Friday Five – 20 May – 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 2015/16, examinable until 31 August 2016.

1. Why might a client consider reviewable critical illness cover?
   1. If they believe their family situation might change in the future
   2. It allows them to convert to an income protection policy on review dates
   3. If they believe their morbidity risk would reduce in the future
   4. Premiums are generally lower than a guaranteed premium policy

2. How do investment trusts differ from unit trusts and OEICs? Tick all that apply.
   1. Most investment trusts are cheaper to invest in than most unit trusts
   2. Because of the discount to net asset value investment trusts can provide higher levels of income than the equivalent unit trust or OEIC
   3. Investment trusts are open-ended funds
   4. The risk and reward of investing in investment trusts is often lower than investing in unit trusts

3. Julie bought a ring for £1,000 over 10 years ago and has recently sold it for £8,000. What is the chargeable gain for Capital Gains Tax purposes?
   1. £8,000
   2. £7,000
   3. £3,333
   4. £2,000

4. A Section 143 Valuation is an actuarial assessment carried out in connection with the:
   1. Pension Protection Fund taking over the assets of an insolvent company with an underfunded scheme.
   2. payment of a cash equivalent transfer value when a member leaves an occupational scheme.
   3. triennial fund valuation on a defined benefit scheme.
   4. transfer calculation on wind up of a final salary scheme with the assets moving over to a money purchase vehicle.

5. Whose role is it to maintain a register of lasting powers of attorney?
   1. The Court of Protection
   2. The Office of the Public Guardian
   3. The Independent Mental Capacity Advocate
   4. The Court Deputy

Answers

1. D – See R01 Study Text, Chp 2, Section B4B
   Grab our taster mock exam paper for CII R01. Click here to download.

2. AB – See R02 Study Text, Chp 6:1, Section G19
   Grab our taster mock exam paper for CII R02. Click here to download.

3. C – See R03 Study Text, Chp 3, Section C3
   Grab our taster mock exam paper for CII R03. Click here to download.

4. A – See R04 Study Text, Chp 3.1, Section B1B
   Grab our taster mock exam paper for CII R04. Click here to download.

5. B – See CF8 Study Text, Chp 9, Section C5
   Grab our taster mock exam paper for CII CF8. 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!)