Friday Five – 14 August – 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 2019/20, examinable by the CII until 31 August 2020. They do not relate to tax year 2020/21 which is only examinable by the CII from 1 September 2020.

1. The essence of outcomes-based regulation is about the regulator:
   1. having rules to cover every specific situation.
   2. providing tangible standards for firms to achieve.
   3. setting out general terms for the types of behaviour they expect to see.
   4. making judgments on what might happen in the future.

2. Which investor would you expect to have the highest degree of diversification within their investment portfolio?
   1. No-risk investor
   2. High-risk investor
   3. Medium-high-risk investor
   4. Medium-risk investor

3. Sarah is a basic rate taxpayer and in August 2013 took out a 10-year qualifying life policy as a savings plan. Regarding this policy, which of the following is true?
   1. If she is a UK resident, she will receive full tax relief on the premiums.
   2. For the policy to keep its qualifying status, she cannot pay more than £36,000 in premiums over the term.
   3. The premiums will be taken into account on maturity when a chargeable event is triggered.
   4. The premiums must be paid monthly, annually, or as a single premium.

4. Sally is currently paying Class 3 National insurance contributions (NICs). This would indicate that she is:
   1. self-employed.
   2. employed.
   3. earning less than the Lower Earnings Threshold
   4. rectifying a shortfall in her record of NICs.

5. The rates for premiums on income protection policies vary with all of the following except:
   1. deferred period.
   2. age.
   3. marital status.
   4. occupation.

Answers

1. D – See R01 Study Text, Chp 9
   Grab our taster mock exam paper for CII R01. Click here to download.

2. D – See R02 Study Text, Chp 7
   Grab our taster mock exam paper for CII R02. Click here to download.

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

4. D – See R04 Study Text, Chp 7
   Grab our taster mock exam paper for CII R04 Click here to download.

5. C – See R05 Study Text, Chp 6
   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.