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AD Banker Exam Personal Lines Questions And Answers With Verified Solutions Already Passed!!! Latest Updated 2024
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AD Banker Exam Personal Lines Questions And Answers With Verified Solutions Already Passed!!! Latest Updated 2024

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  • October 1, 2024
  • 37
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

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  • Personal lines
  • Personal lines

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AD Banker Exam Personal Lines
Questions And Answers With Verified
Solutions Already Passed!!! Latest
Updated 2024
Falling objects - ANSWER✔✔Damage to the exterior of the building must take
place for coverage to apply to contents inside the building.


Contract Law - ANSWER✔✔Law that pertains to the formation and enforcement
of contracts.


Acceptance - ANSWER✔✔The acceptance of an insurance contract takes place
when the insurance company agrees to issue insurance.


Mutual Insurance Company - ANSWER✔✔Owned by policyholders.
Policyholders receive non-taxable dividends as a return of unused premium when
delcared


Insurable Interest - ANSWER✔✔Possibility of economic loss.
Life and Health — Interest must exist at time of application/purchase.
Property — Interest must exist at time of loss/claim (ownership is evidence).
Casualty — Interest results from property rights, contract rights and potential legal
liability.


Principle of Indemnity - ANSWER✔✔The principle of restoring the insured to the
same financial condition as before the loss, with no intent of loss or gain.

,Law of Agency - ANSWER✔✔A relationship between two parties where one (the
producer/agent) may act on the behalf of the other (the insurer/principal) and bind
the actions or words of the principal.


Consideration - ANSWER✔✔Insured pays premium, insurer promises to pay
claims


Misrepresentation - ANSWER✔✔Making misleading representations or fraudulent
policy comparisons, description of benefits or untrue statements about the financial
conditions of any insurer


Contents Broad Form (HO-4) - ANSWER✔✔Designed to insure those who are
tenants.
HO-4 insures personal property under Coverage C against loss from the 16 named
broad form perils found in the HO-2 and HO-3 forms.


Replacement Value - ANSWER✔✔The cost to replace property with property of
like kind and quality, at current pricing, without a deduction for depreciation.


Attained Age - ANSWER✔✔Insured's age at the point in time at issuance,
renewal, or conversion


Excess Coverage - ANSWER✔✔Property coverage above the primary amount of
insurance. Excess does not pay until primary is exhausted.


Additional Coverage(s) - ANSWER✔✔Additional coverages are automatically
included in property policies without an additional premium. The type of
additional coverages depends upon the type of policy. Additional coverages are

,paid in addition to those stated in the insuring agreement and include debris
removal, collapse, and fire department service charges.


Four Elements of a Legal Contract - ANSWER✔✔1. Competent Parties - Minors,
Mentally Incompetent, Persons under the influence of drugs and alcohol do not
have legal capacity
2. Legal Purpose - Illegal activity voids contract
3. Agreement - Offer is application, acceptance is issuance of policy
4. Consideration - Insured pays premium, insurer promises to pay claims


Bankruptcy Clause - ANSWER✔✔Specifies that bankruptcy or insolvency of the
insured does not relieve the insurer of any of its duties or obligations under the
policy.


Difference in Conditions (DIC) Insurance - ANSWER✔✔DIC is a special form
used to fill in the gaps of a property policy. There is no standard policy form, no
coinsurance, no pro rata clause.


Facultative Agreements - ANSWER✔✔A reinsurance agreement allowing the
ceding company and the reinsurance company an opportunity to exchange advice
about the underwriting of each case.


Non-Admitted - ANSWER✔✔An insurer that has not sought approval (or) has not
been able to obtain approval to transact business from the insurance regulator in
this state.


Collision - ANSWER✔✔The upset of the covered vehicle or non-owned auto, or
their impact with another vehicle or object.

, Physical Hazard - ANSWER✔✔a physical condition that increases the frequency
or severity of loss. (Flammable material stored near a furnace)


Loss Valuation - ANSWER✔✔A property policy pays for losses to property based
on the valuation method contained in the policy or chosen by the insured in an
endorsement added to the policy.


Market Value - ANSWER✔✔A property policy provision that changes the
valuation method otherwise applicable (ACV or RC) to a valuation method that
allows reimbursement to the insured, according to the price a willing buyer would
pay for the property purchased from a willing seller.


Exclusive or Captive Agency System - ANSWER✔✔Agent represents solely one
company or group of companies having common ownership.
Insurer retains ownership rights to the business written by the agent.
The agent is an employee or commissioned independent contractor.
Insurer may or may not provide office and agency support services.


Endorsement - ANSWER✔✔A form changing the provisions of a policy. Attached
as a rider.


Vicarious Liability - ANSWER✔✔The imposition of liability on one person for
the actionable conduct of another, based solely on a relationship between the 2
persons. Employer for acts of its employee


National Association of Insurance Commissioners (NAIC) -
ANSWER✔✔National Association of Insurance Commissioners :
Association of all insurance commissioners

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