- (Topic 3)
Rowan works for a construction company that employs 40 employees. The company is newly established, and the owners have yet to implement a group insurance policy. Rowan falls off theside of a building and breaks his collar bone. The doctor informs him that he will be unable to work for five months.
Who will pay him disability benefits while he is recuperating?
Correct Answer:
D
In this scenario, Rowan, an employee of a construction company, suffers an injury while on the job. Since the injury occurred in the workplace, he would be eligible for benefits under Workers' Compensation. Workers' Compensation is designed to cover employees who suffer work-related injuries or illnesses, providing them with benefits that include coverage for medical expenses and income replacement during their period of disability.
As the accident happened while Rowan was performing work duties, Workers' Compensation will likely cover his wage loss for the duration he is unable to work due to the injury. Employment Insurance (EI) would not be applicable here, as EI sickness benefits are intended for non-work-related illnesses or injuries. The Canada Pension Plan (CPP) also would not apply, as it provides long-term disability benefits primarily for severe and prolonged disabilities that prevent individualsfrom working in any capacity. Therefore, option D is the correct answer, as Workers' Compensation is specifically designed for cases like Rowan??s.
- (Topic 1)
Aaliyah is a 37-year-old account manager at a large pharmaceutical company. She earns $300,000 a year plus bonuses. She meets with Theo, an insurance agent, to review her life insurance needs. Theo deduces that Aaliyah needs a $250,000 universal life (UL) insurance policy. Aaliyah agrees but states that she wants to keep her premiums low. Which of the following UL death benefit options would BEST suit her needs?
Correct Answer:
A
ALevel death benefitoption provides a fixed death benefit and is generally the least expensive premium option in Universal Life (UL) insurance. Since Aaliyah wants to keep her premiums low, this option best aligns with her needs. Other options like the death benefit plus account value or cumulative premiums increase the cost, as they provide a growing death benefit based on the policy??s cash value or premiums paid.Therefore,Option Awill help Aaliyah maintain lower premiums
- (Topic 4)
Gino, an insurance of persons representative, is cleaning his office and going through old files. He comes across a file from a former client, Nathan, who owned a 20-year term insurance policy that was cancelled 3 years ago. Nathan now has a different representative and Gino no longer has any contact with him. Gino would like to know if he can destroy Nathan's file.
Which of the following options is CORRECT?
Correct Answer:
C
Insurance records must generally be retained for a minimum period to comply with provincialregulatory requirements, which is often five years from the date of termination. This helps ensure compliance with record-keeping mandates and allows for any legal, financial, or administrative review if needed. Gino is obligated to retain Nathan??s file until it has been closed for at least five years, despite the change in representation or policy status.
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- (Topic 3)
Ziad, aged 34, was an elementary school teacher for several years. However, staffing cutbacks and his love of food have prompted him to go into business. He just purchased a pizza franchise (taking a $150,000 personal loan to finance the venture) and entered into a five-year lease for his business. Ziad owns a 20-year term life insurance policy with a face amount of $250,000. He is also covered for some benefits under his wife??s group insurance plan, but knows he needs additional coverage. What type of accident and sickness coverage should Ziad purchase first?
Correct Answer:
C
Comprehensive and Detailed Explanation:
Creditor disability insurance ensures Ziad??s $150,000 loan payments if he??s disabled, protecting his primary financial obligation (Chapter 3:Insurance to Protect Assets). Option A: Secondary; lump-sum for illness.
Option B: Supplementary; not priority. Option C: Correct; loan protection first.
Option D: Important but secondary to loan.
Reference: LLQP Accident and Sickness Insurance Manual, Chapter 3:Insurance to Protect Assets.
- (Topic 4)
Gold, a financial security advisor, recently met with a wealthy client who needed tax advice. The client also wanted to draft a will and a mandate in case of incapacity. Eager to meet his client??s needs and make recommendations, he did not think it necessary to propose a meeting with the firm??s tax expert and notary. Towards whom has Gold breached his duties and obligations?
Correct Answer:
B
Comprehensive and Detailed In-Depth Explanation: Gold??s role as a financial security advisor, per the Distribution Act (Section 16), requires him to act competently and in the client??s best interest. Tax advice, wills, and mandates in case of incapacity (Civil Code, Articles 2166–2174) often exceed an advisor??s expertise, necessitating referral to specialists like tax experts and notaries. By not proposing such collaboration, Gold risks providing incomplete or inaccurate advice, breaching his duty of care to the client (option B). Option A (the public) is too broad, as no public harm is evident. Option C (other professionals) is unaffected, as no direct duty to them is breached. Option D (the profession) could apply indirectly via reputational harm, but theprimary breach is to the client. The Ethics and Professional Practice manual mandates advisors to recognize their limits and refer clients appropriately.
References: Distribution Act, Section 16; Civil Code of Quebec, Articles 2166–2174; Ethics
and Professional Practice (Civil Law) Manual, Section on Scope of Practice.
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