Friday Five – 9 November – 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.
These questions relate to examinable tax year 2018/19, examinable until 31 August 2019.
- What is the purpose of the cooling-off period under consumer credit legislation?
- To allow the borrower sufficient time to change their mind and withdraw from a loan agreement if required
- To allow the lender sufficient time to consider all material facts before making an offer to the borrower
- To allow the intermediary sufficient time to complete their research before presenting their recommendations to the client
- To allow the borrower to gather all requested documentation and to complete all required paperwork
- The capital element of a purchased life annuity is:
- tax free because it is deemed to be a return of the annuitant’s original capital
- tax free in order for it compete like for like with a pension annuity
- taxable as savings but cannot be set off against the personal savings allowance
- taxable as investment income which can be offset against the dividend allowance
- Susan is considering purchasing unit trusts and OEICs. She should be aware that: Tick all that apply.
- Both products are exempt from Capital Gains Tax in the hands of the investor
- She will be buying units in the unit trust and shares in the OEIC
- Both unit trusts and OEICs are classed as collective investments
- Dividends from both products are paid gross
- Caroline died aged 66 with uncrystallised funds valued at £1,600,000. What is the lifetime allowance charge (if any) if benefits over the lifetime allowance are paid as a dependant’s lifetime annuity within two years of her death?
- No charge.
- A group accident, sickness and unemployment policy has which advantage over an individual policy?
- Unrestricted cover for accidents
- Enhanced benefit amounts
- No deferred periods
- Preferential premiums and underwriting
- A – See R01 Study Text, Chp 5:2
Grab our taster mock exam paper for CII R01. Click here to download.
- A – See R02 Study Text, Chp 6:2
Grab our taster mock exam paper for CII R02. Click here to download.
- BCD – See R03 Study Text, Chp 10
Grab our taster mock exam paper for CII R03. Click here to download.
- C – See R04 Study Text, Chp 2:2
Grab our taster mock exam paper for CII R04. Click here to download.
- D – See R05 Study Text, Chp 9
Grab our taster mock exam paper for CII R05. 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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