LOAN PAYMENT PROTECTION

CERTIFICATE OF INSURANCE AND DISCLOSURE STATEMENT

Please keep this Certificate of Insurance in a safe place for future reference. Loan Payment Protection (the “Policy”) is available to Flap or Flap’s partner (wording to confirm) customers as insured, on approved personal loan applications in which the insurance enrolment is submitted to Us, and who have requested the coverage, agreed to pay the premium, and continue to pay premiums on a timely basis. Failure to make premium payments on a timely basis could cause lapses in coverage. Please see "Termination of Coverage" under the General Provisions below.

The beginning of the insurance coverage is sent to you by email after your enrollment. When You enroll in the Policy, You are enrolling directly with Us. This Certificate of Insurance, plus the insurance premiums billed and collected along with Your personal loan payment, are evidence of Your insurance under the Policy, provided the insurance has not been terminated in accordance with the provisions outlined in this Certificate of Insurance.

Summary of Coverages
Involuntary Unemployment
Critical Illness
Disability
Life

This Certificate of Insurance contains information about Your optional insurance. It outlines what is covered along with the conditions under which payment will be made. It also provides instructions on how to make a claim. It is important that You read this Certificate of Insurance carefully and understand Your coverage as Your coverage is subject to certain limitations or exclusions.

Please refer to the Definition section or to the applicable description of benefits for the meanings of all bolded terms.

For confirmation of coverage or for any questions concerning the information in this Certificate of Insurance, call or email Us at support@flapinsurance.com

ELIGIBILITY

To be eligible to apply for insurance, You must:

be a Canadian resident
be between the ages of 18 and 65 on the Effective Date
work full-time at least 25 hours a week;
have a minimum annual income of $30,000;

To be eligible to the Involuntary Unemployment, You must not be self-employed

DEFINITIONS

Accident means an event that occurs while the Policy is in force and whose cause is external, violent, sudden, fortuitous and beyond Your control.

Accidental Death means death through Accidental means sustained directly or independently of all causes and occurring within 90 days from the date of the accident.

Beneficiary means a legal person entitled to receive benefits under this Policy

Date of Diagnosis means the date on which a licensed physician establishes the first diagnosis of a Critical Illness.

Date Of Loss is the date the event or occurrence or, in the case of total disability or involuntary unemployment, the commencement thereof, giving rise to a claim under the Policy.

Effective Date is the date that We received Your enrollment for insurance.

Illness is a deterioration of health or a disorder of the body confirmed by a Physician, that is not caused by an Injury and whose first symptoms appear while this Policy is in force.

Injury means physical harm or damage to Your body caused by an Accident.

Lender is a lender of money; a vendor or lessor of goods, services, property, rights, or privileges, for which payment is arranged through a Credit Transaction; or any successor to the right, title or interest of any such lender, vendor, or lessor.

Payment Obligation means the amount due and payable periodically by You to the Lender for Your loan, based on the periodic payment payable converted to a monthly basis by multiplying the periodic payment by the following factor: for a weekly payment, a factor of 52/12; for a biweekly payment, a factor of 26/12.

Physician means any person legally authorized to practice medicine in Canada within the scope of his or her medical degree (M.D.), and who does not have a family or business relationship with the Life Insured or the Policyowner.

Specialist is a Physician who holds a license and has specialized medical training related to the covered illness for which a claim has been submitted.

Outstanding Loan Amount means the total amount owing to the Lender on Your loan as of the Date of Loss.

You, Your and Yourself means the person who is the borrower and whose name appears on the loan agreement and on the application for insurance and is responsible for the outstanding debt.

We, Us and/or Our refers to Flap Technologies Canada Inc. (Flap) or Flap’s insurance partners.

LIFE BENEFIT

DEFINITIONS

Dismemberment means accidental bodily injuries that are sustained directly and independently of all other causes resulting in the total and irrevocable loss of the entire sight of both eyes, or a hand or foot by complete severance through or above the wrist or ankle joint.

BENEFITS

We will pay to the Lender, on Your behalf, upon due proof of Your death or dismemberment occurring after the Effective Date and while You are covered under the Policy, an amount equal to the Outstanding Loan Amount at the date of death or dismemberment up to a maximum of $30,000.

If the Outstanding Loan Amount is lesser than 20% of the original loan amount, the exceeding amount between the Outstanding Loan Amount and 20% of the original loan amount will be paid to Your estate.

AGE LIMITATION

If You are 65 years of age or older at the Date of Loss, the Life insurance benefit will be paid only in the event of Accidental Death or Dismemberment

EXCLUSIONS

No death or dismemberment benefit will be payable if the claim results directly or indirectly from:

any of the exclusions listed under the heading "General Exclusions" found in General Provisions

Pre-existing Condition: an injury, illness or condition that appeared prior to the effective date or the last reinstatement date of this policy or the 90-day period after the coverage takes effect and for which:

- the person insured was diagnosed, treated, hospitalized or attended to by a Physician or any other health professional; or

- the person insured was advised to seek treatment or consult a Physician or any other health professional; or

- the person insured was prescribed or took medication, showed signs or symptoms, or underwent tests or investigations.

GENERAL PROVISIONS

The definitions, limitations and exclusions of this Life benefit apply in addition to those indicated in this Policy’s General Provisions

CRITICAL ILLNESS BENEFIT

BENEFIT

If, after the Effective Date and while insured, You are diagnosed with a Critical Illness for the first time in Your life and survive for at least 30 days after the Date of Diagnosis, We will pay to the Lender an amount equal to the Outstanding Loan Amount as on the Date of Diagnosis of the Critical Illness, up to a maximum of $30,000.

CONDITIONS

The Date of Diagnosis must occur prior to the individual’s 65th birthday.
The Critical Illnesses covered under this Policy are Cancer (Life Threatening), Heart Attack, Stroke, Coronary Artery Bypass, Kidney Failure on Dialysis and Major Organ Transplant. Full definitions of these Critical Illnesses along with any limitations are found below.
Under this Certificate of Insurance, the Critical Illness benefit will be paid only once. After the Critical Illness benefit is paid, this policy and all its coverage is terminated.
Proof of loss satisfactory to Us must be submitted within 90 days of First Diagnosis. The diagnosis must be made in writing by a Specialist and be supported by medical evidence that We require.

EXCLUSIONS

We do not pay a benefit for a particular Critical Illness if the claim results directly or indirectly from:

any of the exclusions listed under the heading "General Exclusions" found in General Provisions;
Pre-existing Condition: an injury, illness or condition that appeared prior to the effective date or the last reinstatement date of this policy or the 90-day period after the coverage takes effect and for which:

- the person insured was diagnosed, treated, hospitalized or attended to by a Physician or any other health professional; or

- the person insured was advised to seek treatment or consult a Physician or any other health professional; or

- the person insured was prescribed or took medication, showed signs or symptoms, or underwent tests or investigations.

DEFINITIONS

Only the following Critical Illnesses, as defined below, are covered under this Certificate of Insurance:

Cancer (Life Threatening) means any malignant tumor characterized by the uncontrolled growth and spread of malignant cells and invasion of tissue. The diagnosis must be made in writing by a physician and be confirmed by histological examination of the involved tissue. Under this Certificate of Insurance Cancer includes leukemia and Hodgkin’s disease but does not include:
1. All tumors which are histologically described as pre-malignant, as non- evasive or as cancer in situ;
2. Stage A prostate cancer, Duke’s Stage A colon cancer, or any pre- malignant lesions, benign tumors or polyps;
3. Kaposi’s sarcoma or cancerous tumors in the presence of Human Immunodeficiency Virus;
4. Any skin cancer that is not malignant invasive melanoma and that has not exceeded .75 millimeters in depth.
Heart Attack means the death of a portion of the heart muscle as a result of inadequate blood supply that has resulted in all of the following evidence of acute myocardial infarction:
1. Heart attack symptoms;
2. New characteristic electrocardiographic (ECG) changes consistent with a heart attack; and
3. The characteristic rise of cardiac enzymes, troponins or other biochemical markers
4. The diagnosis of heart attack (acute myocardial infarction) must be made by a Specialist.
5. Exclusions: No benefit will be payable under this condition for:
  1. ECG changes suggestive of a prior myocardial infarction;
  2. Other acute coronary syndromes, including angina pectoris and unstable angina; or
  3. Elevated cardiac biomarkers and/or symptoms that are due to medical procedures or diagnoses other than heart attack.
Stroke* (cerebrovascular accident resulting in persistent neurological deficits) is defined as a definite diagnosis of an acute cerebrovascular event caused by intra-cranial thrombosis, haemorrhage, or embolism, with:
1. Acute onset of new neurological symptoms, and
2. New objective neurological deficits on clinical examination, persisting continuously for more than 30 days following the date of diagnosis. These new symptoms and deficits must be corroborated by diagnostic imaging testing showing changes that are consistent in character, location and timing with the new neurological deficits. For purposes of the policy, neurological deficits must be detectable by a Specialist and may include, but are not restricted to, measurable loss of hearing, measurable loss of vision , measurable changes in neuro-cognitive function, objective loss of sensation, paralysis, localized weakness, dysarthria (difficulty with pronunciation), dysphasia, (difficulty with speech) dysphagia (difficulty swallowing), impaired gait (difficulty walking), difficulty with balance, lack of coordination, or new-onset seizures undergoing treatment. Headache or fatigue will not be considered a neurological deficit.
3. The diagnosis of Stroke must be made by a Specialist.
4. Exclusions: No benefit will be payable under this condition for:
  1. Transient Ischaemic Attacks;
  2. Intracerebral vascular events due to trauma;
  3. Ischaemic disorders of the vestibular system;
  4. Death of tissue of the optic nerve or retina without total loss of vision of that eye; or,
  5. Lacunar infarcts which do not meet the definition of stroke as described above.
Coronary artery bypass means the undergoing of heart Surgery to correct the narrowing or blockage of one or more coronary arteries using venous or arterial grafts. Coronary artery bypass does not include;
Angioplasty (percutaneous transluminal coronary angioplasty);
Laser relief of an obstruction; stern insertion; coronary angiography; or
Any other intra-catheter technique. The Surgery must be deemed medically necessary by a physician who is aboard- certified cardiologist.
Major Organ Transplant. The diagnosis of the major organ failure must be made by a Specialist.

GENERAL PROVISIONS

The definitions, limitations and exclusions of this Critical illness benefit apply in addition to those indicated in this Policy’s General Provisions

DISABILITY BENEFIT

DEFINITIONS

Total Disability: your inability, due to Accident or Illness, to perform the main duties of Your occupation at the onset of Disability and, during that period, You are not engaged in any other gainful activity and are under the continuous and appropriate treatment and care of a Physician.

BENEFITS

If You become disabled and as a result are unable to work, while You are covered under the Policy, We will make Your Payment Obligation, to the Lender on Your behalf during the term of Your Total Disability beginning retroactively with Your Date of Loss and until You are able to return to work , up to a maximum of 12 monthly payments.

CONDITIONS AND LIMITATIONS

You shall remain disabled for more than 30 consecutive days. Disability benefit payments will be made after You have been totally disabled for 30 consecutive days, and after We receive proof of Your Total Disability.
To be eligible for disability benefits, You must have been insured under the Policy and gainfully employed or working in a self-employed capacity earning taxable revenue pursuant to the Canada Revenue and Taxation Act on a permanent basis, working full-time at the Date of Loss, which means working at least 25 hours each week.
When You are simultaneously disabled and involuntarily unemployed, You are entitled to benefits only under one coverage, not under both.

EXCLUSIONS

We do not pay a monthly disability benefit if the disability resulted directly or indirectly from:

any of the exclusions listed under the heading "General Exclusions" found in the General Provisions;
a Critical Illness for which a benefit has been paid under Critical Illness, of this Policy;
normal pregnancy;
. Injuries sustained during air travel, unless You are a passenger on an aircraft used by a common carrier;
A Pre-existing Condition: an injury, illness or condition that appeared 6 months prior to the effective date or the last reinstatement date of this policy or the 12 months period after the coverage takes effect and for which:

- the person insured was diagnosed, treated, hospitalized or attended to by a physician or any other health professional; or

- the person insured was advised to seek treatment or consult a physician or any other health professional; or

- the person insured was prescribed or took medication, showed signs or symptoms, or underwent tests or investigations.

RE-ELIGIBILITY

If You resume permanent full-time employment 25 or more hours per week You become eligible for a further Disability claim, You will only be eligible for any remaining benefits of the maximum 12 Monthly Payments from the previous claim.

GENERAL PROVISIONS

The definitions, limitations and exclusions of this disability benefit apply in addition to those indicated in this Policy’s General Provisions

INVOLUNTARY UNEMPLOYMENT BENEFIT

DEFINITION

Involuntary unemployment: job loss or layoff which is not attributable to Your action, inaction, option or desire and which had not been announced by the employer prior to the effective date of insurance.

BENEFIT

If You become Involuntarily Unemployed after the Effective Date, We will make Your Payment Obligation on Your behalf, retroactively beginning from the Date of Loss. We will make Your Payment Obligation until You return to work full-time, subject to a maximum of 12 monthly payments.

CONDITIONS

To be eligible for involuntary unemployment benefits

You must be a Canadian resident and be over age 18 on the Effective Date;

You must have been insured under the Policy and gainfully employed on a permanent basis, working full-time at the Date of Loss, which means working at least 25 hours each week for at least the last 13 weeks before the Effective Date;
You shall have been Involuntarily Unemployed for more than 30 consecutive days , and We must receive Your Canadian record of employment issued by your employer;
Prior to Your Involuntary Unemployment, Your employer shall have been paying employment insurance premiums to Canada Revenue Agency (CRA) and/or any of its successor entities, on Your behalf. Within 15 days of Your involuntary unemployment, You must have registered with Canada Employment Insurance Commission to receive employment insurance benefits;
While You are Involuntarily Unemployed You must be available to work full-time, and You

may be required to provide evidence that You are actively seeking employment.

EXCLUSIONS

When You are simultaneously disabled and involuntarily unemployed, You are entitled to benefits only under one coverage, not under both.

We shall not be liable for involuntary unemployment benefits due to:

Unemployment for any reason beginning within 30 days from the Effective Date;
Unemployment known by You to be impending at the time of application for insurance;
Loss of employment as a seasonal worker or a self-employed worker;
Strikes or lockouts, whether or not You participate voluntarily;
Disability for which benefits are payable under this Policy;
Discharge for cause by Your employer;
Pregnancy or childbirth, maternity, paternity or adoption leave;
Family medical or caregiver leave;
Voluntary unemployment;
Criminal charges having been laid against You and any resulting incarceration;
Failure to pay child maintenance support payments, spousal support payments or alimony;
Retirement, whether voluntary or mandatory;
Any of the exclusions listed under the heading "General Exclusions" found under General Provisions.

RE-ELIGIBILITY

If You return to work full time, for 25 or more hours per week, after receiving Involuntary Unemployment benefits and suffer another period of at least 30 consecutive days of involuntary unemployment, You will only be eligible for any remaining benefits of the maximum 12 Monthly Payments from the previous claim.

GENERAL PROVISIONS

The definitions, limitations and exclusions of this involuntary employment benefit apply in addition to those indicated in this Policy’s General Provisions.

GENERAL PROVISIONS

HOW TO CANCEL THIS INSURANCE

Upon receipt of this Certificate of Insurance, if You no longer wish to be enrolled in this insurance, please contact Us to cancel Your Policy. A cancellation form will need to be completed, signed and sent to Us. When the Policy is cancelled within 30 days of enrollment, any premiums charged, will be refunded to You. You may cancel any time after 30 days by sending Us the completed and signed cancellation form, but You will not be entitled to a refund of any premiums charged. If You have any questions regarding this Policy or require claim information, please contact:

MAKING A CLAIM

Claim forms may be obtained by contacting a Customer Service Representative at support@flapinsurance.com

CONTACT

All notices or other records to be delivered to Us shall be delivered at the following:

Flap Technologies Canada Inc.

503-5 Hanna Ave

Toronto, ON, M6K 0B3

If You have any questions, regarding the Policy and the coverages, You may contact Us at phone number

GENERAL EXCLUSIONS

No benefits will be paid under the Policy’s Life and Dismemberment, Disability, Involuntary Unemployment or Critical Illness coverages if the loss was, directly or indirectly, caused by:

an attempted suicide or suicide, while sane or insane, within two years of the Effective Date;
an intentionally self-inflicted injury;
flying or attempting to fly an aircraft, unless You are a passenger on an aircraft used by a common carrier;
the commission, or attempted commission, of an illegal act;
a war, whether declared or not, an act of war, a riot, an insurrection, or a revolution;
military service, declared or undeclared war, or any nuclear, chemical, or biological contamination resulting from an act of terrorism; or
alcohol or solvent use, or the taking of illegal drugs or prescription drugs except where prescribed by a licensed doctor and taken as directed;

COMPLAINT PROCEDURES

If You have a complaint please contact support@flapinsurance.com

LEGAL PROCEEDINGS

No legal action may be brought against Us, unless it is brought within 24 months after the Date of Loss for resident of all provinces expect Quebec or the shortest applicable limit of time established by law. Every action or proceeding against an insurer for the recovery of insurance money payable under the contract is absolutely barred unless commenced within the time set out in the Insurance Act. The benefits payable under this Policy are based on Your Outstanding Balance on the Date of Loss. Any changes made to Your Policy after the Date of Loss but during the benefit period will not be included in the calculation of Your benefits. The benefits payable under this Policy are calculated on Your Outstanding Balance on the Date of Loss. Any purchases or charges made on Your Insurance Payment Protection Policy after the Date of Loss and during the period for which You are collecting benefits will not be included in the calculation of Your benefit.

MISSTATEMENT OF AGE - Our liability is limited to a refund of all premiums You have paid when You misstated Your age to Us at the time You provided to Us Your application for insurance.

Notice and proof of claim

All claims must be made in writing and submitted to the Insurer within thirty (30) days of the date of the Disability, Criticall Illness, Involuntary unemployment, death or dismemberment giving rise to a claim under this Policy.

The Policyowner or any person entitled to submit a claim must provide the Insurer with all the documents it may require within ninety (90) days of Our request.

Were the Policyowner or any person entitled to make a claim demonstrate that it was impossible for them to act in a timely manner, it will not prevent them from receiving the benefit, provided that the information is submitted to the Insurer within one year of the Date of Loss.

The Insurer reserves the right to require that the Insured undergo any examination(s) it may consider necessary by a Physician of its choice. Refusal to do so will deprive the person of the right to receive benefits.

The Insurer may, if permitted under applicable law, require an autopsy and any failure to satisfy that request will give the Insurer grounds to refuse payment of the benefit.

The Policyowner must notify the Insurer of any change of address for the purpose of facilitating correspondence and the transmission of any document.

PREMIUM RATE - The cost for Loan Payment Protection will be calculated by taking the Insurer’s Premium Rate multiplied by the customer’s regular principal and interest payment, plus applicable taxes.

PREMIUM RATE AND/OR POLICY CHANGE - We reserve the right to establish new premium rates and cancel or modify any terms of the Policy. You will receive at least 31 days written notice of any change to premium rates or terms of the Policy.

REFUNDS - In the event of termination of Your Coverage, We will credit You on a Pro Rata basis with any unearned premium paid by You. No refund or credit will be made if the amount is less than One Dollar ($1.00).

SUBROGATION- In the event of any payment under this insurance, We shall be subrogated to all Your rights of recovery, and You shall execute and deliver all papers and do whatever is necessary for Us to secure those rights.

TERMS OF AGREEMENT AND TERMINAGTION OF COVERAGE

The term of the insurance provided under this Certificate of Insurance commences upon Your

agreement to purchase the insurance coverage hereunder and will end on the sooner of:

The next payment date after We receive Your written request to end this insurance coverage, or
31 days from the date We send You written notice, by first class mail to Your last known address, to cancel this insurance, or
The date Your loan is terminated, on receipt of notice of termination by the insurer
The date Your loan is refinanced, renewed or paid in full;
After the maximum has been paid out for one of the benefits;
- 12 payments of Disability Benefit;
- 12 payments for Involuntary Unemployment Benefit;
- Payment for a Critical Illness Benefit;
- Payment for Life benefit.
At the date of Your death;
The renewal following Your 65th birthday.