Friday Five Focus on Protection – 22 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 2023/24, examinable by the CII until 31 August 2024.

1. Which of the following is true in relation to critical illness premiums?
   1. Premiums are more expensive for women.
   2. Premiums are based on mortality statistics.
   3. Reviewable premiums are dependent on the health of the insured.
   4. Guaranteed premiums tend to be higher than reviewable premiums.

2. With regard to mortgage payment protection insurance, which of the following statements is FALSE?
   1. The cover is tied to the mortgage being taken out.
   2. The deferred period is often between 30 and 180 days.
   3. MPPI is easy to buy because there is usually limited underwriting.
   4. MPPI covers unemployment, as well as sickness and accident.

3. The improvements in mortality rates over the last 30 years has led to more aggressive underwriting processes which result in more lives being
   1. rated.
   2. declined.
   3. accepted at lower rates.
   4. accepted at normal rates.

4. Colin, aged 75, has income in 2023/24 from his basic State pension and savings. In addition to his age, entitlement to the savings credit element of the State pension credit will be determined by Colin’s
   1. level of income.
   2. state of health.
   3. employment status.
   4. National Insurance 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. D – See R05 Study Text, Chp 7
   Grab our taster mock exam paper for CII R05. Click here to download.

2. A – See R05 Study Text, Chp 9
   Grab our taster mock exam paper for CII R05. Click here to download.

3. A – See R05 Study Text, Chp 1
   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.