Bob Martino is a new staff person at his firm. His firm audits XYZ, an insurance company with a very strong balance sheet. Which condition would allow him to obtain a life insurance policy from XYZ?

The insurance payout is not material to his net worth. He will charge less than 20 hours to the audit of XYZ. The insurance premiums are not material to his net worth. He is not a covered member with respect to XYZ.

I choose not covered member, is it correct ?