AD Banker Comprehensive Exam Questions & answers. Rated A. 2022/2023

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AD Banker Comprehensive Exam Questions & answers. Rated A. 2022/2023 John is the agent for ABC Insurance and Jane is the insured. Who is the principal in this agency relationship? A. ABC Insuran... ce B. None C. John D. Jane - ✔✔A. ABC Insurance In an insurance contract the value that each party gives the other is said to be the: A. Subject matter B. Consideration C. Acceptance D. Offer - ✔✔B. Consideration Which of the following is classified as an insurance broker? A A person in the home office who does not solicit outside of the office B An employee who negotiates insurance contracts for his/her employer C A person who places coverage for his/her own insurance D A person who negotiates insurance contracts on behalf of an insured - ✔✔D Insurance is designed to provide protection against which of the following? A Involuntary risk B Speculative risk C Pure Risk D Certain Risk - ✔✔C A breach under the Doctrine of Warranty may result in: A A waiver of the provisions of the Warranty B Establishment of a monetary penalty C Voidance of the contract D A Nullification of the Warranty - ✔✔C Which of the following is not within an agent's authority? A Providing quotes B Representing the insured in an insurance transaction C Accepting premiums on behalf of the insurer D Completing applications on insurer's behalf - ✔✔B A(n) ________ insurer is authorized to write insurance policies in a particular state. A Foreign B Non-Admitted C Domestic D Admitted - ✔✔D A good example of Risk Reduction might be: A Insuring only those risks that threaten the financial stability of the insured B The transfer of the risk to an insurance company C The elimination of the exposure to a specific risk D When one takes action to minimize the severity of a potential loss - ✔✔D An insurer that is authorized to do business in a particular state is said to be: A Non-Admitted B Domestic C Foreign D Admitted - ✔✔D An insurer that is not approved by the state Department of Insurance to transact insurance is called a(n) ___________ insurer. A Non-admitted B Fraternal C Authorized D Domestic - ✔✔A When an insurance policy is not clear, the court will usually interpret in favor of the insured because: A The policy is an Aleatory contract B The policy is a Conditional contract C The policy is a Bilateral contract D The policy is a Contract of Adhesion - ✔✔D When insurance cannot be placed with a licensed insurer, it may be placed with an authorized/non-admitted insurer by a: A General surplus producer B General use producer C General consultant D Surplus Lines broker - ✔✔D In insurance, to determine acceptable risks is the primary responsibility of the: A Underwriter B Adjuster C Auditor D Producer - ✔✔A The type of producer authority stated in the agency contract is: A Implied B Express C Assumed D Apparent - ✔✔B What is the term for the increase in predictability of the loss when the number of similar units of risk increase? A Law of Averages B Law of Large Numbers C Accumulated Experience D Similarity of Units - ✔✔B All of the following are true of a substandard risk, except: A The coverage could be reduced for a period of time B The insured may be rated as older than their actual age C The premium would be discounted D The insured may have a flat additional premium added to their base premium - ✔✔C When a producer receives an application for life insurance that is completed and signed, but without premium payment, when does coverage start? A 30 days after the application is received B At the end of the free-look period C On the date the policy is delivered and premium collected D On the date the application is received - ✔✔C When an insured decides to change her mode of premium payment from monthly to annually, the total premium due would: A Decrease B Remain the same C Increase D Fluctuate - ✔✔A Once the gross amount of dollars required to fund an insured's needs has been determined using the needs analysis approach, what is the next step? [Show More]

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