Friday Five – 24 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 2016/17, examinable until 31 August 2017.

1. Which of the following does not require a cancellation notice to be sent?
   1. A critical illness policy with a 5-year term
   2. An income protection policy with a 2-year term
   3. A life policy with a 5-month term
   4. A life policy with a 1-year term

2. Which of the following statements relating to the trading of bonds in the secondary market are true? Tick all that apply.
   1. New York is the world’s leading centre for bond trading
   2. A Eurobond is an international bond, denominated in a currency other than that of the country where it is issued
   3. The UK Government is the biggest borrower in the UK bond market
   4. Of the four major markets, only two are sterling markets

3. Which of the following is most likely to be classed as a gift with reservation for IHT purposes by HMRC?
   1. Simon gives away his holiday home to his sister but continues to stay there paying full market rent
   2. Elaine gives away her antique jewellery to her daughter but cleans it annually
   3. Edmond gives his son his share portfolio but retains the right to dividends from it
   4. Andrea gives her antique chairs to her brother but always sits on them when she visits

4. The minimum level of contribution for auto-enrolment purposes once fully phased in is:
   1. 13% of total earnings.
   2. 10% of qualifying earnings.
   3. 9% of total earnings.
   4. 8% of qualifying earnings.

5. What is normally required by a lender before they offer a customer a “borrow back” facility on a lifetime mortgage?
   1. The customer moving permanently to a residential home
   2. The loan to value being less than 25%
   3. The customer having a history of overpaying on a consistent basis
   4. The mortgage being on a fixed rate

Answers

1. C – See R01 Study Text, Chp 5:2
   Grab our taster mock exam paper for CII R01. Click here to download.

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

3. C – See R03 Study Text, Chp 4
   Grab our taster mock exam paper for CII R03. Click here to download.

4. D – See R04 Study Text, Chp 3
   Grab our taster mock exam paper for CII R04. Click here to download.

5. C – See ER1 Study Text, Chp 5
   Grab our taster mock exam paper for CII ER1. 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!)