AD Banker Comprehensive Exam 2025/2026 QUESTIONS AND
ANSWERS GUARANTEE A+
An insurance contract is an aleatory contract. This means:
A
Equal value is not 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 made in the application are guaranteed to be true in all respects - A
Which of the following would be considered a speculative risk?
A
The possibility your car is totaled in an auto accident
B
The possibility the painting you bought might be a long-lost masterpiece
C
The possibility you will die on the job at a young age
,D
The possibility you will become disabled - B
Which is the proper term for a company owned by its policyowners?
A
A charitable insurance company
B
A reciprocal insurance company
C
A domestic insurance company
D
A mutual insurance company - D
All of the following are elements of a contract, except:
A
Offer and acceptance
B
Legal purpose
C
,Authority
D
Consideration - 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 individual warrants a fact stated on the application - D
Legally speaking, a producer has a __________ duty when handling life insurance premiums and
applications for an insurer.
A
Fiduciary
B
Undisputed
, C
Negotiated
D
Professional - A
_________ refers to the jurisdiction where an insurer was formed or incorporated.
A
Authorized
B
Approved
C
Domicile
D
Admitted - C
To address adverse selection what can an insurer legally do?
A
Limit the amount of coverage issued
B
ANSWERS GUARANTEE A+
An insurance contract is an aleatory contract. This means:
A
Equal value is not 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 made in the application are guaranteed to be true in all respects - A
Which of the following would be considered a speculative risk?
A
The possibility your car is totaled in an auto accident
B
The possibility the painting you bought might be a long-lost masterpiece
C
The possibility you will die on the job at a young age
,D
The possibility you will become disabled - B
Which is the proper term for a company owned by its policyowners?
A
A charitable insurance company
B
A reciprocal insurance company
C
A domestic insurance company
D
A mutual insurance company - D
All of the following are elements of a contract, except:
A
Offer and acceptance
B
Legal purpose
C
,Authority
D
Consideration - 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 individual warrants a fact stated on the application - D
Legally speaking, a producer has a __________ duty when handling life insurance premiums and
applications for an insurer.
A
Fiduciary
B
Undisputed
, C
Negotiated
D
Professional - A
_________ refers to the jurisdiction where an insurer was formed or incorporated.
A
Authorized
B
Approved
C
Domicile
D
Admitted - C
To address adverse selection what can an insurer legally do?
A
Limit the amount of coverage issued
B
