Germain is a life insurance agent. This morning, he receives a call from Jason, whose wife, Rosalie owned a
$50,000 life insurance policy that she purchased from Germain seven years ago. Jason explains that Rosalie had a heart attack and died last week. Germain promises to help as much as he can.

• A.He can provide the claim form to Jason and help him fill it out.
• B.He can assure Jason that the payment will be made within 5 days after receipt of the claim.
• C.He can inform Jason that the death benefit will be paid within 30 days of Rosalie's death.
• D.He can assure Jason that he will settle the death benefit as quickly as possible.

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Angus is involved in a motorcycle accident and due to his injuries has to spend a few nights in the hospital.
He is released from the hospital with a doctor's note indicating that he is able to perform certain parts of his job, but that it would take months until he can be back to normal. He promptly calls his insurance agent Dawn to ask her if he would be entitled to his disability benefits. Dawn reads his policy and tells him that he will not receive any disability benefits.
Which disability definition is MOST LIKELY included in his policy?

• A.Own occupation
• B.Any occupation
• C.Regular occupation
• D.Total disability (according to the CPP)

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Samir applied for a life insurance policy 18 months ago. At the time of the application, he was employed as an accountant. Samir quit his accounting job 6 months ago to become a professional scuba diver.
Which of the following statements about Samir's life insurance policy is CORRECT?

• A.Samir must inform his insurer about his change of occupation within 6 months of the change.
• B.Samir is not required to declare his change in occupation because the policy is less than 2 years old.
• C.Regardless of whether Samir informs his insurer of his change in occupation, if he dies while scuba diving, he would not be covered.
• D.Samir has no obligation to notify the insurer of his change of occupation regardless of how old the policy is.

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Larry, an insurance agent, meets with Ethan, a freelance photographer, to review his insurance needs. Larry tells Ethan that he wants to collect all pertinent financial information to prepare a net worth statement for Ethan.
Why does Larry want to prepare Ethan's net worth statement?

• A.To have enough information to identify where Ethan spends his money.
• B.To determine Ethan's various sources of income.
• C.To determine how much Ethan can spend on accident and sickness insurance premiums.
• D.To determine if Ethan has enough resources to cover medical expenses if he had a medical emergency.

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Kalei owns a $250,000 life insurance policy with an accumulated cash surrender value of $75,000. She meets with her insurance agent Pamela to inform her that she quit her job last week. She wants to start an online business and needs $40,000 to fund the inventory and cover her living expenses for a few months. She heard that it was possible to obtain a loan using her policy at a 5% interest rate. Which of the following statements about collateral assignment is CORRECT?

• A.Upon Kalei's death, the insurance company will only reimburse the bank the entire $40,000 that she borrowed.
• B.Kalei is prohibited from doing anything with her policy that could affect the value of the security.
• C.Kalei must name the bank as an irrevocable beneficiary of the policy until the debt is paid off.
• D.The bank is the new policyholder and beneficiary of the policy.

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