Friday Five Focus on Protection – 9 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 2023/24, examinable by the CII until 31 August 2024.

1. Which of the following is not an aggregate driver in relation to the demand for mortality protection?
   1. Movements in the housing market.
   2. Whether or not the client has any dependents.
   3. Income per head.
   4. The employment history of the applicant.

2. 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.

3. Andrew died in May 2023, leaving £81,250 to his niece and the remaining £285,000 to his wife Mary. Mary’s estate is to be left to their niece. If Mary’s estate is now worth £590,000 and she wants to take out a policy to cover the inheritance tax liability on this, she should take out a policy for which of the following amounts?
   1. £8,500
   2. £21,250
   3. £73,500
   4. £106,000

4. Critical illness underwriting is based on
   1. marital status.
   2. mortality risk.
   3. smoking status.
   4. morbidity risk.

5. 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. 8.75%
   3. 33.75%
   4. 39.35%

Answers

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

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

3. A – See R05 Study Text, Chp 5
   Grab our taster mock exam paper for CII R05. Click here to download.

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

5. A – See R05 Study Text, Chp 5
   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.