Friday Five Focus on Protection – 17 September – 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. In which of the following circumstances might an income protection policy provider pay a commuted lump sum rather than continue paying the benefits on a regular basis?
   1. Where the insured is not expected to recover from their incapacity
   2. Where the insured has a life expectancy of less than 6 months
   3. Where the insured recovered from a condition initially expected to be terminal
   4. Where the insured is aged over 55 at the time of the first claim

2. James has completed a sales process with a client and sold a protection product. To meet the FCA rules he should keep copies of:
   1. The fact-find, written recommendations and suitability letters
   2. The fact-find
   3. The fact-find and suitability letters
   4. The fact-find, product application forms and suitability letters

3. Craig is one of three partners in a partnership and has £80,000 in the capital account. On his death, this is treated as:
   1. An asset of the partnership
   2. An asset of his estate and repayable immediately
   3. An asset of his estate and the partnership equally
   4. An asset of the partnership up to the amount stated in the partnership agreement with the remainder being due to his estate

4. Colin, aged 75, has income in 2021/22 from his basic State pension and savings. In addition to his age, which of the following criteria determine his entitlement to the savings credit element of the state pension credit? Colin’s…
   1. level of income
   2. state of health
   3. employment status
   4. NI contribution record

5. What form of benefit will Harry receive if he makes a claim on his care cash plan?
   1. A cash lump sum and income for a set period
   2. A cash lump sum and/or income until he dies
   3. A cash lump sum and/or income for a set period
   4. A cash lump sum and income until he dies

Answers

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

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

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

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

5. C – See R05 Study Text, Chp 8
   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.