Max is 22 years old and has been driving since he was 16 years old. He took FINA 200 in the Winter 2020 term and believes it to be the best course ever! Max is now testing you on your Personal Finance savvy.

1)While on vacation in Florida last March break with his buddies, Max lost control of his car and hit a child, slightly injuring him. Thankfully, the child is now fine after much medical assistance. Before leaving for Florida, Max remembered the car insurance chapter and knew that for a reasonable premium, he could increase his ______________________up to a $2 million limit. The increased limit covered the claim under the lawsuit from the child's family.

2)Had the above accident occurred in Quebec, __________________ coverage would be handled directly with the Socit de l'assurance automobile du Qubec(SAAQ) as all Quebecers are insured by the public insurance plan managed by this government agency). As this plan gives compensation (money) for injuries from accidents involving a road vehicle, you cannot file a lawsuit for injuries.

3)Max moved into an apartment with his buddies. He made sure to have ___________________ insurance in case his sound system got stolen.

4)Max's girlfriend, Linette was at his apartment for a party. Linette had been drinking with Max's roommates, Bill, and John. When she was leaving, she slipped down the stairs outside. Max had advised the landlord multiple times to put a hand railing and to fix the steps that loosened over time. Linette's foot went through one of the rotted wooden stairs and when tumbling down, she hit her head hard. She has been in intensive care in the hospital for weeks. Max believes __________________________to be responsible for the accident.

5)Max's other roommate Bill was riding his bike to school and got distracted by an incoming text on his phone. He collided with another cyclist coming from the opposite direction. The material damages (bicycles) will be claimed by the cycler that Bill hit. _____________________________ would cover this situation.

6)Max has noticed that the higher his _________________, the lower his monthly insurance premiums.

Lewis is 71 years old and retired.

7)Lewis now has a Registered Retirement Income Fund (RRIF) which he converted from his ___________________________ as he knew he was required to do so before the end of the year.

8)Lewis does not have a Will. He lives in Quebec and is thinking about having one drawn up. You have recommended him to get a _______________________ as it is already probated.

9)Lewis does not like to spend money and has decided to simply write one and leave it in his bedside drawer. You know that this type of Will, called a ________________________ can be contested which is why it is not recommended.

10)Lewis applied for life insurance. He is a non-smoker and in good health; he provided all the information on his medical history and lifestyle which the insurance company used to determine his eligibility for coverage and his _______________________.

Exchange-Traded Funds (ETF)

High ratio mortgage

Convertible mortgage

Beneficiary

Diversification

Enduring Power of Attorney

Closed mortgage

Liquid asset

Tenant

Registered Retirement Income Fund (RRIF)

Defined Contribution Pension Plan (DCPP)

Defined Benefit Pension Plan (DBPP)

Preferential share

Opportunity costing

Lawsuit

Collision insurance

Linette

Personal Balance Sheet

Average tax rate

Registered Retirement Savings Plan (RRSP)

Tax-Free Savings Account (TFSA)

Mutual Fund

Net Asset Value (NAV)

Conventional mortgage

Annuity Due

Notarial Will

Third Party Liability Insurance

Credit management

Asset

Pooled

Current asset

Bequest

Limited Power of Attorney

Term insurance

Marginal tax rate

Whole life insurance

The landlord

Money management

Disability insurance

Auto insurance

Deductible

Annuity

Liability insurance

Stop payment

Holograph Will

English Form Will

Home Equity Line of Credit

Premium

Bill and John

Credit cards

Consumer Price Index (CPI)

Lifelong learning plan (LLP)

Bodily injury liability

Prime rate

Amortization

Economies of scale

Compound

Reverse mortgage

Max

Open mortgage