Danny purchases a $1,000,000 whole life insurance policy. He names his three daughters, Donna-Joe, Stephanie, and Michelle, as revocable beneficiaries with each receiving one-third of the death benefit.
If Michelle predeceases Danny, and Danny did not have a chance to modify his beneficiary designation, how will Danny's death benefit be paid out?

• A.Donna-Joe and Stephanie will each receive $500,000.
• B.Donna-Joe and Stephanie will each receive $333,333 and Michelle's estate will receive $333,333.
• C.Donna-Joe and Stephanie will each receive $333,333 and Danny's estate will receive $333,333.
• D.Danny's estate will receive the entire $1,000,000 death benefit.

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A group of high school students visits Jacques, a financial security advisor, as part of Career Day. A student wants to know what an insurance contract is. What will Jacques answer?

• A.It is a contract of the utmost good faith, in general concluded by mutual agreement, onerous, and aleatory
• B.It is a contract in which an inaccurate statement by the client is inconsequential; it is in general a contract of adhesion, synallagmatic, and consensual
• C.It is a contract of the utmost good faith, in general a contract of adhesion, synallagmatic, and aleatory
• D.It is a contract in which an inaccurate statement by the client is inconsequential; it is a synallagmatic, consensual, and gratuitous contract

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Vincent, aged 55, plans to retire 10 years from now after a 40-year career with the federal government. He will then receive a federal pension and will benefit from a retiree health plan. His wife Catherine is 15 years younger than him. Vincent also has an RRSP that he intends on using in part to fund his travel plans in retirement, and in part to leave a lump sum to Catherine for her living expenses after he dies. Vincent has planned his budget carefully and feels confident that he has thought of everything. What may Vincent's insurance agent suggest he consider to safeguard his retirement?

• A.Critical illness insurance to pay for unexpected medications.
• B.Long-term care insurance to prevent depleting his RRSP due to a serious illness.
• C.Extended health insurance to pay for an unexpected hospital stay.
• D.Disability insurance to replace his income for injuries lasting longer than 90 days.

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Cecilia, a licensed life insurance agent, delivers a life insurance policy to her client Tony, a newly landed immigrant. Tony would like to pay the policy using the pre-authorized monthly payment method. However, he does not have a bank account in Canada yet and doubts he could find the time to open one in the next few days. Cecilia offers to open a savings account for him, but Tony is unsure whether she is licensed to do that.
What should Cecilia tell Tony to reassure him that she can open a savings account on his behalf?

• A.That licensed life insurance agents are authorized to sell bank products.
• B.That no license is required to act as a deposit broker.
• C.That she can open a savings account for him with no additional license because she delivered the life insurance policy to him beforehand.
• D.That she can open a savings account for him with no additional license so long as the initial deposit is less than $100,000.

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Ontario residents, Juan and Maria, are a married couple approaching retirement. They have asked their representative, Carlow, to review the details of Maria's defined benefit plan (DBPP).
Which of the following statements about Maria's pension is CORRECT?

• A.Maria would be entitled to an increased benefit if Juan waived his survivor benefit.
• B.Juan would be entitled to receive at least 50% of Maria's pension upon Maria's death.
• C.With Juan's consent, Maria can choose to reduce the survivor benefit to 25% of her normal pension amount.
• D.Juan will be entitled to the survivor benefit even if they are separated at the time of Maria'sdeath.

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