Friday Five Focus on Protection – 20 January – 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 2022/23, examinable by the CII until 31 August 2023.

1. The Policies of Assurance Act 1867 covers all forms of assignment except
   1. voluntary assignments for no consideration
   2. assignments by operation of law
   3. assignments by way of a mortgage
   4. assignments to trustees

2. Aisling has started a new occupation on a part-time basis, three years after taking out her income protection policy. How will this change be treated by most providers?
   1. Her benefits will always be reduced
   2. Her premiums will always be reduced
   3. The cover will cease due to non-disclosure
   4. The benefits will only be paid in relation to her new job

3. Where a life assurance policy includes a critical illness benefit, which type of trust should be used?
   1. Split benefit trust
   2. Absolute trust
   3. Flexible trust
   4. Discretionary trust

4. Susan had an endowment policy assigned to her and is now making a maturity claim to the life office. To receive the benefits, she will need to produce the
   1. deed of assignment
   2. deed of assignment and policy document
   3. policy document
   4. letter from the assignor, deed of assignment and a policy document

5. Carol and Emily run a hairdressing salon as a partnership. What will happen to the partnership if Carol dies and there is no partnership agreement in place?
   1. Carol’s share will pass to Emily who can continue as a sole trader
   2. Emily can purchase Carol’s share and then continue as a sole trader
   3. Emily will have the option of continuing the business or dissolving it
   4. The partnership will be automatically dissolved under the Partnership Act 1890

Answers

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

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

3. A – See R05 Study Text, Chp 7
   Grab our taster mock exam paper for CII R05. Click here to download.

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

5. D – See R05 Study Text, Chp 11
   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.