1. Bill just turned 16 and he wants to buy an insurance policy.
Under provincial
legislation in British Columbia, which of the following statements is true ?
(A) Bill must wait until he is age 17 to enter into an insurance contract
(B) Bill can enter into an insurance contract today
(C) Bill must wait until he is age 18 to enter into an insurance contract
(D) Bill must wait until he is age 19 to enter into an insurance contract
2. Diane is a healthy 80-year old widow and wants her daughter, Beth, to make any
necessary financial decisions on her behalf while she is in Florida for the winter. Diane is
concerned about being in an accident that may incapacitate her. If that were to happen, she
would trust Beth to make decisions on her behalf. What should Beth be appointed as ?
(A) Diane’s personal representative
(B) Diane’s power of attorney
(C) Diane’s enduring power of attorney
(D) Diane’s trustee
3. Stewart meets with his insurance agent, Bob, and together they determine that Stewart
need $500,000 of life insurance. Stewart is in excellent health, and Bob suggests that they fill
out an application for Temporary Insurance, to cover the time period that main application is
in underwriting. What is the longest length of time that the temporary insurance will be in
force?
(A) 30 days
(B) 60 days
(C) 90 days
(D) 120 days
4. Jack and Jill have been married for 27 years. They have mirror wills, where they both
become sole beneficiaries and sole executors of each others estate. They are now finalizing a
divorce . Which of the following is true about what will happen to the wills when they
divorce ?
(A) Divorce will revoke the wills and beneficiary designations and their assets will become
payable to the estate/
(B) Divorce will cause each of the wills to be interpreted as if the ex-spouse predeceased
the other spouse
(C) Divorce will revoke the wills and their assets will be distributed according to provincial
law
(D) The divorce agreement will cause the will to be interpreted as no longer binding
5. Rosemary wants to set up a structure to ensure that her children will be looked after, if
she dies prematurely. Rosemary is adamant on how her assets are to be managed for her
children. Which of the following is her best option?
(A) an inter-vivos trust
(B) a testamentary trust
(C) a power of attorney
(D) a guardianship
6.What is meant by a “unilateral” contract ?
(A) The policy owner can cancel the policy at any time for any reason.
(B) The insurer can void the policy at any time
(C) Under provincial insurance law, the insurer can amend the policy at any time
(D) The insurer can cancel the coverage at any time
7. William has an extended heath group plan that reimburses him 50%. Diane, his spouse
also has an extended heath group plan thar reimburses her 70%. They submit their family
medical receipts to both plans. How do the insurance companies prevent overpayment to
the couple ?
(A) by using deductibles
(B) by applying a co-ordination of benefits
(C) by using a co-insurance factor
(D) by applying a needs analysis
8. Ahmed has applied for a $500,000 life insurance policy with Equitable Life. He and his
family visit his parents in Libya annually. The Government of Canada website has a travel
advisory against travel to Libya. The life insurance policy is approved for $500,000 but [t
contains an exclusion for death in Libya. Which of the following is a true statement ?
(A) If Ahmed dies from a heart-attach in his parent’s kitchen in Libya, the insurer will pay
his beneficiary $500,000
(B) If Ahmed dies from a heart-attack in his parent’s kitchen in Libya, the insurer will only
pay his beneficiary $250,000
(C) If Ahmed dies from a heart-attack during an insurgency in Libya, the insurer will pay
his beneficiary a critical-illness benefit
(D) If Ahmed dies from a heart-attack while on his way to the airport in Libya, the insurer
will pay his beneficiary $0
9. Geoffrey has raised his niece since she was two-years old, after the sudden death of her
parents in a car accident. Recently Geoffrey’s heath has begun to deteriorate and he wants
to make sure that his 18-year old niece can be the beneficiary of his $500,000 life insurance
policy. What should Geoffrey do ?
(A) Name his niece as a preferred, family class beneficiary
(B) Name his niece as an adopted child in his will
(C) Name his niece as irrevocable beneficiary
(D) Name his niece as a protected beneficiary
10. Betty, a single mother, purchased a life insurance policy on her daughter, Elizabeth and
named her sister Lucille as the primary beneficiary. She also named her younger sister,
Veronica as the contingent beneficiary. 25 years later, Aunt Lucille passed away, and
10=years after that, Veronica also died. Elizabeth and her mother were recently killed in a
head-on collision. How will the insurance proceeds be distributed ?
A) To Lucille’s estate
(B) to Veronica’s estate
(C) to Elizabeth’s estate
(D) to Betty’s estate
11. What is the purpose of the Personal Information Protection And Electronic Documents
Act (PIPEDA) ?
(A) It governs how governments handle our personal information
(B) It ensures that only information relevant to conduct business is collected
(C) It prohibits the sending of electronic messages without consent
(D) It monitors and investigates money laundering and terrorist financing
12. Wendy is the primary beneficiary on her husband Tom’s insurance policy. They were
married 5 years ago, after Tom divorced his first wife Betty, to whom he had been married
for 25 years. Tom has a court order under which he must financially support his ex-spouse
Betty. Tom passed away last week and left his entire estate to Wendy and their 4-year old
daughter, Louisa. Under which law can Betty have a chance to access Tom’s estate ?
(A) Succession law in his province of residence
(B) the law of Joint-tenancy-in-common
(C) dependant’s relief legislation
(D) Adequate Provision legislation
13. Which of the following is one of CISRO’s principles on conflicts of interest ?
(A) material misrepresentation
(B) verification of identity
(C) equal treatment
(D) product suitability
14. Which statement correctly defines an agents responsibilities in order to act in
compliance with regulations and requirements applicable to them ?
(A) recording all premium rebated to clients
(B) having the required Errors and Omissions Insurance
(C) retaining copies of client identification used in their practice
(D) recording all gifts and entertainment receipts
15. Which body has the mandate to create and promote an efficient and effective regulatory
system in Canada ?
(A) the office of the superintendent of financial institutions
(B) the ombudservice for life and health insurance
(C) the Canadian Life and Health Association
(D) the Council of insurance Regulators
Correct: (D)
16. Alex submitted an insurance application to his Regional Director. The director returned
the application to Alex because the client forgot to initial a section on disclosure, and he
asked Alex to go see the client and get the section initialed. Seeing that it would take over
two hours to drive out to the client’s office, Alex decided to go to lunch instead and initial
the application himself. Alex later returned to the office and gave the completed application
to his Director. Which prohibited practice did Alex engage in ?
(A) providing false information
(B) making a false statement
(C) misrepresentation
(D) false disclosure
17. Lorna dies and the life insurance claim submitted by her beneficiary became subject to
further investigation : a coroner’s report and a toxicology report.
Why were these additional measures requested by the claims examiner ?
(A) the policy contains few restrictions about the cause of death
(B) the policy does not have specific exclusions
(C) the policy has no limitations or provisions for death by suicide
(D) the policy provides for additional benefits if death is a result of an accident
18. You have been contacted by your Uncle Thomas who lives in Lake Louise, Alberta. Your
uncle knows you sell insurance, and wants to deal with you. You are licensed in Ontario only.
What is the correct procedure ?
(A) you cannot sell insurance to your uncle, but you can refer him to a local agent and
receive a referral fee
(B) you can sell your uncle insurance, if he travels to Ontario and you will receive the full
commission
(C) you can submit your uncles application using the name of an Alberta agent you know,
and you will split the commission
(D) you can travel to Alberta and use your Ontario address on the application
19. You are meeting with a potential new client, Amanda who wants to buy an annuity with
$30,000. There are no issues, however, Amanda is acting as power of attorney for her Aunt
Beth, and submits the application on behalf of her aunt. Under the Proceeds of Crime
(Money Laundering) and Terrorist Financing Act, what are you required to do ?
(A) Fill out a politically exposed foreign person determination
(B) Make a suspicious transaction report to FINTRAC
(C) Make a third-party determination
(D) Make a large-transactions report to FINTRAC
20. Donna is a licensed life insurance agent and routinely collects personal information
about her clients as part of her job. Which of the following are correct ?
(i) Donna is permitted to collect personal information that is relevant to conduct
business
(ii) Donna is not responsible for the protection of her clients’ personal information once
she submits the application
(iii) Donna’s activities are governed by the Privacy Act
(iv) Donna is obligated to keep her clients’ personal information confidential and secure
(A) I and iii
(B) I and iv
(C) ii and iii
(D) ii and iv
21. Wendy has a disability policy that she purchased 10 years ago. She pays the premiums
annually and her current premium payment is overdue because she was away for 4 weeks
and missed the notice from her insurer. Which of the following is correct ?
(A) after the grace period has ended, her policy will stay in force for 10 days after the
termination notice is mailed
(B) her coverage will end 10 days from the premium past-due date
(C) Her policy will terminate at the end of the 30-day grace period
(D) her coverage will end 30 days after the written notice is mailed
22. Ferando would like to become a licensed insurance agent, however he is also pursuing
additional employment that he will maintain while he is selling insurance. Which statement
is correct ?
(i) Fernando may engage in any occupation provided his clients approve
(ii) Fernando may not engage in any occupation that would jeopardize his integrity
(iii) Fernando may not engage in any occupation that would jeopardize his independence
(iv) Fernando may engage in any occupation if he openly discloses any conflict of interest
(A) I and ii
(B) I and iv
(C) ii and iii
(D) ii and iv
23. On April 1st, Alice applied for a $500,000, 10-term life insurance policy. She designated
her common-law spouse, Alex as her revocable beneficiary. Alice also applied for a TIA with
$200,000 coverage and 90-day duration. On April 21st, Alice’s term policy was approved.
Which of the following is correct ?
(A) If she dies on April 30th the total death benefit will be $700,000
(B) Alice’s right of recission expires on April 10th
(C) Alex does not qualify as a revocable beneficiary because he is a common-law spouse
(D) Alice’s TIA coverage expires April 21st
24. Susan is married to Henry, and she works for Factis Corporation, where she is a member
of their Defined Benefit Pension Plan. Susan wants to know what would happen to her
pension if she were to die. Which of the following is correct ?
(A) If she dies after Henry, an on-going pension will be paid to a named beneficiary
(B) If she dies after Henry, and has no named beneficiary the pension will be distributed
according to the rules of the plan
(C) if she dies after she has retired, Henry may be entitled to a reduced amount of the
pension formerly paid to Susan
(D) if she dies before she has retired, the pension will be paid to a named beneficiary,
not to Henry
25. Jason, a licensed life insurance agent, recently entered into an arrangement with
Barbara, a successful Real Estate agent. Jason has agreed to give a portion of any
commission he earns on sales made to clients that Barbara has referred. What type of
arrangement do they have?
(A) Premium rebating
(B) Referral arrangement
(C) Inducing to insure
(D) Commission sharing
26. Tyler bought a 10-year term life insurance policy three years ago. He pays his premiums
by automatic withdrawal from his bank account and has never missed a payment. Three
weeks ago, the insurer cancelled Tyler’s coverage. Which of the following is a valid reason
that would allow the insurer to cancel Tyler’s policy ?
(A) Tyler was a non-smoker at the time of application, but started smoking 6 months ago
(B) Tyler did not disclose that he had a heart-attack 5 years ago
(C) On the application, Tyler indicated that he was 40 years old, when in fact he was 46
(D) Tyler used his policy as a collateral assignment with RBC without notifying the
insurance company
27. Antoine is a partner at Briskow Accounting Ltd., and he enjoys bungie jumping on
weekends. Antoine was able to obtain a $500,000 life insurance policy, but there is no
coverage if he dies while bungie jumping. Which of the following correctly describes the
provision in his policy ?
(A) a reduction exclusion
(B) a contractual exclusion
(C) a pre-existing exclusion
(D) a legal exclusion
28. Eric is a newly licensed insurance agent and he has just started to build his business. Eric
plans to use a number of different strategies to prospect for new clients. Which of the
following is true about his prospecting activities?
(i) If Eric makes any telemarketing calls, he must register and subscribe to the national Do
Not Call List
(ii) Eric may send emails advertising his services if he gets consent within 10 days
(iii) If Eric hires a professional telemarketer to make the calls for him, the telemarketer
must subscribe to the Do Not Call List
(iv) If Eric receives a request to unsubscribe from his emails, he must honour the request
within 30 days
(A) I and iii
(B) I and iv
(C) ii and iii
(D) ii and iv
29. Benny purchased a whole-life policy from Equitable Life. One week after paying his first
premium, signing the acknowledgment form, and taking delivery of the policy, Benny has
decided that the premiums are too costly. Which of the following correctly describes what
Benny can do?
(A) Benny can cancel the policy and receive a full refund
(B) Benny cannot cancel the policy without providing a written explanation
(C) Benny can cancel the policy but Equitable Life will not refund his full premium
(D) Benny cannot cancel his policy but he can convert it to a different type of coverage
30. On August 1st, William applied for a whole life insurance policy. The application was
approved and on August 15th, the policy was delivered to William who paid first
month’s premium and signed the acknowledgement form. According to the terms in
the contract, the effective date of coverage was August 12th. Which of the following is
correct ?
(A) William must notify the insurer of any change in insurability between August 1 st and
August 15th
(B) William can exercise his right of recission until August 12th
(C) The earliest date William can surrender the policy is September 12 th
(D) The policy will be in force as of August 12th
31. Arnold invested $190,000 in a Segregated Funds contract with a 75% guarantee from Equitable Life. In 2016, after a
spectacular drop in the value of their stock, Equitable Life was forced to declare bankruptcy. Assuris eventually
appointed a liquidator. What would Arnold receive from Assuris?
(A) $190,000
(B) $60,000
(C) $161,500
(D) $121,125
33. Ernesto purchased a disability policy from Sunrise Life Insurance. Ernest earns $6000 a
month, and his policy pays a 60% benefit, for 5 years if he is ever disabled. In 2018, Ernesto
severely injured his back, submitted a claim and started receiving disability payment after a
60-day waiting period. In 2020, Sunrise declared bankruptcy,. What level of protection is
Ernesto entitled to?
(A) $3600 a month
(B) $2000 a month
(C) $3060 a month
(D) $5100 a month
34. In 2011, Peter purchased a $400,000 whole-life policy from Unity Life Insurance. In 2019,
due to Covid, Unity Life was forced into bankruptcy. Assuris could not find another insurance
company to take on Peter as a client and appointed a liquidator. What level of protection is
Peter entitled to?
(A) $400,000
(B) $360,000
(C) $200,000
(D) $370,000
2. Jim, age 47, works for RoofCo for over 10 years. Last year, he fell off a roof and injured
his right leg. Jim needed anterior cruciate ligament (ACL) reconstructed surgery. Post-
surgery, the surgeon explains to Jim that he will need over six months of rehabilitation in
order to make a full recovery. Prior to his physiotherapy treatment, he meets with an
insurance agent to purchase a disability policy with a monthly benefit of $3,000 and an
elimination period of 30 days. After the agent submits to the insurer, the insurer asks Jim for
additional information in order to satisfy his claim. Which of the following below must the
agent ask him to submit to the insurer in order to satisfy their requirements and process his
disability claim?
1. A copy of his current pay slip
2. A letter from his employer stating that he cannot perform his duties
3. An Attending Physician’s Statement from the surgeon
4. An Attending Physician’s Statement from the physiotherapist
5. His last T4
6. Proof of expenses
A. 2, 3, 4, 5, 6
B. 1, 2, 3, 5
C. 1, 2, 3, 4
D. 1, 2, 3, 4, 5
4. Rita, an insurance agent working in Ottawa, is delivering a $500,000 joint universal life
policy to her clients Michael and Michelle. Rita explains to her clients that insurance policies
take on many different forms but all have basic provisions, as required by Ontario's insurance
acts, summarized on a single page. As Rita explains the insurance policy contract and its
provisions, which insurance policy details from the summary page is she able to go over with
Michael and Michelle?
1. Grace period for premium payments
2. Terms of any insurance policy loan provisions
3. Conditions of reinstatement provisions
4. Policy options (if any)
A. 1, 2, 4
B. 1, 3
C. 1, 3, 4
D. 1, 2, 3, 4
11. Lorenzo, an insurance agent, meets with a new client, Francis, to discuss life insurance
options. Francis is looking to purchase a policy that will provide $1MM on his life. During
their meeting, Lorenzo learns that Francis has been an accountant for over 25 years and is the
bookkeeper for the second largest foundation for diabetes in Ontario. After further
discussion, Lorenzo provides his recommendation on the insurance policy for
Francis. Francis mentions he will need to review the policy with his wife and will let
Lorenzo know his final decision. Before leaving, Francis asks Lorenzo to contribute towards
the foundation he works for. What should Lorenzo do?
A. Make an anonymous donation
B. Ask a family member to donate on his behalf
C. Don’t make a donation at this time
D. Make a donation to the foundation
15. Sadiq meets with his high school friend, Paul, who he has not seen for over 20
years. Paul, a life insurance agent works at InsuraMe. Sadiq mentioned to Paul that he
currently owns a universal life insurance policy. Based on Sadiq current situation, Paul
suggest he replace his UL policy with a whole life insurance policy. Paul explains to Sadiq
he will need to fill out a Life Insurance Replacement Declaration, which will help him
receive full disclosure of all relevant details required to make an informed decision. What
is true regarding this document?
A. The client must receive a copy
B. Insurance policy provisions
C. How the policies differ
D. All of the above
16. Tim purchased life insurance from LifeSecure through his agent Kevin. The application
was approved, and five days later, Kevin delivered the insurance policy. The insurance
policy was taken out on his wife Abbie’s life. Tim is designated as the primary beneficiary,
and their daughter Mari is the contingent beneficiary. Both designations are revocable.
During the application process, Tim claimed that Abbie had no history of cancer. However,
three years later, she was diagnosed with breast cancer, which she survived. What does the
revocable nature of the beneficiary designation mean?
A. The policyholder cannot change the beneficiary going forward
B. The death benefit is not protected from seizure or execution by creditors
C. The policyholder must get the consent of the beneficiary to withdraw policy cash
or surrender the insurance policy
D. The policyholder may later name or change a beneficiary
CISRO examples
Question 1 Suzanne, a life insurance agent, has asked her assistant Rosy, who is not yet
licensed, to telephone people to schedule meetings with Suzanne to discuss their insurance
needs. She intends to contact people who attended the same school as she and Suzanne
using an alumni directory. Suzanne has registered and subscribed to the National Do Not Call
List (DNCL). What should Suzanne tell Rosy?
a) Calls to people with shared backgrounds are exempt from the DNCL.
b) As Suzanne has registered and subscribed to the DNCL, Rosy can solicit insurance from
anyone listed in the alumni directory.
c) Rosy should restrict her calls to businesses and schedule meetings with Suzanne to
discuss group insurance.
d) Rosy should email anyone she cannot reach by telephone offering meetings with Suzanne
to discuss their insurance needs; emails are exempt from DNCL.
Question 2 When Karen and Jim were newly married, they decided after meeting with a life
insurance advisor that they should take out a joint life insurance policy with $350,000 on
each of their lives to cover the cost of their mortgage, naming each other as beneficiaries.
Jim became the sole owner of the policy. They were happy they took out the insurance
when they did because a few years later Karen developed type 1 diabetes. After 10 years of
marriage Karen and Jim went through a bitter divorce, selling the house and going their
separate ways. Jim had even moved to another province and both Karen and the agent had
lost all contact with him. After the divorce Karen met with the agent to request a change to
the policy in naming a new beneficiary on her life. What course of action should the agent
take?
a) The agent should contact the insurance company, explain the situation and request the
beneficiary change be made using the proper forms.
b) The agent should have the policy converted into two separate policies so that Karen can
make the necessary changes.
c) The agent must explain to Karen that since Jim is the sole owner of the policy, only he can
approve any changes to the status of the policy or its beneficiaries.
d) The agent must explain to Karen that since the policy was approved to cover the
mortgage on a home they no longer own, the coverage is no longer in effect, so the policy
will be cancelled.
Question 3 On May 1st, Anne meets with her insurance agent, Greg, and decides to apply for
a term life policy. She completes the application and declines the temporary insurance
agreement, requesting instead “cash on delivery,” as she already has some coverage in force
under another contract. On May 16th, Greg is advised by his head office that Anne's
application has been approved. On May 20th, Greg delivers the policy to Anne and she
confirms her banking information with him so that she can begin her monthly premium
payments as of May 25th. When is Anne's new policy deemed to be in force?
a) Anne's policy is in force as of May 1st, the date of her application.
b) Anne's policy is in force as of May 16th, the date she was approved for coverage.
c) Anne's policy is in force as of May 20th, the date it is delivered to her and she accepts it.
d) Anne's policy is in force as of May 25th, the date the first month's premium is received.
Question 4 Mary, a 53-year-old banking executive has group insurance through her
employer. Mary lives alone but supports her elderly mother who also lives alone and has
very limited resources. Mary decided five years ago to take out a 10-year-term single life
insurance policy from her friend who was an insurance broker. Mary had suffered from mild
depression for over 10 years and was prescribed medication. The policy was rated 150% due
to her depression. The face amount of the policy was for $100,000. She named her mom as
beneficiary, and her favourite charity as secondary beneficiary. Five years later Mary’s
mother had been admitted to a long-term care facility because of dementia. Mary contacted
her broker and requested that her insurance be increased by $250,000 so that her mother
could continue to receive the financial support she would need in the event of Mary’s death.
Another fully underwritten policy, with full disclosure, was approved and issued for
$250,000, with Mary's mother as beneficiary and her charity as secondary beneficiary. One
year later Mary’s mother passed away. The grief was too overwhelming for Mary and within
days of her mother’s death, Mary took her own life. Based on the circumstances, how will
the claims be treated on the two life policies?
a) Insurance will not pay if death is caused by suicide because of her declared depression.
b) There is a two year exclusion on suicide, so only the first policy will pay out to the
secondary beneficiary.
c) The maximum payout for death caused by suicide is $100,000, therefore only the first
policy will pay out.
d) The primary beneficiary was deceased, so the $100,000 and $250,000 policies were paid
out to Mary’s named charity.
Question 5 Jennifer is Daryl's third wife. One day, he suffers a massive heart attack at work
and dies. Jennifer remembers the insurance policies the couple took out when they were
married three years ago. Daryl has a $1M whole life policy and Jennifer is named as a
revocable beneficiary in the contract. A short time after she begins the claim process with
the aid of her lawyer, she receives notice that there are other claimants. Daryl had fallen
behind in his child support payments to his first wife, to a total of $50,000. Furthermore,
Jennifer finds out that Daryl had changed the beneficiaries to herself and his two children
(equally) from his first marriage about a year ago, without her knowledge. Finally, a creditor
has provided proof that Daryl pledged his policy against a debt he owed them, in the
amount of $50,000. How much of the $1M death benefit will Jennifer be entitled to?
a) $300,000, because the debtor assignee and the child support payments need to be paid
first, then the remaining benefit is distributed between the beneficiaries.
b) $333,333, because beneficiaries can only be individuals related to the insured, with an
insurable interest.
c) $900,000, because the debtor assignee and child support payments need to be honoured;
children, however, cannot be beneficiaries.
d) $1,000,000, because the policy was taken out while he was married to Jennifer.
Question 6 Three decades ago Pierre sold a $100,000 life insurance policy to Andrzejek who
was unmarried and who wanted to leave an estate to a niece and nephew, Wanda and
Jacob. They are the children of a brother who had immigrated to Canada with Andrzejek. He
named Wanda and Jacob as equal beneficiaries under the policy describing them as his
niece and nephew. Andrzejek died and at the funeral Pierre learned that the deceased had
other brothers who had stayed in Europe and that one of them had also named a son Jacob
who resides in Europe. The brother and sister in Canada have a copy of the policy and have
asked Pierre to obtain the claim forms from the insurer. They have had no contact with their
cousin in Europe but learned that another relative told the Jacob in Europe that he may be
entitled to some insurance money. What should Pierre do knowing there is a second
nephew of the deceased also named Jacob?
a) He should request the forms for the Canadian niece and nephew from the insurance
company as requested and inform it that there is a potential problem because there is a
second nephew named Jacob.
b) He should obtain the forms for the Canadian niece and nephew. He should not inform the
insurer about the possibility of a conflicting claim because he believes the Canadian nephew
is the intended beneficiary.
c) He should request forms for the Canadian niece and nephew and one for the European
nephew as he has been made aware of his existence. He should inform the insurer that
there are two possible claimants with the same name and relationship.
d) He should advise the Canadian niece and nephew to negotiate a split with the European
cousin to avoid a court case and a delay in receiving the benefit.
7. Carl, a life insurance agent, has his office in a small shopping mall and occasionally gets
walk-in clients. A man entered his office with the intention of opening a registered
retirement savings plan (RRSP) and contributing $20,000. He produced a driver’s license as
identification and told Carl he had been a resident of Canada for three years. He was unable
to provide a social insurance number and said he would telephone Carl that afternoon with
the information. He left a $20,000 cheque for Carl to attach to his application. Should Carl
report the transaction to FINTRAC?
a) Yes, because it meets the definition of a suspicious transaction.
b) Yes, because the amount is substantial.
c) No, because it is the insurer’s responsibility to determine whether this client is a politically
exposed foreign person.
d) No, because the client is buying an exempted product.
8. Newly licensed life insurance agent Glen meets with Denis who wishes to secure life
insurance. During the application process, Denis presents a credit card that expires next
month, stating that it is the only identification he has on hand, along with a bank cheque for
the first month’s premium. To meet regulatory standards, what should Glen do?
a) Glen should not submit the application form because the credit card expires next month.
b) Glen should submit the application form using the bank account cheque information to
verify and record Denis’ identity.
c) Glen should not submit the application form because neither credit cards nor bank
cheques are acceptable forms of identification.
d) Glen should submit the application form using the credit card to verify and record Denis’s
identity as the card is from a reputable financial institution.
