Here are questions to be answered. Questions are also embedded in pages with the tag "wip" (for work in progress).
Administration
Q: Can duplicate copies of premium notices be sent to the beneficiary (e.g., after divorce, the former spouse may be required to continue premium payments but may not …)?
Contract
Q: Term conversion: is the new policy treated as a continuation of the original? (e.g., 5 years old —> tax sheltering of a 5-yr old permanent policy)
Q: Who decides whether the term conversion is based on the original age or attained age?
Q: Does the free look period also apply to non-life policies such as CI and DI? [does not apply for seg funds]
Q: Is TIA available for living benefits?
Q: What is the benefit of the reinstatement provision vs buying a new policy?
Q: Can the annuitant be different from the purchaser? If so, are payments taxed as if the purchaser had received them?
Q: Smoker claims to be a nonsmoker. Does the insurer normally refund premiums?
Q: Smoker claims to be a nonsmoker. The insurer can
- cancel the policy and refund premiums
- increase premiums retroactively to the smoker rate
- reduce coverage based on the differential in smoking rates
Is this true? [source: Advocis LLQP Practice Exam (2004), question 30]
Q: Can an absolute assignment take place without the insurer being informed? [a collateral assignment can in some provinces]
Financial
Q: Must a mortgage be repaid upon death when there's a surviving spouse?
Q: Is there any underwriting for mortgage insurance or does everyone qualify, as with group insurance? Do rates vary with age, gender, smoking status etc?
Health
Q: Is LTC a reimbursement like A&S
Q: Can a critical illness policy be assigned?
Regulations
Q: Where is an electronic copy of the Uniform Life Insurance Act available?
Tax
Q: Inactive business income can compromise the $750,000 Capital Gains Exemption available to shareholders of CCPCs. Isn’t the insurance CSV a problem too?
Q: A principal residence is not taxed. What happens to the recipient? The ACB is the fair market value at the time of receipt, so there'd be tax on further gains?
Q: What are the tax implications of taking an accelerated death benefit for a terminal illness, critical illness or long term care?
Q: Are accelerated death benefits available with whole life, or just UL?
Q: Can capital gains arise from mortgages?
Q: Does the definition of life insurance include disability insurance, critical illness insurance and annuities?
Underwriting
Q: If the application is for a $2 million death benefit and the maximum TIA is $500,000, then is the premium cheque collected with the application for 25% of the monthly minimum premium? If the policy takes 10 weeks to issue, when/how does the applicant pay for the extra 6 weeks?
