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Friday Five – 29 January – 5 Questions in 5 Minutes

Friday Five – 29 January – 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. Under the Enterprise Act 2002, how long does bankruptcy normally last?
    1. 6 months
    2. 12 months
    3. 3 years
    4. 5 years
  1. What primary factors determine the rate of interest paid to an investor/depositor? Tick all that apply.
    1. The level of risk taken e.g. Gilt versus corporate bond
    2. Notice period on deposit accounts
    3. The age of the investor / depositor
    4. The tax status of the investor / depositor
  1. 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
  1. A mortgage payment protection insurance policy is designed to cover:
    1. All mortgage related expenses
    2. The monthly mortgage interest only
    3. The full amount of monthly mortgage repayments
    4. Mortgage repayments and any associated life policies only
  1. What is meant by the “better off” test in connection with equity release products?
    1. The customer needs to know in advance of taking out a plan that they will not lose any entitlement to State Benefits
    2. Taking into account the financial position of both the planholder and their heirs, it is important that neither party ends up worse off than before
    3. The customer should be certain that their income position will be better after taking out the plan
    4. The customer needs to be certain that they will be better served by taking out the equity release product than by not doing so – overall benefits should outweigh the overall disadvantages

 

Answers

  1. B – See R01 Study Text, Chp 3 Section F3
    Grab our taster mock exam paper for CII R01. Click here to download.

 

  1. AB – See R02 Study Text, Chp 2 Section E5
    Grab our taster mock exam paper for CII R02. Click here to download.

 

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

 

  1. A – See R05 Study Text, Chp 9 Section C1B
    Grab our taster mock exam paper for CII ER1. Click here to download.

 

  1. D – See ER1 Study Text, Chp 4 Section C8
    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!)

 

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