Preview Questions Insurance Advisor | Role Specific Skill

Question 1: In recommending a portfolio of life and annuity products for retirement income planning, which approach ensures the client comprehends how each product's guaranteed elements, optional riders, and fee structures fit into a cohesive income strategy?

Which action should you take?

Choose only one option

Rely solely on carrier brochures and marketing material

Combine random products without explaining their interplay

Suggest multiple products but never clarify how they integrate into a retirement plan

Present a holistic retirement income framework, show how life policies provide legacy protection, annuities supply guaranteed income floors, and detail how riders support longevity hedging

Question 2: What is the main challenge when selling insurance policies to high-net-worth individuals (HNWI)?

Which action should you take?

Choose only one option

Convincing them that insurance is necessary for them

Tailoring the policy to meet unique financial goals

Offering lower-cost policies

Overcoming their skepticism about insurance companies

Question 3: When assessing the impact of inflation on a client's future financial needs, what approach should an advisor take?

Which action should you take?

Choose only one option

Use projected inflation rates and adjust the financial plan accordingly

Ignore inflation as it has little effect on long-term goals

Focus solely on the client's current income level

Estimate the client's future job growth based on industry trends

Question 4: What is the main function of a "life settlement" in the context of insurance sales?

Which action should you take?

Choose only one option

To convert term life insurance into permanent coverage

To allow policyholders to sell their life insurance policies for a lump sum

To adjust the premium payments of a life insurance policy

To transfer a life insurance policy to a beneficiary upon death

Question 5: In quantifying systemic financial risk that could impact insurance product guarantees (e.g., variable annuities), which analytic approach helps model the interplay of market downturns, interest rate volatility, and policyholder behavior?

Which action should you take?

Choose only one option

Multi-scenario stochastic modeling of market factors, interest rates, and dynamic policyholder lapse/surrender behavior with embedded optionality

Using a single deterministic scenario of market returns

Assuming policyholder behavior does not change under stress

Ignoring policyholder behavior changes and focusing solely on average market returns

Question 6: Which document is mandatory for the insurance advisor to collect from a client when initiating the sale of a life insurance policy?

Which action should you take?

Choose only one option

Income Tax Returns

Policy Proposal Form

Proof of residence

KYC Form