A.D.BANKER Comprehensive Exam
Questions and Answers
Exclusive remedy means that: - Answer-Employees covered by Workers' Compensation insurance
cannot sue for work-related injury
What is the purpose of an Umbrella Liability Policy? - Answer-To cover large and catastrophic losses
Neither the Computer Fraud nor Funds Transfer Fraud forms cover which of the following claims? -
Answer-Damage to physical computer incurred while a customer is trying to illegally transfer money
from the bank
Under the Common Policy Conditions of the Commercial Package Policy the insurer does not have the
right to do which of the following? - Answer-Examine the insured's records at any time up to 5 years
after the policy expiration
Which of the following statements regarding flood insurance is not true? - Answer-No deductible
applies to loss of contents
The Accounts Receivable Coverage Form will cover loss of records that results from: - Answer-The
Accounts Receivable Coverage Form will cover loss of records that results from:
Under the PAP, after a collision the insured is entitled to Transportation expenses up to: - Answer-$600
,Which section of the BAP provides auto medical payments coverage? - Answer-This coverage is
available by endorsement only
What is the minimum amount of notice an insurer must provide to a policyholder in advance of
cancelling a commercial policy that has been in effect for more than 60 days for other than nonpayment
of premium? - Answer-20 days
Which of the following coverages is not included in the Basic Dwelling Form? - Answer-Additional Living
Expenses
Which of the following is true regarding the Fine Arts Floater? - Answer-It provides automatic coverage
on newly acquired items for 90 days
Choose the false statement regarding the coverage of property under a Homeowners Policy. - Answer-
Money is covered up to $500 per occurrence
What is the maximum the Supplementary Payments coverage of a BAP will pay for the cost of bail
bonds? - Answer-$2,000
Choose the false statement about the CGL policy. - Answer-A Products and Completed Operations
Liability claim will reduce the General Aggregate Limit of the Commercial General Liability Coverage Part
D's neighbor H keeps a venomous snake as a pet. D's son is bitten after teasing the snake with a stick.
After being sued by D's parents, H's insurance company claimed that the boy was acting negligently, and
therefore, H was not liable. The boy's lawyer claimed that the pet was so dangerous that it did not
relieve the owner of liability, an example of which principle? - Answer-Absolute liability
Which of the following autos is covered under Symbol 9 of the Business Auto Coverage Form? - Answer-
An auto owned by the insured's employee while used in the insured's business
, A Certificate of Insurance is: - Answer-Evidence of insurance coverage
Minimizing the chance of a loss is considered which of the following ways of managing risk? - Answer-
Reduction
Which of the following types of liability limits allow the most to be paid for a single occurrence without
regard for the number of claimants? - Answer-Combined Single Limit
Part D of the Personal Auto Policy provides which of the following coverages? - Answer-Coverage for
Damage to Your Auto
Under which circumstance could an employee sue his/her employer for a work-related injury? -
Answer-The employer fails to provide Workers' Compensation insurance
Which of the following is true regarding the Difference in Conditions Policy? - Answer-There is no
coinsurance clause or pro rata clause and it may be written for a different amount from the policy it
complements
Which of the following is included in Section III of the Businessowners Coverage Form? - Answer-
Common Policy Conditions
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? - Answer-The policy
limit
The voluntary surrender of a right is known as which of the following? - Answer-Waiver
An insurer's annual statement is due to be filed by: - Answer-1-Mar
Questions and Answers
Exclusive remedy means that: - Answer-Employees covered by Workers' Compensation insurance
cannot sue for work-related injury
What is the purpose of an Umbrella Liability Policy? - Answer-To cover large and catastrophic losses
Neither the Computer Fraud nor Funds Transfer Fraud forms cover which of the following claims? -
Answer-Damage to physical computer incurred while a customer is trying to illegally transfer money
from the bank
Under the Common Policy Conditions of the Commercial Package Policy the insurer does not have the
right to do which of the following? - Answer-Examine the insured's records at any time up to 5 years
after the policy expiration
Which of the following statements regarding flood insurance is not true? - Answer-No deductible
applies to loss of contents
The Accounts Receivable Coverage Form will cover loss of records that results from: - Answer-The
Accounts Receivable Coverage Form will cover loss of records that results from:
Under the PAP, after a collision the insured is entitled to Transportation expenses up to: - Answer-$600
,Which section of the BAP provides auto medical payments coverage? - Answer-This coverage is
available by endorsement only
What is the minimum amount of notice an insurer must provide to a policyholder in advance of
cancelling a commercial policy that has been in effect for more than 60 days for other than nonpayment
of premium? - Answer-20 days
Which of the following coverages is not included in the Basic Dwelling Form? - Answer-Additional Living
Expenses
Which of the following is true regarding the Fine Arts Floater? - Answer-It provides automatic coverage
on newly acquired items for 90 days
Choose the false statement regarding the coverage of property under a Homeowners Policy. - Answer-
Money is covered up to $500 per occurrence
What is the maximum the Supplementary Payments coverage of a BAP will pay for the cost of bail
bonds? - Answer-$2,000
Choose the false statement about the CGL policy. - Answer-A Products and Completed Operations
Liability claim will reduce the General Aggregate Limit of the Commercial General Liability Coverage Part
D's neighbor H keeps a venomous snake as a pet. D's son is bitten after teasing the snake with a stick.
After being sued by D's parents, H's insurance company claimed that the boy was acting negligently, and
therefore, H was not liable. The boy's lawyer claimed that the pet was so dangerous that it did not
relieve the owner of liability, an example of which principle? - Answer-Absolute liability
Which of the following autos is covered under Symbol 9 of the Business Auto Coverage Form? - Answer-
An auto owned by the insured's employee while used in the insured's business
, A Certificate of Insurance is: - Answer-Evidence of insurance coverage
Minimizing the chance of a loss is considered which of the following ways of managing risk? - Answer-
Reduction
Which of the following types of liability limits allow the most to be paid for a single occurrence without
regard for the number of claimants? - Answer-Combined Single Limit
Part D of the Personal Auto Policy provides which of the following coverages? - Answer-Coverage for
Damage to Your Auto
Under which circumstance could an employee sue his/her employer for a work-related injury? -
Answer-The employer fails to provide Workers' Compensation insurance
Which of the following is true regarding the Difference in Conditions Policy? - Answer-There is no
coinsurance clause or pro rata clause and it may be written for a different amount from the policy it
complements
Which of the following is included in Section III of the Businessowners Coverage Form? - Answer-
Common Policy Conditions
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? - Answer-The policy
limit
The voluntary surrender of a right is known as which of the following? - Answer-Waiver
An insurer's annual statement is due to be filed by: - Answer-1-Mar
