Friday Five – 13 May – 5 Questions in 5 Minutes
Last updated on September 25th, 2019 at 4:37 am
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.
These questions relate to examinable tax year 2015/16, examinable until 31 August 2016.
- Under a life assurance contract how would you define Insurable Interest?
- The duty to disclose all facts a person might expect an underwriter to know
- The proposer is required to have some financial interest in the life assured
- The proposer has to be related to the life assured
- The proposer has to have a liability due from the life assured
- What indices are widely used for an investor looking at asset classes other than equities? Tick all that apply.
- FTSE Sterling Corporate Bond
- FTSE Property
- FTSE Deposit
- FTSE UK Gilts
- Simon makes payments to his occupational pension scheme by deduction from his pay. What is this method known as?
- Net pay arrangement
- Relief at source
- Gross pay arrangement
- Relief by claim
- Which of the following rules apply to drawing an income under capped drawdown? Tick all that apply.
- Benefits can stay in capped drawdown for as long as the member wishes.
- The maximum permitted income review frequencies of three /one years were re-set with effect from 6 April 2015.
- Maximum income is 150% of the basis amount as per the 2011 GAD tables.
- It is not possible to transfer an existing capped drawdown plan into a new capped drawdown plan with another provider.
- It is possible to designate additional funds into an existing capped drawdown plan.
- Barbara is single and owns a house valued at £500,000, it is the major asset in her estate. If she takes out a lifetime mortgage for £150,000 and gives the money to her nephews and nieces which tax is potentially being avoided?
- Capital Gains Tax
- Inheritance Tax
- Corporation Tax
- Stamp Duty Land Tax
- B – See R01 Study Text, Chp 3, Section C1
Grab our taster mock exam paper for CII R01. Click here to download.
- AD – See R02 Study Text, Chp 1:2, Section C6C
Grab our taster mock exam paper for CII R02. Click here to download.
- A – See R03 Study Text, Chp 1, Section F3
Grab our taster mock exam paper for CII R03. Click here to download.
- ACE – See R04 Study Text, Chp 6:2, Section E1
Grab our taster mock exam paper for CII R04. Click here to download.
- B – See ER1 Study Text, Chp 7, Section A3
Grab our taster mock exam paper for CII ER1. 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!)