D-9.2, r. 8 - Regulation respecting distribution without a representative

Schedule Disposition versions

2012-09-01

SCHEDULE 2

(s. 3)

NOTICE OF FREE CHOICE OF INSURER OR REPRESENTATIVE

Section 443 of the Act respecting the distribution of financial products and services (chapter D-9.2)

THE ACT RESPECTING THE DISTRIBUTION OF FINANCIAL PRODUCTS AND SERVICES GIVES YOU IMPORTANT RIGHTS.

· You are required to purchase insurance coverage to secure the repayment of a loan;

· However, you are free to purchase this insurance from the insurer or representative of your choice. You may thus obtain the required insurance in 3 different ways:

(1) By purchasing the insurance offered to you;

If you choose this option, you benefit from the application of section 19 of the Act which allows you to rescind an insurance contract that you signed at the time of signing another contract, without penalty, within 10 days of its signature. However, you must then purchase another equivalent insurance to the satisfaction of the creditor who may not refuse without reasonable causes.

(2) By purchasing other insurance that is equivalent to the insurance required, to the satisfaction of the creditor who may not refuse without reasonable cause.

(3) By demonstrating that you already have insurance that is equivalent to the insurance required, to the satisfaction of the creditor who may not refuse without reasonable cause.

You may change insurer or representative at any time, provided that during the term of the loan agreement you maintain insurance equivalent to the insurance required to the satisfaction of the creditor who may not refuse without reasonable cause. You cannot be required to choose or keep an insurance contract with a particular insurer, nor can you be refused credit or have your loan called in for this reason.

To rescind you insurance, you may use the section hereunder entitled “Notice of rescission of an insurance contract”. For further information, contact the Autorité des marchés financiers at: [phone] or 1-877-525-0337.

________________________________________________________________________

DESCRIPTION OF THE REQUIRED COVERAGE

(section completed by the distributor)

To secure the repayment of your loan, we have required that you purchase:

□ damage insurance: _____________________________________________

in an amount of: $____________ _____________________________________________

(coverage) _____________________________________________

(particulars)

□ insurance of persons of the following type: _____________________________________________

in an amount of: $ ____________ (life, disability, other)

(coverage)

NOTICE OF RESCISSION OF AN INSURANCE CONTRACT

Section 440 of the Act respecting the distribution of financial products and services (chapter D-9.2)

To: ________________________________________________________________________________________

(name of insurer)

_________________________________________________________________________________________

(address of insurer)

Date: _________________________________________

(date of sending of notice)

Pursuant to section 441 of the Act respecting the distribution of financial products and services,

I hereby rescind insurance contract no.: ____________________________________________________________

(number of contract, if indicated)

Entered into on: ______________________________

(date of signature of contract)

In: _________________________________________

(place of signature of contract)

___________________________________________ __________________________________________

(nom of client) (signature of client)

The distributor must first complete this section.

This document must be transmitted by registered mail.

Sections 439, 440, 441, 442 and 443 of the Act must be reproduced on the back of this notice.

Decision 99.06.45, Sch. 2; M.O. 2010-18, s. 4.