Every month Professional Paraplanner teams up with Brand Financial Training to provide a series of questions from across the CII syllabus to test your knowledge .
Whether you are preparing for your exams, or simply want to keep your knowledge up-to-date, Professional Paraplanner’s Development Zone can help.
The following questions relate to examinable Tax year 24/25, examinable by the CII until 31 August 2025.
You will find the answers separately under the Development Zone tab on the Professional Paraplanner website.
We hope you find our Q&A useful in achieving your qualifications.
Questions
1. Which of the following products comes under the Insurance: Conduct of Business product category of pure protection?
i) Term assurance
ii) Buildings and contents insurance
iii) Critical Illness cover
iv) Payment protection insurance
A. i and ii only.
B. i only.
C. i and iii only.
D. i and iv only.
2. Steve’s financial adviser has warned him that works of art are an alternative form of investment often with unpredictable returns. Why might Steve still consider them as part of his portfolio? (Tick all that apply.)
A. To promote diversification to his overall portfolio.
B. To consistently outperform the rate of inflation.
C. There is a fixed supply unlike other forms of investment.
D. To provide pleasure as well as the potential for return.
3. Phil and Marnie are a married couple with an Inheritance Tax (IHT) liability. They are taking out a joint life second death life policy and writing it under a discretionary trust. Which of the following should they be aware of? (Tick all that apply.)
A. If premiums are classed as transfers of value, the proceeds will not be free of IHT.
B. Inheritance Tax works on the ‘loss to the estate’ principle.
C. Discretionary trusts can suffer exit charges and periodic charges.
D. Premiums will be classed as transfers of value but can usually be claimed as exempt under the ‘normal expenditure’ exemption.
4. Why might an employer decide to provide death in service benefits through a separate insured scheme as opposed to through a defined benefit scheme?
A. To maintain death in service benefits without draining the fund.
B. To treat the death in service benefits as an allowable expense.
C. If the employees were all below 45.
D. As the defined benefit scheme is fairly large.
5. For which type of protection policy could future risk be a factor?
A. All contracts for longer than 10 years.
B. Contracts with reviewable premiums.
C. Contracts with add on benefits.
D. All contracts where the insured is over age 40 at the outset.
6. Callum gifted £100,000 into a trust for the benefit of his grandchildren. Under Section 5 of the Trustee Act 2000, the statutory duty the trustees must abide by is to
A. obtain advice.
B. keep accounts.
C. invest wisely.
D. keep tax records.
7. Order driven markets are particularly dependent on
A. broker skill and expertise.
B. regulated dealing.
C. liquidity in the market.
D. sufficient market makers.
8. What benefit might a member of a defined benefit pension scheme who requires long term care before reaching retirement age under the scheme be able to access?
A. Ill health early retirement benefits.
B. All of their benefits paid as an immediate lump sum.
C. Waiver of Premium benefit.
D. Critical Illness cover.
9. Olivia has a mortgage which has been set up, so she does NOT need to make any repayments. When the property is eventually sold, the loan will be repaid, together with a payment based on the percentage increase in the property value. What type of plan does Olivia have?
A. Equity Share Mortgage.
B. Home Reversion Plan.
C. Shared Appreciation Mortgage.
D. Home Income Plan.
10. Charlie is borrowing funds from a high street bank. When entering into this transaction, the lender is
A. known as the legal charge and Charlie is known as the equitable charge.
B. referred to as the mortgagee and Charlie is referred to as the mortgagor.
C. known as the principal and Charlie is known as the agent.
D. known as the agent and Charlie is known as the principal.
“Need help with your CII exams? For resources including mock exam papers and e-mocks, calculation workbooks, revision notes, audio masterclasses and video tutorials do visit Brand Financial Training and don’t forget to download your free taster versions!”
