AD Banker Chapter 2 Exam Questions With
Correct Answers
Which |of |the |follow |is |not |a |factor |in |premium |determination?
a. |Reserves
b. |Interest
c. |Expesnes
d. |Mortality |- |CORRECT |ANSWER✔✔-a. |Reserves
Which |of |the |following |best |describes |a |Statement |of |Good |Health?
a. |It |is |a |sworn |oral |statement |made |by |the |insured |at |time |of |delivery |which |allows |for |
coverage |to |come |into |effect.
b. |It |is |what |comes |along |with |the |policy |at |the |time |of |delivery |confirming |the |underwriting |
class |the |insured |falls |into |if |the |policy |was |issued |standard |or |better
c. |It |is |the |producer's |authority |to |raise |the |rate |if |the |insured |does |not |appear |to |be |in |good |
health |at |the |time |of |policy |delivery.
d. |It |verifies |that |the |insured |has |not |suffered |a |serious |illness |or |injury |requiring |surgery |or |
hospitalization |since |the |application |date |- |CORRECT |ANSWER✔✔-d. |It |verifies |that |the |
insured |has |not |suffered |a |serious |illness |or |injury |requiring |surgery |or |hospitalization |since |
the |application |date
When |an |applicant |completes |the |insurance |application |in |its |entirety |and |provides |the |
producer |with |a |premium |check, |what |in |effect |has |taken |place?
a. |The |applicant |has |give |the |producer |the |authority |to |negotiate |the |terms |of |the |contract |
with |the |insurer |
b. |The |applicant |is |accepting |the |producer's |offer |of |coverage
c. |The |producer |is |making |an |offer |of |insurance |to |the |applicant
, d. |The |applicant |is |making |an |offer |to |the |insurer |- |CORRECT |ANSWER✔✔-d. |The |applicant |is |
making |an |offer |to |the |insurer
A |generic |brochure |developed |by |the |NAIC |to |provide |consumers |with |descriptions |of |basic |
types |of |life |insurance |as |well |as |the |comparative |costs |of |each |is |called |the |___________.
a. |Sales |Illustration
b. |Consumer |Information |Kit
c. |Buyer's |Guide
d. |Policy |Summary |- |CORRECT |ANSWER✔✔-c. |Buyer's |Guide
Which |of |the |following |personal |uses |of |life |insurance |is |specifically |designed |to |provide |
benefits |to |the |policyowner |while |the |insured |is |still |alive?
a. |Cash |accumulation
b. |Estate |conservation
c. |Estate |creation
d. |Charitable |bequests |- |CORRECT |ANSWER✔✔-a. |Cash |accumulation
Normally, |when |the |insurer |determines |that |the |insured |is |an |acceptable |risk, |the |insurer |will |
send |the |policy |to |the |____________. |
a. |Producer
b. |Beneficiary
c. |Policyowner
d. |Insured |- |CORRECT |ANSWER✔✔-a |.Producer
What |should |the |producer |do, |if |the |insured |is |in |the |hospital |with |a |heart |condition |pending |
surgery |on |the |day |the |newly |issued |policy |was |to |be |delivered |and |the |initial |premium |
collected? |
Correct Answers
Which |of |the |follow |is |not |a |factor |in |premium |determination?
a. |Reserves
b. |Interest
c. |Expesnes
d. |Mortality |- |CORRECT |ANSWER✔✔-a. |Reserves
Which |of |the |following |best |describes |a |Statement |of |Good |Health?
a. |It |is |a |sworn |oral |statement |made |by |the |insured |at |time |of |delivery |which |allows |for |
coverage |to |come |into |effect.
b. |It |is |what |comes |along |with |the |policy |at |the |time |of |delivery |confirming |the |underwriting |
class |the |insured |falls |into |if |the |policy |was |issued |standard |or |better
c. |It |is |the |producer's |authority |to |raise |the |rate |if |the |insured |does |not |appear |to |be |in |good |
health |at |the |time |of |policy |delivery.
d. |It |verifies |that |the |insured |has |not |suffered |a |serious |illness |or |injury |requiring |surgery |or |
hospitalization |since |the |application |date |- |CORRECT |ANSWER✔✔-d. |It |verifies |that |the |
insured |has |not |suffered |a |serious |illness |or |injury |requiring |surgery |or |hospitalization |since |
the |application |date
When |an |applicant |completes |the |insurance |application |in |its |entirety |and |provides |the |
producer |with |a |premium |check, |what |in |effect |has |taken |place?
a. |The |applicant |has |give |the |producer |the |authority |to |negotiate |the |terms |of |the |contract |
with |the |insurer |
b. |The |applicant |is |accepting |the |producer's |offer |of |coverage
c. |The |producer |is |making |an |offer |of |insurance |to |the |applicant
, d. |The |applicant |is |making |an |offer |to |the |insurer |- |CORRECT |ANSWER✔✔-d. |The |applicant |is |
making |an |offer |to |the |insurer
A |generic |brochure |developed |by |the |NAIC |to |provide |consumers |with |descriptions |of |basic |
types |of |life |insurance |as |well |as |the |comparative |costs |of |each |is |called |the |___________.
a. |Sales |Illustration
b. |Consumer |Information |Kit
c. |Buyer's |Guide
d. |Policy |Summary |- |CORRECT |ANSWER✔✔-c. |Buyer's |Guide
Which |of |the |following |personal |uses |of |life |insurance |is |specifically |designed |to |provide |
benefits |to |the |policyowner |while |the |insured |is |still |alive?
a. |Cash |accumulation
b. |Estate |conservation
c. |Estate |creation
d. |Charitable |bequests |- |CORRECT |ANSWER✔✔-a. |Cash |accumulation
Normally, |when |the |insurer |determines |that |the |insured |is |an |acceptable |risk, |the |insurer |will |
send |the |policy |to |the |____________. |
a. |Producer
b. |Beneficiary
c. |Policyowner
d. |Insured |- |CORRECT |ANSWER✔✔-a |.Producer
What |should |the |producer |do, |if |the |insured |is |in |the |hospital |with |a |heart |condition |pending |
surgery |on |the |day |the |newly |issued |policy |was |to |be |delivered |and |the |initial |premium |
collected? |
