Preview Questions Insurance Advisor | Role Specific Skill

Question 1: 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 2: What is the primary advantage of a rider in an insurance policy?

Which action should you take?

Choose only one option

It increases the death benefit payout

It reduces the premium for the policyholder

It allows customization of coverage

It increases the cash value

Question 3: How can an insurance advisor effectively use CRM (Customer Relationship Management) tools to improve client retention?

Which action should you take?

Choose only one option

By tracking client interactions, preferences, and renewal dates to offer personalized services

By sending mass marketing emails to all clients

By focusing solely on acquiring new clients

By automating client communication without tailoring messages

Question 4: To sell equity-indexed annuities with rider charges and early surrender penalties, which sales approach best addresses potential client concerns about liquidity, surrender schedules, and indexing methodology?

Which action should you take?

Choose only one option

Using a comprehensive client presentation detailing surrender schedules, partial withdrawal options, indexing formulas, and trade-offs between growth and liquidity

Promising no penalties or fees without written disclosure

Focusing only on potential index growth and avoiding mention of surrender charges

Providing a generic product brochure without scenario analysis

Question 5: 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 6: What is the primary risk associated with variable life insurance policies?

Which action should you take?

Choose only one option

Market fluctuations that impact the cash value and death benefit

Underwriting risks related to the applicant's health

The policyholder's inability to make premium payments

Interest rate risks affecting the guaranteed benefit