Documentation

RBC Royal Bank VISA^* Business Card

LIABILITY WAIVER INSURANCE
CERTIFICATE OF INSURANCE

This certificate is a valuable source of information. Please keep it in a safe place.
This insurance is provided by Royal and Sun Alliance Insurance.

What is RBC Royal Bank VISA Liability Waiver Insurance?

The RBC Royal Bank VISA Liability Waiver program allows Companies that have established one or more RBC Royal Bank VISA Business Card accounts (the "Company") to request Royal Bank of Canada ("Royal Bank") to waive the Company’s liability for certain unauthorized charges made by Cardholders.

The RBC Royal Bank VISA Liability Waiver program will waive the Company’s liability for Unauthorized Charges up to $50,000 per RBC Royal Bank VISA Business Card provided that the Company complies with the terms outlined below.

Who Provides this Insurance?

This program is insured by Royal and Sun Alliance Insurance. The policy number is VC500500.

Definitions

"Affidavit of Waiver" shall mean a written request sent to Royal Bank by mail, telegram, fax or telex from the Company requesting Royal Bank to waive the Company’s Unauthorized Charges in accordance with the terms and conditions of this program.

"Cardholder" is an employee over age 18 of the Company authorized to use the RBC Royal Bank VISA Business Card for Company business purposes only.

"Charges" are amounts, billed or unbilled including purchases and cash advances, charged to the Cardholder’s RBC Royal Bank VISA Business Card.

"Company" shall mean a corporation, partnership, sole proprietorship or any other entity which has signed a RBC Royal Bank VISA Business Card Agreement with Royal Bank and for which Royal Bank subsequently issues Royal Bank VISA Business Cards and accounts for use by those Cardholders designated by the Company.

"Date of Notification of Termination" of a Cardholder’s employment shall mean the date the Company gives or receives a written notice of immediate or pending termination or the date the Cardholder leaves the Company’s service whichever is earlier, or if the Cardholder is a member of a Bargaining unit of a union and the employer contract includes grievance procedures, the date the Company files a grievance with the labour arbitrator recommending the Cardholder’s employment be terminated.

"RBC Royal Bank VISA Business Card" shall mean a RBC Royal Bank VISA Business Card issued by the RBC Royal Bank to a Cardholder.

"Waiver Date" is the date on the Request for Waiver Letter sent from the Company to RBC Royal Bank.

What are Unauthorized Charges?

1. "Unauthorized Charges" are charges to a Cardholder’s RBC Royal Bank VISA Business Card incurred by a Cardholder:
   1. which do not benefit the Company directly or indirectly in whole or in part; or
   2. for which the Company has reimbursed the Cardholder but the Cardholder has not paid Royal Bank.
      
      Provided that such charges:
   1. are billed within the seventyfive (75) days preceding the Notification of Termination of the Cardholder, or preceding the date Royal Bank receives the request from the Company to cancel the RBC Royal Bank VISA Business Card account on which Unauthorized Charges were incurred;
   2. are incurred but unbilled up to fourteen (14) days after Royal Bank has received a request to cancel the Cardholder’s RBC Royal Bank VISA Business Card however the Company must have notified Royal Bank within two (2) business days of the Notice of Termination, if any;
   3. are discovered not later than 75 days after the termination of
      1. the insurance policy; or
      2. the insurance in respect of the Company whichever occurs first.

2. Auditors fees incurred with the insurer’s consent solely to substantiate the amount of the claim.

What are Not Waivable Charges?

The following charges whether Unauthorized Charges or authorized Charges are not covered by this policy:

1. Charges made by partners, owners, or principal shareholders who own more than five percent (5%) of the Company’s outstanding shares, or persons who are not employees of the Company at the time charges were incurred.
2. Interest or fees imposed by Royal Bank on outstanding unpaid Charges.
3. In cases where Royal Bank invoices the Cardholder, any amount on a cheque submitted by a Cardholder which is not paid by the Cardholder’s financial institution, if the Cardholder has, within the last twelve (12) months, submitted any other cheque to Royal Bank which was not paid by the Cardholder’s financial institution.
4. Charges to purchase goods or services for the Company or bought for someone else if instructed by the Company will not be covered. However, these charges would be covered if Royal Bank bills the Cardholder directly, and the Company has reimbursed the Cardholder and the Cardholder has not paid Royal Bank.
5. Charges incurred by the Cardholder more than fourteen (14) days after Notification of Termination or more than fourteen (14) days after Royal Bank receives the request by the Company to cancel the RBC Royal Bank VISA Business Card, or immediately on the Date of Notification of Termination if the Notification of Termination was not sent to Royal Bank within two (2) business days of the Date of Notification of Termination.
6. Charges resulting from either a lost or stolen RBC Royal Bank VISA Business Card or charges to a RBC Royal Bank VISA Business Card account which is closed, frozen or ninety (90) or more days delinquent.
7. Cash advances, after the Date of Notification of Termination or immediately after Royal Bank receives the request by the Company to cancel the RBC Royal Bank VISA Business Card, in excess of $300.00 per day per Cardholder, or a maximum of $1,000.00 per Cardholder, whichever is less.
8. Any interest on money owing.

What are the Responsibilities of the Company?

The Company may request Royal Bank to waive the Company’s liability for Unauthorized Charges only if the Company meets all of the following requirements:

1. The Company must use its best efforts to retrieve the Cardholder’s RBC Royal Bank VISA Business Card from the employee and must notify Royal Bank in writing to cancel the RBC Royal Bank VISA Business Card within two (2) business days of the Date of Notification of Termination or its intention to cancel the Cardholder’s RBC Royal Bank VISA Business Card.
2. The Company must notify Royal Bank in writing to cancel the RBC Royal Bank VISA Business Card within two (2) business days of the Date of Notification of Termination or immediately of its intention to cancel the Cardholder’s RBC Royal Bank VISA Business Card. The letter must state:
   1. That the Company requests the waiver of Unauthorized Charges;
   2. The Cardholder’s name, RBC Royal Bank VISA Business Card number, and last known business and home address
   3. If applicable, that the Cardholder’s employment has terminated and the Date of Notification of Termination;
   4. In cases where Royal Bank sends its statements to the Cardholder directly, that the Company has contacted the Cardholder in writing and directed the Cardholder to immediately pay all outstanding Charges to Royal Bank;
   5. Whether the RBC Royal Bank VISA Business Card was retrieved from the Cardholder and, if so, confirmation that such card is in its possession or is enclosed therein.

   Failure to notify Royal Bank in writing within two (2) business days of the Date of Notification of Termination or immediately of its intention to cancel the Cardholder’s RBC Royal Bank VISA Business Card will exclude coverage for any Charges incurred after the request to cancel the RBC Royal Bank VISA Business Card.

3. The Company must deliver to the Cardholder or send by firstclass mail, fax or telegram, a written notice stating that the Cardholder’s RBC Royal Bank VISA Business Card has been cancelled, that the Cardholder should immediately discontinue all use of that RBC Royal Bank VISA Business Card, that the Cardholder must immediately pay any outstanding amounts owed to Royal Bank, and that the Cardholder must immediately return the RBC Royal Bank VISA Business Card to the Company.
4. An officer, or other authorized official of the Company must send an Affidavit of Waiver to Royal Bank by mail, fax or telegram within thirty (30) days of a Cardholder’s Notification of Termination date or the date of the Company’s intention to cancel the Cardholder’s RBC Royal Bank VISA Business Card and all claim documents must be filed with the insurance underwriter within six (6) months from the Cardholder’s Date of Notification of Termination.
5. The Company must promptly give written notice to Royal Bank in cases where Royal Bank invoices the Cardholder, if the Company knows or should know that a Cardholder is receiving reimbursement for Charges but is not paying Royal Bank for those Charges.
6. If the Company recovers any amounts for Unauthorized Charges from any source after the Company has filed an Affidavit of Waiver with Royal Bank, the Company will remit all such amounts to Royal Bank. The Company agrees to assign any rights it may have to collect such amounts from the Cardholder to Royal Bank. The Company agrees to assign any rights it may have to collect such amounts from the Cardholder to the Insurer.
7. The Company will not name any person to receive a RBC Royal Bank VISA Business Card on any of its present or future accounts if that person has been named at any time by the Company in an Affidavit of Waiver or has been found guilty by a court of competent jurisdiction.

Other Insurance

This program does not cover losses that are covered by other insurance, and/or, losses that would have been paid if this program did not exist. Losses that are above those covered by other insurance as noted, but less than the limit of this coverage are eligible for payment. This certificate is not a contract of insurance. It contains only a summary of the principal provisions of the policy. In the event of any conflict between the description of coverage in this certificate and the policy, the policy will govern.

Termination

Coverage under this policy will automatically terminate on the earliest of the following:

1. the date the Company’s RBC Royal Bank VISA Business Card Agreement with Royal Bank is cancelled; or
2. the date the Policy terminates, or;
3. thirty (30) days after Notice of Termination by Royal Bank.

Misstatement

Any fraud, misstatement or concealment by the Company either in regard to any matter affecting this insurance or in connection with the making of a claim shall render this insurance null and void.

Currency

All claims will be paid in Canadian dollars.

Inquiries

Please direct any claim inquiries to:

Royal and Sun Alliance Insurance Company of Canada
Attention: Claims Management Services
Sheridan Insurance Center
2225 Erin Mills Parkway, Suite 1000
Mississauga, Ontario
L5K 2S9

Within the Toronto Region telephone (905) 403-2283
Outside the Toronto Region telephone 1-800-544-2971
Please refer to the program and the policy number: VC500500.

^* Registered trademark of Visa International Service Association. Used under licence.