CII R01 CHAPTER 8 COMPREHENSIVE EXAM
2026 SOLVED QUESTIONS GRADED A+
◉ Diminshing musharaka. Answer: each payment made towards buying
the property buys an extra slice of the firm's share. As the client's share
increases, the firm's share gets smaller and so does the rent paid for the
use of the firm's share
◉ When would you use structured loans over unstructured. Answer:
Tend to be for smaller purchases such as a sofa or car. Often fixed rate
payable over term of loan. At the higher risk end of the market as there's
often no collateral.
◉ Endowment policies. Answer: pay a lump sum on the death of the life
assured but primarily savings vehicles
◉ Unit linked whole of life policies. Answer: flexible policies that allow
clients to choose between min and max level of cover. Allocate the
policyholder's premiums to buy units in one of the funds offered by the
life office. Number of units held in the policy accumulates as does the
value (hopefully)
◉ Positive selection in ESG approaches vs negative exlclusion. Answer:
Positive selection screens in companies that meet ESG requirements
2026 SOLVED QUESTIONS GRADED A+
◉ Diminshing musharaka. Answer: each payment made towards buying
the property buys an extra slice of the firm's share. As the client's share
increases, the firm's share gets smaller and so does the rent paid for the
use of the firm's share
◉ When would you use structured loans over unstructured. Answer:
Tend to be for smaller purchases such as a sofa or car. Often fixed rate
payable over term of loan. At the higher risk end of the market as there's
often no collateral.
◉ Endowment policies. Answer: pay a lump sum on the death of the life
assured but primarily savings vehicles
◉ Unit linked whole of life policies. Answer: flexible policies that allow
clients to choose between min and max level of cover. Allocate the
policyholder's premiums to buy units in one of the funds offered by the
life office. Number of units held in the policy accumulates as does the
value (hopefully)
◉ Positive selection in ESG approaches vs negative exlclusion. Answer:
Positive selection screens in companies that meet ESG requirements
