AD Banker Property and Casualty Comprehensive
Exam Questions with correct answers
Temporary |Total |Disability |may |be |described |as: |- |CORRECT |ANSWER✔✔-Inability |to |return |to |
any |employment |while |recovering
Supplementary |Payment |under |Part |A |of |the |Personal |Auto |Policy? |- |CORRECT |ANSWER✔✔-A |
Up |to |$250 |for |the |cost |of |bail |bonds
B |Payment |for |lost |earnings |up |to |$200/day
C |Medical |payments |for |an |occupant |of |an |insured |vehicle |(Not |included)(*)
D |Reasonable |expenses |incurred |at |the |insurer's |request
The |Commercial |basic |Cause |of |Loss |Form |does |not |cover |which |of |the |following |perils? |- |
CORRECT |ANSWER✔✔-A |Sinkhole |collapse
B |Sprinkler |leakage
C |Smoke
D |Earth |Movement |( |Not |Covered |)(*)
Which |of |the |following |would |not |be |covered |under |an |Installation |Floater? |- |CORRECT |
ANSWER✔✔-A |Electrical |equipment
B |Carpeting
C |Construction |equipment |( |Not |Covered |)(*)
D |Elevators
Under |the |PAP, |a |temporary |substitute |would |be |covered |if |used: |- |CORRECT |ANSWER✔✔-A |
temporary |substitute |is |a |covered |auto |as |long |as |an |owned |car |is |out |of |normal |use |due |to |
breakdown, |repair, |servicing, |loss, |or |destruction.
,preservation |of |property |under |the |Building |and |Personal |Property |Coverage |Form? |- |CORRECT
|ANSWER✔✔-The |policy |provides |open |perils |coverage |for |30 |days |on |insured |property |that |is
|being |moved |or |temporarily |stored |at |another |location |because |of |the |endangerment |of |a |
covered |peril
Employee |theft |or |dishonesty |
a |commercial |crime |policy |- |CORRECT |ANSWER✔✔-covers |loss |of, |or |damage |to, |money, |
securities, |and |other |property |committed |by |an |employee, |whether |acting |alone |or |in |
collusion |with |others, |that |results |directly |from |theft.
After |noticing |the |disappearance |of |office |supplies |from |within |a |private |office |facility |is |an |
example.
In |which |section |of |the |Workers' |Compensation |and |Employer |Liability |policy |would |the |policy |
conditions |be |found? |- |CORRECT |ANSWER✔✔-The |policy |Workers' |Compensation |contains |the
|following |parts: |General |Section, |Part |One |- |Workers' |Compensation |Insurance, |Part |Two |- |
Employers |Liability |Insurance, |Part |Three |- |Other |States |Insurance, |Part |Four |- |Your |Duties |if |
Injury |Occurs, |Part |Five |- |Premium, |Part |Six |- |(Conditions).
Which |of |the |following |powers |describes |the |authority |stated |in |an |agent's |agency |contract? |- |
CORRECT |ANSWER✔✔-Express
The |agency |contract, |which |exists |between |an |insurer |and |a |producer, |sets |forth |the |powers |
that |are |granted |to |the |producer. |These |powers |are |referred |to |as |express |because |they |are |
directly |stated |in |the |contract.
Pure |Risk
Insurance |is |designed |to |provide |protection |against |which |of |the |following? |- |CORRECT |
ANSWER✔✔-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.
,Contribution |by |equal |shares |- |CORRECT |ANSWER✔✔-Under |a |contribution |by |equal |shares |
provision, |each |insurer |pays |an |equal |amount |to |the |loss |settlement |until |the |loss |is |paid, |or |
until |each |insurer |has |exhausted |its |limits |of |insurance, |whichever |comes |first.
The |policy |limit |- |CORRECT |ANSWER✔✔-A |total |loss |under |a |valued |policy |is |payable |based |on
|the |policy |limit |listed |on |the |declarations |page.
An |insured |owns |a |home |with |a |replacement |cost |of |$300,000 |and |a |market |value |of |
$250,000. |What |is |the |most |a |valued |policy |will |pay |in |the |event |of |a |total |loss |without |a |
deductible( |is |an |example |)
Occurrence |- |CORRECT |ANSWER✔✔-An |event |that |happens
An |occurrence |form |provides |coverage |for |losses |that |take |place |during |the |policy |period. |
It |doesn't |matter |when |the |loss |is |reported; |what |matters |is |when |the |loss |occurred. |
The |key |in |this |form |is |the |date |the |loss |actually |happened |and |if |it |happened |when |the |policy
|was |in |effect.
Supplementary |payments |under |Part |A |of |the |Personal |Auto |Policy |- |CORRECT |ANSWER✔✔-
Only |bail |bonds |is |a |supplementary |payment. |The |policy |limit |is |$250.
$100 |for |bail |bonds
Choose |the |statement |that |is |false |about |the |FAIR |plan. |- |CORRECT |ANSWER✔✔-A |FAIR |means
|Fair |Access |to |Insurance |Requirements
B |It |provides |basic |property |coverage |to |those |who |have |been |rejected |in |the |standard |market
C |It |provides |property |coverage |to |both |residential |and |farm |dwellings |(Farm |property |is |not |
eligible)(*)
D |Agents |cannot |bind |FAIR |plan |coverage
Which |of |the |following |workers |would |be |eligible |for |Workers' |Compensation? |- |CORRECT |
ANSWER✔✔-A |Domestic |employees
, B |Part-time |worker |(*)
C |Casual |laborer
D |Farm |laborer
Which |of |the |following |is |true |regarding |the |Self-Insured |Workers' |Compensation |Program? |- |
CORRECT |ANSWER✔✔-A
Sometimes |large |employers |are |attracted |to |self-insurance |plans |because |losses |can |be |
predictable |and |benefits |are |capped |by |statute |(*)
B
Self-insurance |for |Workers' |Compensation |is |most |generally |used |by |smaller |employers, |who |
cannot |afford |to |purchase |Workers' |Compensation |insurance
C
Benefits |under |self-insurance |differ |from |those |provided |by |Workers' |Compensation |insurers
D
Self-insurance |is |allowed |in |all |states
Choose |the |false |statement |regarding |the |application |of |coverage |under |the |Products |
Exposure |Liability |Coverage. |- |CORRECT |ANSWER✔✔-A
Coverage |applies |to |damage |to |the |product |itself |(*)
B
Coverage |applies |to |property |damage |the |product |causes
C
Coverage |applies |to |bodily |injury |the |product |causes
D
Coverage |applies |to |bodily |injury |occurring |away |from |premises |the |insured |owns |or |rents
Exam Questions with correct answers
Temporary |Total |Disability |may |be |described |as: |- |CORRECT |ANSWER✔✔-Inability |to |return |to |
any |employment |while |recovering
Supplementary |Payment |under |Part |A |of |the |Personal |Auto |Policy? |- |CORRECT |ANSWER✔✔-A |
Up |to |$250 |for |the |cost |of |bail |bonds
B |Payment |for |lost |earnings |up |to |$200/day
C |Medical |payments |for |an |occupant |of |an |insured |vehicle |(Not |included)(*)
D |Reasonable |expenses |incurred |at |the |insurer's |request
The |Commercial |basic |Cause |of |Loss |Form |does |not |cover |which |of |the |following |perils? |- |
CORRECT |ANSWER✔✔-A |Sinkhole |collapse
B |Sprinkler |leakage
C |Smoke
D |Earth |Movement |( |Not |Covered |)(*)
Which |of |the |following |would |not |be |covered |under |an |Installation |Floater? |- |CORRECT |
ANSWER✔✔-A |Electrical |equipment
B |Carpeting
C |Construction |equipment |( |Not |Covered |)(*)
D |Elevators
Under |the |PAP, |a |temporary |substitute |would |be |covered |if |used: |- |CORRECT |ANSWER✔✔-A |
temporary |substitute |is |a |covered |auto |as |long |as |an |owned |car |is |out |of |normal |use |due |to |
breakdown, |repair, |servicing, |loss, |or |destruction.
,preservation |of |property |under |the |Building |and |Personal |Property |Coverage |Form? |- |CORRECT
|ANSWER✔✔-The |policy |provides |open |perils |coverage |for |30 |days |on |insured |property |that |is
|being |moved |or |temporarily |stored |at |another |location |because |of |the |endangerment |of |a |
covered |peril
Employee |theft |or |dishonesty |
a |commercial |crime |policy |- |CORRECT |ANSWER✔✔-covers |loss |of, |or |damage |to, |money, |
securities, |and |other |property |committed |by |an |employee, |whether |acting |alone |or |in |
collusion |with |others, |that |results |directly |from |theft.
After |noticing |the |disappearance |of |office |supplies |from |within |a |private |office |facility |is |an |
example.
In |which |section |of |the |Workers' |Compensation |and |Employer |Liability |policy |would |the |policy |
conditions |be |found? |- |CORRECT |ANSWER✔✔-The |policy |Workers' |Compensation |contains |the
|following |parts: |General |Section, |Part |One |- |Workers' |Compensation |Insurance, |Part |Two |- |
Employers |Liability |Insurance, |Part |Three |- |Other |States |Insurance, |Part |Four |- |Your |Duties |if |
Injury |Occurs, |Part |Five |- |Premium, |Part |Six |- |(Conditions).
Which |of |the |following |powers |describes |the |authority |stated |in |an |agent's |agency |contract? |- |
CORRECT |ANSWER✔✔-Express
The |agency |contract, |which |exists |between |an |insurer |and |a |producer, |sets |forth |the |powers |
that |are |granted |to |the |producer. |These |powers |are |referred |to |as |express |because |they |are |
directly |stated |in |the |contract.
Pure |Risk
Insurance |is |designed |to |provide |protection |against |which |of |the |following? |- |CORRECT |
ANSWER✔✔-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.
,Contribution |by |equal |shares |- |CORRECT |ANSWER✔✔-Under |a |contribution |by |equal |shares |
provision, |each |insurer |pays |an |equal |amount |to |the |loss |settlement |until |the |loss |is |paid, |or |
until |each |insurer |has |exhausted |its |limits |of |insurance, |whichever |comes |first.
The |policy |limit |- |CORRECT |ANSWER✔✔-A |total |loss |under |a |valued |policy |is |payable |based |on
|the |policy |limit |listed |on |the |declarations |page.
An |insured |owns |a |home |with |a |replacement |cost |of |$300,000 |and |a |market |value |of |
$250,000. |What |is |the |most |a |valued |policy |will |pay |in |the |event |of |a |total |loss |without |a |
deductible( |is |an |example |)
Occurrence |- |CORRECT |ANSWER✔✔-An |event |that |happens
An |occurrence |form |provides |coverage |for |losses |that |take |place |during |the |policy |period. |
It |doesn't |matter |when |the |loss |is |reported; |what |matters |is |when |the |loss |occurred. |
The |key |in |this |form |is |the |date |the |loss |actually |happened |and |if |it |happened |when |the |policy
|was |in |effect.
Supplementary |payments |under |Part |A |of |the |Personal |Auto |Policy |- |CORRECT |ANSWER✔✔-
Only |bail |bonds |is |a |supplementary |payment. |The |policy |limit |is |$250.
$100 |for |bail |bonds
Choose |the |statement |that |is |false |about |the |FAIR |plan. |- |CORRECT |ANSWER✔✔-A |FAIR |means
|Fair |Access |to |Insurance |Requirements
B |It |provides |basic |property |coverage |to |those |who |have |been |rejected |in |the |standard |market
C |It |provides |property |coverage |to |both |residential |and |farm |dwellings |(Farm |property |is |not |
eligible)(*)
D |Agents |cannot |bind |FAIR |plan |coverage
Which |of |the |following |workers |would |be |eligible |for |Workers' |Compensation? |- |CORRECT |
ANSWER✔✔-A |Domestic |employees
, B |Part-time |worker |(*)
C |Casual |laborer
D |Farm |laborer
Which |of |the |following |is |true |regarding |the |Self-Insured |Workers' |Compensation |Program? |- |
CORRECT |ANSWER✔✔-A
Sometimes |large |employers |are |attracted |to |self-insurance |plans |because |losses |can |be |
predictable |and |benefits |are |capped |by |statute |(*)
B
Self-insurance |for |Workers' |Compensation |is |most |generally |used |by |smaller |employers, |who |
cannot |afford |to |purchase |Workers' |Compensation |insurance
C
Benefits |under |self-insurance |differ |from |those |provided |by |Workers' |Compensation |insurers
D
Self-insurance |is |allowed |in |all |states
Choose |the |false |statement |regarding |the |application |of |coverage |under |the |Products |
Exposure |Liability |Coverage. |- |CORRECT |ANSWER✔✔-A
Coverage |applies |to |damage |to |the |product |itself |(*)
B
Coverage |applies |to |property |damage |the |product |causes
C
Coverage |applies |to |bodily |injury |the |product |causes
D
Coverage |applies |to |bodily |injury |occurring |away |from |premises |the |insured |owns |or |rents
