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?
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?
