A.D. Banker Final Exam Questions &
Answers 2023/2024
Which of the following situations will require proof of insurability? - ANSWER-Adjusting the face amount
up on a Universal Life insurance policy with Option A death benefit selected
Sean has a home with an mortgage. He needs life insurance to protect his family but also wants to leave
them without a mortgage payment if he dies. Ideally which of the following riders should he acquire? -
ANSWER-Decreasing Term Rider
What rider is designed to help the insured offset the effects of future inflation on the policy's face
amount? - ANSWER-Cost of Living
A good example of Risk Reduction might be: - ANSWER-When one takes action to minimize the severity
of a potential loss
In an insurance contract the value that each party gives the other is said to be the: - ANSWER-
Consideration
When an applicant does not smoke, exercises regularly, seldom drinks, and eats moderately and is
considered to be an above-average risk, they would likely qualify for: - ANSWER-Preferred status and pay
a lower premium
A group plan is designed to insure all of the following, except: - ANSWER-Creditors
Which of the following is included in Part II of a Life Insurance Application? - ANSWER-Family member's
age and cause of death
All of the following policies end when an insured dies, except: - ANSWER-Joint Survivorship
Money accumulated in a permanent policy that the policyowner may borrow via a policy loan or receive
if the policy is surrendered, refers to: - ANSWER-Cash Value
, The owner of a Variable Life Policy may allocate the premium into a sub-account which is owned by the
insurer, this sub-account is a part of what is also known as the: - ANSWER-Separate Account
Level, decreasing and increasing term refer to which policy feature? - ANSWER-Death Benefit
All of the following are statements are true of a juvenile policy, except: - ANSWER-The insured is the
premium payor
A married couple purchases a $250,000 Joint Life Policy. When the older of the two dies, what is the
amount payable to the survivor? - ANSWER-$250,000
Which of the following situations will require proof of insurability? - ANSWER-Adjusting the face amount
up on a Universal Life insurance policy with Option A death benefit selected
In a life settlement transaction who represents only the owner and owes a fiduciary duty to the owner to
act in the best interest according to the owner's instructions, regardless of the manner in which they are
compensated? - ANSWER-The Life Settlement Broker
Which of the following policies must be sold by prospectus? - ANSWER-Variable Whole Life
Which of the following beneficiary designations is a class designation? - ANSWER-Any Children of this
marriage
Annuities may be funded with either a lump sum or on either a ______ or a ______ basis. - ANSWER-
Periodic, flexible
Generally, corporations can use annuities to fund all of the following, except: - ANSWER-Estate Creation
Buy-Sell agreements are used for all of the following entities, except: - ANSWER-Large Public
Corporations
Answers 2023/2024
Which of the following situations will require proof of insurability? - ANSWER-Adjusting the face amount
up on a Universal Life insurance policy with Option A death benefit selected
Sean has a home with an mortgage. He needs life insurance to protect his family but also wants to leave
them without a mortgage payment if he dies. Ideally which of the following riders should he acquire? -
ANSWER-Decreasing Term Rider
What rider is designed to help the insured offset the effects of future inflation on the policy's face
amount? - ANSWER-Cost of Living
A good example of Risk Reduction might be: - ANSWER-When one takes action to minimize the severity
of a potential loss
In an insurance contract the value that each party gives the other is said to be the: - ANSWER-
Consideration
When an applicant does not smoke, exercises regularly, seldom drinks, and eats moderately and is
considered to be an above-average risk, they would likely qualify for: - ANSWER-Preferred status and pay
a lower premium
A group plan is designed to insure all of the following, except: - ANSWER-Creditors
Which of the following is included in Part II of a Life Insurance Application? - ANSWER-Family member's
age and cause of death
All of the following policies end when an insured dies, except: - ANSWER-Joint Survivorship
Money accumulated in a permanent policy that the policyowner may borrow via a policy loan or receive
if the policy is surrendered, refers to: - ANSWER-Cash Value
, The owner of a Variable Life Policy may allocate the premium into a sub-account which is owned by the
insurer, this sub-account is a part of what is also known as the: - ANSWER-Separate Account
Level, decreasing and increasing term refer to which policy feature? - ANSWER-Death Benefit
All of the following are statements are true of a juvenile policy, except: - ANSWER-The insured is the
premium payor
A married couple purchases a $250,000 Joint Life Policy. When the older of the two dies, what is the
amount payable to the survivor? - ANSWER-$250,000
Which of the following situations will require proof of insurability? - ANSWER-Adjusting the face amount
up on a Universal Life insurance policy with Option A death benefit selected
In a life settlement transaction who represents only the owner and owes a fiduciary duty to the owner to
act in the best interest according to the owner's instructions, regardless of the manner in which they are
compensated? - ANSWER-The Life Settlement Broker
Which of the following policies must be sold by prospectus? - ANSWER-Variable Whole Life
Which of the following beneficiary designations is a class designation? - ANSWER-Any Children of this
marriage
Annuities may be funded with either a lump sum or on either a ______ or a ______ basis. - ANSWER-
Periodic, flexible
Generally, corporations can use annuities to fund all of the following, except: - ANSWER-Estate Creation
Buy-Sell agreements are used for all of the following entities, except: - ANSWER-Large Public
Corporations
