Loan Payment Protection Insurance - Frequently Asked Questions

These frequently asked questions and answers are intended to help you determine whether ConsumerCapital Canada Inc. Payment Protection will meet your needs. For more information, you may view the Certificate of Insurance at https://transglobalinsurance.ca/insurance/other/.

Q: What is the Loan Payment Protection Insurance?

A: Loan Payment Protection Insurance (the “Policy”) is available to customers who have an approved loan application, and who have agreed to the coverage(s) and agreed to pay the premiums associated with the coverages and coverage amounts selected and continue to pay premiums on a timely basis.

Q: What does the LPP Cover1?

A: If you are eligible, the LPPP provides the following coverages in connection with your Loan account:
• Involuntary Unemployment coverage: If you lose your job, the coverage could make up to 12 months of payments, based on your payment frequency, towards your outstanding loan balance. This coverage also extends to self-employed individuals. The The total benefits paid will not exceed the equivalent of the insured Loan Payment or $6,000 per month.
• Involuntary Unemployment – Self-Employed Individuals: As a self-employed individual You become unable to generate ANY income for a minimum of 30 consecutive days and only 90 days after the Effective Date and while insured, due to loss of employment resulting from the loss of all business contracts. Upon eligibility, the Insurer could make your monthly insured Loan Payment, up to 6 months of payment to the Lender, on Your behalf, retroactively beginning from your Date of Loss. The total benefits paid will not exceed the insured Loan Payment or $6,000 per month. When you are simultaneously disabled and involuntarily unemployed, you are entitled to benefits under only one coverage, not under both.
• Disability coverage: If you or the Co-debtor become disabled and unable to work, the coverage could make up to 12 months of payments towards your outstanding loan balance. The total benefits paid will not exceed the insured monthly payment or $6,000 per month.
• Critical Illness coverage2: The Critical Illness Benefit is only available when selected on the Application of Insurance and reflected in the premium payment amount paid to the insurer. If, after the Effective Date and while insured, Debtor or Co-Debtor (only when applicable) are diagnosed with a Critical Illness for the first time and survive that First Diagnosis for at least 30 days, the Insurance will pay to Lender an amount equal to the insured Outstanding Balance at the date of First Diagnosis of the Critical Illness.
• Life with Dismemberment coverage: The coverage will pay the Lender, on Your behalf, upon due proof of the death or dismemberment of You or the Co-Debtor (only if applicable), occurring after the Effective Date, and while You are covered under the Policy, an amount of insurance equal to the Outstanding Balance of Your Outstanding Loan Balance at the date of death or dismemberment to a maximum of $250,000. If the death or dismemberment of the Debtor or Co-Debtor occurs simultaneously, only one benefit will be paid.
• If the Residual Life benefit option is selected, along with and in addition to the Life with Dismemberment benefit, upon due proof of death of the debtor or co-debtor (only if applicable) which occurred after the Effective Date and while covered under this policy, then the Residual Life benefit option will pay the predetermined buyout amount of the insured lease. The Residual Life benefit option is only applicable to lease contracts that have a buyout option at the end of the term. The maximum benefit amount payable will be up to $250,000 for both the Life with Dismemberment and Residual Life benefit amount combined.

1See Certificate of Insurance for more details on the coverage benefits, conditions and exclusions https://transglobalinsurance.ca/insurance/other/.
2The Critical Illness benefit will be paid only once. When You are simultaneously disabled, involuntarily unemployed or involuntarily unemployed as a self-employed, you are entitled to benefits only under one coverage.

Q: Who is eligible for coverage?

A:
• A Canadian resident
• A person between the ages of 18 and 64 years old.

Q: Who is covered?

A:
• The Unemployment coverage is only available to the Debtor to the Co-Debtor.
• The Disability, Life and Dismemberment and Critical Illness coverages are available to the Debtor and to Co when applicable and selected).

Q: How much does the LPP cost?

• A: The insurance premium along with applicable taxes outlined on the Application of Insurance.

Q: What are the exclusions or conditions of the coverage?

A: No benefits will be paid under the Policy’s Life with 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;
• the commission, or attempted commission, of an illegal act;
• military service, declared or undeclared war, or any nuclear, chemical, or biological contamination resulting from an act of terrorism; or
• Alcohol or solvent abuse, or the taking of illegal drugs or prescription drugs except where prescribed by a licensed doctor and taken as directed

For more information on coverage specific exclusions and conditions of coverage, please see the sample copy of the certificate of insurance at https://transglobalinsurance.ca/insurance/other/

Q: Expected duration of insurance

A: When the insurance starts
The effective date of the Loan Payment Protection Insurance is the date that Trans Global Insurance Company and Trans Global Life Insurance Company receives your application for insurance.
A: When the insurance ends
On the sooner of:
• the next billing 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 or by email, to cancel this insurance, or
• the date your loan/lease is terminated, and the Outstanding Balance is zero, or
• the date you are more than 30 days delinquent in making any required Loan Payment towards your Outstanding Balance; however, your insurance coverage will be automatically reinstated when Your Loan Payment obligations become current.
However, the insurance ends for all insured people in the event of death. See the Certificate of Insurance at https://transglobalinsurance.ca/insurance/other/ for more details.

Q: Can I cancel?

A: Loan Payment Protection Insurance is optional, and you can cancel it at any time. If you cancel within the first 30 days, the premiums you paid will be refunded to you. You may cancel any time after 30 days by sending us a request in writing. Please note that after the first 30-day period, you will no longer be entitled to any refund of premiums charged for the monthly pay Policy. For single pay Policy, any refund of premium will be paid to the lender.

Q: What if I already have other insurance?

A: The LPP is designed to complement any existing protection by paying in addition to any other coverage you may have.

Q: How do I make a claim?

A: To make a claim, follow these steps to contact Trans Global Insurance:

• By calling 1-844-930-6022 between 8:00 a.m. and 5:00 p.m. (MST)
• By email clientcare@transglobalinsurance.ca
• By written notice to TRANS GLOBAL INSURANCE GROUP, Suite 275, 16930-114 Avenue, Edmonton, AB T5M 3S2.

Q: How do I make a complaint?

A: To make a complaint, follow these steps:
• If for some reason you are not satisfied with the resolution to an inquiry or dissatisfaction, please call 1-844-930-6022 between 8:00 am and 5:00 pm (MT), Monday to Friday.
• Should you require more information regarding the Insurer’s complaint handling procedure, please visit Trans Global Insurance website to view the complaint resolution processes which can be found at: https://transglobalinsurance.ca/resolving-complaints/

Q: Is there an administrator for this insurance program?

A: Yes, there is an administrator for this insurance program. The Program Administrator for the program is as follows:

TKM GROUP VENTURES INC
64 Grand Avenue North Cambridge,
ON N1S 2K9
Telephone: 1-888-208-1881

Q: Who do I contact if I have questions about the loan payment protection insurance?

A: If you have any questions about this insurance coverage, contact Trans Global Insurance at 1-844-930-6022 or TKM GROUP VENTURES INC at 1-888-208-1881.