Preview Questions Insurance Advisor | Role Specific Skill

Question 1: What is the primary purpose of KYC in insurance?

Which action should you take?

Choose only one option

To prevent money laundering and financing of terrorism

To reduce policy premiums for clients

To provide discounts to clients in need

To determine the client's claim eligibility

Question 2: How can an Insurance Advisor effectively identify a client's pain points during an initial consultation?

Which action should you take?

Choose only one option

By conducting a detailed needs analysis

By making assumptions based on market trends

By offering the same product to all clients

By focusing solely on selling high-value policies

Question 3: What is the most effective strategy to build rapport with a new client in the initial meeting?

Which action should you take?

Choose only one option

Discuss pricing options first

Focus primarily on your professional qualifications

Ask open-ended questions about their family and financial goals

Offer them discounts on policies right away

Question 4: When advising on an executive benefit structure combining split-dollar life insurance and SERP (Supplemental Executive Retirement Plans), which approach ensures that long-term retention goals align with cost, vesting schedules, and changing corporate objectives?

Which action should you take?

Choose only one option

Only address current executives without scenario planning for future hires

Offer a one-size-fits-all package without customization

Implement rigid terms with no future adjustments possible

Propose a tailored executive benefit package integrating split-dollar arrangements with flexible vesting, updated periodically, and stress-tested against corporate succession scenarios

Question 5: Which of the following regulations is essential for maintaining ethical sales practices in insurance?

Which action should you take?

Choose only one option

Avoiding full disclosure about policy exclusions to make a sale

Focusing on the highest-selling products to maximize commissions

Offering discounts as a way to circumvent premium regulations

Ensuring that the product sold meets client needs and complies with policy conditions

Question 6: When recommending a private placement life insurance (PPLI) arrangement to an ultra-wealthy client, which sales strategy ensures regulatory compliance and transparent disclosure of the structure's complexity and fees?

Which action should you take?

Choose only one option

Providing detailed written disclosures on policy structure, underlying investments, associated fees, and potential tax implications

Positioning PPLI as a simple tax-free solution without detailed disclosure

Focusing primarily on the policy's confidentiality benefits and withholding fee breakdowns

Encouraging the client to rely solely on external tax advisors without providing in-house explanations