Friday Five Focus on Protection – 4 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 2021/22, examinable by the CII until 31 August 2022.

1. Caroline held an own life with-profits life assurance policy. On her death, the amount payable on the claim may vary depending on which of the following factors?
   1. The amount of premiums paid over the term
   2. Her age at death
   3. The basic sum assured
   4. The exact date of death

2. Under total and permanent disability, which of the following definitions is the strictest in terms of when a critical illness cover would pay out?
   1. Unable to do a suited occupation ever again
   2. Unable to look after oneself ever again
   3. Unable to do one’s own occupation ever again
   4. Unable to do three specified work tasks ever again

3. 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?
   1. The life office’s chief medical officer
   2. The life office
   3. The policyholder
   4. The medical establishment which made the diagnosis

4. David has a life assurance policy with a UK life office. At which of the following rates will the life fund be taxed on any UK dividend income it receives?
   1. Nil
   2. 7.5%
   3. 32.5%
   4. 38.1%

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

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

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

4. A – See R05 Study Text, Chp 5
   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.