Friday Five Focus on Protection – 15 April – 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.
- Who has to prove that a CIC claim is payable?
- The life office
- The policyholder
- The policyholder or their spouse
- The personal representatives of the policyholder
- DDB Ltd has made a claim on a company held life policy. How is this treated in relation to taxation?
- It is free from liability for tax because the policy was owned by the company.
- The profit is treated as income of the company and subject to corporation tax.
- The profit is treated as income of the company and subject to income tax.
- It is treated as a capital gain and subject to income tax.
- Carla, aged 20, cares for her disabled mother who receives disability living allowance. She applied for a carer’s allowance, but her claim was refused. This was because:
- Carla is under age 21.
- Carla has net earnings of £75 per week.
- Carla’s mother is receiving another state benefit.
- Carla is on a full-time course at college.
- 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?
- A lump sum payment
- A proportionate benefit in relation to her new earnings
- A rehabilitation benefit in relation to her new earnings
- The same level of benefit for a maximum of 2 years
- 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
Answers
- B – See R05 Study Text, Chp 7
Grab our taster mock exam paper for CII R05. Click here to download.
- B – See R05 Study Text, Chp 11
Grab our taster mock exam paper for CII R05. Click here to download.
- D – 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 6
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.
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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