Preview Questions Insurance Advisor | Role Specific Skill

Question 1: In a whole life insurance policy, how does the cash value accumulate over time?

Which action should you take?

Choose only one option

It accumulates through fixed yearly premiums

It accumulates based on policyholder's contributions

It accumulates based on the interest rate set by the insurance company

It accumulates based on the performance of the stock market

Question 2: What is the key factor in recommending a critical illness insurance policy to a client?

Which action should you take?

Choose only one option

Offering the cheapest policy available regardless of coverage gaps

Understanding the client's health risks and providing coverage for serious illnesses that are not covered by traditional health policies

Focusing only on the client's age without assessing other health factors

Recommending policies with high premiums and limited benefits

Question 3: How does the Insurance Act 1938 regulate the solvency margin of insurance companies?

Which action should you take?

Choose only one option

It allows insurers to set aside reserves for claims management

It determines the maximum commission an advisor can receive

It mandates that insurance companies maintain a minimum solvency margin to ensure financial stability

It provides guidelines on premium rates for all insurance policies

Question 4: When a long-standing client with a complex portfolio expresses dissatisfaction with recent policy performance, which advanced relational approach best rebuilds trust while addressing their concerns?

Which action should you take?

Choose only one option

Holding a structured, in-depth review meeting, providing transparent performance data, acknowledging challenges, and discussing actionable improvements

Offering a quick refund on certain premiums without explaining causes

Redirecting blame to market conditions without offering solutions

Sending a generic apology email without details

Question 5: Which type of insurance product is most suitable for a client looking to minimize risk while investing for retirement, with a preference for guaranteed returns?

Which action should you take?

Choose only one option

Fixed annuity products

Unit-linked insurance plans (ULIPs)

Index-linked insurance products

Variable annuity products

Question 6: Which of the following techniques best demonstrates trust-building with a new client in insurance sales?

Which action should you take?

Choose only one option

Suggesting a policy with the highest return on investment

Offering the lowest-priced policy without discussing the coverage

Recommending a policy based solely on the client's budget

Providing transparent information on policy details and options