Mini-Case B (5 marks .5 marks each) Max, Lewis Insert and highlight the correct word from the choice of words at the end of this mini-case to complete the sentence (note: not all words will be used; words cannot be re-used): (5 marks -.5 marks each)

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 childs family. 2) Had the above accident occurred in Quebec, __________________ coverage would be handled directly with the Socit de lassurance 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) Maxs girlfriend, Linette was at his apartment for a party. Linette had been drinking with Maxs 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. Linettes 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) Maxs 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 _______________________.

(Words to use in question)

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