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The coverage provided under this policy has been created to meet the specific needs of Life, Accident & Sickness, and Mutual Fund Agents in Canada. Some of the highlights of the program include: - Coverage
- The Insurers agree to pay on behalf of the Insured all sums which shall become legally liable to pay as damages because of a claim first made and reported in the policy term arising out of an error, omission or negligent act in the rendering of insured Services.
- The minimum coverage is for a limit of $1,000,000 per loss, usually subject to an annual aggregate limit of double the per claim loss limit per consultant. Higher limits are available at an additional cost. Where Provincial Regulation demand higher aggregate amounts, these will apply in that jurisdiction.
- Deductibles range from $0 up to $1,000 per loss.
- Services Insured Under the Program
- Those services related to the conduct of the business of a licensed Life Insurance Agent or licensed Accident and Sickness Insurance Agent, licensed Mutual Fund Agent/representative, financial planner or registered representative, not otherwise excluded, included but not limited to:
- Activities relating to and including the advice on and sale of life insurance, insurance amenities, accident and sickness insurance, hospitalization or medical insurance plans, group benefit administration service agreements;
- Activities relating to and including the advice on and sale of variable annuities and variable life insurance contracts providing for participation in life insurance contracts providing for participation in separate investment accounts;
- Activities relating to and including advice on estate plans, personal financial plans, employee benefit plans, group pension plans (including Registered Retirement Savings Plans and Registered Retirement Income Funds), profit sharing plans, retirement annuities, life health and disability plans, including guaranteed investment funds to any of the foregoing. Such guaranteed investment funds, as used herein, refer to funds consisting of property insured by the Canadian Deposit Insurance Corporation, other than insurance contracts such as investment vehicles of banks and trust companies;
- Activities relating to and including the advice on sale of mutual funds and guaranteed investment contracts;
- Investment advising and financial planning activities including but not limited to:
- Clarification of present financial planning situations including financial problems;
- Identification of financial and personal goals and objectives;
- Provision of written recommendations and alternative solutions;
- Coordination of the implementation of periodic reviews and necessary revision to update goals and objectives; and
- Provision of periodic reviews and necessary revision to update financial goals and objectives
- Activities related to and including the advice on and sale of securities, including deferred certificates, not otherwise covered under this policy, however only for those agents/representatives who have purchased this optional cover;
- Activities related to and including sales management or supervisory positions in the business referenced above
- Defense and Claims Expense Coverage
- These expenses are paid by the insurers and subject to a sub-limit of $500,000, which is in addition to the Policy's Limits of liability. These expenses include:
- All premiums on guarantee bonds required to release attachments and on appeal bonds, but without any obligation to apply for or furnish such bonds;
- All expenses incurred in Canada for the investigation, defense, negotiation and settlement of any claim;
- All costs taxed against the Insured following a judgment by a Canadian court of civil jurisdiction;
- All reasonable expenses, other than loss of earnings, incurred by the Insured at the request of the Insurers; and
- All accrued interest that the Insured is obligated to pay on the portion of such Canadian judgments payable by the Insurers.
- Exclusions (This is a summary only, please refer to policy for complete list of exclusions)
- Some of the circumstances that this policy does not apply to include:
- Dishonest Or Fraudulent Acts
- Claims resulting from dishonest, malicious, criminal or fraudulent acts committed by the Insured, however this exclusion does not apply to any Insured who is neither the author of nor an accomplice to the act. Should there be a finding of no liability or should such claims be dismissed, any defense and investigation costs incurred by the Insured shall be reimbursed.
- Bankruptcy/Insolvency
- Claims resulting from the bankruptcy or insolvency of the Insured
- Economic Return
- Claims resulting from express warranties or guarantees of profit, return on capital, economic return, or other guarantees giving rise to forecasts of economic return.
- Tax Advice
- Claims resulting from the preparation, completion or filing of any income tax return or the rendering of tax advice or tax services, with the exemption of advice, which is directly related to Insured's Services otherwise not excluded. This is coverable (under some programs, at the sponsor's option) for an additional premium of $50.00.
- Insured Versus Insured
- Claims initiated by one or more Insured against any other Insured, unless such claim is brought in a client-agent relationship.
- Prior Knowledge
- Claims or circumstances which may reasonably result in a Claim, whether reported in the application or not, known to any Insured before the effective date of this policy; however, when this policy replaces, without interruption, a policy previously issued, this exclusion applies to Losses previously known to the Insured before the inception date of the first policy issued to the Certificate holder.
- Related Entities
- Claims made against the Insured, when such claims are made by or involve another business;
- Majority owned by an Insured; or
- Majority controlled or managed by an Insured; or
- Which is directly or indirectly involved in any way in the ownership or management of an Insured's business; or
- Of which an Insured is a partner, director, officer or employee.
- Bodily Injury/Property Damage
- Claims resulting from the bodily injury to, or sickness, disease or death of any person, or injury to or destruction of property, including the loss of use thereof.
- Securities
- Claims resulting from the Insured's advice as to the investing in or buying or selling of securities as defined in provincial securities acts, other than is otherwise afforded under the policy.
- Real Estate
- Claims resulting from the Insured acting as a real estate agent, promoter or underwriter.
- Damages caused deliberately
- Damages caused by War
- Damages caused by Pollution
- Claims covered by another Insurance
- Claims arising out of Nuclear Liability or Energy Hazard
- Claims pertaining to activities not part of Insured Services
- Fines or Penalties
- Actions brought by any Life Product Entity
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