Friday Five – 22 February – 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 2018/19, examinable until 31 August 2019.

1. Which of the following can give a particular insight into a firm’s attention to ethical issues?
   1. The number of new starters
   2. Data on policy lapses
   3. The number of days’ holiday it allows
   4. The balance sheet

2. Elevator PLC’s year end accounts contain the following information:
    
   Fixed Assets £8,450
   Current assets £2,300
   Current liabilities £1,875
   Long-term debt £1,950
    
   They have 1,250 ordinary shares issued. What is their net asset value?
   1. £2.66
   2. £5.54
   3. £1.86
   4. £6.34

3. When is a part-surrender under a non-qualifying life policy a chargeable event?
   1. If total part surrenders at the end of a policy year exceed cumulative allowances
   2. Each time a withdrawal is taken from a single premium investment bond
   3. A withdrawal in any policy year of up to 5% of the original investment
   4. If the policyholder took withdrawals over a period greater than 10 years

4. Caroline died aged 66 with uncrystallised funds valued at £1,600,000. What is the lifetime allowance charge (if any) if benefits over the lifetime allowance are paid as a dependant’s lifetime annuity within two years of her death?
   1. No charge.
   2. £313,500.
   3. £142,500.
   4. £57,000.

5. Maureen has taken out a budget plan private medical insurance policy. If she makes a claim, which of the following costs is unlikely to be covered?
   1. Home nursing
   2. Doctor’s fees
   3. Drugs
   4. Accommodation

Answers

1. B – See R01 Study Text, Chp 10
   Grab our taster mock exam paper for CII R01. Click here to download.

2. B – 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 10
   Grab our taster mock exam paper for CII R03. Click here to download.

4. C – See R04 Study Text, Chp 2:2
   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?

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