2015 RENEWAL NOTICE. Dear Advisor:

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1 Professional Liability Service Team Marsh Canada Limited 120 Bremner Blvd., Suite 800 Toronto, ON M5J 0A8 Tel / Fax / lifeagents.service@marsh.com RENEWAL NOTICE Subject: Desjardins/DFSIN Agents Errors & Omissions (E&O) Insurance Program Westport Insurance Corporation Expiring Policy No. ELE4ON LE4ON Dear Advisor: We are pleased to advise that renewal negotiations have been successfully completed between your Sponsoring Entity, Desjardins Financial Security and your insurer, Westport Insurance Corporation for the new policy term, September 1, 2015 to September 1, We have been successful in negotiating flat renewal and premium will remain the same as last year. NOTE: On your 2015 renewal application you will see two companies: Desjardins State Farm As renewal clients, please select Desjardins. Please use userid <Federal Tax ID> to start your renewal application at the following site: Your Password is the same as the last time you used the system. If you have forgotten your password, please use the I forgot my password link on the login page. A temporary password will be immediately sent to your address. Please note the following changes for 2015: 1. There is no coverage for Exempt Market Products as Desjardins will not be a dealer of Exempt Market Products effective September 1, 2015 policy year. Advisors who have sold exempt market products in the past with Desjardins as a dealer will continue to have coverage for their past EMP products and activities subject to policy terms and conditions. 2. Exclusion H. in current policy wording has been changed without changing the intent of the exclusion: The current policy exclusion is defined as: FIDUCIARY. Any CLAIM arising out of the management of an account for a client under an actual or implied agreement or which gives an INSURED discretion in buying or selling securities or other investments for such account under any power of attorney;

2 Fiduciary exclusion will be deleted and replaced with Discretionary Control as follows: DISCRETIONARY CONTROL. Any CLAIM arising out of the management of an account for a Client: 1. Under an actual or implied agreement which gives an INSURED discretion in buying or selling securities or other investments for such account; or 2. Under any power of attorney which gives an INSURED discretion in buying or selling securities or other investments for such account. 3. NEW PRODUCT OFFERING: DAS Canada Personal Legal Expense Insurance Coverage (Occurrence Basis): Coverage is optional and not mandatory. Personal Legal expense insurance is now available for only $95.00 per year (plus applicable taxes) Through an exclusive offering for Marsh Canada professional liability insurance clients, you are now eligible to purchase personal legal expense insurance (LEI), underwritten by DAS Canada, at the special preferred rate of only $95.00/year. In addition to unlimited telephone legal advice, LEI may help pay for lawyers' fees, disbursements for expert witnesses, medical reports, and court costs, and adverse costs if you lose your case and a judge orders you to pay the other party's legal fees. Remember that the need for legal expense insurance can arise from everyday occurrences such as receiving a speeding ticket, bodily injury due to the fault of others, employment disputes, or an unsatisfactory contracted service. Please click the below link for more information: Please note this is legal expense coverage which is separate from the legal coverage you receive under your Advisor s E&O policy for matters related to rendering of your professional services. Renewal premiums for the various Limits are as follows: Limit of Liability Aggregate Deductible Expiring ( ) New Annual Premium Per Claim Per policy period Per Loss Annual Premium ( ) $1,000,000 $2,000,000 $1000 $650 $650 $2,000,000 $2,000,000 $1000 $775 $775 5,000,000 $5,000,000 $1000 $1,130 $1,130 Licensed Marketing Assistants (LMAs) Premium: $1,000,000 $2,000,000 $1000 $380 $380 $2,000,000 $2,000,000 $1000 $775 $775 (New) 5,000,000 $5,000,000 $1000 $1,130 $1,130 (New) (LMAs must be salaried, have no personal sales, receive no commission income; AND must be an employee of an Insured Advisor currently enrolled in the program).

3 Saskatchewan Endorsement: To comply with Saskatchewan Insurance Council s regulatory requirement for entities registered with them, ICS Endorsement will be issued for the Entity at an additional premium of $300 per corporation. The dedicated limit for the Entity is $1 Million for Errors and Omissions and $1 Million for Fraudulent or Dishonest Acts. An application is required to be completed and a separate endorsement will be issued for the corporation with dedicated limits. This Saskatchewan endorsement is limited to Life and A&S activities only. There is NO coverage for Mutual Funds or any other activities. Where Regulations require a higher aggregate, currently in Manitoba, it will be provided automatically at no additional premium. Example, for agents who are Life and Accident & Sickness licensed in Manitoba, the aggregate of $5,000,000 will automatically be provided for Life and Accident & Sickness activities if they purchase limits of $1MM or $2MM respectively. Regulatory Endorsements for Ontario, Manitoba, British Columbia, Saskatchewan, Newfoundland and Alberta are included in the above premium. WHY IT IS IMPORTANT TO START YOUR APPLICATION EARLY Although most applications are approved automatically within minutes, in some cases your application may require Marsh review and/or Insurer Underwriter approval. This approval process can take anywhere from 24 hours to several days depending on the situation. Advisors with past or current claims or who have answered an application question in a particular way may trigger an underwriting review requirement. In order to ensure there is ample time to process your application and address underwriting approval, we strongly recommend you start the application process as early as possible. Marsh is unable to guarantee approval of your application if the expiry date of the policy has been breached. ADMINISTRATION FEE The Marsh Non Refundable Administration Fee of $20.00 per agent remains in force. Please note that this fee is in addition to the Brokers Commission of 22.5% of premium from the Insurer. The Desjardins Advisors E&O Program is one of the most comprehensive and competitive plans. We encourage you to continue using risk management techniques and incorporating high business standards and practices in your everyday transactions. It is evident that everyone benefits from these practices. SELECTING YOUR LIMIT OF LIABILITY Many advisors are selecting the minimum limit of $1,000,000.

4 Selecting higher limits enables you to practice with minimum concern about the adequacy of your protection. Decisions about limits of liability should not be based solely on price; higher limits are available for a relatively small percentage increase in premium. A general guideline for deciding which limit to choose: Consider the risk exposure of your practice clients portfolio, products sold, and balance that against which limit of liability you should purchase - $1M, $2M or $5M. Whichever limit you select, it is prudent to review your coverage on an annual basis. Ask the question - Are the limits appropriate to your operations and the risk exposure your practice represents? Society is becoming litigious and it is in your best interest to be protected. Also, defence costs are rising and higher amounts are being paid out in claims. IMPORTANT - WHAT HAPPENS IF YOU DO NOT RENEW YOUR COVERAGE Your coverage will automatically lapse at 12.01am, September 1, 2015 if you do not renew your policy. Please note that the Insurer will not back-date coverage. It is in your best interest and it is your responsibility to renew your coverage in a timely manner. WHAT YOU SHOULD DO IF YOU ARE RETIRING FROM THE FINANCIAL INDUSTRY If you are retiring from the financial industry, we strongly recommend that you purchase EXTENDED REPORTING PERIOD (ERP) coverage. ERP: The Extended Reporting Period applies when a policy is cancelled or non-renewed. The extended reporting period allows an insured to purchase an additional period, during which a claim arising from errors, omissions or negligent acts can be reported and covered under the cancelled policy. However, the endorsement does not extend coverage for any new occurrences, only to those which took place before the policy was cancelled, and which surface during the extended reporting period. The following Extended Reporting Period (ERP) options are available: In the event the Insured Agent retires from the business of selling and servicing life and accident & health Insurance and any related products covered by this policy, or becomes disabled or dies, at the next renewal date the Insured Agent or any heir, executor, administrator, assignee or legal representative, shall have the right to purchase an extension period, by paying prior to the policy s renewal date, the flat premium shown in the following schedule. Such discovery period will begin immediately following the date of cancellation and will run for not less than 3 years, covering CLAIMS FIRST MADE AGAINST THE INSURED and reported to the insurer during the extension period.

5 Discovery Period Term Flat current, annual Premium 3 Years 150% 4 Years 175% 5 Years 200% 6 Years 220% 7 Years 240% 8 Years 260% 9 Years 280% 10 Years 300% Unlimited 400% As an example, if you are purchasing 5 Years of ERP, you will have to pay 2 x $650 (current annual premium for $1M limit) = $1,300. This is a one time charge and is non renewable. You can only purchase the policy limit for which you have previously purchased. As an example, if you had purchased $1M limit, the insurer will not permit you to increase your ERP policy to $2M. You will have to purchase a limit of $1M for your ERP policy. PREMIUMS We are requesting that you ensure that your payment is in good standing whether you are paying by Credit Card, Interac or Cheque. (Credit card is the preferred choice and we highly recommend it. Payment made on line will allow you to print your Certificate of Insurance immediately.) Payment must be received for coverage to be effective under the Policy. PREMIUM: The INSURED AGENT shall pay the Corporation the premium due, in the amount stated in each individual CERTIFICATE issued under this policy, and the payment of such premium shall be a condition precedent to any coverage under this POLICY. IMPORTANT NOTICE ON CLAIMS Attached to this letter is an Important Notice on Claims. Please ensure that you read it carefully and follow the instructions provided. Policy Claim Reporting Terms: This explanation of the reporting provisions of your policy has been provided in order to assist you in understanding and complying with the policy's requirements. In the event of a question or disagreement with your insurer concerning interpretation of the policy's reporting requirements as applied to the reporting of a specific claim, loss, occurrence, incident, offence or lawsuit, the actual policy wording, which is the contract between you and the insurer, and not Marsh's explanation of that language, will be controlling. Marsh, as an insurance representative, does not provide legal advice, and this explanation should not be relied upon as a legal interpretation of the policy provisions.

6 If you have any questions, please call your Service Team: Greater Toronto Area: or Toll Free: Or at: We thank you for your business and should you have any questions or concerns, please contact our office. Sincerely, Janet Lobo Vice President Marsh Canada Limited

7 IMPORTANT NOTICE ON CLAIMS INSTRUCTIONS REGARDING REPORTING CLAIMS / ISSUES Your insurance policy is written on a Claims Made and Reported basis. A Claims Made and Reported policy provides coverage for any claim (subject to the terms, limits and exclusions of the policy) provided that the claim is first made and the insurer receives notice of the claim during the Certificate period. Coverage under your Claims Made and Reported insurance policy is based on the date when you first became aware of or reasonably should have been aware of a claim or incident that could give rise to claim; regardless of the date when the incident actually occurred. Your current policy with Westport Insurance Corporation excludes claims and/or circumstances which may reasonably result in a claim where you have prior knowledge of the claim and/or circumstances. If you have knowledge of an incident and you are not certain if this incident could give rise to a claim, to protect YOUR interest, please forward a Notice to Westport Insurance Corporation. Failure to do this could potentially result in you paying out of your own pocket for incidents which you were aware of but did not report to the insurer. Claims, circumstances, issues or incidents may arise in instances where you may be requested to appear before a court or other regulatory body/authority or in the event that you have to attend a deposition or examination for discovery. You are required to immediately advise Westport Insurance. In order to protect yourself, it is essential that you immediately disclose in writing to your insurer, Westport Insurance Corporation, any claims, circumstances, issues or incidents (whether verbal or written) which may reasonably result in a claim. It is very important that you do not share your files with third parties and/or their lawyers without first contacting Westport Insurance Corporation. Failure to report may prejudice the interests of your insurer and your ability to obtain coverage under the policy. It is absolutely imperative that any claim or potential claim you are aware of be reported before August 31st. Failure to comply with the claims reporting provision of your policy may result in the denial of coverage by the insurer in the event of a claim. Policy Claim Reporting Terms: This explanation of the reporting provisions of your policy has been provided in order to assist you in understanding and complying with the policy's requirements. In the event of a question or disagreement with your insurer concerning interpretation of the policy's reporting requirements as applied to the reporting of a specific claim, loss, occurrence, incident, offence or lawsuit, the actual policy wording, which is the contract between you and the insurer, and not Marsh's explanation of that language, will be controlling. Marsh, as an insurance representative, does not provide legal advice, and this explanation should not be relied upon as a legal interpretation of the policy provisions. Westport Insurance Corporation 5200 Metcalf, P.O. Box 2991 Overland Park, KS Toll Free Facsimile: ClaimsNAFinPro_CorporateSolutions@swissre.com cc: Matthew_Davis@swissre.com