Preview Questions Insurance Advisor | Role Specific Skill

Question 1: Which of the following types of insurance policies is most suitable for a client seeking to build long-term savings and investments alongside life coverage?

Which action should you take?

Choose only one option

Term life insurance with investment options

Whole life insurance policies

Unit-linked insurance plans (ULIPs)

Endowment policies

Question 2: How can an insurance advisor stay compliant with regulations regarding policy renewals?

Which action should you take?

Choose only one option

By renewing policies without explaining the updated terms

By providing only the lowest-priced policy options for renewal

By informing clients in advance of renewal terms and obtaining written consent for policy continuation

By automatically renewing all policies without client confirmation

Question 3: In an annuity, what is the primary function of the accumulation phase?

Which action should you take?

Choose only one option

To accumulate funds for future payouts

To allow the annuity to convert to a whole life policy

To ensure pension benefits are tax-free

To provide immediate lifetime income

Question 4: Which of the following best describes the concept of "underinsurance" in the context of home and auto insurance policies?

Which action should you take?

Choose only one option

Choosing an insurance policy with an inadequate deductible

Insuring a property for less than its actual value, leading to inadequate compensation in the event of a claim

Purchasing policies with unnecessary coverage that leads to excessive premium payments

Not including liability coverage in auto insurance policies

Question 5: When selling health insurance to a client, what is the key difference between an HMO (Health Maintenance Organization) and a PPO (Preferred Provider Organization) plan?

Which action should you take?

Choose only one option

PPO plans are only available to individuals, while HMO plans are employer-based

HMO plans are only available for emergency care, while PPO plans cover routine visits

HMO plans require referrals from a primary care physician, while PPO plans do not

HMO plans have higher premiums but offer more coverage

Question 6: What is the role of KYC (Know Your Customer) in insurance sales?

Which action should you take?

Choose only one option

To determine the investment preferences of the client

To calculate the client's risk profile and premium rates

To assess the financial stability of the insurer

To verify the identity of clients and ensure compliance with anti-money laundering regulations