CII R05 Test 3.pdf

(143 KB) Pobierz
CII R05 2019/2020
Test 3
1. The general demand for protection is shaped by various factors. What is
LEAST
likely to be one of
these?
Select one:
a. The housing market.
b. Economic factors.
c. Underwriting restrictions.
d. Affordability.
2. A UK price comparison website has seen the sales of term insurance increase dramatically over the
last few years. This is
most
likely to be the result of:
Select one:
a. more generous underwriting.
b. an ageing population who are more likely to buy insurance.
c. falling expenses for insurance companies.
d. the commoditisation of the product.
3. Susie is looking to meet her protection needs and she has decided that she needs to take advice. She
is
most
likely to be considering:
Select one:
a. payment protection insurance.
b. mortgage protection insurance.
c. critical illness cover.
d. level term insurance.
4. Within seven years of his death in 2019, Fred made gifts of £60,000 each to his three children. On
death, his estate was valued at £850,000 after allowing for the residence nil-rate band. Assuming there
are no reliefs or transferable nil-rate band, what is the inheritance tax liability on the estate?
Select one:
a. £210,000.
b. £282,000.
c. £189,000.
d. £118,125.
email: nailinaben@gmail.com
5. Ten years ago John took out an own life, whole life policy for the benefit of his wife, Mary. They are
now divorcing and Mary is seeking guidance on how the divorce affects the policy and her right to
benefits. She should be aware that:
Select one:
a. the policy will categorise the beneficiary as 'John's wife', so John's estate will benefit unless he
remarries.
b. the policy will become 'paid up', and she will receive the accumulated value on John's death.
c. the policy becomes null and void, and she will receive the surrender value or the equivalent of
the premiums paid, whichever is the greater.
d. her position as a beneficiary does not change, unless a court intervenes.
6. When recommending an income protection plan to a client, which of the client's existing assets
should the adviser take into account?
Select one:
a. Fixed-term savings.
b. Their pension fund.
c. Their home.
d. Instant access savings.
7. Jenny and Richard have one child - Sonia, aged 6. Jenny is a homemaker and Richard has an
adjusted net income of £53,000. How much child benefit will they receive in 2019/20?
Select one:
a. £753.48.
b. £888.60.
c. £1,055.60.
d. £976.92.
8. Where someone is on a low income and renting their property, what social security benefit might
they be able to claim to meet the cost of paying their rent?
Select one:
a. Attendance Allowance.
b. Housing benefit.
c. Support for Mortgage Interest.
d. Personal Independence Payment.
9. Madge has been told that her benefit payments are subject to the benefit cap. This is
most
likely
because she receives:
Select one:
a. Attendance Allowance.
b. Jobseeker's Allowance.
c. Employment and Support Allowance (support component).
d. Carer's Allowance.
email: nailinaben@gmail.com
10. Jinhai owns a family-run company and his adviser has suggested he take out a relevant life policy.
He should be aware that:
Select one:
a. it is possible for the policy to have a surrender value.
b. it is never possible for this type of policy to offer anything other than life cover.
c. the life cover will be on his life but the premium will be paid by his company.
d. this will form part of his annual and lifetime pension allowance.
11. What type of policy allows different types of cover to be included within the same policy?
Select one:
a. A flexible plan.
b. An adaptable plan.
c. A universal benefit plan.
d. A multiplan.
12. When calculating the premium for a life assurance policy, a life company will apply a loading to
the pure premium. What would be regarded as the
major
part of this loading?
Select one:
a. Life office expenses.
b. Provision for a fall in interest rates.
c. Allowance for an unexpected level of claims.
d. Frequency of premium payments.
13. James has set up a flexible trust with John, Paul, Ringo and George all as beneficiaries. If John and
Paul are the default beneficiaries, who currently has the interest in possession?
Select one:
a. James.
b. Ringo and George.
c. John, Paul, Ringo and George.
d. John and Paul.
14. A client cancelled his term assurance cover with Trident Life, and has proposed for identical cover
with Olympus Life. The underwriters of Olympus have accepted the risk on a 'continuing personal
medical exclusions' basis, which means that they have:
Select one:
a. adopted the underwriting decision applied by Trident Life.
b. provided cover without requesting evidence of the client's medical history.
c. excluded all pre-existing conditions.
d. applied a moratorium, excluding all pre-existing conditions for a set period.
email: nailinaben@gmail.com
15. When Andrew applied for long-term protection insurance, he was careless when answering the
medical questions and failed to declare a material fact. If a claim is made and it is established that
correct disclosure would have affected the underwriting decision, what action is the insurer
most
likely
to take?
Select one:
a. The claim would be avoided but, if appropriate, cover would continue.
b. The claim would be paid in full, as although Andrew acted negligently, he didn't intend to
mislead.
c. The insurer would apply a proportionate remedy, such as meeting part of the claim.
d. The policy would have been void from inception.
16. James and Rita are married. They have a joint life first death policy which is held under an equal
tenancy in common arrangement. In the event of the first death, how will the claim proceeds be
distributed?
Select one:
a. The proceeds are divided between the surviving spouse and the deceased's estate, in whatever
proportion has been agreed between James and Rita.
b. The entire proceeds are paid to the surviving spouse.
c. 50% to the surviving spouse and 50% to the deceased's estate.
d. The entire proceeds are paid to the deceased's estate, to be distributed in accordance with the
deceased's will.
17. Where a life office receives an enquiry from a policyholder regarding the surrender of an
endowment policy, the Financial Conduct Authority requires the life office to:
Select one:
a. recommend that the policyholder receives financial advice with regard to the surrender
proceeds.
b. make the policyholder aware of alternative options available.
c. recommend that the policyholder receives independent legal advice before proceeding with
surrender.
d. reply within 10 working days.
18. Vijay, aged 42, has a ten year endowment policy with a premium of £500 per year. If this is a
qualifying policy, what is the minimum sum assured on his policy?
Select one:
a. £3,750.
b. £5,000.
c. £4,250.
d. £4,000.
email: nailinaben@gmail.com
19. On surrender by a UK resident, the proceeds of an offshore insurance policy will be subject to:
Select one:
a. income tax and capital gains tax on any gains at 20%.
b. capital gains tax at 20% on any gains only.
c. income tax at the individual's highest marginal rate only.
d. income tax at 45% only.
20.
Where a life policy is held in trust and is subject to a tax charge, on whom does the tax liability fall
where the settlor is alive and a UK resident immediately before the chargeable event?
Select one:
a. The trustees, who can then recover the tax paid from the settlor.
b. The settlor, who can then recover the tax paid from the trustees.
c. The trustees, who cannot then recover the tax paid from the settlor.
d. The settlor, who cannot then recover the tax paid from the trustees.
21. The individual residence nil-rate band will reduce the value of an estate by:
Select one:
a. £175,000, subject to certain conditions.
b. £150,000, subject to certain conditions.
c. £100,000, subject to certain conditions.
d. £125,000, subject to certain conditions.
22. Ji Su intends to maximise the gifts she can make free of IHT by using her annual exemption. If she
hasn't made any previous gifts, the maximum she can make in this tax year is:
Select one:
a. £6,000.
b. £3,250.
c. £250.
d. £3,000.
23. Ken died recently leaving an estate of £900,000 owned solely in his name, a civil partner and two
grown-up children from a previous marriage. How would his estate be distributed if he died intestate?
Select one:
a. His partner would receive £575,000 and his children would receive £162,500 each.
b. His partner would receive £600,000 and his children would receive £150,000 each.
c. His partner and the two children would receive a third of his estate each.
d. His partner would receive the full £900,000.
email: nailinaben@gmail.com

Plik z chomika:

Inne pliki z tego folderu:

Inne foldery tego chomika:

Zgłoś jeśli naruszono regulamin