A few months ago, Urmish filed a complaint to the Autorite des marches financiers (AMF) about the services he received from his insurance agent, Jaba. The complaint was heard by the discipline committee, and Jaba was found guilty and ordered to pay a $10,000 fine. Jaba is upset and does not agree with the verdict. She would like to appeal the verdict.
Which of the following statements is CORRECT?

• A. A decision made by the discipline committee may be appealed to the Court of Quebec.
• B. A decision made by the discipline committee cannot be appealed.
• C. A decision made by the discipline committee may be appealed to the Chambre de la securite financiere (CSF).
• D. A decision made by the discipline committee may be appealed to the AMF.

Laraine wants to purchase an Individual Variable Insurance Contract (IVIC) because of the death benefit guarantee as she has been ill. She has decided on a segregated fund which has, as its underlying asset, units of a mutual fund that invests in North American common shares. Her insurance agent, Jeffrey, wants her to understand key issues before she completes and signs the application. What should Jeffrey do?

• A. Tell her she must complete a medical questionnaire which will be attached to the application.
• B. Provide her with the summary information folder for the segregated fund.
• C. Tell her she has a 10-day "free look" to review the contract.
• D. Provide her with the prospectus issued for the underlying mutual fund units.

Barry, a life insurance agent, is meeting his client Diane who came to Canada 26 years ago. Diane is turning
60 years old and is considering purchasing a non-registered life annuity to supplement her retirement income.
Barry presented the quote to her and it was quickly accepted. During the application process, he recorded Diane's contact information, used her Social Insurance card to ascertain her identity, and collected a cheque of $120,000 from a joint account. The names written on the cheque were Diane and Geoffrey. Diane explained that this was a joint account with her brother. What should Barry do to comply with FINTRAC's guidelines regarding ascertaining identity?

• A. Report this transaction to FINTRAC because it exceeds $10,000.
• B. Use another ID to ascertain her identity, because the Social Insurance card is prohibited.
• C. Nothing, because there is no suspicious activity involved.
• D. Complete a third-party form because it involves her brother as well.

Gary owns a $500,000 T-20 life insurance policy with an accidental death rider of $250,000. His estate is named as beneficiary. Gary dies when his car falls into a lake. The autopsy shows that he had a heart attack, which caused his death and led to the accident.
What death benefit amount will the life insurance company pay Gary's estate?

• A. $500,000, because accidental death cannot be added to term coverage.
• B. $500,000, because the death is due to the heart attack and not the car accident.
• C. $750,000, because Gary's death meets the definition of accident in the contract.
• D. $750,000, because the accident was caused by the heart attack.

Seven years ago, Amber invested $150,000 in a non-registered equity segregated fund. Her investment grew, and today, the market value of her fund is $165,000. She places an order to redeem her fund and she wants to know how her investment will be taxed.

• A. The $15,000 of capital gains will receive preferential tax treatment.
• B. The entire $165,000 will be taxed as income.
• C. The investment will not be taxed.
• D. The $15,000 of capital gains will be 100% taxable.