AD Banker Comprehensive Exam Questions and Answers 2024
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Course
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...
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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