Friday Five Focus on Protection – 5 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 2023/24, examinable by the CII until 31 August 2024.
- In relation to insuring against risk, it is most effective when addressing risks that are
- high frequency and low impact.
- low frequency and low impact.
- low frequency and high impact.
- high frequency and high impact.
- In calculating the amount of premium to be paid for a life assurance policy, what is normally added to a loaded premium to arrive at the final premium payable?
- Initial percentage charge.
- Underwriting fee.
- Policy charge.
- Mortality adjustment.
- Frances has made a claim on the maturity of a second-hand life assurance policy and made a chargeable gain. Which of the following tax(es) will she potentially be liable for?
- Income tax.
- Income tax and capital gains tax.
- Capital gains tax.
- Income tax or capital gains tax depending on the amount of the gain.
- Terminal illness benefit on a critical illness plan is NOT usually paid out in the last 12 or 18 months of a policy.
- 12 or 18 months of a policy.
- 18 or 24 months of a policy.
- 24 or 30 months of a policy.
- 30 or 36 months of a policy.
- 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
- deed of assignment.
- deed of assignment and policy document.
- policy document.
- Letter from the assignor, deed of assignment and a policy document.
Answers
- C – See R05 Study Text, Chp 1
Grab our taster mock exam paper for CII R05. Click here to download.
- C – See R05 Study Text, Chp 4
Grab our taster mock exam paper for CII R05. Click here to download.
- C – See R05 Study Text, Chp 5
Grab our taster mock exam paper for CII R05. Click here to download.
- A – 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 4
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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