Friday Five – 29 June – 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. A materiality assessment involves standing back from a firm and seeing it as how others might see it. With which of the following is a materiality assessment most closely associated?
   1. Ethics codes
   2. Fair treatment of customers
   3. Corporate social responsibility
   4. Fit and proper requirements

2. Jack is aged 68 and has worked for the same employer for over 40 years. Which of the following statements regarding National Insurance Contributions is correct?
   1. They are deducted from his pay before calculating his income tax liabilities
   2. They are based on the tax year
   3. He no longer has to pay them, although his employer will
   4. Neither Jack nor his employer are required to pay them

3. Tommy finds that the Primary protection that he registered for has been lost. The likely reason for this is:
   1. his divorce has caused a pension debit reducing his fund to less than £1.5m.
   2. poor investment performance has taken his funds below £1.5m.
   3. he has resumed active contributions to his plans.
   4. he has crystallised some of his pension plans.

4. Neil’s critical illness policy has been set up on a reviewable basis. Which of the following is the new rate based on when the reviews are undertaken?
   1. The policyholder’s health
   2. The policyholder’s age
   3. Claims experience of the insurer
   4. Changes in the amount of claims made within the industry What are the alternatives for a company facing liquidation?

5. Hydro is a company involved in developing alternative energy sources. This is of interest to ethical funds who adopt which approach to screening?
   1. Negative screening
   2. Avoidance screening
   3. Positive screening
   4. Green screening

Answers

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

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

3. A – See R04 Study Text, Chp 2.2
   Grab our taster mock exam paper for CII R04. Click here to download.

4. C – See R05 Study Text, Chp 7
   Grab our taster mock exam paper for CII R05. Click here to download.

5. C – See J10 Study Text, Chp 1
   Grab our taster mock exam paper for CII J10. 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!)