Friday Five – 16 March – 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 2017/18, examinable until 31 August 2018.

1. How does a Family income benefit policy differ from a standard term assurance policy?
   1. On death of the life assured a series of payments are made instead of a lump sum payment
   2. The policy has multiple lives assured to cover all family members
   3. The aim of the policy is to maintain the family’s lifestyle in the event of the life assured becoming ill
   4. It is a government backed policy with tax concessions

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. Jack is aged 68 and has worked for the same employer for over 40 years. Which of the following statements regarding National Insurance Contributions is correct?
   1. They are deducted from his pay before calculating his income tax liabilities
   2. They are based on the tax year
   3. He no longer has to pay them, although his employer will
   4. Neither Jack nor his employer are required to pay them

4. At retirement, Bernice decides to buy a With Profit annuity. She selects an anticipated bonus rate of 5%. The same year, the provider declares a bonus rate less than this figure. The effect this has on the level of annuity payment she receives is that it will:
   1. increase after 12 months.
   2. decrease immediately.
   3. decrease the following year.
   4. have no effect.

5. Jane was recently made redundant and is currently receiving Jobseeker’s Allowance (JSA). If she receives support for mortgage interest, it will be:
   1. Paid after 39 weeks for a maximum of 2 years
   2. Paid after 39 weeks and paid until she finds new employment
   3. Paid after 26 weeks for interest on mortgages up to £100,000
   4. Paid after 13 weeks for a maximum of 2 years

Answers

1. A – See R01 Study Text, Chp 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. C – See R03 Study Text, Chp 2
   Grab our taster mock exam paper for CII R03. Click here to download.

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

5. A – See R05 Study Text, Chp 3
   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?

Do let us know by leaving a comment below – we promise to read them all. (Humour particularly appreciated on a Friday!)