Kimeni meets with Orion, an insurance agent, to purchase segregated funds. After assessing Kimeni's needs, Orion suggests an index segregated fund. Kimeni agrees to invest $5,000 in the fund now and $200 every month.
With relation to this transaction, which of the following options is CORRECT about the Fund Facts document?

• A. Orion must deliver the document to Kimeni within 3 days after the purchase.
• B. It is Kimeni's responsibility to ask for the document.
• C. Kimeni must acknowledge that he received the document.
• D. Orion can only deliver the document to Kimeni electronically.

Paola, an employee at Horizon Pharmaceuticals, was recently diagnosed with depression. She is unable to work and is receiving tax-free disability insurance benefits due to her condition. Paola is deeply indebted, and her creditors have been garnishing a portion of her pay for the last year. She is worried about her creditors also garnishing her disability benefit.
Can her disability benefits be seized by her creditors?

• A. No, because she is disabled.
• B. No, because the benefits are tax-free.
• C. Yes, but creditors can only seize up to 50% of her benefit.
• D. Yes, disability insurance benefits are seizable.

On June 5, Karl completed an application for critical illness coverage and paid an annual premiumof $1,250.
On June 25, the underwriter approved the policy under standard conditions and sent it to the agent, who received it on July 7. The agent contacted the client on August 8 and the date for delivery was set at August
10. On August 12, Karl learns that he will lose his job at the end of the month. As such, he decides to cancel the policy, returning it to the insurer on August 15. What is the rule governing Karl's right to have his premium refunded?

• A. He is entitled to a refund, because the policy was returned within 10 days of delivery.
• B. He is entitled to a refund, because the representative delivered the policy more than 10 days after its issuance.
• C. He is not entitled to a refund, because the application was signed more than 30 days ago.
• D. He is not entitled to a refund, because the policy was approved more than 30 days ago.

Juliette owns a medium-sized business with approximately 100 employees. Three years ago, she set up a small group benefits plan. Her employees, however, are unhappy with the coverages offered under the plan.
Moreover, for tax purposes, the group plan shares the cost of disability premiums with the employees-an expense they do not welcome. What should Juliette's agent tell her?

• A. She should instead opt for an EHT, which affords more flexibility with no tax implications for her employees.
• B. Her existing group plan is the best solution, because a group of that size would not be able to take advantage of other "grouped" alternatives.
• C. She should instead opt for a PHSP, which provides more flexible and tax-free disability benefits.
• D. The existing group plan is the most cost-effective and tax-free way to provide these benefits.