Cancellation, Flight Accident, Baggage, Rental Car Damage, and Visitors to Canada Cancellation and Interruption General Information

n - Except for normal airline tickets, most travel products carry a cancellation penalty if travel plans changed or cancelled - Cancellation insurance applies PRIOR to travel and covers penalties that are nonrefundable by the suppliers - Example: o Excursion airline ticket 100% non-refundable o ITC package penalties as outlined in Terms and Conditions (deposit immediately non-refundable) o Cruise penalties applicable within 45 days of departure People book a year in advance $200 deposit (refundable) Balance due 45 days before departure - Your client is not protected unless he or she has purchased cancellation insurance or one of the insurance packages which include it - Cancellation premium is NON-REFUNDABLE, regardless if a claim is made or not - RBC insurance covers 44 reasons to cancel, but it will not cover because the client changed his or her mind - In Ontario, 8% PST applies on the insurance - If the client declines insurance, he or she must sign a waiver - By law, you must offer this insurance when penalties apply to the sold travel products - Cancellation insurance should be paid at the time of initial payment - Most products carry immediate cancellation penalty upon deposit payment - Cancellation insurance is commissionable (premium only) at 40% for RBC - There are some exclusions where cancellation insurance will not cover: pre-existing illness, suicide, etc Cancellation Premium Calculation - Add all products that you are selling your clients: air, hotel, car, excursions, etc; including tax - Determine how much cancellation each product would incur if cancelled before departure - Determine how much it would cost to bring your client back and the cost of unused travel arrangements - Determine the age of your client the more older, the more risk, and the more expensive premium - Travel above $15,000 per person must be approved Baggage Insurance - This insurance has 3 levels of sum insured: $1000, $1500, and $2000 - It has to be purchased before departure and for the FULL duration of the trip - The maximum is per individual or max of $2000 per family

Max amount of any one thing insured is $500 SUBJECT TO 8% TAX (IN ONTARIO) Maximum days insured = 183 days

Flight (travel) accident - Amount of sum insured: $100,000 at set premium of $10.20 (no tax) - Compensation for loss of life, limb, sight, etc due to an accident Rental Car Damage - Amount of sum insured: $50,000 - Premium of $15.85 per day - Maximum of 60 days Visitors to Canada - For visitors, persons on a work or student visa and immigrants to Canada - Can be purchased anytime - Minimum of 7 days to a maximum of 365 days - Three plans: VISITOR 1, VISITOR 2, VISITOR 3 - Family rates available by multiplying single rate by 2 - Rate (specified premium) x number of days - Visitors not covered by OHIP Emergency Hospital and Medical Expenses Insurance Medical Insurance - Several types of medical insurance is offered by RBC as an individual insurance - It is part of some insurance packages - Premium depends on the AGE and the LENGTH of ravel period - There are restrictions for age and for pre-existing illnesses - This insurance can be only purchased before departure - NO TAX in this premium - Family rate is available Classic Medical - Up to age 59 ONLY (at the time of purchase) - Maximum coverage is 183 days - No tax on premium on medical insurance - This is SINGLE TRIP coverage - Family rate is available - Must inform Assured Assistance before seeking medical assistance o Only preferred hospital or physician charges are full covered o Only 70% of costs will be reimbursed if NOT preferred hospital or physician is used

Classic multi-trip annual medical - Same insurance as classic medical BUT FOR UNLIMITED NUMBER OF TRIPS DURING 365 DAYS - Pre-set length of stay o 9, 16, 30, or 60 days - Premium depends on age o 0-29 years, or o 30-59 years - Family rate available - No tax Types of insurance available (older than 59) - TravelCare Health Select 0 score - TravelCare Gold 1 or 2 score - TravelCare Silver Plus 3 or 4 score - TravelCare Silver 5-49 score - TravelCare Bronze above 50 score - Each above type (except BRONZE) has 3 options: o $0 US deductible o $200 US deductible o $500 US deductible Multi-trip Annual Medical 60+ - All travelcare medical insurances are available for multi-trip, annual coverage - Large savings - Date of purchase dictate the age bracket Medical Expenses - Medical care is very, very expensive in certain countries - Travel medical insurance will cover medical expenses in excess of what OHIP (Ontario Health Insurance Plan) - Assured Assistance takes care of all arrangements and assists with payments RBC Package Insurance Deluxe Package - Includes: o Cancellation insurance o Medical insurance o Baggage insurance o Flight (travel) insurance - This package is most economical and most purchased o When all components added separately, the deluxe package premium is a good value - Family rates are available

8% PST is applied to Ontario residents Good for up to 4 years no medical questionnaire required

Non-medical package - For someone that has a coverage from work insurance, non-medical package is an option - The price difference is very little between the deluxe and non-medical so, therefore, always offer the deluxe - Why?? Because it is more convenient for your client to work with one insurance company - It takes only 1 phone call to arrange all assistance TravelCare Packages for clients over 74 years of age - As for the individual TravelCare medical insurance it is possible to purchase TravelCare package insurance - All rules apply: o Age limitations o Questionnaire score o Pre-existing conditions o Limited amount of coverage How do you sell insurance? - KNOW your product - Strongly RECOMMEND insurance - Explain BENEFITS to the client - Stress the NON-REFUNDABLE amount before and after departure - Breakdown the COST PER DAY - Answer OBJECTIONS and offer SUGGESTIONS Steps of sales process - Positioning - Uncovering needs - Presenting solutions - Managing objections - Closing the sale Insurance Definitions 1. Premium a. The price charged for the insurance policy 2. Term a. The length of time covered by a policy 3. Deductible a. A predetermined amount in which the insurance company withholds when paying benefits 4. Exclusions

a. A list of articles or circumstances which are not covered under the policy 5. Claim a. A client who has experienced an incident which is covered by their travel insurance will begin this process 6. Policy a. A description in writing which outlines the protection provided 7. Definition a. A description of a term used in the policy 8. Benefits a. The appropriate amount paid on a claim 9. Coverage a. The amount of protection 10. Limitations a. The maximum sum which will be paid by the insurance company under a particular policy 11. Repatriation a. The process of returning a person back to their place of origin or citizenship 12. Immediate family a. Family members excepts cousins as per RBCs itemized list 13. Subsistence allowance a. Money paid for emergency expenses such as accommodation, meals, and telephone calls 14. Beneficiary a. The named person who will receive the proceeds of your insurance policy in the event of your death 15. Expenses a. Theses are the expenses that an insurance provider will consider for payment; for example, medical expenses due to contracting food poisoning 16. Pre-existing medical conditions a. Any one for which an individual received care, treatment or medical advice before coverage comes into effect. Cancer, diabetes, pregnancy and heart conditions are examples of pre-existing medical conditions which can affect the cost or eligibility of coverage 17. Waiver a. A form that a client has to sign upon refusal of insurance purchase