AD Banker Chapter 1 Exam 2025/2026
Exam Questions and Verified Answers |
Already Graded A+
Which of the following is not a function of insurance?
A
To act as an investment vehicle for the insured
B
To exchange a small certain expense for a large uncertain loss
C
To transfer risk from the insured to the insurer
D
To protect against uncertainty and reduce anxiety - 🧠ANSWER ✔✔A) To
act as an investment vehicle for the insured
,An insurer with capital that is divided into shares, and is owned by
shareholders, is considered a:
A
Reciprocal insurer
B
Stock insurance company
C
Fraternal Benefit Society
D
Mutual insurance company - 🧠ANSWER ✔✔B) Stock insurance Company
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 - 🧠ANSWER ✔✔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
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
Exam Questions and Verified Answers |
Already Graded A+
Which of the following is not a function of insurance?
A
To act as an investment vehicle for the insured
B
To exchange a small certain expense for a large uncertain loss
C
To transfer risk from the insured to the insurer
D
To protect against uncertainty and reduce anxiety - 🧠ANSWER ✔✔A) To
act as an investment vehicle for the insured
,An insurer with capital that is divided into shares, and is owned by
shareholders, is considered a:
A
Reciprocal insurer
B
Stock insurance company
C
Fraternal Benefit Society
D
Mutual insurance company - 🧠ANSWER ✔✔B) Stock insurance Company
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 - 🧠ANSWER ✔✔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
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
