Preview Questions Insurance Advisor | Role Specific Skill

Question 1: How is the sum assured typically determined in a term insurance policy?

Which action should you take?

Choose only one option

Based on asset value

Based on annual income

Based on insurer's discretion

Based on premium paid

Question 2: How do insurers use loss reserves in the context of risk assessment and pricing for life insurance products?

Which action should you take?

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To reduce underwriting requirements for certain policyholders

To offset operational costs for claims processing

To increase premiums for high-risk clients

To set aside funds to cover anticipated claims in future policy years

Question 3: In which scenario would an insurance advisor need to adhere to AML regulations during an insurance policy sale?

Which action should you take?

Choose only one option

When a policyholder makes a large cash transaction or deposits a significant sum

When the client has an unusual occupation but not significant financial activity

When the client shows interest in policies unrelated to their financial status

When the client requests policy changes unrelated to finances

Question 4: What is the core principle behind indexed universal life insurance (IUL)?

Which action should you take?

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The policyholder receives fixed interest rates guaranteed over the term

The death benefit is linked to market indices, providing potential for higher returns

The cash value is subject to market risk only

The policy offers a pre-determined fixed premium for life

Question 5: What is the most important factor in maintaining a long-term client relationship after the initial sale of an insurance product?

Which action should you take?

Choose only one option

Ongoing communication and regular policy reviews

Ensuring immediate cross-selling opportunities

Offering discounts on additional policies

Pushing for annual renewals without any follow-up

Question 6: In selling auto insurance, which of the following endorsements would typically offer the most comprehensive coverage for a client?

Which action should you take?

Choose only one option

Personal Injury Protection (PIP)

Collision Coverage

Uninsured/Underinsured Motorist Coverage

Comprehensive Coverage