Quiz
Chapter 8
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Questions in this quiz (14)
1 If a client wanted to make additional contributions to an occupational pension scheme, which of
the following options would give him the greatest choice of provider and a say in how the
funds are invested?- ANon-contributory occupational scheme
- BContributory occupational scheme
- CFreestanding Additional Voluntary Contributions
- DAdditional Voluntary Contributions
2Which of the following is likely to be the MOST important consideration when selecting the
most appropriate protection product for a client?- AThe level of the premium and charges
- BThe financial strength of the provider
- CThe quality of the service provided
- DInvestment choice and performance
3What type of information is contained in a Key Features Document?
- AA clear description of the financial product being recommended to the client
- BCancellation rights if a client changes their mind about investing in a product
- CAll product recommendations listed in the financial plan and the reasoning behind them
- DTaxation implications for all the products listed in the financial plan
4Where the proposer and the life assured are different people under a life policy, the policy:
- Aprovides cover on a joint life basis
- Bwas taken out on someone else's life
- Cowner holds power of attorney status
- Dwas arranged by a financial adviser acting independently
5What is the MAIN purpose of a power of attorney document?
- AIt appoints someone to distribute the assets of a deceased person
- BIt enables ownership of property to transfer from one person to another person
- CIt allows one person to conduct specific transactions on behalf of another person
- DIt entitles one trustee to override the demands of another trustee
6Which of the following would MOST likely be found in a formal written report presenting
recommendations to a client?- ADetails of family and dependants
- BThe tax implications on the client's position
- CDetails of the client's occupation, earnings and other income sources
- DA summary of the client's assets and liabilities
7Where funds are to be set aside to provide for the future financial maintenance of a disabled
child, this can normally be achieved through the establishment of a legal document called a:- Acodicil
- Btrust
- Cgrant of representation
- Dpower of attorney
8What lump sum must someone aged 35 invest today given an assumed annual growth rate of
7% if they are to accrue a lump sum of £450,000 at the age of 65?- A£14,018
- B£59,115
- C£64,285
- D£420,560
9Who controls the assets of a trust and looks after the property for the person or persons who
will ultimately benefit from it?- ABenefactors
- BBeneficiaries
- CCreditors
- DTrustees
10John is worried that he will be unable to work due to a heart attack. Which of the following
would enable him to claim if he had a severe heart attack?- ACritical Illness cover
- BPermanent Health Insurance
- CMortgage Protection
- DAccident, Sickness & Unemployment cover
11What are two advantages of investing in an offshore trust?
- ALess complex product and only local taxes apply
- BPrivacy and flexibility for the client
- CSecurity and a less complex product
- DPrivacy and only local taxes apply
12When giving financial advice on the subject of protection, it is important to quantify a client's
assets to:- Adetermine whether the costs can be offset against tax liabilitie
- Bestablish what shortfall may arise if an insured event occu
- Censure that the underwriters have sufficient information
- Didentify the client's appropriate risk profile
13A client in the UK was granted lasting power of attorney in relation to his elderly mother. Why
did this facility fail to provide him with control over her financial affairs after she was deemed
to have lost her mental capacity?- AShe was over retirement age when her poor state of mind was first diagnosed
- BHe was her adopted son
- CShe only granted him health and welfare powers
- DHe was operating a power of attorney for his father at the same time
14John is taking out a life insurance policy on Mary, his wife, and one for himself. Which of the
following statements is TRUE once the policy is in force?- AJohn is the life assured
- BMary is the life assured
- CMary is the proposer
- DThey are both the life assured
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- User has deleted their subject information Quiz on Chapter 8, created by Deleted user on 17/09/2021.
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- Created on 17 Sep 2021 · updated on 17 Sep 2021
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