Preview Questions Insurance Advisor | Role Specific Skill

Question 1: What is a "cost of insurance" (COI) charge in permanent life insurance policies?

Which action should you take?

Choose only one option

The charge for converting a term policy to permanent coverage

The cost of maintaining the life insurance policy over time

The amount deducted from the policy's cash value to cover the insurance company's risk

The fee for underwriting and issuing a life insurance policy

Question 2: What is the most effective way to approach a client's concerns about changing their insurance provider?

Which action should you take?

Choose only one option

Suggest offering the lowest premiums without discussing needs

Focus on how their current provider is underperforming

Avoid discussing the client's concerns and push for a quick sale

Highlight how your policy can better meet their current and future needs

Question 3: When selling health insurance to a client, what is the key difference between an HMO (Health Maintenance Organization) and a PPO (Preferred Provider Organization) plan?

Which action should you take?

Choose only one option

PPO plans are only available to individuals, while HMO plans are employer-based

HMO plans are only available for emergency care, while PPO plans cover routine visits

HMO plans require referrals from a primary care physician, while PPO plans do not

HMO plans have higher premiums but offer more coverage

Question 4: 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 5: When evaluating the risk associated with a life insurance applicant, how does the applicant's medical history influence the risk assessment?

Which action should you take?

Choose only one option

A medical history that includes chronic conditions or risky behaviors may result in higher premiums or exclusions

A medical history has no impact on life insurance premiums

Chronic conditions reduce the risk of insurance claims

Only genetic factors influence life insurance premiums

Question 6: Which of the following regulations governs the sale of insurance products in India?

Which action should you take?

Choose only one option

Prevention of Money Laundering Act (PMLA)

Companies Act

Securities and Exchange Board of India (SEBI) Act

Insurance Regulatory and Development Authority (IRDA) Act