• Details of Policy
  
• I. Definitions
  
• II. Schedule of Insurance Benefits
  
• III. Commencement of Employee's Insurance
  
• IV. Special Provisions For Previously Insured Employees
  
• V. Termination of Employee's Insurance
  
• VI. Life Insurance Benefit
  
• VII. Accidental Death Benefit
  
• VIII. General Provisions
  

For the benefits afforded by Group Insurance Policy No. G86-9876 the terms of which policy are hereby approved and accepted by

to take effect on the effective date specified in the policy. It is agreed that this application supersedes the specification or any other preliminary application for these benefits previously signed by the applicant.

Dated at Montreal this 2nd day of March 1989

CANADIAN PACIFIC LIMITED

By: (Sgd. by R. Colosimo)
Signature and Title
Vice-President, Industrial Relations
CP Rail

Policy Number: G86-9876 - Policy Effective Date: January 1, 1986

Policyholder: CANADIAN PACIFIC LIMITED

This policy replaces Policy G64-1313 and all amendments thereto.

Jurisdiction of Issue: ONTARIO

Policy Anniversaries: January 1, 1987 and January 1 of each succeeding year.

Premium Due Dates: The Policy Effective Date and the first day of each succeeding month.

In consideration of the application, a copy of which is attached to and made a part of this policy, and of payment of the required premiums, and subject to the conditions and provisions of this policy, The National Life Assurance Company of Canada (herein called the Insurer) agrees with the Policyholder to pay the benefits and to provide the other rights and privileges which are set forth in this policy. The following pages numbered as above are part of this policy as fully as if stated over the seal and signatures attached hereto.

Dated at Toronto
this 27th day of January, 1989

(Sgd. by) President

(Sgd. by) Secretary

(Sgd. by David Kent)
COUNTERSIGNED..................

1. "Employer" means the Policyholder (including those subsidiary and jointly-owned companies listed in the Memoranda of Agreement for which and on whose behalf Canadian Pacific Limited executed the Memorandum of Agreement); The Toronto, Hamilton and Buffalo Railway Company; and Algoma Central Railway.

2. "Memoranda of Agreement" means the Memorandum of Agreement signed between the Policyholder and (i) United Transportation Union on November 15, 1985 and (ii) Brotherhood of Locomotive Engineers on November 22, 1985.

3. "Plan" means the Disability and Life Insurance Plan Agreement for Running Trades Employees of Canadian Pacific Limited. A copy of the Plan and Schedules A and B to the Plan are attached to this policy.

4. "Employee" means

(i) a Running Trades employee in the service of an Employer who qualifies as an Eligible Employee in accordance with the provisions of Article III of the Plan, or

(ii) a Running Trades employee in the service of an Employer who is a member of a group listed in Schedule B to the Plan,

(iii) an employee in the service of an Employer who is a member of a group admitted under Article VII of the Plan.

The persons so admitted are defined in Schedule "A" to the Plan , and the groups so admitted are listed in Schedule "B" to the Plan.

(iv) a General Chairman of a Union party to the Memoranda of Agreement but who is not a Participating Employee as defined herein shall be entitled to the insurance benefits specified in this policy if he makes direct monthly payments, when due, to the Employer of the full amount required for such coverage. Such direct payment shall be due not later than the last day of the month preceding that to which the premium applies.

For the purposes of this policy, any reference to an Eligible Employee will be deemed to include an admitted employee, and an employee as defined in (ii) above.

5. "Assigned rest day" means a rest day to which an employee is entitled as defined by the terms of the applicable Collective Agreement.

6. "General holiday" means any one of the days defined in the applicable Collective Agreement as General holiday.

The amount of Accidental Death Insurance shall be equal to the amount of Life Insurance.

In any event, if the Employee is not considered by the Employer to be at full-time active work when an increase in the amount of insurance would otherwise take effect, it will take effect only when he is again considered by the Employer to be at full-time active work and is eligible in accordance with the Memoranda of Agreement.

G09876
Effective July 1, 1995

The insurance of an Employee under this policy shall commence as follows:

(a) The insurance in respect of an Employee who was insured under Policy G64-1313 commences on the date and for the amount described in the Special Provision for Previously Insured Employees, Section IV hereof.

(b) The insurance in respect of an Employee who becomes an Eligible Employee after January 1, 1986 commences on the first day of the month following the immediately preceding month in which compensated service has been rendered.

(c) The insurance in respect of an Employee whose insurance hereunder terminates while on temporary lay-off, leave of absence, or who is off work on account of disability and who is not entitled to waiver of premium under the policy because his status is not maintained in accordance with Article IV.4 of the Plan and who returns to full-time active work, will again commence on the first day of the month following the particular month during which he shall have returned to full-time active work.

Previous Policy

The previous policy is Group Policy No. G64-1313, issued by The National Life Assurance Company of Canada with an Effective Date of November 1, 1964 which terminated December 31, 1985 and is replaced by this policy effective January 1, 1986.

Previously Insured Employees

(a) A previously insured Employee is a person who falls into one of the following categories:

(i) a person who was insured under the previous policy as an Employee and whose insurance would have continued in force under the previous policy had it not been replaced by this policy; or

(ii) a person who was insured under the previous policy as an employee and who was designated as "adversely affected" by the implementation of VIA RAIL pursuant to the VIA RAIL Special Agreements,

and (a) was, at the date of the designation, receiving weekly lay-off benefits, and

(b) had more than two years but less than 20 years of cumulative compensated service;

or (c) was, at the date of the designation, an early retired employee who elected a monthly separation allowance;

or (d) had, at the date of the designation, been laid-off and had attained 20 years of cumulative compensated service; or

(iii) a person who was insured under the previous policy as an employee and who is receiving a monthly separation allowance as a result of being affected by the Reduced Freight Crew Consist Agreement currently in force.

(b) The amounts of Insurance coverage are: (i) A previously insured Employee will be insured under this policy on January 1, 1986 for the amount of Employee life insurance in force on his life on December 31, 1985.

(ii) Notwithstanding the above, a previously insured Employee will be insured for the amount of life insurance described under this policy on the later of January 1, 1986 or the date he is considered by the Employer to be at full-time active work.

(c) The last beneficiary designated by a previously insured Employee under the previous policy will be considered as the designated beneficiary under this policy.

The insurance of an Employee under this policy shall terminate on the earliest of the following:

(a) In the event of termination of an Employee's service with the Employer, the insurance in respect of such Employee will terminate at the end of the month following the month during which such termination of service occurs, except that, if the Employee is on lay-off or leave of absence and has maintained his status in accordance with Article IV.4 of the Plan (Waiver of Premium and Pay Direct provisions), the insurance of such Employee will terminate at the end of the month following the month for which he last made the required contribution to the Employer.

(b) In the event of an Employee ceasing to be eligible for insurance hereunder for any reason other than termination of service with the Employer, the insurance in respect of such Employee will terminate at the end of the month following the month in which an employee last rendered compensated service.

(c) In the event of termination of this policy, the insurance in respect of all Employees will terminate on the date of termination of the policy.

Termination of an Employee's service shall for the purposes of this policy be deemed to occur on the date on which such Employee for any reason, other than vacation with pay, discontinues active work (including retirement) with the Employer, except that:

1. Service will be deemed to continue for a period of not more than ten months from the date of ceasing active work because of bodily injury or disease

(i) if such an Employee is entitled to Disability benefits under a plan established by the Employer, or

(ii) if such Employee is entitled to sickness benefits under the Unemployment Insurance Act, or

(iii) if such Employee is entitled to benefits under Workers' Compensation legislation.

and for a further period of not more than two months, provided such Employee maintains his status in accordance with Article IV.4 of the Plan during such further period.

2. Service will be deemed to continue for a period of not more than 12 months following the date on which the Employee is granted leave of absence or is temporarily laid-off, provided such Employee maintains his status pursuant to Article IV.4 of the Plan during such period.

3. Service will be deemed to continue up to a maximum period of two years from the date of lay-off, provided such Employee has attained 20 years of cumulative compensated service, has been laid-off and "adversely affected" by the implementation of VIA Rail pursuant to the VIA Special Agreements.

4. Service will be deemed to continue during the entire period the Employee is receiving weekly lay-off benefits for an Employee who:

(a) is designated as "adversely affected" by the implementation of VIA Rail pursuant to the VIA Special Agreements,

(b) at the date of this designation is receiving weekly lay-off benefits, and

(c) has more than 2 years but less than 20 years of accumulative compensated service.

5. Service will be deemed to continue during the entire period the Employee is receiving monthly separation allowance for an Employee who:

(a) is designated as "adversely affected" by the implementation of VIA Rail pursuant to the VIA Rail Special Agreements, and

(b) is at the date of this designation an early retired Employee who has elected a monthly separation allowance.

6. Service will be deemed to continue during the entire period the Employee is receiving a monthly separation allowance as a result of the Reduced Freight Crew Agreement currently in force.

7. Service will be deemed to continue until the Employee attains age 65, with respect to an Employee who was covered by the Special Agreement between the Policyholder and the United Transportation Union which was a result of the Conductor-Only Operations of freight trains and who elected bridging to early retirement or who took early retirement.

8. Service will be deemed to continue for a period of 12 months from the date of severance, with respect to an Employee who was covered by the Special Agreement between the Policyholder and the United Transportation Union which was a result of the Conductor-Only Operations of freight trains and who elected to sever his employment with the Policyholder.

Death Benefit

The Insurer will pay to an Employee's beneficiary in one sum, according to the Payment of Claims Provision in Section VIII of this policy, the amount of Life Insurance in force on the Employee's life at the time of death, upon receipt of due proof at the Insurer's Head Office that the employee died while insured for this benefit.

Upon receipt of written proof satisfactory to the Insurer that any Employee, while insured hereunder and prior to his 60th birthday, became totally disabled by bodily injury or disease so as to be wholly prevented thereby from performing any work for compensation or profit or from following any gainful occupation (such totally disabled condition being hereinafter called total disability), such Employee's insurance will be extended, without payment of premiums, during the continuance of such total disability from the last day of the month during which such Employee ceases active work with the Employer due to such total disability until 12 months from such day or until prior receipt of proof of the continuance of such total disability as required below.

The furnishing of proof of continued total disability each year within the period specified above is a condition precedent to the extension of insurance and all such proof must be furnished to the Insurer at its Head Office on the Employee's own initiative or by someone on his behalf without any obligation on the part of the Insurer to give any notice or to request such proof. The Insurer shall have the right, at his own expense, to have physicians designated by it examine the person of such Employee when and as often as it may reasonably require.

The amount of insurance extended under this Provision will be based on the date such Employee ceases active work and will be obtained from the following schedule:

Insurance under this provision on the life of any Employee will terminate on the 31st day following the earliest of the following dates:

(a) the date of termination of the total disability of such Employee;

(b) the date of the failure of such Employee to submit, upon request, to examination by physicians designated by the Insurer;

(c) the anniversary of the proof date immediately following failure to furnish proof of the continuance of total disability as required under this provision;

(d) the date the Policyholder provides the Employee with Paid-Up Life Insurance.

During the 31 day period preceding such termination of insurance, such Employee will be entitled, irrespective of his period of prior service with the Employer, to apply for an individual policy of life insurance in accordance with the terms of the following Conversion Provision, as though his service had terminated at the beginning of such 31 day period, unless he returns to work with the Employer and is again covered under this policy.

Notwithstanding the above, if an Employee is not considered by the Employer to be at full-time active work when an increase in the amount of insurance would otherwise take effect, it will take effect only when the Employee is again considered by the Employer to be at full-time active work.

The Insurer will not be liable for any payment under this Provision unless proof of continuance of total disability is furnished as required above and unless evidence of the death of such Employee while covered under this Provision is received by the Insurer at its Head Office within one year after the date of such death and approved by the Insurer.

Conversion Privilege

(1) When the insurance in respect of an Employee insured hereunder

(a) terminates as a result of retirement, or

(b) terminates as a result of the termination of the policy, or

(c) reduces as a result of reduction of any part of his extended insurance of disability, the Insurer, upon receipt of a written request from such Employee within the respective periods set forth below, accompanied by payment of the first premium, will issue, without medical examination or any other evidence of health and in lieu of all benefits so terminated, an individual policy on the life of such Employee on any form of life or endowment insurance (excluding term insurance) then regularly issued by the Company but without Total Disability Benefit; such policy will be for up to the amount determined in paragraph 2 of this provision and will contain the same provisions as regular policies of like nature then being issued by the Insurer, and the rate of premium will be the rate charged by the Insurer for the plan selected according to the table of rates then in use applicable to the class of risk to which such Employee belongs and the attained age of such Employee at the effective date of the individual policy. Conversion of insurance or payment of claim under such individual policy will not preclude the establishment of rights under the preceding Waiver of Premium Provision if all the conditions of that provision are fulfilled and if such individual policy is surrendered to the Insurer in exchange for the refund of premiums actually paid thereon.

(2) The period within which such written request may be submitted to the Insurer and the amount of insurance will be determined as follows:

(a) (i) When termination of insurance occurs in respect of any Employee as a result of retirement under the conditions set forth in paragraph 1 above, such period will be one calendar month following the end of the month during which such termination of service occurred and such individual policy will be for an amount equal to the amount of such Employee's insurance under the policy at the date of termination of his service, less any amount of paid-up life insurance for which he is eligible under (i) any group policy issued by the Insurer or any other insurance company or (ii) a self-insured plan of the Policyholder, within such period.

(a) (ii) When termination of insurance occurs in respect of any Employee as a result of termination of his service, other than as a result of retirement, under the conditions set forth in paragraph 1 above, such period will be the 31 days following the end of the month during which such termination of service occurred and such individual policy will be for an amount equal to the amount of such Employee's insurance under the policy at the date of termination of his service.

(a) (iii) When reduction of insurance occurs in respect of any Employee as a result of reduction of any part of his extended insurance on disability, under the conditions set forth in paragraph 1 above, such period will be 31 days following such reduction of extended insurance on disability and such individual policy will be for an amount up to the amount of extended insurance on disability which reduced.

(b) When termination of insurance occurs in respect of any Employee as a result of the termination on the policy, such period will be the 31 days following the date of such termination of the policy and such individual policy will be for an amount equal to the amount of such Employee's insurance under the policy as at the date of such termination less any amount of insurance for which he may be or may become eligible under any group policy issued or reinstated by the Insurer or another insurance company within 31 days after the date of such termination.

Each Employee entitled to such an individual policy will be covered hereunder during the said 31 days for the amount of insurance to which he is entitled under such individual policy.

If an employee dies as a result of an accidental drowning or accidental bodily injury, the Insurer will pay according to the Payment of Claims Provision in Section VIII of this policy, the amount of Accidental Death Insurance in force on the Employee at the time of death, upon receipt of due proof that:

(a) the drowning or injury occurred while the employee was insured under this coverage;

(b) the death occurred within 365 days after the injury;

(c) the death resulted directly and solely from the drowning or injury and independently of all other causes.

Exclusions

Payment will not be made under this Provision for loss resulting from any of the following:

(1) intentionally self-inflicted injuries, suicide or attempted suicide (while sane or insane),

(2) drug overdose,

(3) carbon monoxide inhalation,

(4) Flying in, descending from or being exposed to any hazard incident with any kind of aircraft, if the Employee

(a) was receiving aeronautical instruction, or

(b) had any duties to perform in connection with the aircraft, or

(c) was being flown for a parachute descent, or

(d) was a member of any armed forces and the aircraft was under the control of charter of such forces,

(5) the hostile action of any armed forces,

(6) participation in any riot or civil strife.

Waiver of Premium

If an Employee's Life Insurance benefit is continued by the Insurer without payment of premiums under the Waiver of Premium Provision in Section VI of this policy, then that Employee's Accidental Death benefit also continues without payment of premiums so long as premiums remain waived for Life Insurance. The amount of the Accidental Death benefit payable will be the amount for which the Employee was insured immediately before the date he became totally disabled under Waiver of Premium for Life Insurance, but will be reduced whenever the amount of the Life Insurance benefit is reduced, and by the same proportion.

No Accidental Death benefit will be payable under this Waiver of Premium Provision to the extent that the amount is payable under an Accidental Death Benefit Provision issued to the Employee under the conversion privilege, unless the Accidental Death Benefit Provision and the policy to which it is attached are surrendered to the Insurer without claim in exchange for a full refund of premiums paid under the individual policy.

The Waiver of Premium benefit terminates on the earliest of the following dates:

(1) the date that coverage terminates under the Life Insurance Waiver of Premium Provision of this policy,

(2) the date the Employee attains 65 years of age,

(3) the date the Employee's Accidental Death Insurance terminates because of age or retirement,

(4) the date the Employee's Life Insurance terminates, and

(5) the date which is 12 months following the date the Employee's disability commenced.

Conversion Privileged

If an Employee applies for an individual policy on his own life under the terms of the Conversion Provision of the Life Insurance Benefit in Section VI of this policy, the Employee will be entitled at that time to have an Accidental Death Benefit Provision attached to that individual life insurance policy, without evidence of insurability. Such Accidental Death Benefit Provision and the individual policy to which it is attached will be issued subject to conditions specified in Section VI of this policy.

Proof of Loss

Written proof covering the occurrence, character and extent of loss for which claim is made must be furnished to the Insurer as soon as possible after the loss, but in any event within one year of the loss.

Physical Examination and Autopsy

The Insurer at its own expense shall have the right and opportunity to have the person of any individual whose injury or sickness is the basis of claim examined by a physician designated by it, when and as often as it may reasonably require during the pendency of a claim under this policy and to make an autopsy in case of death, where it is not forbidden by law.

Payment of Claims

Any amount due under this policy will be paid in one sum to the beneficiary last legally designated in writing by the Employee and entered into the Employer's records under this or the previous policy, or if no such beneficiary is living on the death of the Employee, the Insurer may at its option, provided there is no legal restriction to the contrary, make payment of such amount to:

(a) the Employee's legal spouse, or if not living on the date of the Employee's death,

(b) the Employee's oldest surviving child on the date of the Employee's death, or if none,

(c) the Employee's father or mother, or if not living on the date of the Employees death,

(d) the representative of the Employee's estate.

The Insurer is under no obligation to see to the application of any moneys so paid and any such payment shall constitute a complete discharge to the Insurer to the extent of the amount of the payment.

Change Of Beneficiary

Subject to any applicable laws to the contrary, changes in the Employee's designation of beneficiary may be made by the Employee by notice in writing given to his Employer. The new designation shall become effective only once it has been recorded by the Employer and then shall relate back to take effect as of the date the notice is signed, whether or not the employee is living when the new designation is entered into the insurance records of the Employer, but without prejudice to the Insurer for any payment made or other action taken by the Insurer before the entry is made.

Assignment

Neither this policy or any rights or benefits hereunder may be assigned unless the Insurer consents in writing to such assignment.

Insurance Information

The Policyholder shall furnish to the Insurer such particulars and information as the Insurer may require for the purpose of administering the insurance under this policy; and the Policyholder shall permit the Insurer to examine such records of the Policyholder to which the Insurer may reasonably require access for such purpose. Clerical error shall not prejudice the rights of the Insurer, or of any person having a beneficial interest in the insurance hereunder.

Misstatement of Age

If the age of any person insured under this policy has been misstated there shall be an equitable adjustment of premiums, and if his amount of insurance depends on his age, his amount of insurance shall also be adjusted to that determined by his correct age.

Incontestibility

The policy shall not be contested, except for nonpayment of premium or fraud, after it has been in force for 2 years from the Policy Effective Date.

Payment of Premiums

The Policyholder shall pay a premium as of the first day of each month during the continuance of this policy.

The amount of premiums shall be at rates agreed to between the Insurer and the Policyholder, except that payment of premiums shall be waived according to the Waiver of Premium provisions of this policy.

The Policyholder shall remit to the Insurer any and all direct-pay contributions made by Employees.

Grace Period

Thirty-one days of grace are allowed for payment of each premium after the first. The policy will remain in full force during this time until written notice is received from the Policyholder that the policy will not be continued. If such notice is not received, all insurance stops on the last day of grace. A pro rata premium is payable for the days of grace that the policy remains in force.

Premium Rate Changes

The Insurer shall have the right to change premium rates as of a date coincident with any change in the amount of benefit but such change shall only reflect on an equitable basis, the change in amount of benefit. The Insurer shall have the right to determine new premium rates as of the first day of any month provided that:

(i) at least 3 months notice of the change shall be given to the Policyholder

Premiums are payable in Canadian currency on the due date at the Home Office of the Insurer.

Amendment of Policy

This policy may be amended at any time by written agreement between the Insurer and the Policyholder. Only the President, a Vice President, the Secretary or Actuary has power on behalf of the Insurer to change or terminate this policy. No agent has authority to change this policy or to waive any of its provisions.

Termination of Policy

The Insurer or the Policyholder may terminate this policy by giving written notice to the other at least 90 days in advance of the date of termination. The termination of this policy shall not prejudice any claim originating prior to the date of such termination.

Non-Waiver of Policy Provisions

Failure of the Insurer to insist upon compliance with any provision of this policy at any given time or under any given set of circumstances shall not operate to waive or modify such provision, or in any manner whatsoever to render it unenforceable, as to any other time or as to any other occurrence, whether the circumstances are, or are not, the same.

Conformity with Applicable Law

This policy shall be governed by the laws of the Jurisdiction of Issue as shown on the face page hereof. Any provision of this policy which, on its Effective Date, is in conflict with the applicable law of the Jurisdiction of Issue is hereby amended to conform with the minimum requirements of that law.

Experience Rating Provision

This policy shall be subject to an experience rating on a basis agreed to in writing by the Insurer and the Policyholder.

Entire Contract

This policy, and all statements and instruments made and furnished to the Insurer in compliance with the terms of this policy constitute the entire contract.

All statements made by the Policyholder or by the individual Employees insured under this policy shall, in the absence of fraud, be deemed representations and not warranties, and no statement made by the Policyholder or any Employee insured under this policy or on their behalf shall be used in defense to a claim under this policy, unless it is contained in a written document signed by the Policyholder or Employee and a copy of that document is or has been furnished to the Policyholder or the Employee or the Employee's legal representative which ever one or more may be appropriate.

Employer Not Insurer's Agent

Neither the Policyholder nor any other Employer named under this policy shall be considered the agent of the Insurer for any purpose under this policy.

Copyright © 1997 Brotherhood of Locomotive Engineers - National Legislative Board - Canada