Preview Questions Insurance Advisor | Role Specific Skill

Question 1: When conducting a financial needs analysis, what is the most effective method for assessing the client's liquidity requirements?

Which action should you take?

Choose only one option

Understanding the client's emergency fund, debt obligations, and savings goals

Estimating monthly living expenses without considering assets

Reviewing the client's past tax returns and bank statements

Analyzing the client's investment portfolio and asset distribution

Question 2: What regulatory compliance standard must insurance advisors adhere to when handling sensitive client data?

Which action should you take?

Choose only one option

IRDAI guidelines for data protection

Payment Card Industry Data Security Standard (PCI DSS)

ISO 9001

General Data Protection Regulation (GDPR)

Question 3: What strategy can an insurance advisor use to deepen client relationships and increase policy renewals?

Which action should you take?

Choose only one option

Focus on selling the highest-commission products regardless of the client's needs

Regularly review and update the client's policies based on life changes and needs

Offer the same policies year after year without consideration of changes in the client's life

Limit communication to only during the policy renewal period

Question 4: When introducing complex riders or advanced policy structures to a client with moderate financial literacy, which client relation technique ensures comprehension and comfort without oversimplifying critical details?

Which action should you take?

Choose only one option

Using only technical whitepapers and actuarial tables

Providing overly simplistic analogies that distort product details

Employing layered explanations: start with fundamentals, gradually add complexity, use visuals and scenario examples, and invite questions for clarification

Relying solely on legal documents and hoping the client understands

Question 5: What is the primary advantage of using an Indexed Universal Life (IUL) insurance policy for a client?

Which action should you take?

Choose only one option

It guarantees a fixed interest rate on the cash value portion

It offers lower premiums than term life insurance

It provides permanent coverage with minimal risk exposure

It provides flexible premiums and a death benefit, along with an opportunity for cash value growth based on stock market index performance

Question 6: How does a participating life insurance policy differ from a non-participating policy?

Which action should you take?

Choose only one option

Participating policies have lower premiums

Non-participating policies are more flexible in terms of coverage

Participating policies pay out dividends, while non-participating do not

Non-participating policies have higher death benefits