Preview Questions Insurance Advisor | Role Specific Skill

Question 1: Which of the following is considered a serious breach of insurance regulatory compliance?

Which action should you take?

Choose only one option

Offering multiple policy options to the client

Providing clear explanations of terms to clients

Failing to disclose commissions and incentives

Disclosing policy terms and charges before policy purchase

Question 2: What is the primary focus when identifying potential clients in the insurance industry?

Which action should you take?

Choose only one option

The client's current insurance provider and coverage options

The client's social media presence and connections

Understanding the client's financial goals, needs, and risk tolerance

The client's ability to pay the highest premium

Question 3: When recommending key-person life insurance coverage to a mid-sized financial firm, which advanced consultative sales approach ensures the coverage adapts as the firm's executive compensation structures and succession plans evolve?

Which action should you take?

Choose only one option

Proposing a policy with flexible premium and face amount options, coupled with periodic policy reviews aligned with executive pay changes and succession triggers

Selling only what the company initially requests and not revisiting the policy afterward

Locking in a level death benefit and never reviewing as the company grows

Suggesting only a minimal death benefit to reduce initial costs

Question 4: When assessing the financial risk of a business for commercial insurance, which factor is typically given the highest weight in the underwriting process?

Which action should you take?

Choose only one option

Size of the business and number of employees

Age of the business owner

Business location and proximity to natural disaster zones

Industry type and financial stability of the business

Question 5: In a scenario where a new product line (e.g., cyber insurance) is introduced, how can an advisor educate long-standing clients who are unfamiliar with these emerging risks, maintaining credibility and trust?

Which action should you take?

Choose only one option

Just adding the new product to their portfolio without explanation

Providing a 50-page technical brochure without summary

Using fear tactics about new cyber threats without educational substance

Hosting an informative webinar or interactive session explaining emerging risks, real-case scenarios, and coverage structures, answering questions transparently

Question 6: How can an advisor effectively manage a situation where a client is unhappy with their insurance policy?

Which action should you take?

Choose only one option

By offering a full refund on the policy immediately

By ignoring the issue and focusing on selling new products

By understanding the reasons for dissatisfaction and proposing alternative solutions

By offering a discount and apologizing for the situation