Friday Five Focus on Protection – 11 March – 5 Questions in 5 Minutes

Friday Five Focus on Protection – 5 Questions in 5 Minutes Every Friday

What’s this all about?

Each week, we ask questions relating to one of these topics: Investments, Taxation, Pensions, Protection, or Regulation. This week, our Friday Five is relevant to Protection; this is useful as you prepare for the CII’s R05 exam. The challenge is for you to answer them in 5 minutes. Answers at the bottom of the page.

Questions

IMPORTANT! These questions relate to examinable tax year 2021/22, examinable by the CII until 31 August 2022.

1. Which of the following definitions of incapacity used by insurance companies gives the widest definition and provides the highest level of cover?
   1. Any occupation
   2. Own occupation
   3. Suited occupation
   4. Current occupation

2. Tax relief can generally be given on premiums for a key person policy where the life assured is classed as:
   1. a shareholding director
   2. a partner
   3. a sole trader
   4. an employee

3. An important measure of strength of a life office is its:
   1. guaranteed products
   2. with profit bonuses
   3. free asset ratio
   4. asset recovery statistics

4. Philip and Gary hold property as tenants in common. If on Philip’s death he passes his share to his sister, how will it be treated in relation to inheritance tax?
   1. It will be liable for inheritance tax at 20%
   2. It will be exempt from inheritance tax
   3. It will be liable for inheritance tax on a reducing scale
   4. It will potentially be liable for inheritance tax at 40%

5. Pauline is returning to a different employment after a period of illness when she was claiming benefits from her income protection policy. If this results in her receiving a lower level of pay, which benefit may her policy pay to her?
   1. A lump sum payment
   2. A proportionate benefit in relation to her new earnings
   3. A rehabilitation benefit in relation to her new earnings
   4. The same level of benefit for a maximum of 2 years

Answers

1. B – See R05 Study Text, Chp 6
   Grab our taster mock exam paper for CII R05. Click here to download.

2. D – See R05 Study Text, Chp 11
   Grab our taster mock exam paper for CII R05. Click here to download.

3. C – See R05 Study Text, Chp 10
   Grab our taster mock exam paper for CII R05. Click here to download.

4. D – See R05 Study Text, Chp 5
   Grab our taster mock exam paper for CII R05 Click here to download.

5. B – See R05 Study Text, Chp 6
   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?

If you found this quiz useful for your CII exam revision, please do share it with your colleagues.