JAN 01/2005 ONTARIO REGULATION 410/04 DISCLOSURE STATEMENT

RE: Rai Insurance Brokers Ltd.

Compliance with regulation 410/04

Changes to the regulations governing insurance brokers require that we make certain disclosures to you our clients and members of the public that we deal with.

1. There is no direct or indirect ownership interest of any kind in our brokerage by an insurer or by us in an insurer.
2. We hold no common ownership of another brokerage or an insurer by a financial conglomerate or other holding company or group of companies.
3. We have no loans, credit facilities or other financial relationships with any other insurer or broker which influences us in the placement of insurance policies.
4. We have no financial or non-financial network affiliation.
5. We are brokers with multiple markets and do not have one market or exclusive contracts only.
6. We are not under any volume or mix of business requirements.
7. We have and will have various contractual relationships with various carriers from time to time, which may include the carrier we have placed you with, that provide for payment of contingent commissions. In order for us to maintain strong relationships with quility insurers we work with each to provide the type of business they desire. Payment of this contingent commission depends on a combination of growth, profitability, volume, retention and increased services that we provide on behalf of the insurer. It is based on our entire portfolio of business with that insurer and not on individual policies. Contingent commission is not guaranteed.
8. We may also from time to time with any one or more of our carriers represented at that time, receive sales incentives such as trips or prizes or some other form of reward for contests or sales incentives held by the insurers we represent.

For further information with regard to these items or any other questions you may have please contact the undersigned.

Chris Rai
President
Rai Insurance Brokers Ltd. O/A
Rai Grant Insurance Brokers