Friday Five Focus on Protection – 9 July – 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 2020/21, examinable by the CII until 31 August 2021. They do not relate to tax year 2021/22 which is only examinable by the CII from 1 September 2021.

1. In relation to insuring against risk, it is most effective when addressing risks that are:
   1. high frequency and low impact.
   2. low frequency and low impact.
   3. low frequency and high impact.
   4. high frequency and high impact.

2. Jennifer, who works in the hotel and catering industry as a housekeeper, is applying for an income protection policy. In which occupational class will she be placed for the calculation of her premium rate?
   1. Class 1
   2. Class 2
   3. Class 3
   4. Class 4

3. The usual process with private medical insurance policies is that pre-existing conditions are excluded from cover for the first:
   1. 6 months.
   2. 1 year.
   3. 2 years.
   4. 5 years.

4. Which of the following categories of people is likely to benefit most from Income Protection?
   1. Self-employed
   2. Retired
   3. Employed
   4. Unemployed

5. Tracy and Glen are married with 2 children aged 6 and 4 and want a critical illness policy with life cover. Which type of trust should they use?
   1. Split benefit trust
   2. Discretionary trust
   3. Absolute trust
   4. Flexible trust

Answers

1. C – 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 6
   Grab our taster mock exam paper for CII R05. Click here to download.

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

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

5. A – See R05 Study Text, Chp 7
   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.