Friday Five – 20 December – 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 2019/20, examinable until 31 August 2020.

1. Following the Pensions Act 2014, State pension age will be reviewed at least every:
   1. 6 years
   2. 5 years
   3. 3 years
   4. 2 years

2. A tracker fund has purchased a sample of the shares that make up the index that it is tracking. This fund is therefore using:
   1. screening
   2. replication
   3. optimisation
   4. stratification

3. Martin is considering investing in gilt-edged securities. He should be aware that: Tick all that apply.
   1. interest is usually paid twice a year
   2. interest is taxed on a current year basis as earned income
   3. he can sell them at any point on the stock exchange
   4. he can claim any losses against future capital gains

4. In relation to death benefits when the member has crystallised funds under flexi-access drawdown pension, which of the following is true? Tick all that apply.
   1. Someone who isn’t a dependant can continue in FAD.
   2. The fund can be returned tax-free where the member dies after age 75.
   3. If there are no dependants, the beneficiary can leave the fund on their death to charity.
   4. The beneficiary can leave the FAD fund on their death to a successor.

5. In which of the following circumstances is it most likely that the benefits provided from a personal accident and sickness policy would be linked to salary rather than fixed sums?
   1. When the policy is provided as a group scheme by an employer
   2. When the policy is a short-term policy
   3. When the policy includes a weekly sickness benefit
   4. When the policy is taken out as a standalone contract

Answers

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

2. D – See R02 Study Text, Chp 6:1
   Grab our taster mock exam paper for CII R02. Click here to download.

3. A C – See R03 Study Text, Chp 9
   Grab our taster mock exam paper for CII R03. Click here to download.

4. A C D – See R04 Study Text, Chp 6:2
   Grab our taster mock exam paper for CII R04. Click here to download.

5. A – See R05 Study Text, Chp 9
   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.