Q157. Naomie meets with her new client, Keisha, to review her investment portfolio. Keisha is a 43-year-old sales representative who has been with Belmont Inc., a large pharmaceutical company, for 15 years. She earns a generous salary, plus bonuses. She also has a group tax-free savings account (TFSA) and a defined contribution pension plan (DCPP), all of which are invested in Belmont common shares.
What main need does Naomie have to address regarding Keisha’s investments?

Q158. On June 5, Karl completed an application for critical illness coverage and paid an annual premiumof $1,250.
On June 25, the underwriter approved the policy under standard conditions and sent it to the agent, who received it on July 7. The agent contacted the client on August 8 and the date for delivery was set at August
10. On August 12, Karl learns that he will lose his job at the end of the month. As such, he decides to cancel the policy, returning it to the insurer on August 15. What is the rule governing Karl’s right to have his premium refunded?

Q159. Jonas, age 66, receives a monthly retirement income of $2,000 that is indexed to the cost of living. His RRSPs consist of the following: $30,000 in an international equity fund and $20,000 in a global bond fund.
To which of the following risks is Jonas most exposed?

Q160. Pete is the owner of Blenheim News Tribune Inc, a company responsible for producing the local newspaper.
He has owned the family-run business for 30 years, and he currently employs 10 people. Peter wants to offer a group benefits plan to his staff, so he meets with Daphne, a licensed insurance agent to go over some options.
He would be willing to cover 75% of each employee’s required premium and ask that each employee be responsible for their remaining 25%.
Based on the information provided, which statement is true regarding Blenheim News Tribune Inc’s group insurance premiums?

Q161. Planet Source decides to implement a defined contribution pension plan (DCPP) for its 75 employees. The company’s president appoints Josie, the human resources director, as the plan administrator.
Which of the following BEST describes Josie’s responsibility as a plan administrator?

Q162. (Suzie began her career with a large law firm five years ago. She earns an excellent income and saves
$5,000 annually through a financial advisor. Her advisor placed her in a conservative fund within a TFSA. Suzie wanted to save for retirement and maximize tax deductions.
Based on this information, what conclusion can be drawn about Suzie’s savings program?)

Q163. Cassie applies for a $100,000 renewable 10-year term insurance policy through Mason, her insurance of persons representative. A month later, when Mason meets with Cassie again to deliver her contract, Cassie says she had to have a biopsy the previous week for a persistent cough. Mason tells her not to worry because the policy is already accepted. He completes the policy delivery. Six months later, Mason receives a call from Cassie’s boyfriend informing him that Cassie died of stage 4 throat cancer.
How will the insurance company handle the claim?

Q164. Alex, aged 35, has worked for many years as a salesman in a small used car dealership. He earns $70,000 a year. He has no group insurance at work and no individual insurance. Single and without children, his priority is to save enough money to retire at age 60. He makes regular contributions to his RRSPs, in which he has accumulated $400,000. He owns a condo valued at $250,000 on which he has an uninsured mortgage of
$150,000. What financial risk is Alex most exposed to?

Q165. Molly took out a disability insurance policy. A few years after the purchase, she severely injured her back and was unable to work. She immediately filed a claim with her insurer to start receiving benefits. The insurer asked for an attending physician’s statement (APS) describing her condition and stating when that condition started. Why is it important for the insurer to know on what date Molly became disabled?

Q166. Lily is an experienced realtor. She has been in the business for over 40 years and has made good money throughout her career. She now feels ready to retire and will do so in five months. Most of her assets are in real estate properties. Even within her RRSP and TFSA accounts, she only owns segregated real estate funds.
As Lily is not entitled to any pension, she will heavily rely on her RRSP and TFSA accounts as sources of income. These accounts are now worth $850,000 and $130,000 respectively. Once retired, Lily might also make larger withdrawals from time to time to travel abroad.
Which one of the following risks will Lily be most exposed to after she retires?

Q167. Ten years ago, Albert purchased a life insurance policy and designated his brother Stephen as the sole beneficiary. Albert is single and Stephen is his only family. Albert is a frequent traveler and enjoys doing exotic sports in South Africa. During his trip in South Africa in July 2019, there was a heavy earthquake in the region and a lot of the buildings fell apart. It was reported that Albert could be drinking in one of the restaurants when the disaster happened. His body was not located at that time. The South African government declared the incident as a national disaster. After the incident, Stephen got a letter from the life insurance company indicating Albert’s life insurance was in grace period and a payment was required or it will lapse on August 15, 2019. Two weeks have passedsince the mail arrived and the grace period is over. The policy is now lapsed because Stephen was occupied with Albert’s disappearance. On October 1, 2019, Albert’s body is finally located in one of the building ashes. The coroner’s report indicated he died when the building collapsed. What should Stephen do to handle the life insurance matter?

Q168. Omar and Martha are common-law spouses employed by a company that has a group life and disability insurance plan. Omar has named Martha his beneficiary while Martha has named Omar as her beneficiary.
Omar and Martha got drunk one Saturday night, stole a car, and decided to rob a convenience store. As they drove away from the store, Omar hit a light post. He becamepermanently disabled while Martha died at the scene. What will happen when Omar submits claim forms for disability and death benefits?

Q169. (Arthur’s assets include a home worth $744,000, savings of $41,000, and a whole life insurance policy with a death benefit of $300,000 and a cash value of $196,000. His liabilities include a $150,000 reverse mortgage and $2,090 income tax owed.
What is Arthur’s net worth?)

Q170. Dr. Kumar owns a 10-year term life insurance policy with a level death benefit of $500,000 issued by Expert Health & Life Inc. The policy is renewable, convertible to age 70, and contains no additional riders. Dr.
Kumar is the life insured. She is single, has no dependents, and her estate is named as the policy’s beneficiary.
The current premiums are $365 per year, based on standard health, non-smoker rates. As the policy is due to renew in a few months, Dr. Kumar meets with Kavya, an insurance agent referred to her by a mutual friend.
Kavya reviews all of the information presented above, but notices a missing detail.
What additional information about Dr. Kumar’s policy does Kavya need to complete her review?

Q171. Eloise has critical illness coverage through her group insurance plan at work. She is 54 years old, in excellent health, and is planning to retire soon. She meets with Sonia, her insurance agent, to plan her retirement and to make sure she will still be covered in the event of critical illness. To make sure she is not a burden on her family, Eloise would also like to receive monthly benefits in the event she is placed in an assisted living facility. What should Sonia tell her?