Marcello is a stockbroker who earns $120,000 annually. He owns a disability insurance (DI) policy with an "own occupation" definition of disability that would pay him $6,000 per month in the event of disability. The policy has a 0-day waiting period and a 10-year benefit period. Subsequently, due to the nature of his job, Marcello suffers from stress and anxiety and is declared disabled as per the terms of his policy. After 6 months of receiving disability benefits, Marcello accepts a teaching position at his local college where he earns $5,000 per month. Which of the following statements CORRECTLY describes what the outcome will be given Marcello's circumstances?
a)		Marcello’s benefits will be terminated when he begins teaching.
b)		Marcello’s benefits will be reduced to $1,000 per month when he begins teaching.
c)		Marcello’s benefits will be reduced to $5,000 per month when he begins teaching.
d)		Marcello will continue to receive $6,000 in benefits per month while he is teaching.

Myriam works in the human resources department of a small legal and accounting firm. She meets with you to discuss the possibility of implementing a group disability benefits plan for her employees. In particular, Myriam would like to implement group long-term disability (LTD) and short-term disability (STD) plans, and would like to integrate the plans with Employment Insurance (EI) in order to stagger the benefits that will be paid by EI and the STD plan. Which of the following statements CORRECTLY describes how the group plan and EI benefits should be coordinated?
a)		The STD plan will be the second payor and will have the same definition of disability as for EI, typically "any occupation".
b)		In order to coordinate with EI benefits, STD benefits should resume at the beginning of week 17.
c)		In order to coordinate with EI benefits, STD benefits should start after the EI waiting period of 1 week.
d)		The STD plan is the second payor of benefits after EI and should begin payments after the 15 week EI benefit period.

Petra meets with Alexandria, an insurance agent, to review her need for income replacement insurance. Petra works full-time as a drafting technician for a large design firm where, in addition to her base salary, she receives a substantial annual bonus. Outside of her normal employment, Petra also earns commission income from selling cosmetics. Petra received an inheritance which is invested in a non-registered account and she receives dividends and interest income which also help support her lifestyle. In addition, Petra receives spousal support payments from a previous marriage. Which of the following sources of Petra’s income would be considered earned income? spousal support bonus paid annually commission income dividends and interest income
a)		i and ii
b)		ii and iii
c)		i and iv
d)		iii and iv

Answer rating: 100% (QA)

Question 1 d Marcello will continue to receive 6000 in benefits ... View the full answer