AD Banker Comprehensive Exam
2025 Questions and Answers
The field underwriter is the _________ and is not a determiner of insurability. -
ANSWER✔✔-Producer
The insurance industry is primarily regulated at the _________ level. - ANSWER✔✔-
State
A contract that is drafted by an insurer and receives no input or alteration from the
insured, is considered a(n): - ANSWER✔✔-Contact of Adhesion
Insurable interest for life insurance is necessary only at the time of: - ANSWER✔✔-
Application
All of the following are producer responsibilities to the applicant, except: -
ANSWER✔✔-Offering and selling only the lowest premium policy
_____________ insurance allows for insurance coverage to be obtained when not
available from admitted carriers. - ANSWER✔✔-Surplus Lines
,The reinsurance agreement that allows the reinsurer an opportunity to reject coverage
for individual risks or price them higher due to their higher risk is known as a(n)
___________ agreement. - ANSWER✔✔-Facultative
_____________ consists of groups of underwriters called syndicates, each of which
specializes in insuring a particular type of risk. - ANSWER✔✔-Lloyds of London
When the owner of the policy and insurer must meet certain conditions in order for the
health insurance policy to be enforceable, it is referred to as a(n): - ANSWER✔✔-
Conditional contract
When an applicant for life insurance faces potential financial loss in the event of injury
or sickness of an insured, it is said the applicant has: - ANSWER✔✔-Insurable Interest
Which of the following is NOT considered one of the essential elements of a contract? -
ANSWER✔✔-Conditions
The reinsurance agreement that automatically accepts all new risks presented by the
company seeking or requesting reinsurance from the reinsurer is known as a
____________ agreement. - ANSWER✔✔-Treaty
With health and life insurance a/an _________ is required at the time of the application.
- ANSWER✔✔-Insurable Interest
An insurer which is formed under the laws of another country is a(n): - ANSWER✔✔-
Alien insurer
, The ____________ market is a private source of coverage of last resort for individuals or
businesses that have been rejected by voluntary market insurers. - ANSWER✔✔-
Residual
Which of the following is standard industry practice for producers in order to prove
that they delivered the policy mailed to them from the insurer? - ANSWER✔✔-Obtain a
policy delivery receipt from the applicant whenever and wherever policy delivery takes
place
A producer must include their name and address on which of the following? -
ANSWER✔✔-a policy summary
Capital liquidation assumes: - ANSWER✔✔-The balance of the account will reduce over
a period of time once payout begins
There are ______ methods available to determine the income objective after the death of
the client for planning purposes. - ANSWER✔✔-2
In order to receive a stock dividend, the policyowner must own ____________. -
ANSWER✔✔-Common stock of the insurer
What is the primary reason why States have 'outlawed' Stranger Originated Life
Insurance (STOLI) transactions? - ANSWER✔✔-at policy inception there is a lack of
insurable interest
2025 Questions and Answers
The field underwriter is the _________ and is not a determiner of insurability. -
ANSWER✔✔-Producer
The insurance industry is primarily regulated at the _________ level. - ANSWER✔✔-
State
A contract that is drafted by an insurer and receives no input or alteration from the
insured, is considered a(n): - ANSWER✔✔-Contact of Adhesion
Insurable interest for life insurance is necessary only at the time of: - ANSWER✔✔-
Application
All of the following are producer responsibilities to the applicant, except: -
ANSWER✔✔-Offering and selling only the lowest premium policy
_____________ insurance allows for insurance coverage to be obtained when not
available from admitted carriers. - ANSWER✔✔-Surplus Lines
,The reinsurance agreement that allows the reinsurer an opportunity to reject coverage
for individual risks or price them higher due to their higher risk is known as a(n)
___________ agreement. - ANSWER✔✔-Facultative
_____________ consists of groups of underwriters called syndicates, each of which
specializes in insuring a particular type of risk. - ANSWER✔✔-Lloyds of London
When the owner of the policy and insurer must meet certain conditions in order for the
health insurance policy to be enforceable, it is referred to as a(n): - ANSWER✔✔-
Conditional contract
When an applicant for life insurance faces potential financial loss in the event of injury
or sickness of an insured, it is said the applicant has: - ANSWER✔✔-Insurable Interest
Which of the following is NOT considered one of the essential elements of a contract? -
ANSWER✔✔-Conditions
The reinsurance agreement that automatically accepts all new risks presented by the
company seeking or requesting reinsurance from the reinsurer is known as a
____________ agreement. - ANSWER✔✔-Treaty
With health and life insurance a/an _________ is required at the time of the application.
- ANSWER✔✔-Insurable Interest
An insurer which is formed under the laws of another country is a(n): - ANSWER✔✔-
Alien insurer
, The ____________ market is a private source of coverage of last resort for individuals or
businesses that have been rejected by voluntary market insurers. - ANSWER✔✔-
Residual
Which of the following is standard industry practice for producers in order to prove
that they delivered the policy mailed to them from the insurer? - ANSWER✔✔-Obtain a
policy delivery receipt from the applicant whenever and wherever policy delivery takes
place
A producer must include their name and address on which of the following? -
ANSWER✔✔-a policy summary
Capital liquidation assumes: - ANSWER✔✔-The balance of the account will reduce over
a period of time once payout begins
There are ______ methods available to determine the income objective after the death of
the client for planning purposes. - ANSWER✔✔-2
In order to receive a stock dividend, the policyowner must own ____________. -
ANSWER✔✔-Common stock of the insurer
What is the primary reason why States have 'outlawed' Stranger Originated Life
Insurance (STOLI) transactions? - ANSWER✔✔-at policy inception there is a lack of
insurable interest
