The CII Financial Assess training package tests your knowledge of key financial topics
Question 1
What is the maximum exit penalty for transfer from a defined contribution pension for those taking advantage of pension freedoms?
A £100
B 1% of the fund value
C 2% of the fund value
D 5% of the fund value
Question 2
Which of these types of mortgage protection policy usually has the simplest form of underwriting?
A. Accident, sickness and unemployment policies
B. Critical illness policies
C. Decreasing term insurance policies
D. Long-term income protection policies
Question 3
Who is entitled by law to the national living wage?
A. All workers
B. Apprentices
C. No one – it is a voluntary arrangement
D. Workers aged over 23
Question 4
Which term describes people who are locked into their current mortgage, and would fail the affordability test if they tried to switch to a new mortgage provider?
A. Mortgage prisoners
B. Mortgage pensioners
C. Mortgage defaulters
D. Mortgage disenfranchised
Question 5
What are the new pensions dashboards designed to do?
A. Provide a quick and easy summary of an individual’s State pension entitlements
B. Provide a valuation of an individual’s main pension plan
C. Provide guidance to individuals about their pension choices
D. Show all of an individual’s pension provision in one place
Question 6
What is the main feature of a mortgage (decreasing term) insurance policy?
A. In a period of favourable investment conditions, it can pay off a mortgage loan early if surrendered
B. It is designed to be used with an interest only mortgage arrangement
C. It will normally acquire a surrender value over time
D.The initial sum insured usually decreases on a pre-set basis each year
Question 7
Which of these is another name for non-affirmative cyber risk?
A.Sub-cyber
B.Silent cyber
C.Secretive cyber
D.Dark cyber
Question 8
Which of these is the main benefit of cash flow modelling?
A. It brings more certainty over the future rate of inflation
B. It creates a future tax plan for the client
C. It identifies the likelihood of achieving future financial goals
D. It makes the client aware of actual future expenses
Question 9
Who sets the inflation target for the UK Monetary Policy Committee?
A.The Chancellor of the Exchequer
B.The Financial Secretary to the Treasury
C.The First Lord of the Treasury
D. The Governor of the Bank of England
Question 10
Which of these does not form part of the new Consumer Duty?
A. A consumer principle
B. Set of cross-cutting rules
C. Four outcomes setting expectation on cultures and behaviours
D. A consumer outcome based on treating customers fairly
Answers
1B The limit applies for both contract-based and trust-based arrangements.
2A ASU (and PPI) policies usually have the simplest structure and underwriting and that is reflected in their having the shortest application forms.
3D On 1 April 2021, the National Living Wage was extended to 23- and 24-year-olds.
4A Mortgage prisoners are effectively locked into a mortgage, even though it no longer offers them a good deal.
5D Show all of an individual’s pension provision in one place.
6D The initial sum insured usually decreases on a fixed scale, reaching zero at the end of the policy term.
7B This type of cyber risk (i.e. insurance policies that do not explicitly include or exclude coverage for cyber risk) is sometimes referred to as the ‘silent’ cyber risk.
8C The principal reason advisers and clients go through cash flow modelling is to identify whether the client will have enough cash to fulfil their future ambitions.
9A The Chancellor of the Exchequer.
10D The Consumer Duty comprises a new consumer principle, a set of cross-cutting rules and four outcomes that set clear expectations for culture and behaviours.
