Friday Five – 20 July – 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 2017/18, examinable by the CII until 31 August 2018.  They do not relate to tax year 2018/19 which is only examinable by the CII from 1 September 2018.

1. Under the FCA’s three-pillar supervision model, the majority of firms are classified as:
   1. Fixed portfolio firms
   2. Flexible portfolio firms
   3. Category 1 firms
   4. Category 4 firms

2. What is a limitation of using company investment ratios?
   1. In a take-over, ratios can’t help shareholders assess if assets are being given away too cheaply
   2. Ratios can’t provide meaningful comparisons with similar same sector companies
   3. They can’t highlight any areas of a company that may require further scrutiny
   4. Accounting policies could change over time, making historical comparisons misleading

3. Sylvia is hoping to make up a significant gap in her National Insurance record by paying Class 3 contributions. Which of the following must she be aware of?
   1. She must satisfy a residence condition
   2. They do not increase entitlement to State pension
   3. The contributions are collected weekly by demand
   4. She can make class 3 contributions after she reaches State pension age

4. Which of the following lump-sum death benefits is only payable from a scheme pension that arises from a defined benefit scheme?
   1. A defined benefits lump-sum death benefit.
   2. A pension protection lump sum.
   3. An annuity protection lump sum.
   4. An uncrystallised lump sum.

5. In which of the following circumstances might an income protection policy provider pay a commuted lump sum rather than continue paying the benefits on a regular basis?
   1. Where the insured is not expected to recover from their incapacity
   2. Where the insured has a life expectancy of less than 6 months
   3. Where the insured recovered from a condition initially expected to be terminal
   4. Where the insured is aged over 55 at the time of the first claim

Answers

1. B – See R01 Study Text, Chp 5:1
   Grab our taster mock exam paper for CII R01. Click here to download.

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

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

4. B – 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 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?

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