1. Dave earns $6,000 per month and is covered through his employer for Workers Compensation. Dave also has a private disability insurance policy with a benefit of $4,200 per month. The policy includes an all sources maximum clause. If Dave suffers a serious accident while vacationing in Florida that leaves him unable to work for eight months and under a doctor’s care, when would he receive his private disability insurance benefit (assume he qualifies)?

a. When he returns to work

b. After the waiting period

c. He wouldn’t qualify because he’s covered under Workers Compensation

d. None of the above

2. On July 12, 2017, you wrote separate life insurance applications on behalf of your new clients, Jim and Janice Smith. The policies were approved on July 20th. On July 28, you make an appointment to deliver the policies on August 5th. When you arrived at the Smiths’ home on August 5th, Janice decides she doesn’t want her life insurance policy after all. What is the latest date by which she can return it to the insurer for cancellation and receive a full refund of premiums paid?

a. August 15, 2017

b. August 25, 2017

c. September 5, 2017

d. July 20, 2018

3. There are a number of risk management techniques people may use to avoid or reduce risk and consequent losses. Which of the following statements regarding risk-sharing is incorrect?

a. It is usually true that the individual can benefit from pooling risks with the risks of others

b. Government programs such as Workers Compensation, Old Age Security and Canada/Quebec pension plans are forms of risk-sharing

c. A successful business person, or a wealthy person, will have no need to manage risk through pooling (risk-sharing)

d. All of the above statements are correct

e. All of the above statements are incorrect

Answer rating: 100% (QA)

ANSWER 1 b After the ready period A longterm incapacity insurance plan offers a profits alternative for incapacity precipitated by means of damage or ... View the full answer