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Exam (elaborations)

AD Banker Comprehensive Exam Questions And Correct Answers

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AD Banker Comprehensive Exam Questions And Correct Answers ...

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  • November 3, 2024
  • 147
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • AD Banker Comprehensive
  • AD Banker Comprehensive
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Easton
AD Banker Comprehensive Exam Questions And
Correct Answers 2025-2026


A producer who is acting as an agent is representing:

A

The insured, the applicant and the beneficiary

B

Always the insured

C

The insured and the insurer

D

Always the insurer - ANSWER D



For a contract to be valid, it must be between individuals considered legally able to
enter into an agreement. This is referred to as:

A

Restricted persons

B

Considerations

C

Competent parties

D

Agreement - ANSWER C



An insurance company that is licensed to sell insurance in a particular state is:

A

,A domiciled company

B

A nonadmitted company

C

An admitted company

D

A foreign company

An insurance company that is licensed to sell insurance in a particular state is: -
ANSWER C



An insurance contract is an aleatory contract. This means:

A

The contract need not have equal value be given by both parties to the contract

B

The contract must be for a legal purpose

C

Parties to the contract must have the legal capacity to enter into the contract

D

Statements in the application are warranted to be true in every respect - ANSWER A



Which of the following would be a speculative risk?

A

The chance your car is totaled in an auto accident

B

The chance the painting you purchased could be a long lost masterpiece

C

The chance you will die on the job at a young age

,D

The chance you will become disabled - ANSWER B



Which of the following is the correct term for an insurance company that is owned by its
policyowners?

A

A charitable insurance company

B

A reciprocal insurance company

C

A domestic insurance company

D

A mutual insurance company - ANSWER D



All of the following are elements of a contract, except:

A

Offer and acceptance

B

Legal purpose

C

Authority

D

Consideration - ANSWER C



Each of the following would be an element in the definition of fraud, except:

A

A false statement on the application that is material to the acceptance of the risk

, B

Withholding of known material facts

C

Intentional material misrepresentation with the intent of causing injury to another party

D

An applicant guarantees a fact stated on the application - ANSWER D

From the legal point of view, an agent has a __________ responsibility when handling life
insurance premiums and applications for an insurance company.

A

Fiduciary

B

Undisputed

C

Negotiated

D

Professional - ANSWER A

_________ is the state where an insurance company was established or incorporated.

A

Licensed

B

Approved

C

Domicile

D

Admitted - ANSWER C



To offset adverse selection what may an insurer legally do?

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