Friday Five – 5 June 2015 – 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.

Break a leg and all that…

Questions

1. Why do flexible whole of life policies need to be reviewed regularly?
   1. To ensure the premiums are sufficient to sustain the required level of cover
   2. To give the client regular opportunities to review the underlying investment funds
   3. To allow the life company the opportunity to respond to any changes in mortality assumptions
   4. In order for the life insurance company to attach the reversionary bonuses

2. Caroline invested £12,000 into a unit trust which was worth £18,020 after 6 years. What compound rate of return has she achieved?
   1. 7.01%
   2. 5.01%
   3. 6.21%
   4. 6.72%

3. Bill and Ben are brothers and jointly own a life bond, a chargeable event has occurred resulting in a gain of £10,000. How is this apportioned between Bill & Ben?
   1. The gain is split in the same proportion as their ownership
   2. As Ben caused the chargeable event through a part surrender, it is entirely his liability
   3. The gain is split £5,000 each
   4. Due to the joint ownership, then gain is held over until total encashment of the bond

4. Under S2P, the rate at which benefits accrue is greatest in respect of which band of earnings?
   1. Up to the Lower Earnings Limit.
   2. Between the Lower Earnings Limit and the Low Earnings Threshold.
   3. Between the Lower Earnings Limit and the Upper Accrual Point.
   4. All earnings up to the Upper Accrual Point.

5. Which of the following is taken into account in the case of a married couple / civil partnership when one spouse / partner is assessed as requiring residential care?
   1. The spouse / partner’s income
   2. The spouse / partner’s capital
   3. Income from a trust where the resident is absolutely entitled to that income
   4. A property owned by the resident occupied by the spouse / partner

Answers

1. A – See R01 Study Text, Chp 2 Section B4A
   Grab our taster mock exam paper for CII R01. Click here to download.

2. A – See R02 Study Text, Chp 4 Section A2
   Grab out taster mock exam paper for CII R02. Click here to download.

3. A – See R03 Study Text, Chp 10 Section F2G
   Grab our taster mock exam paper for CII R03. Click here to download.

4. B – See R04 Study Text, Chp 7 Section B3B
   Grab our taster mock exam paper for CII R04. Click here to download.

5. C – See CF8 Study Text, Chp 3 Section B3C
   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!)

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