LI Provincial Qs

PROVINCIAL Q’s

  1. group coverage —> individual coverage

a and b) company gives u 1 month to convert w the same coverage from group to individual insurance but payment is higher

“cheaper by the dozen”

“you get what you paid for”

c) Grace is not the owner of the group contract if she elects to join the group coverage. She is only an employee she does not own the master contract. TRUE

d) health status is not the issue, the payment is bc the individual plan is more $

A: c

  1. a) and b) false

c) only the employee pays additional coverage thru association

d) the employee would have to pay tax on the portin of the LI premium paid by the employer TRUE

  1. discretionary incomes = not enough money

    a) Joint First to Die Term-20 years, w/ a waiver of premium rider

    A: a

    inexpensive perfect cause they have low income


  1. estate = asset - liabilities

    preferred beneficiary: parents, spouse, kids, grandkids

    revocable beneficiaries = can change the beneficiary whenever

    irrevocable = set in stone

    contigent beneficiary = secondary

    A: b

6. which possible source would insurers find out abut non-disclosed risks?

non-disclosed risk = failure or refusal to make something known

a. attending physician statment (APS)

b. provincial insurance council

c. inspection report

driving history, smoker

d. Medical Information Bureau (MIB)

A: d


  1. which of the following UL cost and investment option would be suitable for her?

    c. yearly renewable term mortality costing, equity funds

    1. she is a risk taker

      A: c

  2. A: b

  3. R&C

    1. renewable = renew term

    2. convertible = convert to permanent

    renewal is the older you get, regardless of health status

    older the riskier

    term plan coverage CAN be reduced during the term

    A: C

  4. A: d

  5. A: c

    1. buy sell agreement is between business partners

  6. calculating premiums for life insurance

    A: a

    1. morbidity = death

  7. A: c

    1. MTAR 250% rule

    2. limit for people to put all their $ into their insurance to avoid taxation

  8. YRT> level cost

    1. level cost - takes the average from yr age and 100 yrs old = costs more $

  9. probate fees = provincial taxes

    1. inheritance tax

c. you can convert the policy any time during the term as long as you have $