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DISTRIBUTION GUIDE

Manulife One Creditor’s Group Insurance Plan

Life, Disability and Job Loss Insurance for Manulife One Account Holders

Name and Address of the Insurers

The Manufacturers Life Insurance Company (Manulife) & First North American Insurance Company (FNAIC)

Affinity Markets P.O. Box 670 Stn.

Waterloo Waterloo, Ontario

N2J 4B8 Toll Free number: 1-866-388-7095

Fax number: 1-888-340-1700 Customer Contact email: am_service@manulife.com

Name and Address of the Distributor

Manulife Bank of Canada (Manulife Bank) 500 King St North

Suite 500-MA P.O. Box 1602 STN Waterloo

Waterloo, ON N2J 4C6 Toll Free: 1-877-765-2265

Fax: 1-877-565-2265

The Autorité des marchés financiers (AMF) 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 this guide and the policy.

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TABLE OF CONTENTS:

INTRODUCTION:.................................................................................... 3 DESCRIPTION OF THE PRODUCT OFFERED: ...................................... 3

Nature of the Coverage ...................................................................... 3 Summary of Specific Features .......................................................... 4

- Eligibility: ................................................................................... 4 - Effective Date of Insurance and Confirmation: ........................... 4 - Conditions for Insurance: ........................................................... 5 - When Insurance Ends: ............................................................... 5 - Amount of Benefit: ..................................................................... 5 - Maximum Benefit Period: ........................................................... 6 - Premiums Payable: ..................................................................... 6 - Premiums for Joint Coverage:..................................................... 6 - Grace Period for Payment of Premiums: ..................................... 6 - The creditor is the beneficiary: ................................................... 7 - Waiting Period for Disability and Job Loss Claims: ..................... 6 - Balance Increases: ..................................................................... 7

Glossary: ............................................................................................. 8 EXCLUSIONS, LIMITATIONS OR REDUCTIONS IN COVERAGE ......... 11

Limitations for Life Insurance: …...................................................... 11 Limitations for Disability Insurance: …........................................... 12 Limitations for Job Loss Insurance: ................................................ 13

- End of Insurance Coverage: ...................................................... 14 - Continuation of Coverage for Joint Account Holder: ................. 14

Right of Cancellation ....................................................................... 15 PROOF OF LOSS OR CLAIM ................................................................ 16

Submission of a claim: ................................................................... 16 Multiple Claims Procedure: ............................................................. 16 Insurer’s Reply: .............................................................................. 16 Appeal of Insurer’s Decision and Recourses: ................................... 17

OTHER INFORMATION: ...................................................................... 17 OTHER INSURANCE PRODUCTS ........................................................ 17 REFERRAL TO THE AUTORITÉ DES MARCHES FINANCIERS (AMF) SCHEDULE I NOTICE OF CANCELLATION OF AN INSURANCE CONTRACT WITHIN 60 DAYS ............................................................. 18 SCHEDULE II NOTICE OF CANCELLATION OF AN INSURANCE CONTRACT AFTER 60 DAYS .............................................................. 19 SCHEDULE III NOTICE OF FREE CHOICE OF INSURER OR REPRESENTATIVE .............................................................................. 20

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INTRODUCTION: The coverage offered under the Manulife One Creditor’s Group Insurance Plan protects the balance of Your Manulife One Account in the event of Your death, disability or job loss.

The Manufacturers Life Insurance Company (Manulife) and First North American Insurance Company (FNAIC) underwrite this coverage through Group Policy CR999 issued to Manulife Bank.

This guide describes the Manulife One Creditor’s Group Insurance Policy. It is designed to give You all the necessary information about this insurance product in a user-friendly manner. This distribution guide was prepared to allow You to determine whether this insurance product is suitable for Your needs. This guide is not a contract, but only an outline of the coverage, designed to explain the benefits and conditions of the insurance plan. The insurance certificate, which You will receive when You join the insurance plan, will govern as to the specific details. Please read it carefully.

The terms identified in Bold in the text have specific meanings and are defined in the Glossary. You will find the Glossary at page 9 and follows of this Guide.

DESCRIPTION OF THE PRODUCT OFFERED:

Nature of the Coverage Manulife One Creditor’s Group Insurance provides coverage for the repayment of all or part of the balance of Your Manulife One Account in the event of the death, disability or job loss of a person insured under this Plan.

These coverages are offered under this Plan:

• Life Insurance, which in the event of your death will pay the

lesser of (a) the outstanding Balance on your Manulife One Account; (b) your maximum Amount of life insurance stated on the Certificate Summary Page and (c) the Balance of your Manulife One Account averaged over the previous twelve (12) months;

• Disability Insurance, which in the event you become totally disabled, will pay the monthly interest charge on your Manulife One Account and the minimum principal payment required on your Manulife One fixed rate subaccount, calculated as of the Date of Loss, for a maximum of twenty-four (24) months; and

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Job Loss Insurance which in the event you lose your job, will pay the outstanding interest on your Manulife One Account and the minimum principal payment required on your Manulife One fixed rate subaccount, calculated as of the Date of Loss, for a maximum of six (6) months.

Note that Disability and Job Loss Insurance are only available as a rider to the Life Insurance coverage. They cannot be applied for separately. Please also note that the Life and Disability Insurance benefits are offered by Manulife while the Job Loss Insurance is offered by the North American First Insurance Company.

Summary of Specific Features - Eligibility:

To be eligible for this insurance you must be:

o a Manulife One Account holder, or joint account holders o between the ages of 18 and 64 inclusive at the time of application o resident in Canada

In addition, for Disability Insurance, you must also be:

o an active Employee, including self employed; o working at least twenty-five (25) hours a week o concurrently applying for Manulife One Life Insurance.

In addition, for Job Loss Insurance, you must also be:

o an active Employee and not self employed; or a temporary or contract

worker. o working at least twenty-five (25) hours a week o concurrently applying for Manulife One Life Insurance.

In addition:

o a maximum of two (2) persons may be insured under one

certificate in respect of a Manulife One joint account; o the maximum Balance that may be insured is $500,000.

- Effective Date of Insurance and Confirmation:

Insurance starts on the later of the date when we receive at our office. (a) a written application for insurance; and (b) the first full premium for the insurance

if you were insurable on that date according to our underwriting rules.

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If you are approved for insurance, the Effective Date of your Coverage will be outlined on the first page of your certificate. If coverage is approved by our underwriters, you will receive your certificate of insurance within 30 days of application. If further information is required in order to process your application, we will advise you within 30 days of application.

- Conditions for Insurance:

The Insurer will request health information (also called Evidence of Insurability). After you apply, you will be contacted by a representative of Manulife to answer questions regarding your health. If you must answer YES to any of the health questions or the Credit Limit of your Manulife One Account is more than $250,000 additional health information may be required.

- When Insurance Ends:

Please see the section entitled “End of Insurance Coverage” on page 14 of this Guide.

- Amount of Benefit:

For Life Insurance, the amount of the benefit is the lesser of:

(a) the outstanding Balance of your Manulife One Account as of

the date of your death, to a maximum as stated on your coverage summary page; and

(b) an amount equal to the Average Monthly Balance, to the maximum as stated on your coverage summary page.

plus the amount of (i) any interest accruing on your Manulife One Account from the Date of Loss to the date of payment of the benefit amount and (ii) any reasonable and customary charges incurred to discharge any mortgage or other security, such amounts not to exceed in aggregate 5% of the benefit amount otherwise payable.

o Even if no Balance is owing for a month, the month will be counted for the purposes of calculating the Average Monthly Balance.

o The maximum amount payable is $500,000. In the event of Joint

Coverage, only one benefit will be payable and insurance terminates once the benefit is paid.

For Disability or Job Loss Insurance, the amount of benefit is equal to the interest charged on the outstanding balance of your Manulife One Account plus the minimum principal payment required on your

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Manulife One fixed rate subaccount. o Interest will be calculated using the Balance of your Manulife One

Account on the Statement Date coinciding with or immediately preceding the Date of Loss.

o The maximum amount payable, for either sole or Joint Coverage,

at any time is $3500 per month. Only one benefit per certificate may be paid at any time.

- Maximum Benefit Period:

For Disability, the maximum benefit period is 24 months, assuming that you continue to meet the definition of Total Disability.

For Job Loss, the maximum benefit period is 6 months, assuming that you continue to meet the definition of Job Loss.

- Premiums Payable:

• Premiums are calculated based on your Age and the outstanding monthly Balance of your Manulife One Account.

• Premiums are not guaranteed and may change without notice to you.

• Premiums are to be paid monthly, in Canadian dollars. • You may pay premiums from (a) pre-authorized withdrawals from

your Manulife One Account; or (b) pre-authorized withdrawals from a chequing account of your choice.

• The premiums payable for Disability and Job Loss coverage are the same for self-employed individuals, even though self-employed individuals are not eligible for Job Loss Insurance benefits.

- Premiums for Joint Coverage:

For Life Insurance, premiums are based on the Age of the oldest person insured and the outstanding monthly Balance of the Manulife One Account, as of the Statement Date, multiplied by 1.4.

For Disability and Job Loss Insurance, premiums are based on the Age of the oldest person insured and the outstanding monthly Balance of the Manulife One Account, multiplied by 1.9.

- Grace Period for Payment of Premiums:

Your first premium is payable on the Effective Date of Your Coverage. Subsequent premiums are payable on the Premium Due Date. A Grace Period of thirty (30) days is allowed for payment in full of any premium

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due. Once 30 days have passed without payment of premiums, coverage may be cancelled with no notice to You.

- The creditor is the beneficiary:

In all cases, Manulife Bank is the Beneficiary of this insurance. The benefit will be paid to Manulife Bank, who will then credit your account. You may not designate an alternate beneficiary.

- Waiting Period for Disability and Job Loss Claims:

Before a Disability or Job Loss claim can be paid, you must satisfy a Waiting PeriodThe Waiting Periods are as follows:

o For Disability Insurance: thirty (30) consecutive days from the date you become Totally Disabled.

o For Job Loss Insurance: thirty (30) consecutive days from the date of Job Loss.

- Balance Increases:

If the amount of life insurance in force is $250,000 or under, and you subsequently increase your Credit Limit over $250,000, you must apply for additional life insurance by submitting Evidence of Insurability to the Insurer. Additional insurance will take effect on the later of the date that the Insurer receives

(a) the written application for additional insurance; and (b) the first full premium for the total amount of insurance;

if on that date you were insurable according to the Insurer’s underwriting rules.

In the case of Joint Coverage, both Manulife One Account holders must apply and be approved for additional insurance for coverage exceeding $250,000 before additional coverage will be issued.

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Glossary: Age means your age on the birthday immediately preceding the date of issue of your certificate, and each certificate anniversary date thereafter.

Average Monthly Balance means the average of the month-end balance owing to Manulife Bank by you over the twelve (12) months immediately preceding the Date of Loss.

Balance at any given date, means the amount owing to Manulife Bank by you as shown on your most recent Manulife Bank statement for that Statement Date.

Beneficiary in all cases, Manulife Bank (the creditor) is the Beneficiary. Credit Limit means the maximum amount of credit available to you under your Manulife One Account.

Date of Loss means the following:

(a) for Life Insurance, the date of death;

(b) for Disability Insurance, the date your Total Disability commences;

(c) for Job Loss Insurance, the date of termination of employment. Effective Date of Coverage means the later of the date on which We receive at our office

(a) a written application for insurance; and (b) the first full premium for the insurance applied for,

if on that date you were insurable in accordance with our underwriting rules. This date will appear on the first page of your certificate of insurance.

Waiting Period means the number of consecutive days from the Date of Loss during which time no benefits are payable.

Employee means an individual insured under the policy who is actively at work on a full-time basis for a minimum of twenty-five (25) hours per week.

Evidence of Insurability is any information that we require to decide if the person to be insured is insurable, and if so, on what terms. In all cases we have the right to decline an application for insurance if the required Evidence of Insurability is not available or is not provided or if

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the person to be insured does not satisfy our underwriting requirements for insurance under this coverage.

Grace Period means the thirty (30) days after your Premium Due Date. This period is allowed for payment in full of any premium due. Once 30 days have passed without payment of premiums, coverage may be cancelled with no notice to you.

Injury means accidental bodily injury that you sustain while your insurance is in force which, directly and independently of all other causes, results in a Total Disability within ninety (90) days from the date of the accident.

Insurer means The Manufacturers Life Insurance Company (Manulife) and First North American Insurance Company (FNAIC).

Job Loss means your ceasing to qualify as an Employee as a result of involuntary layoff or dismissal without cause, which continues for the full Waiting Period.

Joint Coverage means insurance issued to joint Manulife One account holders insuring the lives of both individuals. In this case, the definition of "you" or "your" shall include joint insureds under one Certificate of Insurance.

Leave of Absence means a period during which you are not actively at work, and for which the dates are fixed by legislation or mutual agreement between you and your employer. We must receive your written notification for any occurrence of a Leave of Absence.

Manulife One Account means the line of credit banking account owned by you. In addition to the payment of premiums when due, your Manulife One Account must continue to qualify as a line of credit banking account for the life of this policy, in order to keep your insurance in effect.

Pre-existing Condition for life insurance means any medical condition, symptom, illness or disease diagnosed or undiagnosed for which You consulted a Physician or for which you received medical advice or treatment during the six (6) months immediately prior to the Effective Date of Coverage. A Pre- existing Condition will be covered only after you have been free of medical treatment, consultation or expense for the six (6) month period immediately following the Effective Date of Coverage.

Pre-existing Condition for disability insurance, means any medical condition, symptom, illness or disease diagnosed or undiagnosed for

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which You consulted a Physician or for which you received medical advice or treatment during the twenty-four (24) months immediately prior to the Effective Date of Coverage. A Pre-existing Condition will be covered only after you have been free of medical treatment, consultation or expense for the twenty- four (24) month period immediately following the Effective Date of Coverage.

Plan Maximum means the maximum amount of benefits available under the Group Policy. The Plan Maximum for Life Insurance coverage is $500,000.

Premium Due Date means the Statement Date following the Effective Date of Coverage and at monthly intervals thereafter.

Self-employed means a worker whose work may result in profits, losses and operating expenses and whose working conditions do not imply any subordination Statement Date means the date indicated on your Manulife One Account monthly balance statement.

Sickness means sickness or disease that, unless disclosed by you on your application, first manifests itself while insurance is in force and which causes disability while this coverage is in force.

Total Disability or Totally Disabled means you are unable to perform the normal duties of your regular occupation due to Injury or Sickness, and you are not employed in any other gainful occupation for compensation or profit. There must be documented evidence of medical impairments, restrictions and limitations precluding you from performing the normal duties of your regular occupation.

We, Us and Our when used in this Distribution Guide, mean Manulife and FNAIC.

You and Your when used in this Distribution Guide, mean the Manulife One Account holders who are or may become insured under the Manulife One Creditor Plan, and refers to both account-holders in the case of Joint Coverage.

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End of the Insurance Coverage

EXCLUSIONS, LIMITATIONS OR REDUCTIONS IN COVERAGE

CAUTION: If any answer or statement on the application for insurance misrepresents or fails to disclose any facts material to the insurance risk, the insurance may be declared null and void by the Insurer.

All-source limitation: for Life Insurance, the maximum benefit payable on the death of an insured will be reduced by any additional insurance in force on your Manulife One Account, including:

(a) all mortgage creditor insurance benefits payable under the terms of any other

group or individual mortgage creditor insurance policy; (b) all line of credit and loan insurance benefits payable under the terms of any

other group or individual creditor’s insurance policy; and (c) any premium due or unpaid.

At no time can an Insured be insured under more than one Certificate of Insurance issued for each Manulife One Account.

Limitations For Life Insurance:

No benefit will be paid if the Insured’s death results from:

(a) suicide within two (2) years of the Effective Date of Coverage;

(b) committing or attempting to commit or provoking a criminal offence or assault;

(c) operation of a motor vehicle after having consumed alcohol such that the concentration of alcohol in the Insured’s blood exceeds eighty (80) milligrams of alcohol per one hundred (100) milliliters of blood;

(d) directly or indirectly, declared or undeclared war, terrorism, or any act of war or act of terrorism, insurrection or participation in a riot or civil commotion;

(e) travel in or descent from any aircraft in which the Insured is traveling, except as a fare-paying passenger on a commercial flight;

(f) a Pre-existing Condition, within the six (6) months following the Effective Date of Coverage.

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Limitations for Disability Insurance:

For Disability Insurance, no benefit will be paid if Total Disability is due to, results from, or occurs during:

(a) a normal pregnancy, maternity or parental leave; (b) intentionally self-inflicted injuries; (c) any period of disability, including the duration of the Waiting

Period, during which you are not under the regular care and attendance of a physician, are continuing medical treatment, and following the appropriate treatment of the physician, in a way considered satisfactory to Us;

(d) a Leave of Absence; (e) any Total Disability resulting directly or indirectly and wholly or

partially from committing or attempting to commit an assault or criminal offence;

(f) any Total Disability resulting directly or indirectly from declared or undeclared war, terrorism, or any act of war or act of terrorism, insurrection or participation in a riot or civil commotion;

(g) a Pre-existing Condition, within the twenty-four (24) months following the Effective Date of Coverage.

(h) medical conditions resulting from sustained alcohol abuse, or from use of any drug that is not in strict accordance with a prescription given to you by a physician

In addition, no Disability Insurance benefit is payable at any time while an Insured is in receipt of Job Loss benefits under this Policy.

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Limitations for Job Loss Insurance: For Job Loss Insurance, no benefit will be paid if unemployment is due to, or results from:

(a) a normal pregnancy, maternity or parental leave; (b) dismissal with cause; (c) voluntary resignation; (d) a Leave of Absence; (e) seasonal conditions or work that is seasonal in nature; (f) temporary or contract employment; (g) retirement, whether voluntary or mandatory; (h) declared or undeclared war, terrorism, or any act of war or act of

terrorism, insurrection or participation in a riot or civil commotion, or natural disaster;

(i) intentionally self-inflicted injuries.

In addition, no benefit is payable if:

(i) at the time of claim, the Insured was self-employed, an independent contractor or working for an immediate family member who effectively controls at least twenty-five per cent (25%) of voting shares of any company for which the Insured was working; or

(ii) the Insured was aware of impending unemployment up to ninety (90) days prior to applying for insurance; or

(iii) the Insured is dismissed for any reason within ninety (90) days of commencing work for any employer; or

(iv) the Insured is receiving disability benefits under this policy.

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- End of Insurance Coverage:

Insurance coverage ends on the earliest of: (a) the end of the Grace Period, after any premium due or any part

thereof has not been paid;

(b) the Premium Due Date coinciding with or immediately following the date that we receive written notice from you requesting that your insurance coverage be terminated;

(c) the certificate anniversary coinciding with or immediately following the date on which you are seventy (70) years of age in the event of life insurance, or sixty-five (65) for Job Loss and Disability coverage;

(d) in the case of Joint Coverage, for life insurance, the certificate anniversary coinciding with or immediately following the date on which the older person insured turns seventy (70) years of age, at which time only the coverage on the insured person who is age seventy (70) will terminate; or for Job Loss and Disability coverage, the certificate anniversary coinciding with or immediately following the date on which the older insured person turns sixty-five (65) years of age, at which time only the coverage on the insured person who is age sixty-five (65) will terminate.

(e) the date the you cease to be an owner of a Manulife One Account;

(f) in the case of Joint Coverage, the Certificate Anniversary coinciding with or immediately following the date on which an insured person ceases to be an owner of a Manulife One Account, at which time only the coverage on the person who ceases to be an owner of a Manulife One Account will terminate;

(g) the date your Manulife One Account ceases to be a line of credit account, under the terms set by Manulife Bank;

(h) the date the group policy terminates; or

(i) the date you die, or in the case of Joint Coverage, the date of death of the first of you to die.

- Continuation of Coverage for Joint Account Holder:

When life insurance coverage terminates for the first Manulife One Account holder to reach 70, or who ceases to be a joint account holder, the Insurer will continue the insurance in force on the life of the younger insured person or person who remains an account holder.

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Premiums will be adjusted as of the Premium Due Date immediately following the date that coverage terminated on the older or other account holder.

In the event of disability or loss of employment insurance coverage, if the first of the two Manulife One account holders is sixty-five (65) years of age or ceases to be a joint account holder, the insurer will continue the insurance in force for the youngest insured or the person who continues to hold the account. Premiums will be adjusted as of the Premium Due Date immediately following the date that coverage terminated on the older or other account holder.

Right of Cancellation:

You may, within sixty (60) days after receiving the certificate, return it to the Insurer for cancellation at the address listed below. The Insurer will void the certificate and any premium paid up to the end of the 60- day period will be refunded to you. You may use the form attached as Schedule I.

At any other time insurance under this Plan may be cancelled by you by providing written notice to the Insurer. No refund of premium will be made and your cancellation will be effective on the first day of the following month. You may use the form attached as Schedule II.

The Insurer’s address is:

Manulife Affinity

Markets P.O. Box 670 Stn Waterloo Waterloo ON

N2J 4B8

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PROOF OF LOSS OR CLAIM Submission of a claim:

For Life Insurance, we must receive proof of death at our office within 12 months of the date of death. Failure to submit this proof will not invalidate your claim if it can be shown that it was not reasonably possible to submit proof of death within this time frame, and that proof of death was submitted as soon as it was reasonably possible.

For Disability or Job Loss Insurance, you must notify us within thirty (30) days of the commencement of the Disability or Job Loss. Failure to submit this information will not invalidate your claim if you can show that it was not reasonably possible to submit proof within this time frame, provided that the notice of claim is sent to the Insurer within one year of the Date of Loss.

Claim forms are available directly from the Insurer.

Multiple Claims Procedure:

Since benefits are payable for only one claim event at one time, the Insurer will determine the priority and amount of benefit payable in the event that you qualify for multiple claims, as follows:

(a) Monthly benefits shall be paid only for one claim event at one

time, either for an individual insured or Joint Coverage, and that shall be the claim declared first,

(b) Benefit periods will run concurrently. Maximum benefit periods

and the amount payable shall be calculated from the first Date of Loss.

Insurer’s Reply:

The Insurer will advise you of their decision within 30 days of receipt of all required information. The Insurer may ask you to provide specific detailed information in order to assess your claim for benefits. This information will be requested at time of claim. If the claim is accepted, your claim will be paid within 30 days of the date you receive the Insurer’s decision.

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Appeal of Insurer’s Decision and Recourses:

If you are not satisfied with the Insurer’s decision, you can communicate with the Insurer and provide them with any additional information you may have that may assist us in reviewing our decision.

You may also contact the AMF or your own legal counsel for advice.

OTHER INFORMATION:

You may obtain more information about this Plan by contacting the Insurer directly at:

Toll free: 1-866-388-7095

Email: am_service@manulife.com OTHER INSURANCE PRODUCTS

Other insurance products on the market have the same insurance coverage as that described in this Distribution Guide.

REFERRAL TO THE AUTORITÉ DES MARCHES FINANCIERS (AMF) For additional information regarding the Insurer’s and Distributor’s obligations to you, please contact the AMF at:

Autorité des marchés financiers Place de la Cité, tour Cominar 2460, boulevard Laurier 4ieme étage Québec (Québec) G1V 5C1

Québec City: (418) 525-0337 Montréal: (514) 395-0337 Elsewhere in Québec: 1-877-525-0337 Fax: (418) 525-9512 Email: renseignements-consommateur@lautorite.qc.ca Website: www.lautorite.qc.ca

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SCHEDULE I

NOTICE OF CANCELLATION OF AN INSURANCE CONTRACT WITHIN 60 DAYS

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.

o The Act allows you to cancel an insurance contract you have just signed when

signing another contract, without penalty, within 10 days of its signature. To do so, you must give the insurer notice by registered mail within that delay. You may use the attached model for this purpose. The Insurer extends this privilege to 60 days.

o 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 contract; contact your distributor or consult your contract.

o After the expiry of the 60-day delay, you may cancel the insurance at any time; however, penalties may apply.

For further information, contact the Autorité des marchés financiers at (418) 525- 0337 or 1-866-525-0337

NOTICE OF CANCELLATION OF AN INSURANCE CONTRACT

To: The Manufacturers Life Insurance Company (Manulife) & First North

American Insurance Company (FNAIC) Affinity Markets (name of insurer) P.O. Box 670, Station Waterloo, Waterloo Ontario N2J 4B8 (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 cancel insurance contract no.:

(number of contract, if indicated) Entered into on:

(date of signature of contract)

In:

(place of signature of contract)

(name of client) (signature of client)

The distributor must first complete this section. 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.

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SCHEDULE II

NOTICE OF CANCELLATION OF AN INSURANCE CONTRACT AFTER 60 DAYS

Section 440 of the Act respecting the distribution of financial products and services

To: The Manufacturers Life Insurance Company (Manulife) & First North American Insurance Company (FNAIC) Affinity Markets (name of insurer) P.O. Box Box 670, Station Waterloo, Waterloo Ontario N2J 4B8 (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 cancel insurance contract no.:

(number of contract, if indicated)

Entered into on:

(date of signature of contract)

In:

(place of signature of contract)

(name 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.

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SCHEDULE III

NOTICE OF FREE CHOICE OF INSURER OR REPRESENTATIVE

Section 443 of the Act respecting the distribution of financial products and services

THE ACT RESPECTING THE DISTRIBUTION OF FINANCIAL PRODUCTS AND SERVICES GIVES YOU IMPORTANTS 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 three 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 cancel 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 cancel your insurance, you may use the section hereunder entitled "Notice of cancellation of an insurance contract". For further information, contact the Bureau des services financiers at: (418) 525-6273 or 1-877-525- 6273.

DESCRIPTION OF THE REQUIRED COVERAGE

(section completed by the distributor)

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

D Damage insurance; In an amount of: $

(coverage)

(particulars)

Insurance of persons of the following type: (life, disability, other)

In amount of: $

(coverage)

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AN ACT RESPECTING THE DISTRIBUTION OF FINANCIAL PRODUCTS AND SERVICES R.S.Q., c. D-9.2.

TITLE VIII DISTRIBUTION OTHER THAN THROUGH A REPRESENTATIVE

CHAPTER II DISTRIBUTORS

Prohibition.

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.

Prohibition.

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.

Notice.

440. 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 of the Authority, stating that the client may cancel the insurance contract within 10 days of signing it.

Cancellation.

441. 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. Cancellation.

Where such an insurance contract is cancelled, the first contract retains all its effects.

Amendment prohibited.

442. 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.

Exception.

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.

Loan reimbursement insurance.

443. 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 of the Authority, 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.

Prohibition.

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.

Rights of debtor.

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.

WM1045E (10/2017)