PleasureCraft Insurance Policy

PleasureCraft Insurance Policy

This seminar will provide: A Company Orientation Client Profile Underwriting Guidelines Coverage Highlights Claims Approach

Who are we? Specialty Insurer - Canadian Owned - Established in 1872 Personal Lines - Guarantee GOLD Contract Surety, Commercial Surety and Developer Surety Corporate Insurance - Fidelity, Directors and Officers Credit Insurance In the VIP Insurance Marketplace since 1991 Strategy and decisions made in Canada

Where are we? The Guarantee Company of North America Head Office Toronto Branch Offices - Montreal, Vancouver, Edmonton, Quebec City, Halifax, Woodstock The Guarantee Company of North America USA Home Office Detroit, MI 20 Regional Offices across USA Contract & Commercial Surety only

Our Advantages Strong financial position - as of 2013: Assets of over $1.3 Billion Gross written premium of $388 Million Shareholders equity $479 Million Higher capacity than most competitors AM Best Rating ( A Excellent) Committed to the Independent Broker Distribution Network

Our Advantages Quality Service Essential in building reliable relationships In Canada: over 300 Employees Long-term, Experienced Staff Team Environment - Claims, Loss Control, Marketing & Underwriting Customized Claims Service More than 50 Professional in House Claims Personnel Comprised of Engineers, Accountants, Appraisers and Insurance Specialists

Boat Facts Canadians own close to 4.3 million recreational boats. Over 42% are owned in Ontario and 20% are owned in Quebec. Overall, about 35% (9.4 million) of Canadians participate in boating. (Canadian government statistics) Recreational boating revenues, including indirect and induced revenues is totalling $8.9 billion in Canada. (NMMA National Marine Manufacturers Association, www.nmma.org Canada, 2012) Boat ownership can be an important part of the Gold lifestyle.

PleasureCraft Policy Now Available in Quebec Effective date: March 24, 2015

Client Profile / Underwriting Guidelines

Client & Account Characteristics Professionals / People of Influence Lifestyle Protection The Great Canadian Account Primary residences - $750,000 and higher Condos and Tenants - $200,000 and higher High value automobiles Secondary Homes Cottages Wine, Jewellery, Furs, Paintings, Sculptures Recreational vehicles Watercraft GUARANTEE GOLD Guard Legal Expense Equipment Breakdown Umbrella

What will we insure? Cruisers Sailboats Runabouts Ski Boats & Wakeboard Boats Personal Watercrafts Antique Boats All Purpose Fishing & Bass Boats Pontoon Boats

Risk Characteristics Vessel Professionally Built Well Maintained Fibreglass, Aluminum or Wood Value Generous Limits Use Pleasure only Experience At least one year over 26 feet with no more than a 10 foot jump between vessels.

Underwriting Guidelines Written in conjunction with Primary Residential Policy; Homeowners, Condo or Tenants Policy. Separate policy Separate liability limits

Underwriting Guidelines Risks Not Written: Vessels that are Kit or Home Built Vessels with speed capacity exceeding 55 miles per hour (higher speeds subject to underwriting approval) High Performance boats such as Cigarette, Outer Limits, Apache, Scorpion Vessels that are used as a primary residence year round

Survey Requirements Custom built watercraft All watercraft over $20,000 that are: Under 26 feet and over 20 years of age Between 26-35 feet and over 15 years of age 36 feet and over and over10 years of age Wooden boats over $20,000 The definition of a current survey is one which is less than 3 years old from the date of binding new business. Reappraisals are required every 5 years.

Deductible Options Watercraft valued Under $50,000: $250, $500, $1,000 and $2,500 deductible Watercraft valued 50,000 or over: 1%, 2%, 3% and 4% deductible

Discounts Power Squadron Accreditation (10%) Alarm Credit (5%) Fire Gas Suppression (5%) Fire Diesel Suppression (2.5%) Diesel Credit (10%) Radar (2.5%) GPS (2.5%) Sonar (2.5%) Depth Finder (2.5%) VHF Radio (2.5%) Fume Detector (2.5%)

Coverage Highlights

Coverage Highlights GUARANTEED REPLACEMENT COST applies as long as: Insured s watercraft is 3 years of age or less; The watercraft is deemed a total loss; and The insured replaces with a watercraft of at least like kind and quality

Coverage Highlights NO DEDUCTION FOR DEPRECIATION CASH SETTLEMENT AVAILABLE Reasonable cost to repair or replace up to the amount of coverage for Physical Damage

Coverage Highlights MECHANICAL BREAKDOWN is covered if it results from the following perils: Fire Sinking Submersion Rigging Failure Collision Stranding

Coverage Highlights BROAD NAVIGATIONAL TERRITORY We provide some of the broadest navigational zones available in the industry NEWLY ACQUIRED WATERCRAFT Automatic coverage for 30 days Includes outboard motors, trailers, miscellaneous equipment $500 deductible applies

Coverage Highlights MITIGATION MEASURES (Sue & Labour) Reimburses reasonable costs incurred to minimize or avert a covered loss up to 50% of the Physical Damage coverage shown on the insured s Declaration Page SALVAGE AWARDS 100% of the amount of Physical Damage for all salvage awards granted MARINE ENVIRONMENTAL DAMAGE We cover damages the insured is legally obligated to pay up to $10,000

SEARCH AND RESCUE We will pay up to $10,000 for reasonable expenses incurred in the event any person is lost at sea from the insured s watercraft Coverage Highlights

Coverage Highlights PERSONAL EFFECTS Up to 10% of the amount of physical damage coverage or $30,000, whichever is less Includes personal effects of guests and crew Includes fishing tackle Does not include debit or bank cards, passports or articles of personal adornment such as jewellery or watches No deductible applies to this coverage

Coverage Highlights MEDICAL PAYMENTS Coverage up to $50,000 for medical and funeral expenses Applies to a third party that is injured while boarding, on board or alighting the watercraft Expenses incurred or medically ascertained within 1 year UNINSURED/UNDERINSURED BOATER COVERAGE Provides a covered person with up to $1,000,000 in damages for bodily injury sustained from a boating accident with an uninsured/underinsured boater ICE & FREEZING COVERAGE

Coverage Highlights LOSS OF USE Reimburses rental costs while the insured watercraft is being replaced or repaired due to a covered loss Up to $1,500 for each occurrence ADDITIONAL LIVING EXPENSE Reimburses additional living expenses incurred while the insured watercraft is being replaced or repaired due to a covered loss Up to $1,500 for each occurrence No deductible applies to these coverages

Coverage Highlights EMERGENCY TOWING COVERED If watercraft or trailer becomes disabled for any reason, other than a covered loss, we will cover the cost of: Towing to the nearest marina Delivery of necessary fuel or repair parts Labour done at the site of breakdown No deductible applies to this coverage

Coverage Highlights NO LAY-UP PERIOD REQUIRED Allows the insured 12 months of boating pleasure!

Claims Approach

Claims Approach Experienced claims personnel Use of Specialized Marine Watercraft Experts Staff adjusters will examine every Guarantee GOLD PleasureCraft claim Professional vendors who understand the needs of your Guarantee GOLD client

Claims Approach 24 Hour Claims Line - 1-888-998-1872 contactgcna@theguarantee.com Insureds are invited to complete a Claims Satisfaction Survey

And now a word from our lawyers This presentation is descriptive only. Whether or not or to what extent a particular loss is covered depends on the facts and circumstances of the loss and the terms and conditions of the policy as issued. Claims examples are based on actual cases, composites of actual cases, or hypothetical situations. Actual coverage is subject to the language of the policies as issued. Presentation is not to be duplicated or replicated unless with the express consent of The Guarantee Company of North America. 2014 GUARANTEE GOLD is a registered trade name of The Guarantee Company of North America. All rights reserved.

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