A.D. Banker Comprehensive Exam UPDATED ACTUAL
Questions and CORRECT Answers
If an insurer makes a payment for a claim but the insured 60
is dissatisfied with it, he/she must wait days after
proof of loss before he/she might take any legal action.
After the blackout period has ended, the widow or PIA of the deceased spouse
widower may receive a Social Security income benefit
based on the _____ _.
When must the Outline of Coverage and Guide be Both must be provided at the time of application
provided?
Which is not a qualifying event for the continuation of Termination of the employee for theft
dependent coverage under the Consolidated Omnibus
Budget Reconciliation Act?
Only the ______ can surrender an annuity. Owner
If an individual is age_____ or over and continues to work, 65
Medicare is usually the secondary insurer to any
employer group health plan the individual participates in.
All employer-paid premiums for amounts above $_________ $50,000
of group life insurance are reported as taxable income to
the employee.
Under the Entire Contract provision, all of the following Statements made to the applicant by the producer during the application process
may be part of the agreement between the insured and
the insurer, except:
A firm with 50 employees replaces its existing group Required to continue paying them under the No Loss-No Gain law
health plan. With regard to ongoing existing claims, the
replacing insurer will be:
What is required to add a nonfamily member to a life Insurable interest
insurance policy under a term rider?
Which of the following statements about a Modified If a contract is deemed a MEC, any funds distributed are subject to a first-in/first-
Endowment Contract (MEC) is FALSE? out (FIFO) tax treatment
The Legal Actions provision preserves the insured's right 60
to bring suit against his/her own insurer, but the insured
must wait at least _ days after filing a proof of loss
before pursuing this action.
, Dental plans are normally written with a stated annual Benefit dollars that will be paid
maximum on the number of:
Allen purchases an estate builder ( jumping juvenile) Donald must change the beneficiaries immediately
policy for his 5-year old son, Donald. Suppose that when
Donald reaches age 21 his father presents him with the
policy as a gift. Which of the following statements is NOT
correct?
Which of the following is NOT covered by inflation The right to periodically decrease premiums
protection?
If an applicant is a minor, who signs the application? Their guardian
An applicant completes the application and submits it to When the insurer issues a policy
the insurer along with a premium check. When is the
applicant's offer considered accepted?
_ ______ do not meet requirements of federal law to be Nonqualified retirement plans
eligible for favorable tax treatment.
How is a life settlement transaction similar to a viatical A third party buys a life insurance policy for less than its face amount
settlement transaction?
Generally, regulatory jurisdiction over a group insurance The state in which the group contract was delivered to the policyowner
plan belongs to the insurance commissioner of:
Under ERISA qualified plans must meet all of the May discriminate in favor of highly compensated employees
following requirements, except:
What is the primary source of underwriting information The application
for an individual health insurance policy?
Wagering on a horse race or at the casino tables is Speculative
known as what type of risk?
Victor, age 59, calculated last year's gross income to be Zero
$100,000. When reviewing the cost of his various personal
insurance policies, he found that his disability income
policy annual premium was $3,500, his long-term care
insurance annual premium was $4,000, and the total
annual cost of his individual Medical insurance premiums
and out-of-pocket medical expenses came to $5,500.
Based on this information, he could deduct _____ from his
taxable income for that year.
To act as an agent for an insurer, the producer must be Appointed
_ ___ by the insurer:
Questions and CORRECT Answers
If an insurer makes a payment for a claim but the insured 60
is dissatisfied with it, he/she must wait days after
proof of loss before he/she might take any legal action.
After the blackout period has ended, the widow or PIA of the deceased spouse
widower may receive a Social Security income benefit
based on the _____ _.
When must the Outline of Coverage and Guide be Both must be provided at the time of application
provided?
Which is not a qualifying event for the continuation of Termination of the employee for theft
dependent coverage under the Consolidated Omnibus
Budget Reconciliation Act?
Only the ______ can surrender an annuity. Owner
If an individual is age_____ or over and continues to work, 65
Medicare is usually the secondary insurer to any
employer group health plan the individual participates in.
All employer-paid premiums for amounts above $_________ $50,000
of group life insurance are reported as taxable income to
the employee.
Under the Entire Contract provision, all of the following Statements made to the applicant by the producer during the application process
may be part of the agreement between the insured and
the insurer, except:
A firm with 50 employees replaces its existing group Required to continue paying them under the No Loss-No Gain law
health plan. With regard to ongoing existing claims, the
replacing insurer will be:
What is required to add a nonfamily member to a life Insurable interest
insurance policy under a term rider?
Which of the following statements about a Modified If a contract is deemed a MEC, any funds distributed are subject to a first-in/first-
Endowment Contract (MEC) is FALSE? out (FIFO) tax treatment
The Legal Actions provision preserves the insured's right 60
to bring suit against his/her own insurer, but the insured
must wait at least _ days after filing a proof of loss
before pursuing this action.
, Dental plans are normally written with a stated annual Benefit dollars that will be paid
maximum on the number of:
Allen purchases an estate builder ( jumping juvenile) Donald must change the beneficiaries immediately
policy for his 5-year old son, Donald. Suppose that when
Donald reaches age 21 his father presents him with the
policy as a gift. Which of the following statements is NOT
correct?
Which of the following is NOT covered by inflation The right to periodically decrease premiums
protection?
If an applicant is a minor, who signs the application? Their guardian
An applicant completes the application and submits it to When the insurer issues a policy
the insurer along with a premium check. When is the
applicant's offer considered accepted?
_ ______ do not meet requirements of federal law to be Nonqualified retirement plans
eligible for favorable tax treatment.
How is a life settlement transaction similar to a viatical A third party buys a life insurance policy for less than its face amount
settlement transaction?
Generally, regulatory jurisdiction over a group insurance The state in which the group contract was delivered to the policyowner
plan belongs to the insurance commissioner of:
Under ERISA qualified plans must meet all of the May discriminate in favor of highly compensated employees
following requirements, except:
What is the primary source of underwriting information The application
for an individual health insurance policy?
Wagering on a horse race or at the casino tables is Speculative
known as what type of risk?
Victor, age 59, calculated last year's gross income to be Zero
$100,000. When reviewing the cost of his various personal
insurance policies, he found that his disability income
policy annual premium was $3,500, his long-term care
insurance annual premium was $4,000, and the total
annual cost of his individual Medical insurance premiums
and out-of-pocket medical expenses came to $5,500.
Based on this information, he could deduct _____ from his
taxable income for that year.
To act as an agent for an insurer, the producer must be Appointed
_ ___ by the insurer:
