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Insurance policies obtained with a SEC audit client before becoming a covered person are grandfathered.

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Answer explanation

Covered persons may not obtain a new policy from a SEC restricted entity.

Fixed annuity contracts are considered insurance products and are therefore permissible for members of the firm.

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Answer explanation

Fixed annuity contracts are deemed insurance products and not investments.

Tanisha usually pays $500 monthly for her homeowner policy. Can she add an existing rider valued at $10 for jewelry protection to her policy?

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Members of the firm are permitted to hold insurance policies with a restricted entity without restrictions.

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Answer explanation

Non-covered persons may have insurance products with restricted entities.

Underlying investments in variable life or variable annuities contracts are subject to regular investment policies including reporting in KICS.

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Answer explanation

True, because they would be considered financial interest.

Kemar (LEAP) has finally tied the knot with Stacy and he wants to add her to his existing policy. His advisor said a new policy would have to be issued, is this permissible?

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Answer explanation

Covered persons may not obtain a new policy form a SEC restricted entity where no previous similar coverage existed.

Policies obtained before March 7, 2001 are grandfathered.

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Answer explanation

Policies obtained before May 7, 2001 are grandfathered.

Members of the firm can only dispose of underlying investments should they become restricted.

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Answer explanation

They may also opt for investment options with unrestricted entities or convert to a fixed annuity policy.