Sam and Jan's insurer requires advisors to be mutual fund licenced to sell segregated funds. Sam just received his mutual fund licence and Jan has had hers for about a year. They often help each other by su another despite who is acting on the behalf of the insured. How will the insurer handle this situation?

2 Kelly's life insurance policy is up for renewal and her advisor, Dan, calls to make an appointment with her. Dan explains over the phone that the best option is to apply for a new policy so that she can get a lover price than the rene rate. He also says that with her application, he will get a commission when the policy is approved. She is glad that she will be able to save some money and makes the appointment to apply for the new policy. Has Dan acted objectively?

a. © No. Dan should only make a recommendation when he knows what Kelly's needs are and which product is best for her.

b. O Yes. Although he is getting a commission from the renewal, the new policy will be cheaper for Kelly and they will both benefit.

c. O No. He should not recommend a new policy since he is getting a commission when she can just renew her current policy.

d. O Yes. He is putting Kelly's interests first by recommending a policy that will save her money.

3 Caroline recently met with a client, Jeff, who put her in an uncomfortable situation. Jeff owns a car dealership and will only give Caroline his insurance business if she refers her dients to him. The commission Caroline will receive his business is substantial, but she is unsure whether she should refer her clients to him. What might help Caroline make a decision?

a. O Setting up a written contract with the client so that she is protected if her clients are not happy.

b. О Reviewing her options and speaking with her supervisor to make sure she is following the regulator's rules.

c O Explaining to her clients that insurance regulators do not allow referrals to unlicensed individuals and encourage him to get a licence

d. O Setting up a percentage of commission for each client she refers to his business so that she earns a commission in both places.

4 Neville meets with his client, Raymond, to complete an insurance application. They meet in the evening at Raymond's home and before starting the application, they have a chat over a beer. Raymond states that he goes month on a winery tour and often has such a good time that he does not always remember the experience. After their beer. Neville completes the insurance application. What should Neville keep in mind while sulmiting the applicatis

a. Raymond is now a friend and client and Neville needs to make sure that he does not share confidential information with him.

b. O Neville should make sure that he collects the premium for the application and submits everything together.

C. Raymond trusted Neville when sharing personal information about his life and this information should be kept confidential.

d. © Neville is representing the insurer and is obligated to share the information about Raymond's drinking weekends.

5 Kieran completes an analysis for his new client. He has three options for coverage that each meet at Least some of the client's objectives. The most expensive policy matches all the client's objectives and Kieran will earn the highest commission from it. What should be his next step?

A. The amount of commission Kieran earns should not affect his recommendation.

b. • Kieran should recommend the most affordable option that will meet his client's needs.

c. • Kieran should tell the client that he will earn a higher commission from the most expensive option.

d. The client's budget should be taken into account before making a recommendation.