Friday Five Focus on Protection – 19 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 2023/24, examinable by the CII until 31 August 2024. They do not relate to tax year 2024/25 which is only examinable by the CII from 1 September 2024.
- Martin took out a life assurance policy on the life of his wife Karen. How will the policy be affected if they get divorced at some point in the future?
- There will be no change unless a court orders otherwise.
- An automatic cancellation of the policy will take place.
- Assignment to Karen is required.
- The life assured under the policy will have to be changed.
- Most life offices will pay death claims without a grant where the sum assured and the value of the estate is small, if the proceeds are being paid to
- immediate family members.
- a surviving spouse.
- any relations of the deceased.
- a trust for the benefit of minor children.
- Kevin is employed and receives sick pay from his employer. This is paid at full pay for six months and then half pay for a further six months. In arranging an income protection policy, he will be able to take out cover based on
- half pay for months 7 – 12 and full pay from month 13.
- half pay from month 7 only.
- full pay from month 13 only.
- full pay from the start of the policy only.
- When a claim is made for the payment of a critical illness benefit, on which of the following is the onus to prove the validity?
- The life office’s chief medical officer.
- The life office.
- The policyholder.
- The medical establishment which made the diagnosis.
- 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.
Answers
- A – See R05 Study Text, Chp 2
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.
- A – 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 7
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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