Exam (elaborations)

AD Banker Comprehensive Exam Questions and Answers 2024

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AD Banker

Institution
AD Banker

A producer who is acting as an agent is representing: A The insured, the applicant and the beneficiary B Always the insured C The insured and the insurer D Always the insurer -Answers- D In order to be valid, a contract must be between individuals considered legally able to enter...

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Uploaded on November 3, 2024
Number of pages 92
Written in 2024/2025
Type Exam (elaborations)
Contains Questions & answers

ad banker comprehensive
ad banker
ad banker comprehensive exam questions and answers
ad banker comprehensive exam

Institution AD Banker
Course AD Banker

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AD Banker Comprehensive Exam
Questions and Answers 2024
A producer who is acting as an agent is representing:

A
The insured, the applicant and the beneficiary

B
Always the insured

C
The insured and the insurer

D
Always the insurer -Answers- D

In order to be valid, a contract must be between individuals considered legally able to
enter into an agreement. This principle is known as:

A
Restricted persons

B
Considerations

C
Competent parties

D
Agreement -Answers- C

A company that is licensed to sell insurance in a particular state is:

A
A domiciled company

B
A nonadmitted company

C
An authorized company

D

,A foreign companyA company that is licensed to sell insurance in a particular state is: -
Answers- C

An insurance contract is an aleatory contract. This means:

A
Equal value is not given by both parties to the contract

B
The contract must be for a legal purpose

C
Parties to the contract must have the legal capacity to enter into the contract

D
Statements made in the application are guaranteed to be true in all respects -Answers-
A

Which of the following would be considered a speculative risk?

A
The possibility your car is totaled in an auto accident

B
The possibility the painting you bought might be a long-lost masterpiece

C
The possibility you will die on the job at a young age

D
The possibility you will become disabled -Answers- B

Which is the proper term for a company owned by its policyowners?

A
A charitable insurance company

B
A reciprocal insurance company

C
A domestic insurance company

D
A mutual insurance company -Answers- D

,All of the following are elements of a contract, except:

A
Offer and acceptance

B
Legal purpose

C
Authority

D
Consideration -Answers- C

Each of the following would be an element in the definition of fraud, except:

A
A false statement on the application that is material to the acceptance of the risk

B
Withholding of known material facts

C
Intentional material misrepresentation with the intent of causing injury to another party

D
An individual warrants a fact stated on the application -Answers- D

Legally speaking, a producer has a __________ duty when handling life insurance
premiums and applications for an insurer.

A
Fiduciary

B
Undisputed

C
Negotiated

D
Professional -Answers- A

_________ refers to the jurisdiction where an insurer was formed or incorporated.

A

, Authorized

B
Approved

C
Domicile

D
Admitted -Answers- C

To address adverse selection what can an insurer legally do?

A
Limit the amount of coverage issued

B
Raise the premium higher than most people can afford to pay

C
Establish and enforce sound underwriting practices

D
Not offer policies to those over age 55 -Answers- C

The relationship of a person who acts on behalf of a company whereby the person's
actions can bind the company is known as:

A
Surplus lines or excess insurance

B
The law of large numbers

C
The law of agency

D
Brokerage business -Answers- C

_____________ consists of groups of underwriters called syndicates, each of which
specializes in insuring a particular type of risk.

A
Lloyds of London

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