Friday Five – 12 April – 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

IMPORTANT!  These questions relate to examinable tax year 2018/19, examinable by the CII until 31 August 2019.  They do not relate to tax year 2019/20 which is only examinable by the CII from 1 September 2019.

1. Which of the following does not require a cancellation notice to be sent?
   1. A critical illness policy with a 5-year term
   2. An income protection policy with a 2-year term
   3. A travel policy with a 2-week term
   4. A life policy with a 1-year term

2. When the level of GDP falls compared with the previous quarter, the economy is said to be:
   1. booming
   2. contracting
   3. in recession
   4. recovering

3. Which of the following individuals has a potential Capital Gains Tax liability? Tick all that apply.
   1. Susan lived in her home for 5 years before moving out 18 months prior to its sale.
   2. Jim’s house was empty for 3 years while he was travelling although he lived there before he went away and came back to it on his return.
   3. Peter and Paul are civil partners and have owned two homes for the past 3 years and now wish to claim exemptions on one property each.
   4. Mark has owned his house for 10 years although only lived in it for 5 years.

4. Jack’s annuity has been calculated on a points system using an automated basis in relation to his lifestyle. This would indicate the purchase of:
   1. an enhanced annuity.
   2. a joint life annuity.
   3. a protected rights annuity.
   4. an impaired annuity.

5. For which type of protection policy could future risk be a factor?
   1. All contracts for longer than 10 years
   2. Contracts with reviewable premiums
   3. Contracts with add on benefits
   4. All contracts where the insured is over age 40 at the outset

Answers

1. C – 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 2
   Grab our taster mock exam paper for CII R02. Click here to download.

3. CD – See R03 Study Text, Chp 3
   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. B – See R05 Study Text, Chp 10.1
   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.