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.
- 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:
- A trading receipt for corporation tax purposes
- A disposal for capital gains tax purposes
- A chargeable transfer for inheritance tax purposes
- A distribution for income tax purposes
- Which of the following statements relating to the personal independence payment is true?
- It is a taxable benefit
- It is a means-tested benefit
- Eligibility is based on an assessment of individual need
- Eligibility is based on the claimant’s National Insurance contribution history
- A mortgage is distinguished from an absolute assignment by a right known as the:
- law of reassignment
- equity of redemption
- repayment of security
- power of retention
- Anne wants an income protection policy which includes an element of protection against inflation. Which of the following options may be available?
- An amount of increase chosen by the insurer every five years
- An amount of increase chosen by her every year
- An automatic increase at stated periods without further underwriting
- An automatic increase on the occurrence of stated life events
- 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’?
- If all eligible employees are aged under 45 at the start of the scheme
- If all eligible employees join the scheme
- If all eligible employees are in occupational classes 1 and 2
- If all eligible employees will have benefits provided below a stated maximum
Answers
- B – See R05 Study Text, Chp 11
Grab our taster mock exam paper for CII R05. Click here to download.
- C – See R05 Study Text, Chp 3
Grab our taster mock exam paper for CII R05. Click here to download.
- B – See R05 Study Text, Chp 4
Grab our taster mock exam paper for CII R05. Click here to download.
- C – See R05 Study Text, Chp 6
Grab our taster mock exam paper for CII R05 Click here to download.
- 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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