Friday Five – 19 October – 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.
These questions relate to examinable tax year 2018/19, examinable until 31 August 2019.
- Why do most insurers limit the amount of benefit they will provide under Income Protection policies?
- It is a restriction enforced by HMRC legislation
- They need to account for the income tax and National Insurance liability
- To prevent the individual getting more income than they would by working
- To account for future increases in the rate of inflation
- Personal portfolios should include a level of cash liquidity in order to:
- take advantage of the fact that tax is not paid on any interest
- meet with the FCA legislation on holdings of cash
- take advantage of short-term investment opportunities
- provide higher returns over the longer-term
- What is a difference between a local authority bond and a corporate bond?
- Only corporate bonds pay interest net of 20% tax
- Only interest received from a local authority bond is fully taxable as savings income
- In certain circumstances, losses may be allowable for corporate bonds
- A corporate bond pays interest for a fixed term and repays the capital at maturity
- Sportsman Joe retires in 2018/19 at the age of 35. Joe’s lifetime allowance will be reduced by what percentage for each complete year before normal minimum pension age:
- Which of the following factors would not be taken into account when making any changes at a review period of a reviewable policy?
- Changes in mortality rates
- Changes in the life offices expenses
- Changes in the life assured’s state of health
- Investment returns
- C – See R01 Study Text, Chp 2
Grab our taster mock exam paper for CII R01. Click here to download.
- C – See R02 Study Text, Chp 7
Grab our taster mock exam paper for CII R02. Click here to download.
- C – See R03 Study Text, Chp 9
Grab our taster mock exam paper for CII R03. Click here to download.
- C – See R04 Study Text, Chp 2:2
Grab our taster mock exam paper for CII R04. Click here to download.
- C – 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?
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