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Friday Five Focus on Protection – 20 May – 5 Questions in 5 Minutes

Friday Five Focus on Protection – 20 May – 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. They do not relate to tax year 2022/23 which is only examinable by the CII from 1 September 2022. 

  1. If a company has an agreement to purchase its own shares on the death of a shareholder, subject to HMRC agreement the sale will normally count as: 
    1. A trading receipt for corporation tax purposes
    2. A disposal for capital gains tax purposes 
    3. A chargeable transfer for inheritance tax purposes 
    4. A distribution for income tax purposes
  1. Which of the following statements relating to the personal independence payment is true? 
    1. It is a taxable benefit
    2. It is a means-tested benefit 
    3. Eligibility is based on an assessment of individual need
    4. Eligibility is based on the claimant’s National Insurance contribution history
  1. A mortgage is distinguished from an absolute assignment by a right known as the:
    1. law of reassignment 
    2. equity of redemption 
    3. repayment of security 
    4. power of retention
  1. Anne wants an income protection policy which includes an element of protection against inflation.  Which of the following options may be available?
    1. An amount of increase chosen by the insurer every five years 
    2. An amount of increase chosen by her every year
    3. An automatic increase at stated periods without further underwriting
    4. An automatic increase on the occurrence of stated life events
  1. Octavia Trading Ltd is setting up a group income protection scheme for their employees.  In which of the following circumstances are the underwriters likely to offer ‘free cover’?
    1. If all eligible employees are aged under 45 at the start of the scheme
    2. If all eligible employees join the scheme
    3. If all eligible employees are in occupational classes 1 and 2 
    4. If all eligible employees will have benefits provided below a stated maximum

 

Answers

  1. B – See R05 Study Text, Chp 11
    Grab our taster mock exam paper for CII R05. Click here to download.
  1. C – See R05 Study Text, Chp 3
    Grab our taster mock exam paper for CII R05. Click here to download.
  1. B – See R05 Study Text, Chp 4
    Grab our taster mock exam paper for CII R05. Click here to download.
  1. C – See R05 Study Text, Chp 6
    Grab our taster mock exam paper for CII R05 Click here to download.
  1. 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?

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