Preview Questions Insurance Advisor | Role Specific Skill

Question 1: What is the primary risk associated with underwriting automobile insurance for young drivers?

Which action should you take?

Choose only one option

The impact of environmental factors on driving habits

High likelihood of accidents due to inexperience and risky behavior

The lack of available data on the driver's vehicle

The cost of repairs for new vehicles

Question 2: In health insurance, what does the term "pre-existing condition" imply?

Which action should you take?

Choose only one option

Condition not covered by any insurance

Condition treated with surgery

Condition diagnosed after policy issuance

Condition existing before policy issuance

Question 3: What is the key difference between a term life insurance policy and a whole life insurance policy?

Which action should you take?

Choose only one option

Term life provides coverage for a specific period, while whole life offers lifelong coverage and a cash value

Whole life policies only cover the insured for 20 years

Whole life policies have lower premiums than term life policies

Term life policies accumulate cash value over time, while whole life policies do not

Question 4: In evaluating the risk profile of a large commercial client's property portfolio for insurance coverage, which advanced technique best quantifies aggregate loss potential from correlated risks (e.g., natural catastrophes) across multiple geographic locations?

Which action should you take?

Choose only one option

Relying solely on the client's reported values and no third-party models

Applying historical average loss factors for each property separately

Implementing a stochastic catastrophe model (CAT model) that simulates correlated events and aggregates losses across the entire portfolio

Using simple sum of individual location probable maximum loss (PML) values

Question 5: How does a flexible premium life insurance policy differ from a whole life policy?

Which action should you take?

Choose only one option

It allows the policyholder to change the death benefit or premium amounts over time

It only covers accidental death

It only provides coverage for a limited time

It has no cash value component

Question 6: When building a relationship with a corporate client, what is the best strategy to ensure long-term engagement?

Which action should you take?

Choose only one option

Focusing solely on selling policies with the highest commissions

Providing tailored insurance solutions based on the company's evolving needs and goals

Ignoring client feedback after the initial sale

Offering the same product to all clients regardless of their unique needs