A.D. BANKER: LIFE & HEALTH - COMPREHENSIVE EXAM WITH ANSWERS
Legally cspeaking, ca cproducer chas ca c__________ cduty cwhen chandling clife
cinsurance cpremiums cand capplications cfor can cinsurer. c- ccorrect
canswers✔✔Fiduciary
It cis cthe c_________ cwho cissues ca cCertificate cof cAuthority cenabling can cinsurer cto
cconduct cinsurance cbusiness cwithin ca cparticular cstate. c- ccorrect canswers✔✔State
cInsurance cCommissioner
When can capplicant cfor clife cinsurance cfaces cpotential cfinancial closs cin cthe cevent cof
cinjury cor csickness cof can cinsured, cit cis csaid cthe capplicant chas: c- ccorrect
canswers✔✔Insurable cinterest
The creinsurance cagreement cthat cautomatically caccepts call cnew crisks cpresented cby
cthe ccompany cseeking cor crequesting creinsurance cfrom cthe creinsurer cis cknown cas ca
c____________ cagreement. c- ccorrect canswers✔✔Treaty
Insurable cinterest cfor clife cinsurance cis cnecessary conly cat cthe ctime cof: c- ccorrect
canswers✔✔Application
With chealth cand clife cinsurance ca/an c_________ cis crequired cat cthe ctime cof cthe
capplication. c- ccorrect canswers✔✔Insurable cinterest
_____________ cinsurance callows cfor cinsurance ccoverage cto cbe cobtained cwhen cnot
cavailable cfrom cadmitted ccarriers. c- ccorrect canswers✔✔Surplus clines
Which cof cthe cfollowing cis cNOT cconsidered cone cof cthe cessential celements cof ca
ccontract? c- ccorrect canswers✔✔Conditions
The cinsurance cindustry cis cprimarily cregulated cat cthe c_________ clevel. c- ccorrect
canswers✔✔State
A ccontract cthat cis cdrafted cby can cinsurer cand creceives cno cinput cor calteration cfrom
cthe cinsured, cis cconsidered ca(n): c- ccorrect canswers✔✔Contract cof cAdhesion
The creinsurance cagreement cthat callows cthe creinsurer can copportunity cto creject
ccoverage cfor cindividual crisks cor cprice cthem chigher cdue cto ctheir chigher crisk cis
cknown cas ca(n) c___________ cagreement. c- ccorrect canswers✔✔Facultative
When cthe cowner cof cthe cpolicy cand cinsurer cmust cmeet ccertain cconditions cin corder
cfor cthe chealth cinsurance cpolicy cto cbe cenforceable, cit cis creferred cto cas ca(n): c-
ccorrect canswers✔✔Conditional ccontract
, The c____________ cmarket cis ca cprivate csource cof ccoverage cof clast cresort cfor
cindividuals cor cbusinesses cthat chave cbeen crejected cby cvoluntary cmarket cinsurers. c-
ccorrect canswers✔✔Residual
To cmake cinsurance cmore caffordable cand cprotect cthe cinsurance ccompany cfrom
cpaying cout ctoo cmuch cin cclaims, cinsurers cwill: c- ccorrect canswers✔✔Reinsure cthe
crisk
All cof cthe cfollowing care cproducer cresponsibilities cto cthe capplicant, cexcept: c- ccorrect
canswers✔✔Offering cand cselling conly cthe clowest cpremium cpolicy
What cshould ca cproducer cdo cif cthe cpolicy capplied cfor cis cissued cat ca chigher crate
cthan cwas cexpected? c- ccorrect canswers✔✔Personally cdeliver cthe cpolicy, cexplain
cthe crating, cand creinforce cthe cvalue cof cthe cpolicy
What cis cthe cprimary creason cwhy cStates chave c'outlawed' cStranger cOriginated cLife
cInsurance c(STOLI) ctransactions? c- ccorrect canswers✔✔At cpolicy cinception cthere cis
ca clack cof cinsurable cinterest
When can cinsurer crequires cthat can cinsured cbe csubjected cto ca cmedical cexamination,
cwho cpays cfor cthe cmedical cexam? c- ccorrect canswers✔✔The cinsurer
The cname cused cto cindicate cthe cinsured's cage cat ctime cof cpolicy crenewal cis cthe
c________ cage. c- ccorrect canswers✔✔Attained
In corder cfor ca clife cinsurance cpolicy cto cbe cvalid, cinsurable cinterest cmust cexist cat
ctime cof c_________. c- ccorrect canswers✔✔Application
In ca cpolicy csummary call cof cthe cfollowing cmust cbe cshown con cboth ca cguaranteed
cand cnon-guaranteed cbasis, cexcept: c- ccorrect canswers✔✔Dividends
Loading cincludes call cof cthe cfollowing, cexcept: c- ccorrect canswers✔✔Mortality
A cpersonalized ccomputer-generated cillustration cdetailing cpremiums, ccash cvalues,
cinterest crates, cand csurrender cvalues cis ccalled c__________. c- ccorrect canswers✔✔A
cpolicy csummary
A cmarried ccouple cpurchases ca c$250,000 cJoint cLife cPolicy. cWhen cthe colder cof cthe
ctwo cdies, cwhat cis cthe camount cpayable cto cthe csurvivor? c- ccorrect
canswers✔✔$250,000
Which cof cthe cfollowing cis cTRUE cof ca cterm crider cwhen cattached cto ca cpermanent
clife cpolicy? c- ccorrect canswers✔✔It ccan cprovide cadditional ctemporary ccoverage con
cthe cinsured cor con cother cmembers cof cthe cfamily
Legally cspeaking, ca cproducer chas ca c__________ cduty cwhen chandling clife
cinsurance cpremiums cand capplications cfor can cinsurer. c- ccorrect
canswers✔✔Fiduciary
It cis cthe c_________ cwho cissues ca cCertificate cof cAuthority cenabling can cinsurer cto
cconduct cinsurance cbusiness cwithin ca cparticular cstate. c- ccorrect canswers✔✔State
cInsurance cCommissioner
When can capplicant cfor clife cinsurance cfaces cpotential cfinancial closs cin cthe cevent cof
cinjury cor csickness cof can cinsured, cit cis csaid cthe capplicant chas: c- ccorrect
canswers✔✔Insurable cinterest
The creinsurance cagreement cthat cautomatically caccepts call cnew crisks cpresented cby
cthe ccompany cseeking cor crequesting creinsurance cfrom cthe creinsurer cis cknown cas ca
c____________ cagreement. c- ccorrect canswers✔✔Treaty
Insurable cinterest cfor clife cinsurance cis cnecessary conly cat cthe ctime cof: c- ccorrect
canswers✔✔Application
With chealth cand clife cinsurance ca/an c_________ cis crequired cat cthe ctime cof cthe
capplication. c- ccorrect canswers✔✔Insurable cinterest
_____________ cinsurance callows cfor cinsurance ccoverage cto cbe cobtained cwhen cnot
cavailable cfrom cadmitted ccarriers. c- ccorrect canswers✔✔Surplus clines
Which cof cthe cfollowing cis cNOT cconsidered cone cof cthe cessential celements cof ca
ccontract? c- ccorrect canswers✔✔Conditions
The cinsurance cindustry cis cprimarily cregulated cat cthe c_________ clevel. c- ccorrect
canswers✔✔State
A ccontract cthat cis cdrafted cby can cinsurer cand creceives cno cinput cor calteration cfrom
cthe cinsured, cis cconsidered ca(n): c- ccorrect canswers✔✔Contract cof cAdhesion
The creinsurance cagreement cthat callows cthe creinsurer can copportunity cto creject
ccoverage cfor cindividual crisks cor cprice cthem chigher cdue cto ctheir chigher crisk cis
cknown cas ca(n) c___________ cagreement. c- ccorrect canswers✔✔Facultative
When cthe cowner cof cthe cpolicy cand cinsurer cmust cmeet ccertain cconditions cin corder
cfor cthe chealth cinsurance cpolicy cto cbe cenforceable, cit cis creferred cto cas ca(n): c-
ccorrect canswers✔✔Conditional ccontract
, The c____________ cmarket cis ca cprivate csource cof ccoverage cof clast cresort cfor
cindividuals cor cbusinesses cthat chave cbeen crejected cby cvoluntary cmarket cinsurers. c-
ccorrect canswers✔✔Residual
To cmake cinsurance cmore caffordable cand cprotect cthe cinsurance ccompany cfrom
cpaying cout ctoo cmuch cin cclaims, cinsurers cwill: c- ccorrect canswers✔✔Reinsure cthe
crisk
All cof cthe cfollowing care cproducer cresponsibilities cto cthe capplicant, cexcept: c- ccorrect
canswers✔✔Offering cand cselling conly cthe clowest cpremium cpolicy
What cshould ca cproducer cdo cif cthe cpolicy capplied cfor cis cissued cat ca chigher crate
cthan cwas cexpected? c- ccorrect canswers✔✔Personally cdeliver cthe cpolicy, cexplain
cthe crating, cand creinforce cthe cvalue cof cthe cpolicy
What cis cthe cprimary creason cwhy cStates chave c'outlawed' cStranger cOriginated cLife
cInsurance c(STOLI) ctransactions? c- ccorrect canswers✔✔At cpolicy cinception cthere cis
ca clack cof cinsurable cinterest
When can cinsurer crequires cthat can cinsured cbe csubjected cto ca cmedical cexamination,
cwho cpays cfor cthe cmedical cexam? c- ccorrect canswers✔✔The cinsurer
The cname cused cto cindicate cthe cinsured's cage cat ctime cof cpolicy crenewal cis cthe
c________ cage. c- ccorrect canswers✔✔Attained
In corder cfor ca clife cinsurance cpolicy cto cbe cvalid, cinsurable cinterest cmust cexist cat
ctime cof c_________. c- ccorrect canswers✔✔Application
In ca cpolicy csummary call cof cthe cfollowing cmust cbe cshown con cboth ca cguaranteed
cand cnon-guaranteed cbasis, cexcept: c- ccorrect canswers✔✔Dividends
Loading cincludes call cof cthe cfollowing, cexcept: c- ccorrect canswers✔✔Mortality
A cpersonalized ccomputer-generated cillustration cdetailing cpremiums, ccash cvalues,
cinterest crates, cand csurrender cvalues cis ccalled c__________. c- ccorrect canswers✔✔A
cpolicy csummary
A cmarried ccouple cpurchases ca c$250,000 cJoint cLife cPolicy. cWhen cthe colder cof cthe
ctwo cdies, cwhat cis cthe camount cpayable cto cthe csurvivor? c- ccorrect
canswers✔✔$250,000
Which cof cthe cfollowing cis cTRUE cof ca cterm crider cwhen cattached cto ca cpermanent
clife cpolicy? c- ccorrect canswers✔✔It ccan cprovide cadditional ctemporary ccoverage con
cthe cinsured cor con cother cmembers cof cthe cfamily
