Friday Five – 5 June 2015 – 5 Questions in 5 Minutes
Welcome to this week’s Friday Five – 5 Questions in 5 Minutes Every Friday
What’s this all about?
It’s a bit of Friday Fun where we provide you with 5 questions relevant to a mix of CII exams. The challenge is for you to answer them in 5 minutes. Answers at the bottom of the page.
Break a leg and all that…
- Why do flexible whole of life policies need to be reviewed regularly?
- To ensure the premiums are sufficient to sustain the required level of cover
- To give the client regular opportunities to review the underlying investment funds
- To allow the life company the opportunity to respond to any changes in mortality assumptions
- In order for the life insurance company to attach the reversionary bonuses
- Caroline invested £12,000 into a unit trust which was worth £18,020 after 6 years. What compound rate of return has she achieved?
- Bill and Ben are brothers and jointly own a life bond, a chargeable event has occurred resulting in a gain of £10,000. How is this apportioned between Bill & Ben?
- The gain is split in the same proportion as their ownership
- As Ben caused the chargeable event through a part surrender, it is entirely his liability
- The gain is split £5,000 each
- Due to the joint ownership, then gain is held over until total encashment of the bond
- Under S2P, the rate at which benefits accrue is greatest in respect of which band of earnings?
- Up to the Lower Earnings Limit.
- Between the Lower Earnings Limit and the Low Earnings Threshold.
- Between the Lower Earnings Limit and the Upper Accrual Point.
- All earnings up to the Upper Accrual Point.
- Which of the following is taken into account in the case of a married couple / civil partnership when one spouse / partner is assessed as requiring residential care?
- The spouse / partner’s income
- The spouse / partner’s capital
- Income from a trust where the resident is absolutely entitled to that income
- A property owned by the resident occupied by the spouse / partner
- A – See R01 Study Text, Chp 2 Section B4A
Grab our taster mock exam paper for CII R01. Click here to download.
- A – See R02 Study Text, Chp 4 Section A2
Grab out taster mock exam paper for CII R02. Click here to download.
- A – See R03 Study Text, Chp 10 Section F2G
Grab our taster mock exam paper for CII R03. Click here to download.
- B – See R04 Study Text, Chp 7 Section B3B
Grab our taster mock exam paper for CII R04. Click here to download.
- C – See CF8 Study Text, Chp 3 Section B3C
Grab our taster mock exam paper for CII CF8. Click here to download.
How did you find this week’s questions? Did you complete them in 5 minutes? Did you get them all correct? Do you disagree with any?
Do let us know by leaving a comment below – we promise to read them all. (Humour particularly appreciated on a Friday!)