1. Helder, age 45, has a term life policy that is comping up for renewal this year. The policy is guaranteed renewable policy. Helder is very active and his health would be considered excellent for his age. Helder meets with Kesha, a licensed insurance agent, to discuss the renewCds that Helder apply for a new policy with the same insurer and then cancel his existing policy is in force. Which of the following statements concerning Helder's option to replace his policy is CORRECT?

A. Kesha's actions constitute churning because she has recommend a new policy over renewal.

B. Helder will likely have a higher premiums if he chooses a new policy rather than renewal.

C. Helder will need to sign a life insurance replacement declaration if he chooses the new policy.

D. The premium on the renewal of Helder's existing policy would be based on new underwriting.

2. Mindy works for a large company located in Waterloo, Ontario. As part of her benefits package, she has a group life insurance policy. The death benefit for her plan is the same as fot all other group members, regardless of position or salary. The company pays all premiums related to the coverage. When Mindy asks you about her group insurance plan, which of the following is the CORRECT response that you should provide to her?

A. Conversion privileges for Mindy's plan will be subject to the Canadian Life and Health Insurance Association guidelines.

B. The death benefit for the members of the group policy is determined by using an earnings multiple schedule.

C. The death benefits paid out under the group life insurance plan are a taxable benefit to Mindy and will be taxable to Mindy's estate.

D. The premiums paid on the group policy are a taxable benefit to Mindy and she can deduct the premiums from her income tax.