CeMAP Exam

Question 1

A client has a £200,000 capital and interest repayment mortgage over a 25-year term. They want life insurance to ensure the mortgage is paid off upon their death. Which type of policy would be the most suitable and cost-effective recommendation to meet this specific need?

A Whole of Life policy A Level Term Assurance policy A Decreasing Term Assurance policy An Endowment policy

Correct Answer:

A Decreasing Term Assurance policy

Question 2

An adviser is discussing Income Protection (IP) with a self-employed client. The client has significant savings that could cover their expenses for six months. How would this information most likely influence the adviser's recommendation?

It would mean Income Protection is not required. It would suggest a higher monthly benefit is needed. It would allow for a longer deferred period, reducing the premium. It would require the policy to be written in trust immediately.

Correct Answer:

It would allow for a longer deferred period, reducing the premium.

Question 3

Which of the following statements BEST describes the key difference between Critical Illness Cover (CIC) and Income Protection (IP)?

CIC pays a monthly income, while IP pays a one-off lump sum. CIC covers any illness that stops you from working, while IP only covers specified conditions. CIC is only available with a mortgage, whereas IP is a standalone product. CIC pays a tax-free lump sum on diagnosis of a specified condition, while IP provides a regular replacement income if the policyholder is unable to work.

Correct Answer:

CIC pays a tax-free lump sum on diagnosis of a specified condition, while IP provides a regular replacement income if the policyholder is unable to work.

Question 4

Under the FCA's Consumer Duty, an adviser must 'act to deliver good customer outcomes'. In the context of mortgage protection, what does this primarily require the adviser to do?

Ensure the client buys at least one protection policy with their mortgage. Recommend the cheapest policy available regardless of the features. Discuss and assess the financial risks of death or incapacity, helping the client avoid foreseeable harm. Provide the client with a list of insurers and allow them to choose for themselves.

Correct Answer:

Discuss and assess the financial risks of death or incapacity, helping the client avoid foreseeable harm.

Question 5

A couple are taking out an interest-only mortgage. They require life assurance to repay the capital at the end of the term should one of them die. Which of the following policies would be most suitable for this purpose?

Family Income Benefit Level Term Assurance Decreasing Term Assurance Accident, Sickness and Unemployment cover

Correct Answer:

Level Term Assurance

Question 1

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About this Exam

Prepare with the CeMAP Exam practice quiz. This question bank includes 30 questions covering mortgage, property, client, lender, and adviser. Use it to review important concepts, identify knowledge gaps, and build confidence for the related exam, course, or assessment.

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CeMAP Exam

This practice set contains 30 questions from the matching question bank and focuses on mortgage, property, client, lender, and adviser. Work through each question carefully, review the provided solutions, and revisit topics that need more study before your next attempt.

This is an independent study resource intended for practice and review; it is not an official examination or an endorsement by any organization named in the title.

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