Friday Five – 1 February – 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.

Questions

These questions relate to examinable tax year 2018/19, examinable until 31 August 2019.

1. Under ICOBS rules, who is responsible for ensuring an intermediary is authorised to deal with an insurer?
   1. The responsibility lies solely with the intermediary
   2. An insurer must ensure that any intermediary it deals with is authorised
   3. An intermediary would not be able to contact an insurer unless they were authorised
   4. It is solely the FCA’s responsibility to ensure all intermediaries are authorised

2. Which of the following is a type of credit risk?
   1. Event
   2. Downgrade
   3. Solvency
   4. Liquidity

3. Susan is considering purchasing unit trusts and OEICs. She should be aware that: Tick all that apply.
   1. Both products are exempt from Capital Gains Tax in the hands of the investor
   2. She will be buying units in the unit trust and shares in the OEIC
   3. Both unit trusts and OEICs are classed as collective investments
   4. Dividends from both products are paid gross

4. Adam is 63 and is considering using his personal pension fund to purchase a lifetime annuity. According to HMRC requirements, what is the statutory escalation that must be included?
   1. There is no statutory escalation requirement.
   2. By RPI.
   3. By RPI or 2.5%.
   4. By CPI or 5%

5. Jack, who is married to Vera, has an endowment policy approaching maturity. The life office’s form of discharge can be signed by:
   1. Jack or his solicitor
   2. Jack or Vera
   3. Jack or anyone appointed by him
   4. Jack only

Answers

1. B – See R01 Study Text, Chp 5:2
   Grab our taster mock exam paper for CII R01. Click here to download.

2. B – See R02 Study Text, Chp 5
   Grab our taster mock exam paper for CII R02. Click here to download.

3. BCD – See R03 Study Text, Chp 10
   Grab our taster mock exam paper for CII R03. Click here to download.

4. A – See R04 Study Text, Chp 6:1
   Grab our taster mock exam paper for CII R04. Click here to download.

5. D – See R05 Study Text, Chp 4
   Grab our taster mock exam paper for CII R05. 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?

If you found this quiz useful for your CII exam revision, please do share it with your colleagues.