, APS terms, late developments in state of property, unwillingness, etc. 4. Septic/Environmental Septic systems require specialized knowledge for agents regarding warrantees and disclosure to buyers. Old buried oil tanks are troublesome may require remediation or cause huge expenses if leaking. For commercial transactions APS documentation is key. 5. Structural Similar to foundations inspection is key. Flipped or Fixer upper houses pose big risks. The Claim Process Use the following diagram to help understand the claim process, and the different ways a RECO Insurance Program claim can reach a conclusion. Sometimes the other side doesn t proceed, and the claim is dismissed RECO Insurance Program Presentation Handout (September 2015) Alternative Risk Services is a division of Canada Inc.

7 RECO DOES NOT ACCEPT PAYMENTS BY TELEPHONE