LOAN PROTECTION Product Knowledge. Agenda Introduction & Overview –Who is LGM? –Who is the underwriter? SecureDrive © Loan Protection.

LOAN PROTECTION

Product Knowledge

www.securedrive.ca

Agenda

• Introduction & Overview– Who is LGM?– Who is the underwriter?

• SecureDrive© Loan Protection– Life, Critical Illness, Loss of Employment, and Disability – Coverage & Eligibility – Features & Advantages– Benefits

• Sales and Support Team

• Compliance requirements

www.securedrive.ca

LGMWho is LGM?

• LGM Financial Services Inc. provides sales, marketing, training and administrative support for SecureDrive products to dealers across Canada.*

• LGM was established in 1998 (14+ years serving Canadian dealers)• LGM provides quality products for the Business Office, including:

– Extended Warranty– Wear Products– Loan Protection– Anti-Theft Protection

• Over 80,000 warranty claims processed and $40.6 million in claims paid to date. • LGM maintains relationships with over 1,200 dealers across Canada.

*Effective October 1st, 2012, Omni Companies was amalgamated to LGM Financial Services Inc.

www.securedrive.ca

Co-operators Life Insurance Company

Who is Co-operators Life Insurance Company?

• The underwriter of choice

• ‘A - / Excellent’ rated by A.M. Best

• Founded in 1945

• Manages assets of over $42 billion

• 600 retail locations nation-wide

• 5,000 staff members coast-to-coast

www.securedrive.ca

Creditor Insurance

What is SecureDrive© Loan Protection?

• SecureDrive© Loan Protection is Life, Life & Critical Illness, Disability, and Life & Loss of Employment group of creditor insurance products.

• It protects your savings, investments and credit standing.

• Helps maintain the value of your other insurance policies.

• No medical questionnaire, blood test, urine test or physical examinations required in most instances (some age restrictions apply).

• Premium cost is the same for all occupations, smoker or non-smoker.

www.securedrive.ca

Coverage

• Life Insurance– Paid in the event of loss of life.

- Term- Level Life - covers balloon payments on lease!

• Critical Illness– Paid in the event of life threatening illness.– Must be sold in conjunction with Life.

• Loss of Employment– Paid in the event of involuntary loss of employment.– Must be sold in conjunction with Life.

• Disability – Paid in the event of an injury or disability.

www.securedrive.ca

Life Insurance

• Eligibility:– Issue ages 18 through 59 up to $500,000.– Issue ages 60 through 70 up to $200,000.– Borrower, co-borrower and joint.

• Accelerated Death Benefit:If medically diagnosed as terminally ill, the life insurance benefit is paid immediately.

• Pre-existing Condition Clause:Condition with medical advice or treatment during 6 months immediately preceding effective date of insurance.

• Life coverage will terminate on the 72nd birthday of the customer.

www.securedrive.ca

Critical Illness*

• Coverage:– Heart attack.– Stroke.– Life threatening cancer.

• Eligibility:– Issue ages 18 through 59 up to $500,000.– Issue ages 60 through 70 up to $200,000.– Borrower, co-borrower and joint.

• Pre-existing Condition Clause:Condition with medical advice or treatment during 12 months immediately preceding effective date of insurance coverage.

*Must be sold in conjunction with Life.

www.securedrive.ca

Loss of Employment*

• Coverage:– Involuntary loss of employment

- Must remain unemployed throughout elimination period.- Elimination period does not apply if involuntary employment reoccurs within six months

after a previous period of involuntary loss of employment.- 60 day non retro elimination period will apply.- $4,500 maximum monthly benefit payable.- 9 month maximum cumulative benefit.

• Eligibility:– Life Eligibility Requirements plus:

- Must be employed and have been continuously working at occupation for a minimum of 20 hours per week for 12 consecutive months; and

- Must not have personally received formal or informal notice of the impending loss of your employment.

- Minimum/Maximum age is 18/64.

*Must be sold in conjunction with Life.

www.securedrive.ca

Disability

• Eligibility:– Issues ages 18 through 64 up to $4,500 per month.– Borrower, co-borrower and joint.

• Elimination Periods: 1. 14 day retroactive. 2. 30 day retroactive. 3. 60 day retroactive.4. 14 day non-retroactive.5. 30 day non-retroactive.6. 60 day non-retroactive.

• Pre-Existing Condition Clause:Condition with medical advice or treatment during 6 months immediately preceding effective date of insurance.

www.securedrive.ca

Features & Advantages

1. Four plans: Life, Critical Illness & Life, Loss of Employment & Life, and Disability.

2. High coverage limits with terms up to 120 months.

3. Fully insured by Co-operators Life Insurance Company.

Features

1. Flexibility of choice as per lifestyle or need.

2. Applicable for almost any vehicle purchase including luxury cars.

3. Program stability - backed by a large, successful insurance company.

Advantages

www.securedrive.ca

Features & Advantages

4. Administered in Canada.

5. Accelerated Death Benefit.

6. Limited health screening.

7. Industry leading pre-existing clause.

Features

4. In-house, dedicated and bilingual customer support.

5. Reduces worry with benefit. Paid immediately when terminally ill.

6. Almost anyone qualifies.

7. Investigated if claim is in first 6 or 24 months*.

*Life & Disability 6 months , Critical Illness 24 months.

Advantages

www.securedrive.ca

Benefits

Customer Benefits

• Consumer awareness and recognition in the Co-operators Life Insurance Company brand.

• Ensuring the asset stays with loved ones by paying out the loan.

• Protecting credit standing and financial commitment with simple up-front investment – affordable payments.

• High quality product for a fair price.

• Quick, friendly claims experience open from 8:00am ET to 8:00pm ET, Mon. – Fri.

• Toll-free customer support at LGM (bilingual).

www.securedrive.ca

Benefits

Dealer Benefits

• Combination of Life & Critical Illness and/or Life & Loss of Employment improves profitability.

• Opportunity for brand extensions (other products) with a menu selling approach.

• More income potential with sale of Critical Illness and LOE with Life.

• Flexible Plans:1. Low Rate Table2. High Rate Table

• Product Guide distributed at time of purchase to outline full disclosure and details of coverage.

www.securedrive.ca

Benefits

Dealer Benefits continued…

• Built-in “Waiver of Coverage” in Enrolment Form.

• Online rate calculator.

• Net monthly remittance of premiums – simply send in the net dealer cost to insurer.

• Administered in Canada (Bilingual).

• No chargeback provision on all cancellations after 30 days (for financed amounts less than $100,000).

www.securedrive.ca

Sales & Support Team• National team of Dealer Development Managers (DDMs) committed to your

success.

• LGM products are specifically built to: - Help dealers maximize profitability- Maximize customer satisfaction and retention

• LGM Training:- LGM provides comprehensive dealer sales training in order to maximize F&I

office sales potential

• All DDMs are Canadian Professional Sales Association (CPSA) accredited.

www.securedrive.ca

Compliance requirements

What is the CLHIA Guideline G7?

Industry driven guidelines designed to protect the interests of Debtors by promoting consistent practices for insurers and by providing operating and disclosure standards for the transaction of Group Creditor Insurance, in plain language.

What are the key elements?

– Proper disclosure– Training and monitoring– Refunds– Cancellations– Claims– Non-paper technologies

www.securedrive.ca

ClaimsWhat to do in the event of a claim?

1. Insured calls LGM Financial Services Inc. toll free at 1-866-287-6217.

2. Claimant automatically routed to Co-operators Life Insurance Company (CLIC).

3. Claims Representative reviews claims form with claimant.

4. Claims Representative at CLIC sends forms to claimant.

5. Claimant completes forms and returns to CLIC.

6. CLIC responds within five business days.

www.securedrive.ca

Pre-Existing Conditions & Exclusions

Life– Life Insurance benefit shall not be paid in the event of death due to suicide.

DisabilityInsurance benefit shall not be paid if a result of the following:

– Disability began prior to the effective date of insurance.– Disability is the direct or in-direct result of self infliction.– Disability results from normal pregnancy (not high risk).– Disability began while confined as a result of criminal proceedings against

claimant. – Disability entitles claimant to receive compensation for lost wages under workers

compensation or other similar legislation.

www.securedrive.ca

Pre-Existing Conditions & Exclusions

Critical IllnessInsurance benefit shall not be paid if a result of the following:– If there was any such diagnosis or apparent signs of cancer prior to the effective

date of insurance.– If diagnosis of cancer is determined with the first 90 days following the effective

date of insurance.

Loss of EmploymentInsurance benefit shall not be paid if a result of the following:– Any labour dispute or lockout.– Loss of employment begins within 60 days of the effective date of insurance.– Loss of employment is the result of misconduct, including but not limited to drug

abuse, dishonesty, and criminal activity.

www.securedrive.ca

THANK YOU