Friday Five – 29 November – 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 2019/20, examinable until 31 August 2020.

1. Data on policy cancellations or policy lapses is often called:
   1. cancellation rate
   2. duration rate
   3. duration of products
   4. persistency of products

2. Sam is self-employed and in his VAT return has reported output VAT of £10,000 and input VAT of £6,000. How much VAT will Sam either owe HMRC or be able to reclaim?
   1. He will owe £1,000.
   2. He will owe £800.
   3. He can reclaim £1,000.
   4. He can reclaim £800.

3. Alan opted for enhanced protection as, at A-day, his tax-free cash sum was £490,000 from a total fund of £1.4m. Assuming crystallisation in 2019/20 and an increase in the fund to £2m, calculate Alan’s tax-free cash.
   1. £1,400,000
   2. £500,000
   3. £700,000
   4. £540,000

4. Robert has life assurance provided by his employer through his pension scheme which includes a continuation option. This means that Robert can:
   1. Pay to continue the cover if he leaves the company
   2. Take out a new policy if he leaves the company based on his age at the time
   3. Continue to receive the cover at no cost if he leaves the company
   4. Transfer the cover to a new employer if he leaves the company

5. There are eight main UK equity indices relating to different levels of capitalisation of which the FTSE All-Share and the FTSE 100 are the best known and most widely used. The FTSE All-Share index comprises the:
   1. FTSE 100 and the FTSE 250
   2. FTSE 100, the FTSE 250 and the FTSE Smallcap
   3. FTSE 100, the FTSE 250 and the FTSE 350
   4. FTSE 100 and FTSE Smallcap

Answers

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

2. B – See R03 Study Text, Chp 8
   Grab our taster mock exam paper for CII R03. Click here to download.

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

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

5. B – See J10 Study Text, Chp 9
   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?

If you found this quiz useful for your CII exam revision, please do share it with your colleagues.