Johann and Marta are a married couple, both age 33. Johann works as a contract employee for the Ministry of Agriculture in Ontario, earning $58,000 a year. He has no business expenses associated with the work that he performs with the Ministry. As a contract worker, Johann is not entitled to group benefits. Marta is self-employed, working as an interior design consultant. Marta grosses $60,000 a year from her business, but typically has about $15,000 in tax-deductible variable business expenses (expenses that are only incurred if Marta works) annually. In addition to their earned incomes, the couple shares a total of $20,000 annually in investment income, which they report equally for income tax purposes. As well, Marta receives $5,000 a year (for the next 12 years) in trust income from a testamentary trust set up by her grandmother. The couple has contacted you to discuss their mutual need for disability insurance protection. 11. What sources of income would the insurance company take into consideration in determining the maximum amount of disability insurance coverage that they would issue on Johann? (A) Johann's gross salary only. (B) Johann's after-tax salary only. (C) Johann's gross salary and the $10,000 of investment income, only. (D) Johann's after-tax salary, the $20,000 of investment income and Marta's $5,000 of trust income only. 12. What sources of income would the insurance company take into consideration in determining the maximum amount of insurance coverage that the company would issue on Marta? (A) Marta's $60,000 earned income only. (B) Marta's net earned income of $45,000 and her $10,000 share of the investment income only. (C) Marta's net earned income of $45,000. the need for her to pay $15.000 in business expenses and the entire $20.000 of investment income only.. (D) Marta's net earned income of $45.000, $10.000 of investment income and the $5,000 of trust income only. Styles Please use the following information to answer questions 13 to 15. Melanie has just acquired an individual life insurance policy at the same time she took a new job. Her new employer offers a comprehensive group insurance package of life, disability and health insurance. By coincidence the insurance company that issued her individual policy also provides the group insurance coverage. 13. Which of the following comparisons of her individual and group life insurance coverage is correct? (A) Melanie has named her father as beneficiary of her individual policy. She can name only her estate as the beneficiary of her group life insurance policy. (B) Melanie will receive a policy contract for each of her individual and group policies that detail the provisions and conditions of the coverage. (C) Her employee class will dictate Melanie's level of group coverage, while her individual coverage is dependent on need and affordability. (D) Melanie can select any plan of insurance for her group life insurance coverage, just as she could for her individual plan. 14. As a member of her group insurance plan what is Melanie's relationship with the insurance company? (A) Melanie is a policyholder of the insurance company and a party to the group contract. (B) Melanie is entitled to apply to the insurance company to change or terminate her group insurance coverage. (C) Melanie is named as an insured under the group contract and she is required to pay a portion of the entire group insurance premium in order to keep the contract in force. (D) Melanie has no relationship with the company, other than as a group plan member who is insured under the master policy. 15. Melanie has applied for the waiver of premium benefit on her individual life insurance plan and her employer has assured her that there is a waiver of premium benefit under her group insurance plan. What coverage conditions can Melanie expect under each plan? (A) Melanie must be disabled for a specific period of time before the premium waiver on her individual policy becomes effective. The waiver of premium benefit under her group plan becomes effective as soon as she is considered disabled by the insurance company. (B) The waiver of premium benefit under Melanie's individual plan will pay her a monthly benefit as well as waiving the premium. The group insurance waiver of premium benefit only foregoes the premium falling due under the group plan for Melanie's coverage. (C) Both the individual and group waiver of premium benefits will waive premiums until her she becomes disabled for any period of time. (D) Melanie will have to submit a formal claim and proof that she is disabled under the provisions of the waiver of premium benefits for both her individual and group insurance coverage, and have her claim approved by the insurance company. age 65, if