AD Banker Chapter 1 Exam 2025/2026 QUESTIONS AND
ANSWERS GUARANTEE A+
Policyowner P has just finished painting the interior walls in their home, and stores leftover paint
thinner in the basement near the furnace. What kind of hazard does the stored paint thinner
present?
A
Physical
B
Moral
C
Peril
D
Morale - A) Physical
Which of the following is least likely to be a factor when determining the eligibility of a person
for property insurance?
A
Existence of any hazards, such as a nearby gas station exposure
B
The nature of the risk, such as the type of building and the number of families living in the
building
C
Whether the premium will be paid in full or billed to the insured
D
The claims history showing when prior claims occurred and how much was paid to settle the
claim - C) Whether the premium will be paid in full or billed to the insured
, P is an agent for ABC Insurer, which has just issued an insurance policy to M. In this transaction,
who is known as the principal?
A
M, the insured
B
ABC Insurer
C
P, the agent
D
M's beneficiary - B) ABC Insurer
Which of the following is not an element of an insurable risk?
A
Large number of homogeneous units
B
Accidental loss
C
Catastrophic perils
D
The ability to set a measurable value on it - C) Catastrophic Perils
A hazard is best defined as:
A
The loss itself
B
Something that increases the chance of a loss
ANSWERS GUARANTEE A+
Policyowner P has just finished painting the interior walls in their home, and stores leftover paint
thinner in the basement near the furnace. What kind of hazard does the stored paint thinner
present?
A
Physical
B
Moral
C
Peril
D
Morale - A) Physical
Which of the following is least likely to be a factor when determining the eligibility of a person
for property insurance?
A
Existence of any hazards, such as a nearby gas station exposure
B
The nature of the risk, such as the type of building and the number of families living in the
building
C
Whether the premium will be paid in full or billed to the insured
D
The claims history showing when prior claims occurred and how much was paid to settle the
claim - C) Whether the premium will be paid in full or billed to the insured
, P is an agent for ABC Insurer, which has just issued an insurance policy to M. In this transaction,
who is known as the principal?
A
M, the insured
B
ABC Insurer
C
P, the agent
D
M's beneficiary - B) ABC Insurer
Which of the following is not an element of an insurable risk?
A
Large number of homogeneous units
B
Accidental loss
C
Catastrophic perils
D
The ability to set a measurable value on it - C) Catastrophic Perils
A hazard is best defined as:
A
The loss itself
B
Something that increases the chance of a loss
