1.

Avery had a life insurance policy for a face amount of $500,000 for which her sister Scarlett was the
beneficiary of policy Avery and Scarlett were in an automobile accident. While Scarlett died on the spot,
Avery died in the hospital same day. To whom will the insurer pay the death benefit?

A. Scarlett’s estate

b. Court assigned beneficiary

C. Public trustee

d. Avery’s estate

2. Oscar is a new life insurance agent. He wants to know which of the following documents can be used
to determine the identity of a person under the Financial Transactions and Reports Analysis Centre of
Canada (FINTRAC) guidelines. His agent tells him that, in general, all the following documents can be
used, but in some provinces, a specific document cannot be used to determine the identity of a person.

Which of the following documents CANNOT be used in some provinces to determine the identity of a
person?

A. Record of landing

B. Health card

C. Driver’s licence

D. Birth certificate

3. Zahid was receiving a pension from a pension annuity. Zahid Died recently, leaving behind his wife,
Angelina, and son Felix. He has named his son, Felix, as the beneficiary of the annuity.

Who will receive the benefit from the pension annuity?

A. Felix will receive a lump sum payment.

B. Felix will receive a reduced pension as long as he is alive.

C. Angelina will receive a reduced pension as long as she is alive.

D. Angelina will receive a lump sum payment.

4. Stacy is a single mother who wishes to purchase a $200,000 life insurance policy on her life. She
meets with an insurance agent who works for a new insurance company Stacy is apprehensive about
purchasing a life insurance policy from a new company and asks Ben about the consequences if the
company fails. Which of the following responses will Ben provide Stacy?

a. She can raise a complaint with the Ombud Service for Life and Health Insurance for compensation.

b. Her policy will receive a minimum of 85% of the promised benefits provided by Assuris.

c. She will be refunded with all of the premiums paid and her policy will be terminated.

d. Her policy will be transferred to Another company or Assuris protection would apply
5. Sydney was married to Smith and she applied for a life insurance policy for $500,000 on her life
naming Smith as the beneficiary. At the time of application, Sydney answered “no” to all of the
temporary Insurance questions and was granted coverage. However, even before her policy’s
underwriting was complete, Sydney dies in an accident. What outcome can be expected in this case?

a. Smith will not receive death benefit because Sydney’s application was not even approved at the time
of her Death

b. Smith will receive the death benefit specified in the temporary insurance coverage.

c. Smith will receive a death benefit only if Sydney had died during the first 30 days after the issuance of
temporary insurance.

d. Smith will not receive a death benefit because Sydney died before her application’s underwriting was
Completed.

6. Philip meets with an insurance agent to purchase a whole life insurance contract. As the policyholder,
Philip

a. cannot be the life insured of the insurance contract.

b. will be a party to the policy with contractual rights.

c. can only name a single beneficiary to the insurance contract.

d. can modify the term of the insurance contract.

7. Justin is applying for a life insurance policy through Lucas, a life insurance representative. Justin wants
to know his rescission rights for the life insurance policy he is about to buy. What does Lucas tell Justin?

a. 30 days from the application date

b. 10 days from the date of policy delivery

c. 10 days from the policy issue date

d. 15 days from the policy issue date

8. Zein and Adana have been living together for several years. They are hesitating between getting
married or continuing to live in a common-law relationship. They go to their personal insurance
representative to clarify the difference between marriage and common-law status. The representative
has recommended that they consult a lawyer to get accurate answers to their questions. Which of the
following statements, can the representative still confirm to them, in the event of a breakdown?

a. Marriage guarantees the legal right to division of property, but not obtaining support payments.

b. A married spouse is entitled to financial support, while a common-law spouse is presumptively not
entitled to claim such support.

c. Common-law status does not give any right to division of property, but former spouses have the
option of obtaining support payments.

d. Marriage is a formal legal status under provincial law, while common-law status is under federal law.
9. Afiya is covered by her employer’s group plan that provides group life insurance, short-term and long-
term disability insurance, and a plan. She is disabled long-term after being a car accident. Afiya is
currently receiving long-term disability benefits from the group plan.

Her employer decides to terminate the master policy. What will happen to Afiya’s long-term disability
benefits?

a. Since she is on a claim, the policy will continue to pay her the benefits until she recovers, or
the benefit period Has elapsed.

b. The sponsor (her employer) will make the disability benefit payments to her until a new insurer takes
over.

c. The insurer will stop the benefit payment as the master policy has been terminated

d. She can continue to receive the benefits from the group plan, if her premiums are paid by either her
or her employer.

10. Meilin purchased an individual annuity policy for $200,000 from XYZ Insurance Company. She wants
her granddaughter Xue to start receiving annuities when she begins university in about 12 years has
based the annuity payments on the life of her son Zihan, Xue’s father.

Which of the statements below represents the parties involved in the annuity policy in the following
order: The debtor, the annuity holder, the annuitant, and the annuitant grantee?

a. XYZ, Xue, Zihan, Meilin

b. XYZ, Xue, Meilin, Zihan

c. XYZ, Meilin, Zihan, Xue

d. XYZ, Zihan, Meilin, Xue

11. Which of the following organizations is an inter-jurisdictional association of insurance regulators

whose mandate is “to facilitate and promote an efficient and effective regulatory system in Canada to
serve the public interest”?

a. CSF

b. CCIR

c. CLHIA

d. CISRO

12. When Dalia left her company, she received the funds from her defined contribution pension plan
(DCPP). To avoid being taxed, she put them into a locked-in retirement account (LIRA). She is now
planning to retire and wants to access These funds. What should she do?

a. Move the funds into a supplemental executive retirement plan (SERP)

b. Move the funds into a registered retirement income fund (RRIF)

c. Move the funds into a pooled registered pension plan (PRPP)

d. Move the funds into a life income fund (LIF)

13. Jabari, an insurance agent in Ontario, is meeting his client, Masud, who wants to buy an insurance
contract. Masud states that he does not have any identification documents except for a credit card that
expires in three months. He hands over the credit card and a cheque for the first year’s premium.

Which of the following would be an acceptable form of identification?

a. Permanent resident card

b. Certified bank statement

c. Health insurance card

d. Social insurance card

14. Shahid owns a life insurance policy with cash surrender value on the life of his wife with no named
beneficiary Shahid’s business faces a huge loss and his creditors are after him to get back their money. In
an effort to protect the policy from creditors, Shahid names his daughter as the beneficiary to the policy.
What is the result of this beneficiary designation?

a. Since Shahid has named his daughter as the beneficiary, the policy is protected from being seized.

b. Because Shahid has named a beneficiary to hinder creditors, the designation may be subject to
challenge.

c. Shahid’s beneficiary designation is not valid as his daughter is not a protected class beneficiary.

d. Because the policy is based on the life of his wife on whom he has insurable interest, the contract is
exempted From creditor claims.

15. Shane is a life insurance agent in Saskatchewan who is working with a new client, Alan, who wishes
to purchase a life insurance policy. He collects Alan’s personal information required to process his
application and keeps the file in his bag. Shane goes to a restaurant with his bag and forgetfully leaves
without it. Which of the following Acts did Shane NOT Comply with?

a. FINTRAC
b. PCMLTFA
c. FATCA
d. PIPEDA

16. Simba has just met with Tiana, a client he is meeting with for the second time. Simba has
recommended that Tina cancel an existing life policy that she had purchased through another insurer, as
well as replace the policy through the firm Simba represents. However, the benefits of such a
replacement are questionable.

What is this type of sales practice called?

a. Twisting
b. Fronting

c. Inducing to replace

d. Tied selling

17. Which of the following agencies is a professional association and NOT a regulatory body

a. FPSC

b. FINTRAC

c. CCIR

d. CISRO

18. Madison is a life insurance agent who is very busy this season as she has a lot of prospective clients
to meet with Eliza, her client, is leaving for vacation and wants to apply for a life insurance policy before
she goes. As Madison can’t spare the time before Eliza leaves for vacation, she asks her husband, Frank,
who is a securities broker but not a licensed life insurance agent, to go and fill out the application details
on her behalf. She believes that Frank is very knowledgeable about financial matters. Frank meets with
Eliza who fills out the application with him. After the appointment, Frank gives the application to
Madison who signs it and submits it to the insurance company.

Which deceptive practice is Madison guilty of using?

a. Misrepresentation

b. Holding out improperly

c. Fronting

d. Trafficking in insurance

19. Raj is the beneficiary of his father’s life insurance contract. Upon his father’s death, Raj makes a
claim but the insurer refuses to pay the death benefit stating that his father fraudulently concealed
material facts, Raj believes otherwise and decides to sue the insurer. His lawyer states that he has only
two years’ time period during which he can sue the insurer. This time period after which Raj loses his
right to sue the insurer is called the:

a. elimination period.

b. qualification period.

c. limitation period.

d. incontestability period.

20. Rashida is a newly licenced agent and her supervisor explains to her the importance of the rules of
core ethical values, especially “acting in good faith.”

Which of the following is a component of “acting in good faith?”

a. Assertiveness
b. Compliance

c. Competence

d. Priority of client’s interest

ETHICS 2

21. Danylo has some doubts regarding the various registered accounts that he holds.

Which of the following accounts has a restriction on the maximum amount that he can withdraw in a
year?

A.LIF

B. RRIF

C.TFSA

D.RRSP

22.Lilac is 40 years old, single, and lives with her best friend, Jane. Lilac owns a bakery and Jane is
employed at a company. Lilac wishes to obtain the policy’s benefits to be protected from creditors.
Which of the following is true in this case?

a. Naming Jane as an irrevocable beneficiary is the only option for Lilac to protect the policy
from creditors.
b. Naming lane as a beneficiary to Lilac’s insurance contract is sufficient to protect the policy from
creditors.

c. Lilac cannot name jane as an irrevocable beneficiary as Jane does not belong to the protected class of
beneficiaries.

d. Lilac should name her estate as the revocable beneficiary and name Jane as the contingent
beneficiary to her insurance proceeds in he

23. Samantha is a life insurance agent representing a single insurance company. She tells Gary, her
client, that he qualifies for a Registered transferring his current RRSP products into products offered by
her company. This requirement is false but Gary, who trusts Samantha, agrees

Which deceptive practice is Samantha guilty of using?

a. Twisting
b. Trafficking in insurance
c. Tied selling
d. Churning

24.Rafael, an insurance agent, is terminated by ABC Insurance Company. Rafael is then hired by Secure
Life Company. At meetings with potent the management of ABC Insurance company is not as good as
the management at Secure Life. Is Rafael violating any code of ethics?
 a. Yes, Rafael is guilty of defamation which is against the ethical standards of life insurance agents.
b. No, Rafael is only comparing his company with a competitor.
c. Yes, Rafael is clearly making a misrepresentation.
d. No, because the code of ethics states that only another representative should not be discredited.

25.H owns a $500,000 permanent life insurance policy on the life of his wife, Nora, for which their son,
Preston, is named the beneficiary Preston before his death. This policy assignment gives Preston the
right to change the:

a. Insurance company.
b. Beneficiary
c. Policy premiums.
d. Life insured.

26. Isabel is a fully licensed insurance agent who works for several insurance companies. Which of the
following products is Isabel

i) Individual life insurance policies

ii) Group Life Insurance policies

iii) Individual accident and sickness insurance policies

iv) Group accident and sickness insurance policies

v) Individual annuities

vi) Group annuities

a. I,ii,iii,iv
b. I, iii,v
c. I, ii, v, vi
d. I,ii,iii,iv,v,vi

27.Himari is an insurance agent who wants her assistant Beatriz to contact prospective clients. Himari
thinks that her old classmates would manage. Himari has registered and subscribed to the National Do
Not Call List (DNCL).

What must Himari tell Beatriz?

a. Beatriz should email anyone who cannot be reached by phone offering one-on-one meetings with
Himari to discuss their insurance.

b. Beatriz should only call those individuals whose number is not registered with the DNCL.
c. Beatriz can call anyone in the directory because they are Himari’s acquaintances and subscriptions
to the DNCL do not apply to them.

d. Because Himari has subscribed to the DNCL and not Beatriz, Beatriz can solicit insurance from anyone
listed on the alumni directory.

28.Ricardo purchased a life insurance policy on his wife, Hannah, for $250,000. He named his brother,
Noah, as the successor owner a death, his wife Hannah and his son Leon argued and are no longer on
speaking terms. Hannah now wishes to name her daughter, Ella, the estate can change the name of the
policy beneficiary and why?

a. Hannah, because the insurance policy is on her life.

b. Noah, because he is the successor owner.
c. No one, as the original policyholder is Ricardo and he passed away.
d. Leon, because he is the revocable beneficiary.

29.Zain and Adana have been living together for several years. They are hesitating between getting
married or continuing to live in a common-law relationship. They go to their personal insurance
representative to clarify the difference between marriage and common-law status. The representative
has recommended that they consult a lawyer to get accurate answer of their question. Which of the
following statement, can be representative still confirm to them, in the event of a breakdown?

a. A married spouse is entitled to financial support, while a common-law spouse is presumptively

not entitled to claim such support.
b. Common-law status does not give any right to division of property, but former spouses have
the option of obtaining support payment.
c. Marriage is a formal legal status under provincial law, while common-law status is under federal
law.
d. Marriage guarantees the legal right to division of property, but not obtaining support payments.

30.Megan submitted an application to an insurer on June 1, 2014. She did not opt for temporary
insurance and, therefore, did not pay any modifications and accepted the policy. On June 16, 2014,
Megan’s insurance agent, Chris, delivered the policy after ensuring that there w have enough money to
cover the initial premium until payday on Friday, June 20, 2014. With this in mind, Megan gave Chris a
cheque dated J scuba diving with friends.

Will the policy pay the benefit to Megan’s beneficiary?

a. No, because the contract is not in effect until the initial premium is paid.
b. Yes, because the policy date is the application date.
c. Yes, because the policy was delivered and accepted on June 16, 2014
d. No, because scuba diving is a hazardous sport not covered by the policy.
31.Shan has a life insurance policy and a disability policy through a national insurer that has had some
financial difficulty. Shan understands that he has level of protection in case of company fails.Regarding
levels of protection, which of the following is correct?

a. The cash value is protected up to $50,000 or 85% of the cash value, whichever is higher.
b. The accumulated value is protected at 90% of the value, up to $100,000.
c. The monthly disability benefit is protected up to $2,500/month or 85% of the promised benefit,
whichever is higher.
d. The death benefit is fully protected for values up to $200,000. For values greater than
$200,000, Assuris protects 85% of the benefit.

32.Craig who lives in British Columbia has plans to become a life insurance agent and enrols himself for
certification. Upon successfully completing the exam, which of the following agencies will be licensing
Craig?

a. Office of the Superintendent of Financial Institutions

b. British Columbia Financial Services Authority
c. insurance Council of British Columbia
d. Canadien Council of Insurance Regulators

33.Massimo is a new insurance agent who is confused about the roles of the various regulatory
authorities. He wants to know which of these regulator Agencies is responsible for the regulation of
agents and insurance agencies.

What does Massima’s supervisor tell him?

a. Canadian Council of Insurance Regulators

b. Provincial and territorial insurance regulators
c. Canadian Insurance Services Regulatory Organizations
d. Ombud Service for Life and Health Insurance

34. Rupert is 72 years old and lives with his wife, Judy, and son, Ethan. He purchased a universal life (UL)
insurance policy several years ago in which Rupert's sister, Sandra, was named as the irrevocable
beneficiary. He purchased a life annuity with his pension funds and named his wife as the beneficiary.
He named his son as the revocable beneficiary to his TSA. Rupert also has debts where he owes money
to Rupert dies, which of the following will be protected from the creditors?

a. The UL policy, the life annuity, and the TFSA

b. the UL policy and the life annuity

c. The life annuity and the TFSA

d. the UL policy and the TFSA

35. Danyo has some doubts regarding the various registered accounts that he holds.

Which of the following accounts has a restriction on the maximum amount that he can withdraw in a
year?

a. RRSP

b. RRIF

c. LIF

d. TFSA

36. Craig who lives in British Columbia has plans to become a life insurance agent and enrols himself for
certification. Upon successfully completing the exam, which of the following agencies will be licencing

Craig?

a. Insurance Council of British Columbia

b. British Columbia Financial Services Authority

c. Canadian Council of Insurance Regulators

d. Office of the Superintendent of Financial Institutions

37. Camila owned a life insurance policy with a face amount of $200,000 on her life. She indicated on
the application that she wanted her son, Dinis, to be the beneficiary. She later prepared a will in which
she indicated that she wanted her daughter. Ana, to be the beneficiary. She did not change the
information on the insurer's record. Camila recently died and Dinis made a claim to the insurer with all
the required evidence. 90 days after receiving all the proof, the insurer made the payment to Dinis.
Subsequently, the existence of the will was discovered. With this discovery, it became clear that the
proceeds should have been paid to Ana and not to Dinis.

Which of the following statements is true?

a. The insurer delayed the benefit payment, but there is no mistake in the payment of death benefit
as it was paid to the named beneficiary in the insurer's record.

b. The insurer did not make any mistake as the death benefit was paid on time to the designated
beneficiary,

c. The insurer did not delay the payment of the benefit, but the insurer made a mistake by paying the
benefit to the wrong person and is, therefore, liable to Ana for $200,000.

d. The insurer delayed the benefit payment as well as paid the benefit to the wrong person. The insurer
is liable for both mistakes.
38. Kenli creates an enduring power of attorney document in anticipation of becoming mentally
incapable. He appoints his cousin, Jiro, as his attorney to deal with all his properties in the event that he
becomes incapable. Unfortunately, Ken does become mentally Incapable and the power of attorney is
triggered once the doctor determines Ken's incapacity.

Which of these actions can Iiro take on behalf of Ken as his power of attorney?

a. Renew Kenji’s term life insurance policy

b. Change the beneficiary of Kenji's Locked-in Retirement Account (LIRA) contract when transferring it
to a Life Income Fund (LIF)

c. Change Kent's will

d. Assign the beneficiary of Kenji’s life insurance policy

39. Branden is the owner of a trading company with more than 30 employees. He sponsors a group
insurance policy for which his oldest employee Sameer is the plan administrator. Branden purchased the
insurance contract from XYZ Insurers through Alex, a group Insurance agent. Who among the following
will determine the policy benefits for the employees covered under the plan?

a. XYZ insurers

b. Sameer

c. Branden

d. Alex

40. Which of the following policyholder’s life insurance contract most likely to be canceled by the
insurer?

a. Roby made a mistake in her age while filling her life insurance application form and had been paying
lower premiums than what was required for her age. The insurer notices the age discrepancy when a
claim was made upon her death three years after the policy issue.

b. Leah made a mistake in her age while filling her application form and had been paying higher
premiums than what was required for her age. The insurer notices the age discrepancy when a claim
was made upon her death a year after the policy issue.

c. Reza stated he doesn’t consume alcohol in his insurance application and the insurer became aware
of his drinking status two years after the policy issue.
d. Tom forgot to mention his recent visit to the doctor while applying for a life insurance policy which
eventually led to a critical diagnosis and the insurer became aware of this information alter two years
through Tom's agent.

41. Zoey meets with her insurance agent, Nolan, to purchase a life insurance policy on her life. She has
little knowledge about life insurance policies and asks Nolan to provide more details. While explaining its
various features, Nolan mentions that life insurance policies are unilateral contracts. What did he Imply?

a. The insurer can change the terms of the contract without notice
b. The insures and the policyholder obligate themselves to provide a benefit.
c. The policyholder can cancel the policy at any time
d. The insurer and the policyholder perform their obligations at a single moment

42. Aisha needs some funds to help her son with his start-up business. She has a whole life policy with a
cash surrender value (CV). She wants to take a loan on the maximum amount permitted, which is 90% of
the cash surrender value for a policy loan. Aishas bank also offers her 90% of the CV as a collateral loan.
The adjusted cost base (ACB) of her policy is currently about 40% of the CSV.

Which of the following statements regarding policy and collateral loans are true?

a. The collateral loan will trigger policy gains as taxable income, whereas the policy loan will not
trigger any taxes
b. The policy loan and the collateral loan will both not trigger policy gains as taxable income
c. The policy loan and the collateral loan will both trigger policy gains as taxable income.
d. The policy loan may trigger policy gains as taxable income, whereas the collateral loan will
not trigger any taxes.

43. Ricarde purchased a life insurance policy on his wife, Hannah, for $250,000. He named his brother,
Noah, as the successor owner and his son, Leon, as the revocable beneficiary. Ricardo had just passed
away and after his death his wife Hannah and his son Leon argued and are no longer on speaking terms.
Hannah now wishes to name her daughter, Ella, as the new beneficiary of the policy instead of Leon.
Who among the parties involved in the estate can change the name of the policy beneficiary and why?

a. No one, as the original policy holder is Ricardo and he passed away

b. Leon because he is the revocable beneficiary

c. Hannah, because the insurance policy is on her life

d. Noah because he is the successor owner.

44. Mia purchases a joint last to die life insurance policy of $300,000 on herself and her husband,
Jayden, In her will, Mia named her sister Luna as her beneficiary. Jayden designates his mother Arla to
be his beneficiary. A few yours Later, Mia and Jayden die in a car accident and medical evidence
concludes that Mia died first.

Who will receive the $30,000 payout from the policy?

a. Luna
b. Aria
c. Mia’s estate
d. Jayden’s estate

45. Afridi is a life insurance agent. To sell more insurance policies, he tells his clients that the benefit
payments on insurance products of the company he represents are 100% guaranteed and the benefit is
paid with no questions asked. Recently, a claim by one of his clients was refused by the insurer. The
client sued Afridi for the full amount of the death benefit.

On what grounds did the client sue Afridi?

a. Misappropriation
b. Improper product disclosure
c. Misrepresentation
d. Inducing to insure

46. Alicia is married to Kenneth, and they have a two-year-old son, Sean. The couple owns a trading
company and is busy with the company's operations. Sean is taken care of by Alicia's mother who lives
with them. Alicia meets with an insurance agent to purchase a life insurance policy on her mother
naming Sean as the beneficiary. Alicia wants the policy to be creditor proof. Which of the following
relationships is crucial to creating creditor protection in the common law jurisdictions?

a. Relationship between Kenneth and Alicia

b. Relationship between Alicia and Seen

c. Relationship between Alicia’s mother and Sean

d. Relationship between Alicia and her mother

47. Anoshi recommended a $1.000,000 permanent life insurance policy to a client and received a
$10,000 premium deposit along with the application. Anoshi knew the product did not fully meet the
client's needs but still went ahead with the application as she was more interested in the commission
from the sales. In this scenario, Anoshi’s conduct demonstrates:

a. a lack of integrity

b. a lack of competence

c. insurance fraud

d. holding out improperly

48. Saurav is considering becoming licensed as a life insurance agent. He is concerned that the current
occupation he is pursuing might be considered a conflict-of-interest occupation. He does not want to go
through the trouble of becoming a licensed agent simply to be rejected because of his other job.

Which of the following type of employment are rejected for life insurance agent?

a. Securities broker
b. Statistician
c. Mortgage broker
d. Cinergy

49. Which of the following annuity contracts requires the policyholder, the annuitant, and the payee to
be the same person?

a. Laura’s prescribed annuity contract that she purchased with her savings.
b. Malissa’s annuity contract purchased with funds from her TFSA.
c. Ajith’s annuity contract purchased with funds he received from his father’s life insurance
proceeds.
d. Sean’s annuity contract purchased with funds he obtained from selling his house

50. Chen wants to know which of the benefits to be paid out to his beneficiaries can be seized by his
creditors.

Which of the following assets can be seized?

 a. Term life policy naming his sister as the beneficiary
b. Business buyout insurance policy naming his partner as an irrevocable beneficiary
c. Registered Retirement Savings Plan (RRSP) account naming his son as the beneficiary
d. Life insurance policy benefit naming his spouse as the beneficiary

51. Jamal is applying for a $200,000 life insurance contract on his life and designates his common-law-
spouse, Tasneem, as a beneficiary. Jamal does not reveal the fact that he suffered from the depression
last year because he is embarrassed to tell Tayla, his insurance representative.

Tayla explains temporary insurance to Jamal; he pays the necessary premiums and receives a 60-day
temporary insurance coverage. When Jamal dies in a car accident 15 days later, Tasneem claims the
death benefit from the insurer.

While processing the claim, the insurer finds out about Jamal's depression which he did not reveal in the
application. The insurer informs Tayla of the situation. In all likelihood, what will the insurer do about
Tasneem's claim?

a. The insurer will honour the claim because it will ignore Jamal's depression
b. The insurer will honour the claim because Jamals death was the result of a car accident
c. The insurer will deny the claim because Jamal did not fully disclose his medical condition
d. The insurer will deny the claim because it had not yet issued the final policy

52. Which of the following individual’s quality as a “beneficiary” under the statutory definition?

a. Gina, who will receiving a death benefit after her father’s death from the policy that he owned on
his life.

b. Alex, who will receiving a death benefit on the behalf of 10-year-old Cindy if her parents die
prematurely.

c. Joy, who will receiving a life insurance proceeds as a trustee of her brother’s estate.

d. Sam, who will receiving a death benefit after the death of his wife from the policy he purchased on
her life.

53. Aurora is 60 years old. She arrived as a refugee in Canada five years ago and since her arrival has
worked in manufacturing firm. If she retires today at age 60, which of the following government plans
will pay her a pension immediately?

a. GIS

b. CPP

c. OAS
d. EI

54. Which of the following is NOT required for claiming disability benefit from a disability insurance
policy?

a. Proof of inability to perform at least one of the activities of daily living (ADIs)

b. Proof of loss of income

c. Proof that the disability meets the definition of disability set out in the policy

d. Attending physician’s statement.

55. Nancy purchased a $500,000 life insurance policy on the life of her husband Alfred and named their
3-year-old son as the beneficiary. She appointed her sister, Dona, as the trustee in the insurance
contract. Unfortunately, Nancy died in an accident, and she had not named a successor policyholder in
the contract. What will happen to Nancy's Insurance policy after her death?

a. The ownership of Nancy' insurance policy will pass on to her estate

b. The ownership of the insurance policy will pass on to Dona as she is the trustee.

c. Alfred will be the new policyholder of the contract as Nancy's spouse

d. A death benefit of S300,000 will be paid to Dona who is the trustee

56. Tina applied for a disability insurance policy and declared that she had back pain problems. The
insurer issued the policy with an exclusion for disabilities arising out of causes attributable to her back in
the first 76 weeks. After 30 weeks, she experienced a multiple sclerosis flare-up.

The insurer declined Zina's claim because they determined that she had received treatment for her
multiple sclerosis within 12 months before the policy was issued. Based on which of these reasons did
the insurer deny the claim?

a. Contractual exclusion
b. Intentional concealment
c. Presumptive disability clause
d. Residual disability clause

57. One year ago Diya purchased a life insurance policy through her agent Nila from the life protection
insurance company a federally regulated insurance company. The policies feed amount was $400,000
yesterday she read in the news that the life in protection insurance company had become insolvent
what protection will assure his grant her?
a. $260,000

b. $340,000

c. $100,000

d. $400,000

58. Macy is in need of funds to pay for her mother's medical expenses. Macy owns a whole life
insurance policy with which she plans to obtain a loan. Macy's interact permits a policy loan of 90% of
the CV. A financial institution offers her 90% of the CV as a collateral loan. Her policy's ACB is 40% of the
CSV. Mary wishes to borrow a huge amount but wishes to avoid any taxable policy gains. Which of the
following loans should Macy opt for?

a. Neither a policy loan nor a collateral loan, as both will trigger a taxable policy gain

b. Either a policy loan or a collateral loan, as neither will trigger a taxable policy gain

c. A collateral loan

d. A policy loan

59. Laura is an experienced insurance agent who is planning to retire next year. Her professional liability
insurance expires next year. Which of the following should Laura do with regard to her liability insurance
upon retirement?

a. Since the liability insurance expires the same year Laura is planning to retire, she need not apply
for an extension.
b. Laura should maintain her professional liability insurance for as long as she lives as per
insurance law.
c. Laura should apply for run-off insurance to have extended coverage even after retirement.
d. Laura should extend her liability insurance coverage only if she continues to provide ongoing
services to her existing clients.

60. Varun applied for a life insurance policy on November 5, 2020, and his application was approved
by the insurer on November 26, 2020. His agent delivered the final contract to Varun on November
28, 2020 and received the first premium upon delivery. A couple of days later, Varun decides to
cancel the polio: Which of the following is the last date Varun can rescind the policy for a full refund
of premiums?

a. December 8, 2020
b. November 50, 2020
 c. December 27, 2020
d. December 5, 2020

61. Melissa owned a $1 50,000 critical illness (Cl) insurance policy which she purchased last year with no
designated beneficiary. She lived with her parents and died recently due to a condition covered under
the C policy. Though Melissa survived the survival period specified in the contract, she died before the
benefit was paid out. To whom will the insurer pay Melissa's insurance benefit in this case?

a. No one

b. The court

c. Melissas parents

d. Melissas estate

62. Jeffrey has been recommended by his life insurance agent to replace his existing policy with a new
one with a larger death benefit from another insurance company there was no mention of tax
consequences in cancelling the current policy which has a substantial cash value he also neglected to
inform Jeffrey about the new two-year incontestability clause and the new two-year suicide clause
which deceptive practice is the agent guilty of using?

a. Churning

b. Twisting

c. Trafficking in insurance

d. Tide selling

63. Gaurav owns a few insurance policies and savings accounts with designated beneficiaries he needs
help with classifying the accounts that can be seized by creditors identify Gaurav’s asset that is not
creditor proof?

a. Tax free savings account with his wife as the beneficiary

b. Whole life insurance policy with is a state as the beneficiary
c. Term life insurance policy with his brother is an irrevocable beneficiary
d. Registered life annuity with his daughter as the beneficiary
64. Olivia was a single mother. She purchased a life insurance policy on her life to provide for her son,
Tyler, in case she died prematurely. She named Tyler as the benefit will and therefore did not name
anyone to be liner’s guardian.

When Tyler was 13 years old, Olivia died and the insurer received satisfactory evidence for the claim
against Olivia's policy within thirty days. The claim was made by Oli her estate administrator.

The insurer will:

a. Pay the benefit directly to Tyler

b. Hold the benefit in trust for Tyler until his majority

c. Pay the benefit into the court to the credit of Tyler

d. O Pay the benefit to Ethan personally, as Olivia's brother

65. Enrique is 64 years old and he immigrated to Canada with his wife, Vanessa, 15 years ago. Enrique
has never been employed and is financially dependent on Vanessa income. Which of the following
federally sponsored pension benefits will Enrique be eligible to receive?

a. Canada Pension Plan

b. Unemployment Insurance Benefit

c. Guaranteed Income Supplement

d. Old Age Security pension

66. Alexander is a successful insurance agent in high demand in his town. Alexander has been getting so
busy that he is unable to meet with all the new client referrals is to have his friend Patrick, who is
licensed, meet with the clients and complete the application, which is then submitted to the insurer
under Alexander's name.

This practice is known as:

a. misrepresentation.

b. holding out improperly.

c. fronting.

d. sub-agency relationship.
67. With the help of her agent Diana, Paula applied for a life insurance policy on her life. Paula is
meeting Diana today to receive her final contract. During policy delivery rights. What response will Diana
provide?

a. Paula has 2 days from the date of the policy issue to rescind the contract.

b. Paula has 10 days to return the policy for a full refund.

c. Paula has 30 days from the application date to cancel the contract for a refund.

d. Paula has a 15-business-day rescission right.

68. Ibrahim is 58 years old and lives with his wife, son, and grandchild. Ibrahim's sister and his mother
depend on him for financial needs. He meets with his insurance agent his life. The agent recommends
that he name a beneficiary to the policy. Ibrahim is confused about preferred beneficiaries.

Who among the following is NOT considered a preferred beneficiary?

a. Grandchild

b. Spouse

c. Sister

d. Mother

69. Kevin recently died. He owned a life insurance policy for which his son Brian was the designated
beneficiary. Brian made a claim against the policy and submitted the proof required by the insurer. The
insurer paid the benefits to Brian 60 days after receipt of all the evidence. After Nancy, said that she
should also have received a portion of the death claim.

Did the insurer make any mistakes in processing this policy?

a. The insurer made a mistake because, according to Common Law, benefits must be split evenly
between children

b. The insurer made a mistake because, even though the benefit was paid to the designated beneficiary,
the payment was delayed by 30 days.

c. The insurer did not make a mistake because the benefit was paid to the correct person and on time,
as they are obligated by provincial and territorial lan

d. The insurer did not make a mistake because, according to Common Law, the insurer only needs to
pay out the benefit in the insurance file.
70. A few years ago, Ryan created an enduring power of attorney document and assigned his sister,
Jenny, as his attorney to make legal decisions on Ryan's behalf if he be injured in an accident and loses
his memory. As a result of this incident, the power of attorney is triggered. Which of the following will
Jenny be allowed to do as Ryan's a

a. Sell Ryan's property on his behalf

b. Make a will on behalf of Ryan

c. Change the beneficiary of Ryan's RRSP contract when transferring it to RRIF

d. Add a beneficiary to Ryan's life insurance policy

71. Richard is a licenced life insurance agent in Manitoba who wishes to start his own corporate agency
by hiring and training licenced agents. Which of the following corporate agency?

a. The corporate agency will be licenced by the Office of the Superintendent of Financial Institutions.

b. The corporate agency will be licenced by the Insurance Council of Manitoba.

c. The corporate agency will be licenced by the Manitoba Financial Services Agency.

d. There is no licence for corporate agencies in Manitoba.

72. Victor is an experienced, fully licensed insurance agent who has several clients who consult him
before making investment decisions. Some of his clients meet I matters. Though he is not a financial
planner, he has vast experience in the field and offers advice to his clients. Which of the following is true
about Victor's conduct.

a. He can offer advice to his clients with regard to their financial situation but must not refer to himself
as a financial planner.

b. He should add the designation "financial advisor" on his business card before offering any advice
regarding financial matters.

c. He cannot offer advice to his clients with regard to their financial situation as he does not have the
required license to do so.

d. He can refer to himself as a financial planner and offer financial solutions to his clients because he is
a fully licensed agent.