Preview Questions Insurance Advisor | Role Specific Skill

Question 1: Variable life insurance is a hybrid of life insurance and investment options. Which of the following best describes the investment component?

Which action should you take?

Choose only one option

The investments are managed by the insurer, with no option for the policyholder to choose

It is solely dependent on the policyholder's savings account balance

It guarantees a fixed return irrespective of market conditions

It allows the policyholder to choose from a variety of investment options, such as stocks or bonds

Question 2: What does the term "suitability of recommendation" imply under the regulatory guidelines for insurance advisors?

Which action should you take?

Choose only one option

Advisors must sell the policy with the highest commission

Advisors must recommend policies that best fit the client's financial goals and needs

Advisors must recommend policies that cover the most risks

Advisors must recommend the cheapest policies

Question 3: How does a guaranteed issue policy differ from a standard life insurance policy?

Which action should you take?

Choose only one option

It is a temporary policy with no death benefit

It offers higher coverage than a standard policy

It requires a full medical assessment for underwriting

It does not require a medical exam for approval

Question 4: When advising clients on disability insurance, which of the following would be the most important factor to consider when recommending a policy?

Which action should you take?

Choose only one option

The client's health history and family medical background

The availability of government disability benefits

The client's current income and occupation

The client's current savings and investments

Question 5: How should an insurance advisor demonstrate value to a client beyond just offering a policy?

Which action should you take?

Choose only one option

By focusing only on claims processing and policy servicing

By delivering advice that aligns with the client's financial goals and needs

By providing only discounts on premiums

By frequently contacting clients for sales purposes

Question 6: Which of the following is a primary requirement of the General Insurance Code of Practice (GICOP) in India?

Which action should you take?

Choose only one option

Insurance policies must be sold through agents only

Insurers must provide free annual policy reviews

Claims processing must be transparent and efficient

Insurance policies must be sold with no exclusions