AD Banker Comprehensive Exam
UPDATED Exam Questions and CORRECT
Answers
5 months - CORRECT ANSWER - The waiting period from the start of a disability to be
eligible to apply for Social Security disability is:
Nonoccupational Basis - CORRECT ANSWER - Most group Disability Income contracts
are offered on a(n):
Dental expense insurance deductibles are normally waived for all of the following, except: -
CORRECT ANSWER - Routinely paying premiums on time and in full
Which of the following documents used for underwriting can be completed by talking to the
proposed insured over the phone?
A
APS
B
Inspection report
C
Agent's report
D
MIB - CORRECT ANSWER - Inspection Report
Which of the following business disability plans can create a taxable event:
A
Key person disability insurance
,B
Business overhead expense
C
Disability buy-sell agreement
D
Accidental death and dismemberment - CORRECT ANSWER - Business overhead
expense
All of the following are correct regarding the coverage of a cancer policy, except:
Coverage under this policy will pay for losses before primary medical expense policiesr to
prevent an insured from reaching annual or lifetime policy limits
B
Benefits are provided for losses associated with a cancer diagnosis
C
Coverage for experimental treatments is usually provided
D
The policy will only provide benefits for losses covered on an underlying medical expense policy
- CORRECT ANSWER - The policy will only provide benefits for losses covered on an
underlying medical expense policy
After K completed an application for health insurance, a paramedical scheduled an appointment
to check height, weight, blood pressure, and collect blood and urine samples. This is an example
of which source of underwriting? - CORRECT ANSWER - Medical exam
Under the Legal Actions Mandatory Uniform Provision, an insured must wait at least _____ days
after providing proof of loss before he or she can take legal action against the insurer. -
CORRECT ANSWER - 60 days
When underwriting group life, the underwriter treats the group as if it were: - CORRECT
ANSWER - One individual
, If an employer purchases a Key Person disability policy on an employee, when would the
disability benefit be received income tax free? - CORRECT ANSWER - It is by definition
tax-free since the employer buys it for his or her own benefit
Upon joining an HMO, the plan will require the subscriber to select a: - CORRECT
ANSWER - Primary Care Physician
What is an impairment rider? - CORRECT ANSWER - It excludes specific conditions that
normally would cause the entire policy to be declined
An individual is eligible for a Medicare Supplement as early as age: - CORRECT
ANSWER - 65
It is the _________ who issues a Certificate of Authority enabling an insurer to conduct
insurance business within a particular state. - CORRECT ANSWER - State insurance
Commissioner or Director
PPO plans pay providers based on a: - CORRECT ANSWER - Discounted fee for service
negotiated in advance
If an individual has limited assets and low income, which of the following would most likely
cover the cost of long-term care? - CORRECT ANSWER - Medicaid
A Long-Term Care plan may deny coverage for preexisting conditions for no more than how
many months after the effective date of coverage? - CORRECT ANSWER -6
In the event there is a policy issued and there are questions on the insurance application that went
unanswered: - CORRECT ANSWER - It will be assumed that the insurer waived their
right to have answers to those questions
UPDATED Exam Questions and CORRECT
Answers
5 months - CORRECT ANSWER - The waiting period from the start of a disability to be
eligible to apply for Social Security disability is:
Nonoccupational Basis - CORRECT ANSWER - Most group Disability Income contracts
are offered on a(n):
Dental expense insurance deductibles are normally waived for all of the following, except: -
CORRECT ANSWER - Routinely paying premiums on time and in full
Which of the following documents used for underwriting can be completed by talking to the
proposed insured over the phone?
A
APS
B
Inspection report
C
Agent's report
D
MIB - CORRECT ANSWER - Inspection Report
Which of the following business disability plans can create a taxable event:
A
Key person disability insurance
,B
Business overhead expense
C
Disability buy-sell agreement
D
Accidental death and dismemberment - CORRECT ANSWER - Business overhead
expense
All of the following are correct regarding the coverage of a cancer policy, except:
Coverage under this policy will pay for losses before primary medical expense policiesr to
prevent an insured from reaching annual or lifetime policy limits
B
Benefits are provided for losses associated with a cancer diagnosis
C
Coverage for experimental treatments is usually provided
D
The policy will only provide benefits for losses covered on an underlying medical expense policy
- CORRECT ANSWER - The policy will only provide benefits for losses covered on an
underlying medical expense policy
After K completed an application for health insurance, a paramedical scheduled an appointment
to check height, weight, blood pressure, and collect blood and urine samples. This is an example
of which source of underwriting? - CORRECT ANSWER - Medical exam
Under the Legal Actions Mandatory Uniform Provision, an insured must wait at least _____ days
after providing proof of loss before he or she can take legal action against the insurer. -
CORRECT ANSWER - 60 days
When underwriting group life, the underwriter treats the group as if it were: - CORRECT
ANSWER - One individual
, If an employer purchases a Key Person disability policy on an employee, when would the
disability benefit be received income tax free? - CORRECT ANSWER - It is by definition
tax-free since the employer buys it for his or her own benefit
Upon joining an HMO, the plan will require the subscriber to select a: - CORRECT
ANSWER - Primary Care Physician
What is an impairment rider? - CORRECT ANSWER - It excludes specific conditions that
normally would cause the entire policy to be declined
An individual is eligible for a Medicare Supplement as early as age: - CORRECT
ANSWER - 65
It is the _________ who issues a Certificate of Authority enabling an insurer to conduct
insurance business within a particular state. - CORRECT ANSWER - State insurance
Commissioner or Director
PPO plans pay providers based on a: - CORRECT ANSWER - Discounted fee for service
negotiated in advance
If an individual has limited assets and low income, which of the following would most likely
cover the cost of long-term care? - CORRECT ANSWER - Medicaid
A Long-Term Care plan may deny coverage for preexisting conditions for no more than how
many months after the effective date of coverage? - CORRECT ANSWER -6
In the event there is a policy issued and there are questions on the insurance application that went
unanswered: - CORRECT ANSWER - It will be assumed that the insurer waived their
right to have answers to those questions
