AD Banker Comprehensive Exam Questions With Correct Answers

AD Banker Comprehensive Exam
Questions With Correct Answers
A cproducer cwho cis cacting cas can cagent cis crepresenting:

A
The cinsured, cthe capplicant cand cthe cbeneficiary

B
Always cthe cinsured

C
The cinsured cand cthe cinsurer

D
Always cthe cinsurer c- ccorrect canswers✔✔D

In corder cto cbe cvalid, ca ccontract cmust cbe cbetween cindividuals cconsidered clegally
cable cto center cinto can cagreement. cThis cprinciple cis cknown cas:


A
Restricted cpersons

B
Considerations

C
Competent cparties

D
Agreement c- ccorrect canswers✔✔C

A ccompany cthat cis clicensed cto csell cinsurance cin ca cparticular cstate cis:

A
A cdomiciled ccompany

B
A cnonadmitted ccompany

C
An cauthorized ccompany

,D
A cforeign ccompanyA ccompany cthat cis clicensed cto csell cinsurance cin ca cparticular
cstate cis: c- ccorrect canswers✔✔C


An cinsurance ccontract cis can caleatory ccontract. cThis cmeans:

A
Equal cvalue cis cnot cgiven cby cboth cparties cto cthe ccontract

B
The ccontract cmust cbe cfor ca clegal cpurpose

C
Parties cto cthe ccontract cmust chave cthe clegal ccapacity cto center cinto cthe ccontract

D
Statements cmade cin cthe capplication care cguaranteed cto cbe ctrue cin call crespects c-
ccorrect canswers✔✔A


Which cof cthe cfollowing cwould cbe cconsidered ca cspeculative crisk?

A
The cpossibility cyour ccar cis ctotaled cin can cauto caccident

B
The cpossibility cthe cpainting cyou cbought cmight cbe ca clong-lost cmasterpiece

C
The cpossibility cyou cwill cdie con cthe cjob cat ca cyoung cage

D
The cpossibility cyou cwill cbecome cdisabled c- ccorrect canswers✔✔B

Which cis cthe cproper cterm cfor ca ccompany cowned cby cits cpolicyowners?

A
A ccharitable cinsurance ccompany

B
A creciprocal cinsurance ccompany

C
A cdomestic cinsurance ccompany

D

,A cmutual cinsurance ccompany c- ccorrect canswers✔✔D

All cof cthe cfollowing care celements cof ca ccontract, cexcept:

A
Offer cand cacceptance

B
Legal cpurpose

C
Authority

D
Consideration c- ccorrect canswers✔✔C

Each cof cthe cfollowing cwould cbe can celement cin cthe cdefinition cof cfraud, cexcept:

A
A cfalse cstatement con cthe capplication cthat cis cmaterial cto cthe cacceptance cof cthe crisk

B
Withholding cof cknown cmaterial cfacts

C
Intentional cmaterial cmisrepresentation cwith cthe cintent cof ccausing cinjury cto canother
cparty


D
An cindividual cwarrants ca cfact cstated con cthe capplication c- ccorrect canswers✔✔D

Legally cspeaking, ca cproducer chas ca c__________ cduty cwhen chandling clife
cinsurance cpremiums cand capplications cfor can cinsurer.


A
Fiduciary

B
Undisputed

C
Negotiated

D
Professional c- ccorrect canswers✔✔A

, _________ crefers cto cthe cjurisdiction cwhere can cinsurer cwas cformed cor cincorporated.

A
Authorized

B
Approved

C
Domicile

D
Admitted c- ccorrect canswers✔✔C

To caddress cadverse cselection cwhat ccan can cinsurer clegally cdo?

A
Limit cthe camount cof ccoverage cissued

B
Raise cthe cpremium chigher cthan cmost cpeople ccan cafford cto cpay

C
Establish cand cenforce csound cunderwriting cpractices

D
Not coffer cpolicies cto cthose cover cage c55 c- ccorrect canswers✔✔C

The crelationship cof ca cperson cwho cacts con cbehalf cof ca ccompany cwhereby cthe
cperson's cactions ccan cbind cthe ccompany cis cknown cas:


A
Surplus clines cor cexcess cinsurance

B
The claw cof clarge cnumbers

C
The claw cof cagency

D
Brokerage cbusiness c- ccorrect canswers✔✔C

_____________ cconsists cof cgroups cof cunderwriters ccalled csyndicates, ceach cof
cwhich cspecializes cin cinsuring ca cparticular ctype cof crisk.