Below are the general terms and conditions governing the AIR MILES® Offer for both personal home and auto insurance policies and Small Business Solutions™ policies. For additional terms and conditions relating to the AIR MILES® Offer for personal home and auto insurance policies see Section A. For additional terms and conditions relating to the AIR MILES® Offer for Small Business Solutions™ commercial policies see Section B.

1. You must be registered as an AIR MILES® Collector in order to start earning AIR MILES® reward miles. To become an AIR MILES® Collector, visit www.airmiles.ca to enroll in the AIR MILES® Reward Program.

2. Customers may obtain AIR MILES® reward miles by registering at www.royalsunalliance.ca and entering a valid AIR MILES® Collector number, a valid Royal & SunAlliance insurance policy number and a valid policy effective date. Upon renewal of your policy, your Collector number will automatically be regenerated, entitling you to AIR MILES® reward miles based on the premium of the renewal policy. You do not have to re-register for AIR MILES® reward miles unless it is a new policy number.

3. AIR MILES® reward miles will begin to accumulate once you have an eligible policy and have registered with Royal & SunAlliance as an AIR MILES® Collector. A customer can enroll at any time during the policy term, but there are no retroactive earnings. Therefore, if you have an eligible policy that is effective October 1, 2007 and enroll as an AIR MILES® Collector on November 1, 2007, you will start earning AIR MILES® reward miles in the month of November.

4. Policies serviced by Royal & SunAlliance for the Facility Association or Residual Market are not eligible for AIR MILES® reward miles.

5. Only one AIR MILES® Collector Account per policy may be credited with AIR MILES® reward miles. The name on the AIR MILES® Collector Card does not need to match the name on the policy.

6. Your entitlement to AIR MILES® reward miles may vary from month to month based on changes made to the total amount of premium of your policy, but we will not require eligible customers to return AIR MILES® reward miles previously earned.

7. AIR MILES® reward miles will be credited to your Collector account within 6-8 weeks following the date that you register your AIR MILES® Collector number.

8. All policyholders must be in good standing with Royal & Sun Alliance Insurance Company of Canada or Western Assurance Company, as the case may be, on the date of enrollment for AIR MILES® reward miles.

• Section A Additional Terms and Conditions Personal Home or Auto Insurance Policies

  9. Starting June 1, 2007, AIR MILES® reward miles will be issued on eligible policies of Royal & Sun Alliance Insurance Company of Canada and Western Assurance Company on the basis of 1 AIR MILES® reward mile for every $20 of premium, including applicable taxes.

  10. An eligible policy is a personal home or auto insurance policy underwritten by Royal & Sun Alliance Insurance Company of Canada or Western Assurance Company, which policy is valid on or after June 1, 2007.

  11. The offer of AIR MILES® reward miles is only available to eligible customers in the Provinces of British Columbia (on property insurance only), Alberta, Ontario, New Brunswick, Nova Scotia, Newfoundland and Labrador, and Prince Edward Island and the Territories of Yukon, Nunavut and the Northwest Territories.

  12. The total number of AIR MILES® reward miles earned each month will be determined on a monthly basis by dividing the total premium of an eligible policy (including taxes but excluding administrative fees) by the number of months in the term of the policy; this amount will then be divided by 20 and rounded down to the nearest whole number to determine the number of AIR MILES® reward miles to be credited to your Collector account that month. In the event that the premium for an eligible policy is less than $20, a minimum of 1 AIR MILES reward mile shall be issued in respect of such eligible policy. No fractional AIR MILES® reward miles will be earned or carried forward. Therefore, $78 will earn you 3 AIR MILES® reward miles, while $82 will earn you 4 AIR MILES® reward miles.

• Section B Additional Terms and Conditions Small Business Solutions™ Commercial Insurance Policies

  13. Starting October 1, 2007, AIR MILES® reward miles will be issued on eligible policies of Royal & Sun Alliance Insurance Company of Canada on the basis of 1 AIR MILES® reward mile for every $20 of premium, including applicable taxes.

  14. An eligible policy is a Small Business Solutions™ commercial property, liability, commercial auto, equipment breakdown insurance policy or a farm insurance policy underwritten by Royal & Sun Alliance Insurance Company of Canada, which policy is valid on or after October 1, 2007.

  15. The offer of AIR MILES® reward miles is only available to eligible customers in the Provinces of British Columbia (excluding commercial auto insurance), Alberta, Ontario, Quebec, New Brunswick, Nova Scotia, Newfoundland and Labrador, and Prince Edward Island and the Territories of Yukon, Nunavut and the Northwest Territories.

  16. The total number of AIR MILES® reward miles earned each month will be determined on a monthly basis by dividing the total premium of an eligible policy (including taxes) by the number of months in the term of the policy; this amount will then be divided by 20 and rounded down to the nearest whole number to determine the number of AIR MILES® reward miles to be credited to your Collector Account that month. The maximum number of AIR MILES® reward miles that may be earned under an eligible policy in any month is 15 AIR MILES® reward miles. In the event that the monthly premium for an eligible policy is less than $20, a minimum of 1 AIR MILES® reward mile shall be issued in respect of such eligible policy. No fractional AIR MILES® reward miles will be earned or carried forward. Therefore, $78 will earn you 3 AIR MILES® reward miles, while $82 will earn you 4 AIR MILES® reward miles.

These Terms and Conditions are subject to change without notice.

If you have any questions about your AIR MILES® account, call the AIR MILES® Customer Service Centre at 1-888-AIR-MILES (1-888-247-6453).

If you have any questions about your Royal & SunAlliance or Western Assurance Company policy (e.g. renewal date, coverage, deductibles, claims, etc.) or your entitlement to AIR MILES® reward miles, please contact www.royalsunalliance.ca or 1-888-877-1710.