AD Banker Chapter 1 Exam Questions With
Complete Solutions
A |person |who |negotiates |insurance |contracts |with |insurers |on |behalf |of |an |applicant |is |known |
as |a(n):
a. |Broker
b. |Consultant
c. |Advisor
d. |Agent/Producer |- |CORRECT |ANSWER✔✔-a. |Broker
The |contract |type |in |which |only |one |party |is |legally |bound |to |its |contractual |obligations |after |a
|premium |is |paid |is |a(n) |_____________ |contract.
a. |Personal
b. |Conditional
c. |Unilateral
d. |Aleatory |- |CORRECT |ANSWER✔✔-c. |Unilateral
An |insurer |authorized |to |do |business |within |this |state |is |considered |what |type |of |insurer?
a. |Domestic
b. |Foreign
c. |Alien
d. |Admitted |- |CORRECT |ANSWER✔✔-d. |Admitted
The |Law |of |Agency |states |that |a |person |or |entity |who |acts |on |behalf |of |another |person, |
company, |or |government, |is |known |as |the |______________.
a. |Contractor
, b. |Servant
c. |Employee
d. |Agent |- |CORRECT |ANSWER✔✔-d. |Agent
An |unincorporated |organization |that |is |formed |by |individuals, |firms, |and |business |corporations
|that |exchange |insurance |on |one |another |and |whose |members |are |known |as |subscribers |is |
called |a:
a. |Mutual |Insurance |Company
b. |Fraternal |Benefit |Society
c. |Risk |Retention |Group
d. |Reciprocal |Insurance |Company |- |CORRECT |ANSWER✔✔-d. |Reciprocal |Insurance |Company
Which |of |the |following |would |be |considered |legally |competent |to |enter |into |a |contract?
a. |A |person |who |is |under |the |influence |of |drugs |or |alcohol
b. |A |person |deemed |to |be |mentally |incapacitated
c. |A |13-year-old |honor |student
d. |A |25-year-old |self-employed |person |- |CORRECT |ANSWER✔✔-d. |A |25-year-old |self-employed
|person
Which |of |the |following |is |not |marketing |and |distribution |system |used |by |the |insurers?
a. |Independent |Agency
b. |Direct |Writing
c. |Captive |Agency
d. |Broker |Agency |- |CORRECT |ANSWER✔✔-d. |Broker |Agency
Before |an |insurer |can |operate |in |this |state, |it |must |have |which |of |the |following?
a. |Approval |of |the |National |Association |of |Insurance |Commissioners |(NAIC)
Complete Solutions
A |person |who |negotiates |insurance |contracts |with |insurers |on |behalf |of |an |applicant |is |known |
as |a(n):
a. |Broker
b. |Consultant
c. |Advisor
d. |Agent/Producer |- |CORRECT |ANSWER✔✔-a. |Broker
The |contract |type |in |which |only |one |party |is |legally |bound |to |its |contractual |obligations |after |a
|premium |is |paid |is |a(n) |_____________ |contract.
a. |Personal
b. |Conditional
c. |Unilateral
d. |Aleatory |- |CORRECT |ANSWER✔✔-c. |Unilateral
An |insurer |authorized |to |do |business |within |this |state |is |considered |what |type |of |insurer?
a. |Domestic
b. |Foreign
c. |Alien
d. |Admitted |- |CORRECT |ANSWER✔✔-d. |Admitted
The |Law |of |Agency |states |that |a |person |or |entity |who |acts |on |behalf |of |another |person, |
company, |or |government, |is |known |as |the |______________.
a. |Contractor
, b. |Servant
c. |Employee
d. |Agent |- |CORRECT |ANSWER✔✔-d. |Agent
An |unincorporated |organization |that |is |formed |by |individuals, |firms, |and |business |corporations
|that |exchange |insurance |on |one |another |and |whose |members |are |known |as |subscribers |is |
called |a:
a. |Mutual |Insurance |Company
b. |Fraternal |Benefit |Society
c. |Risk |Retention |Group
d. |Reciprocal |Insurance |Company |- |CORRECT |ANSWER✔✔-d. |Reciprocal |Insurance |Company
Which |of |the |following |would |be |considered |legally |competent |to |enter |into |a |contract?
a. |A |person |who |is |under |the |influence |of |drugs |or |alcohol
b. |A |person |deemed |to |be |mentally |incapacitated
c. |A |13-year-old |honor |student
d. |A |25-year-old |self-employed |person |- |CORRECT |ANSWER✔✔-d. |A |25-year-old |self-employed
|person
Which |of |the |following |is |not |marketing |and |distribution |system |used |by |the |insurers?
a. |Independent |Agency
b. |Direct |Writing
c. |Captive |Agency
d. |Broker |Agency |- |CORRECT |ANSWER✔✔-d. |Broker |Agency
Before |an |insurer |can |operate |in |this |state, |it |must |have |which |of |the |following?
a. |Approval |of |the |National |Association |of |Insurance |Commissioners |(NAIC)
