Friday Five – 3 February – 5 Questions in 5 Minutes
Last updated on September 25th, 2019 at 4:33 am
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.
- What are the main types of sickness and health insurance available in the UK market?
- Income protection, permanent health insurance and Accident Sickness and Unemployment benefit
- Non-profit whole of life, family income benefit and payment protection insurance
- Income protection, critical illness, private medical insurance and personal accident and sickness insurance
- Long-term care, critical illness, mortgage payment protection insurance and permanent health insurance
- If Pauline incurred a capital gain on 4th May 2016, when would the CGT liability have to be paid?
- 31st January 2018
- 31st January 2017
- 30th October 2017
- 30th October 2016
- Which of the following would be seen as an advantage in drawing benefits by way of phased retirement through capped drawdown?
- Full tax-free cash at the outset.
- Funds can be used to provide unlimited withdrawal amounts.
- It will not trigger the money purchase annual allowance rules.
- Mortality drag.
- Portfolio drift is where a portfolio is likely to move away from the recommended asset allocation due to different assets providing different returns. In addition to having a robust portfolio review process, how else can an investment manager mitigate portfolio drift?
- By periodically rebalancing the investment portfolio
- By encashing the highest performing assets
- By encashing the lowest performing assets
- By encashing 10% of the highest and lowest performers
- Neil bought his house 10 years ago. He lived in it for 18 months and then rented it out. When he sold the house, he made a profit of £60,000. How much of this profit is potentially taxable?
- 1/10th
- 3/10ths
- 6/10ths
- 7/10ths
Answers
- C – See R01 Study Text, Chp 2
Grab our taster mock exam paper for CII R01. Click here to download.
- A – See R03 Study Text, Chp 3
Grab our taster mock exam paper for CII R03. Click here to download.
- C – See R04 Study Text, Chp 6:2
Grab our taster mock exam paper for CII R04. Click here to download.
- A – See J10 Study Text, Chp 4
Grab our taster mock exam paper for CII J10. Click here to download.
- D – See R07 Study Text, Chp 8
Grab our taster mock exam paper for CII R07. 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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