AD Banker Property and Casualty
Comprehensive Exam questions and verified
answers (Detailed & Elaborated) ACTUAL
EXAM 2025 TEST 100% Solved 2025!!
Temporary Total Disability may be described as: - CORRECT ANSWERS Inability to return to any
employment while recovering
Supplementary Payment under Part A of the Personal Auto Policy? - CORRECT ANSWERS 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
ANSWERS 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 ANSWERS
A Electrical equipment
B Carpeting
C Construction equipment ( Not Covered )(*)
D Elevators
,Under the PAP, a temporary substitute would be covered if used: - CORRECT ANSWERS 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
ANSWERS 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 ANSWERS 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 ANSWERS 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
ANSWERS 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 ANSWERS
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 ANSWERS 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 ANSWERS 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 ANSWERS 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 ANSWERS 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 ANSWERS 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 ANSWERS
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
ANSWERS 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 ANSWERS 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
When his client's homeowners policy application is rejected by an insurance company due to
underwriting rules, an insurance agent may request coverage under which of the following? - CORRECT
ANSWERS A Write Your Own Homeowners Program
B FAIR Plan (*)
Comprehensive Exam questions and verified
answers (Detailed & Elaborated) ACTUAL
EXAM 2025 TEST 100% Solved 2025!!
Temporary Total Disability may be described as: - CORRECT ANSWERS Inability to return to any
employment while recovering
Supplementary Payment under Part A of the Personal Auto Policy? - CORRECT ANSWERS 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
ANSWERS 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 ANSWERS
A Electrical equipment
B Carpeting
C Construction equipment ( Not Covered )(*)
D Elevators
,Under the PAP, a temporary substitute would be covered if used: - CORRECT ANSWERS 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
ANSWERS 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 ANSWERS 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 ANSWERS 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
ANSWERS 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 ANSWERS
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 ANSWERS 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 ANSWERS 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 ANSWERS 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 ANSWERS 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 ANSWERS 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 ANSWERS
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
ANSWERS 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 ANSWERS 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
When his client's homeowners policy application is rejected by an insurance company due to
underwriting rules, an insurance agent may request coverage under which of the following? - CORRECT
ANSWERS A Write Your Own Homeowners Program
B FAIR Plan (*)
