Preview Questions Insurance Advisor | Role Specific Skill

Question 1: Which of the following actions would be considered a violation of the Fair Treatment of Customers regulation?

Which action should you take?

Choose only one option

Offering personalized advice based on client needs

Providing a client with clear and transparent policy terms

Educating clients on the policy's benefits

Discriminating based on gender or marital status

Question 2: When conducting a customer needs analysis for a business owner, what is an essential consideration for the business's succession planning?

Which action should you take?

Choose only one option

The impact of disability or death on business operations

The number of employees and their health insurance needs

The value of the business assets at the time of analysis

The client's personal income level and existing insurance

Question 3: When recommending a layered life insurance strategy (combining term and permanent coverage) for a high-net-worth client seeking both flexibility and estate liquidity, which approach ensures a balanced solution that adapts to changing wealth transfer needs over decades?

Which action should you take?

Choose only one option

Only suggest a large whole life policy and ignore term riders

Focus on short-term term coverage without addressing long-term estate planning

Recommend a single universal life policy without layering

Combine a base permanent policy for guaranteed death benefit and layered term riders that can be adjusted or dropped as wealth changes, re-evaluated periodically

Question 4: Which of the following regulations is essential for maintaining ethical sales practices in insurance?

Which action should you take?

Choose only one option

Avoiding full disclosure about policy exclusions to make a sale

Focusing on the highest-selling products to maximize commissions

Offering discounts as a way to circumvent premium regulations

Ensuring that the product sold meets client needs and complies with policy conditions

Question 5: What is the impact of inflation when conducting a customer needs analysis for life insurance?

Which action should you take?

Choose only one option

Inflation has no effect on life insurance needs

Inflation causes an increase in premium rates

Inflation reduces the amount of coverage needed

Inflation increases the required coverage to maintain purchasing power

Question 6: For a client exploring whole life policies with dividend options (e.g., paid-up additions, cash dividends), which recommendation technique prevents misunderstandings about non-guaranteed dividends and their impact on long-term policy performance?

Which action should you take?

Choose only one option

Emphasize current dividend scale as permanent truth

Illustrate multiple dividend scale scenarios, explain how changes in interest rates or carrier experience affect dividends, and detail how choosing different dividend options alters policy growth

Show only a projection assuming dividend scales remain constant forever

Present dividends as guaranteed and ignore carrier's dividend history