Friday Five Focus on Protection – 19 February – 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 2020/21, examinable by the CII until 31 August 2021.

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.

2. Morag is considering a policy that would enable her to maintain her mortgage payments if she was made redundant. She should be aware that such policies:
   1. will reduce the amount of cover available by the amount of any savings she has.
   2. will prevent her applying for any State benefits.
   3. can provide any amount of benefit she wants to have.
   4. will only provide benefits for a maximum of two years.

3. Which of the following methods of collecting underwriting evidence for protection policies is the fastest and can result in less non-disclosure?
   1. Medical examination
   2. Tele-underwriting
   3. GP report
   4. Health screening

4. Colin, aged 75, has income in 2020/21 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. Private medical insurance is primarily aimed at which of the following conditions?
   1. Acute
   2. Infectious
   3. Chronic
   4. Life-threatening

Answers

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

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

3. B – See R05 Study Text, Chp 4
   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. A – See R05 Study Text, Chp 9
   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.