Friday Five – 6 April – 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.
IMPORTANT! These questions relate to examinable tax year 2017/18, examinable by the CII until 31 August 2018. They do not relate to tax year 2018/19 which is only examinable by the CII from 1 September 2018.
- Under which scenario would non-disclosure have taken place?
- A client tells an IFA about a previous heart condition, but the IFA doesn’t tell the insurer
- An employed agent of the insurer does not inform the insurer of the client’s previous heart condition
- A self-employed agent of the insurer does not pass onto the insurer a material fact the client had disclosed
- The client advised that a previous heart condition occurred 10 years ago, but had actually happened 11 years ago
- Which of the following scenarios would be potentially taxable?
- Steven opens a bank account in his son’s name which earns £80 interest
- Stefan, aged 12, earns £30 per week delivering newspapers
- Simon opens a building society account for his grandson which earns £110 interest
- Sarah, aged 16, receives money from her parents and invests it in a cash ISA where it earns £115 interest
- As a new member of a private sector defined benefit scheme, the accrual of Mary’s tax-free cash sum at retirement will be:
- determined by the scheme rules.
- 3/80 x salary x years of service.
- 3/80 x fund x years of service.
- 25% x fund value.
- Jack, who is married to Vera, has an endowment policy approaching maturity. The life office’s form of discharge can be signed by:
- Jack or his solicitor
- Jack or Vera
- Jack or anyone appointed by him
- Jack only
- The following statistics relate to the Franklin Fund Management Group Ltd.’s ‘Technology and Telecommunications Fund’: average return 10% per year, beta 2, return on the market 7% and risk-free rate 3%. Given this information, what is the alpha of this particular fund?
- A – See R01 Study Text, Chp 3
Grab our taster mock exam paper for CII R01. Click here to download.
- D – See R03 Study Text, Chp 1
Grab our taster mock exam paper for CII R03. Click here to download.
- A – See R04 Study Text, Chp 1
Grab our taster mock exam paper for CII R04. Click here to download.
- D – See R05 Study Text, Chp 4
Grab our taster mock exam paper for CII R05. Click here to download.
- D – 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?
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