AD BANKER COMPREHENSIVE EXAM
2025
AD BANKER COMPREHENSIVE EXAM
2025/2026 COMPLETE verifies
QUESTIONS AND CORRECT ANSWERS
|ALREADY GRADED A+||BRAND NEW!!
Where can an insured find insurance coverage after being rejected by Insurer A due to claims history?
A
Residual market
B
Risk retention insurer
C
Reinsurance market
D
Lloyd's of London
A Residual Market
The residual market is a coverage source of last resort for businesses and individuals who have been
rejected by voluntary market insurers.
Which Federal entity administers the Terrorism Risk Insurance Program Reauthorization Act?
A
Secretary of State
B
Executive office
C
Department of Defense
D
Department of the Treasury
D Department of the Treasury
The Terrorism Risk Insurance Act, which protects consumers by ensuring the continued widespread
availability and affordability of property and casualty insurance for a terrorism risk, is administered
by the Dept. of Treasury.
A+ TEST BANK 1
, AD BANKER COMPREHENSIVE EXAM
2025
An applicant makes a statement on the insurance application which becomes part of the contract
that she has an alarm system which qualifies her for a premium discount. This statement is
considered a:
A
Representation
B
Endorsement
C
Warranty
D
Provision
C Warranty
A warranty is a statement that is guaranteed to be true, as opposed to a representation of
something that is true to the best of one's knowledge.
Insurance is designed to provide protection against which of the following?
A
Involuntary risk
B
Pure Risk
C
Certain Risk
D
Speculative risk
B Pure Risk
With pure risk, the only consideration is the possibility of loss or no loss. By contrast, speculative
entails a chance of gain as well as a chance of loss.
Which of the following best describes the principle of Indemnity?
A
The insured is restored to the same financial condition as prior to the loss, with no loss or gain
B
The insured compensates the insurer for any expenses it incurs in adjusting the loss
C
The insureds position is not improved after sustaining a loss
D
The insured is restored to a financial condition as good as, or better than, the insured was before the
loss
A+ TEST BANK 2
, AD BANKER COMPREHENSIVE EXAM
2025
A The insured is restored to the same financial condition as prior to the loss, with no loss or gain
Indemnity is the principle that restores an insured party to the economic position he/she enjoyed
before sustaining a loss.
Determining acceptable risks is the primary responsibility of the:
A
Underwriter
B
Adjuster
C
Producer
D
Auditor
A Underwriter
The selection of risk is the primary responsibility of the underwriter, who protects the insurer by
selecting risks that fall into the normal range of expected losses.
When an applicant intentionally fails to make a material fact known, it is known as:
A
Misrepresentation
B
Concealment
C
Bad faith
D
Deception
B Concealment
Concealment is defined as the withholding of known facts, the knowledge of which would change
the decision of an insurer with respect to underwriting, settling a loss, or determining the premium.
If an insurer is incorporated in Rhode Island, but primarily does business in New York, what type of
insurer would it be considered in New York?
A
A+ TEST BANK 3
, AD BANKER COMPREHENSIVE EXAM
2025
Domestic
B
Nonadmitted
C
Alien
D
Foreign
D Foreign
An insurer that is incorporated under the laws of another state is considered a foreign insurer.
In an insurance contract, the value that each party gives the other is called the:
A
Acceptance
B
Consideration
C
Offer
D
Subject matter
B Consideration
Consideration can take the form of money, goods, a promise to do something, or anything else that
changes the legal position of the party. A contract cannot exist without consideration being given by
both sides.
An insurer that is authorized to do business in a particular state is said to be:
A
Admitted
B
Non-Admitted
C
Foreign
D
Domestic
A Admitted
An admitted insurer is an insurer that is authorized to transact insurance in a state by that state's
insurance department, as evidenced by a Certificate of Authority to transact business.
A+ TEST BANK 4
2025
AD BANKER COMPREHENSIVE EXAM
2025/2026 COMPLETE verifies
QUESTIONS AND CORRECT ANSWERS
|ALREADY GRADED A+||BRAND NEW!!
Where can an insured find insurance coverage after being rejected by Insurer A due to claims history?
A
Residual market
B
Risk retention insurer
C
Reinsurance market
D
Lloyd's of London
A Residual Market
The residual market is a coverage source of last resort for businesses and individuals who have been
rejected by voluntary market insurers.
Which Federal entity administers the Terrorism Risk Insurance Program Reauthorization Act?
A
Secretary of State
B
Executive office
C
Department of Defense
D
Department of the Treasury
D Department of the Treasury
The Terrorism Risk Insurance Act, which protects consumers by ensuring the continued widespread
availability and affordability of property and casualty insurance for a terrorism risk, is administered
by the Dept. of Treasury.
A+ TEST BANK 1
, AD BANKER COMPREHENSIVE EXAM
2025
An applicant makes a statement on the insurance application which becomes part of the contract
that she has an alarm system which qualifies her for a premium discount. This statement is
considered a:
A
Representation
B
Endorsement
C
Warranty
D
Provision
C Warranty
A warranty is a statement that is guaranteed to be true, as opposed to a representation of
something that is true to the best of one's knowledge.
Insurance is designed to provide protection against which of the following?
A
Involuntary risk
B
Pure Risk
C
Certain Risk
D
Speculative risk
B Pure Risk
With pure risk, the only consideration is the possibility of loss or no loss. By contrast, speculative
entails a chance of gain as well as a chance of loss.
Which of the following best describes the principle of Indemnity?
A
The insured is restored to the same financial condition as prior to the loss, with no loss or gain
B
The insured compensates the insurer for any expenses it incurs in adjusting the loss
C
The insureds position is not improved after sustaining a loss
D
The insured is restored to a financial condition as good as, or better than, the insured was before the
loss
A+ TEST BANK 2
, AD BANKER COMPREHENSIVE EXAM
2025
A The insured is restored to the same financial condition as prior to the loss, with no loss or gain
Indemnity is the principle that restores an insured party to the economic position he/she enjoyed
before sustaining a loss.
Determining acceptable risks is the primary responsibility of the:
A
Underwriter
B
Adjuster
C
Producer
D
Auditor
A Underwriter
The selection of risk is the primary responsibility of the underwriter, who protects the insurer by
selecting risks that fall into the normal range of expected losses.
When an applicant intentionally fails to make a material fact known, it is known as:
A
Misrepresentation
B
Concealment
C
Bad faith
D
Deception
B Concealment
Concealment is defined as the withholding of known facts, the knowledge of which would change
the decision of an insurer with respect to underwriting, settling a loss, or determining the premium.
If an insurer is incorporated in Rhode Island, but primarily does business in New York, what type of
insurer would it be considered in New York?
A
A+ TEST BANK 3
, AD BANKER COMPREHENSIVE EXAM
2025
Domestic
B
Nonadmitted
C
Alien
D
Foreign
D Foreign
An insurer that is incorporated under the laws of another state is considered a foreign insurer.
In an insurance contract, the value that each party gives the other is called the:
A
Acceptance
B
Consideration
C
Offer
D
Subject matter
B Consideration
Consideration can take the form of money, goods, a promise to do something, or anything else that
changes the legal position of the party. A contract cannot exist without consideration being given by
both sides.
An insurer that is authorized to do business in a particular state is said to be:
A
Admitted
B
Non-Admitted
C
Foreign
D
Domestic
A Admitted
An admitted insurer is an insurer that is authorized to transact insurance in a state by that state's
insurance department, as evidenced by a Certificate of Authority to transact business.
A+ TEST BANK 4
