The Financial Institutions Act requires that the information contained in this Disclosure Notice be provided to a customer in writing prior to the customer entering a financial transaction.

RE: Application for Insurance for Commercial General Liabilty? Program, Oasis Outdoor Adventure & Sports Insurance Solutions Inc.

RE: Application for Insurance for Equipment? Program, Oasis Outdoor Adventure & Sports Insurance Solutions Inc.

RE: Application for Insurance for Property? Program, Oasis Outdoor Adventure & Sports Insurance Solutions Inc.

1. Oasis Outdoor Adventure & Sport Insurance Inc. is licensed as a general insurance agent by the Insurance Council of British Columbia.
2. This transaction is between you and Lloyd's of London, Traveller's and Various MGA's.
3. In soliciting the transaction described above, I am representing Oasis Outdoor Adventure & Sports Insurance Solutions Inc. which represents Lloyd's of London, Traveller's and Various MGA's.
4. The nature and extent of my interest in Lloyd's of London, Traveller's and Various MGA's is none.
5. The nature and extent of Lloyd's of London, Traveller's and Various MGA's interest in me is none.
6. Upon completing this transaction, I will be remunerated by way of commission or other remuneration which will be paid to me by Oasis Outdoor Adventure & Sports Insurance Solutions Inc., the agency which I represent.
7. The Financial Institutions Act prohibits Lloyd's of London, Traveller's and Various MGA's or me from requiring you to transact additional or other business with Lloyd's of London, Traveller's and Various MGA's as a condition of this transaction.

I have read the above terms and conditions and agree to proceed with the application.

REPLACEMENT COST INSURANCE

If you have replacement cost insurance, your claim will cover the lesser cost of restoring items to their original condition or buying new items of like kind and quality to the ones lost; there will be no deduction for depreciation.

This means, if your 2-year old piece of machinery is totally damaged in a fire, the claims payment you receive will allow you to buy a machine with features as similar as possible to the destroyed model. Your policy limit on the machine must represent the cost of a new machine of similar kind and quality.

• Pro: With a replacement cost policy, the money you receive in a claims payment will allow you to adequately replace your lost item (New for old)
• Con: Premiums for replacement cost policies are generally higher than premiums for actual cash value policies as the limits have to be equal to a brand-new unit and not reduced for depreciation.

Oasis Insurance offers 3 years of replacement cost on portable equipment such as groomers, tractors from the date you purchase it new. This means you must keep your limit of insurance on that item at the new cost for the first 3 years and you will receive a replacement cost settlement on your claim.

ACTUAL CASH VALUE

If you have an actual cash value policy, your claims payment will be based on the cost of buying items in similar condition to the ones you lost; deprecation will be factored into your payment. For example, if your six-year-old tractor is damaged in a fire, we will determine the current value of that machine in its used condition and provide you with that amount as a payment.

• Pro: When calculating items at actual cash value, you’ll likely be charged a lower premium.
• Con: If you purchase new items to replace the ones you’ve lost, you’ll be on the hook for the difference between the insurance payout and the cost of a brand new item. Or, if you choose to replace with an older or used item, you may find it hard to find something satisfactory.