Preview Questions Insurance Advisor | Role Specific Skill

Question 1: How does the "loss ratio" influence an insurer's decision in risk assessment and pricing of policies?

Which action should you take?

Choose only one option

A higher loss ratio indicates that an insurer is paying out a larger proportion of premiums in claims, affecting pricing and underwriting decisions

It is only relevant for health insurance and not for life insurance policies

It has no impact on pricing decisions but helps with marketing

It determines the number of claims a company can handle without going bankrupt

Question 2: 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

Question 3: What is the most effective way to ensure long-term client satisfaction in the insurance industry?

Which action should you take?

Choose only one option

Focus on completing the sale and moving on to the next client

Build trust by consistently offering relevant advice, updates, and personalized solutions

Minimize contact to avoid unnecessary communication

Always prioritize selling the highest-commission products

Question 4: How should an insurance advisor ensure compliance with AML (Anti-Money Laundering) regulations during client onboarding?

Which action should you take?

Choose only one option

Avoid documenting client information to prevent errors

Focus only on selling high-premium policies

Recommend only government bonds to clients

Verify the client's source of funds and ensure no suspicious activity in their financial history

Question 5: For clients evaluating split-dollar life insurance arrangements, which advanced sales tactic clarifies the long-term ramifications of changing tax laws, shifting interest rates, and potential policy underperformance?

Which action should you take?

Choose only one option

Providing only a single illustration with today's interest rates

Stating the current tax advantages as permanent and unchanging

Downplaying potential changes and focusing solely on current tax benefits

Offering multiple scenario projections, stress-testing the arrangement under different tax regimes, interest conditions, and investment outcomes in the policy

Question 6: In which scenario would an insurance advisor need to adhere to AML regulations during an insurance policy sale?

Which action should you take?

Choose only one option

When a policyholder makes a large cash transaction or deposits a significant sum

When the client has an unusual occupation but not significant financial activity

When the client shows interest in policies unrelated to their financial status

When the client requests policy changes unrelated to finances