Friday Five – 3 March – 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 2016/17, examinable until 31 August 2017.

1. What are the three formalities required in making a will?
   1. Printed writing, typed writing and hand writing
   2. Writing, signature and attestation
   3. Executors, trustees and beneficiaries
   4. Testator’s signature and two witness signatures

2. John and Sue are both aged 85 and have been married for 65 years. John is concerned that he will lose some of their married couple’s allowance as his pension income will exceed £27,700 this tax year. What measures could John take to ensure this doesn’t happen? Tick all that apply.
   1. Use the gift out of normal expenditure rule
   2. Transfer income producing assets to Sue
   3. Make a gross pension contribution
   4. Switch investments from income to growth funds

3. Defined benefit schemes represent an open-ended liability for employers but which factor does not directly contribute to their potential liability?
   1. Age and marital status of the members.
   2. Number of deaths prior to retirement.
   3. Returns of the underlying investments.
   4. Company profits.

4. A group accident, sickness and unemployment policy has which advantage over an individual policy?
   1. Unrestricted cover for accidents
   2. Enhanced benefit amounts
   3. No deferred periods
   4. Preferential premiums and underwriting

5. Modern portfolio theory (MPT) categorises risk as being one of two types. The collapse of Equitable Life is an example of what type of risk?
   1. Event
   2. Liquidity
   3. Non-systemic
   4. Systemic

Answers

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

2. BD – See R03 Study Text, Chp 11
   Grab our taster mock exam paper for CII R03. Click here to download.

3. D – See R04 Study Text, Chp 4
   Grab our taster mock exam paper for CII R04. Click here to download.

4. D – See R05 Study Text, Chp 9
   Grab our taster mock exam paper for CII R05. Click here to download.

5. C – See J10 Study Text, Chp 7
   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!)