Unit 5 Topic 16&19 Flashcards
Andy is considering taking out life assurance and is reviewing a
comparison site on the internet. Which of the following is true? The
comparison site is likely to:
A be able to deal with complex circumstances
B enable him to obtain generic information only
C exclude some product providers
D offer basic regulated advice
C exclude some product providers
A young single person with no dependents is least likely to have a financial protection need for: A critical illness cover B income protection C life assurance D unemployment cover
C life assurance
Where a relationship breaks down and a joint policy is held for a mortgage in
joint names and will continue for the foreseeable future, which of the following is
false?
A if one party looks after the children, their protection needs may increase
while the other person’s decreases
B if the policy was taken out jointly when married, the policy will no longer
pay the sum assured to the other if they have since divorced.
C it may be beneficial to replace the policy with two single policies
D they have an insurable interest in each other
B if the policy was taken out jointly when married, the policy will no longer
pay the sum assured to the other if they have since divorced.
Which of the following is most likely to require a protection adviser to
establish an order of priority for a customer’s various protection needs?
A the lack of availability of products on the market
B the number of products that can be recommended at one time
C the customer’s budget
D the customer’s tax status
C the customer’s budget
Under ICOBS 7, the period during which a policyholder can cancel a home
insurance contract without penalty is:
A 14 days from the policy starting or receipt of the policy documents whichever
is later
B 14 days from the policy starting or receipt of the policy documents whichever
is sooner
C 30 days from the policy starting or receipt of the policy documents whichever
is later
D 30 days from the policy starting or receipt of the policy documents whichever
is sooner
A 14 days from the policy starting or receipt of the policy documents whichever
is later
A lender has made a mortgage offer to a borrower and the offer contains a
recommendation that life cover is take out. Which of the following is true?
A Any life cover arranged must be for a minimum of 5 years
B the lender will not usually check to see if life cover is put in place
C the lender will always arrange for the life cover underwriting to take place
D the mortgage cannot complete until life cover is in place.
B the lender will not usually check to see if life cover is put in place
Which of the following individuals are most likely to take out a financial
protection product?
A Abe, who has unprotected debts
B Bov, who is single and has a high level of assets
C Camille, who has recently repaid his mortgage
D Desi, who has recently started receiving pension income.
A Abe, who has unprotected debts
Which of the following is not a typical reason why people do not take out the financial protection that they need ? A it is an unhappy subject B people feel it won’t happen to me C the state provides assistance D the cost for some products is low
D the cost for some products is low
Following a claim under a financial protection policy, it has been discovered that
when applying for the policy, the customer made an honest and reasonable
misrepresentation. In these circumstances, the insurer must:
A pay the claim in full
B refund all the premiums paid
C refer the matter to the Financial Ombudsman Service
D void the policy
A pay the claim in full
What is the usual duration of the cooling off period on a life assurance policy? A 7 days B 14 days C 28 days D 30 days
D 30 days
Joanne is advising a customer on critical illness cover to support a new mortgage
and the customer has asked whether they should cancel their existing critical
illness policy. Which of the following is true?
A All critical illness plans cover the same medical conditions so cancelling would not
be to the customer’s disadvantage.
B An existing policy should never be cancelled
C it should be cancelled only if Joanne can demonstrate that the premium is lower
D it should not be cancelled until the customer has received confirmation that the new plan is in force
D it should not be cancelled until the customer has received confirmation that the new plan is in force
Which of the following is not a typical use of funds paid from a protection policy? A meet an inheritance tax liability B meet an income tax liability C replace earned income D repay debt
B meet an income tax liability
Which of the following is a typical reason that a single person would take
out a life cover policy that pays a lump sum of death?
A to facilitate regular gifting
B to replace income
C to pay for medical expenses
D to pay for a funeral
D to pay for a funeral
What is the usual duration of the cooling-off period for a critical insurance policy? A 7 days B 14 days C 28 days D 30 days
D 30 days
