Friday Five – 29 September – 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 2017/18, examinable until 31 August 2018.

1. How many qualifying years are needed to receive the full single-tier State pension?
   1. 35
   2. 36
   3. 38
   4. 40

2. Your client’s stockbroker has recommended to them that they borrow some money to take advantage of a potentially lucrative investment opportunity. What is this an example of?
   1. Diversification
   2. Bail-in risk
   3. Arbitrage
   4. Gearing

3. Sarah is a basic rate taxpayer and in August 2013 took out a 10-year qualifying life policy as a savings plan. Regarding this policy, which of the following is true?
   1. If she is a UK resident she will receive full tax relief on the premiums
   2. For the policy to keep its qualifying status she cannot pay more than £36,000 in premiums over the term
   3. The premiums will be taken into account on maturity when a chargeable event is triggered
   4. The premiums must be paid monthly, annually or as a single premium

4. Cyril had pension benefits already in payment at ‘A’ day. As he has further benefits to crystallise, the earlier pension will be valued by a factor of:
   1. 10:1.
   2. 20:1.
   3. 25:1.
   4. Zero.

5. Which is the correct statement in relation to underwriting considerations for immediate needs and a pre-funded long-term care plans?
   1. Morbidity risk is used to calculate likely life expectancy on both plans
   2. There is a less emphasis on morbidity risk with pre-funded long-term care plans
   3. There is a less emphasis on mortality risk with immediate cover plans
   4. The ability to undertake ADLs is relevant to immediate cover plans

Answers

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

2. D – See R02 Study Text, Chp 5
   Grab our taster mock exam paper for CII R02. Click here to download.

3. B – 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 2:1
   Grab our taster mock exam paper for CII R04. Click here to download.

5. D – See CF8 Study Text, Chp 6
   Grab our taster mock exam paper for CII CF8. 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!)