AD Banker Property & Casualty Practice Test Newest 2025
Questions and Answers Graded A+|100% Guarantee Pass!!!
Taking action to minimize the severity of a potential loss - CORRECT ANSWERWhich of
the following is an example of risk reduction?
A. Transferring risk to an insurance company
B. Taking action to minimize the severity of a potential loss
C. Insuring only those risks that threaten the financial stability of the insured
D. Eliminating exposure to a specific risk
,express powers - CORRECT ANSWERThe authority of a producer that is stated in his/her
agency contract, are said to be:
A. Express Powers
B. Implied Powers
C. Assumed Powers
D. Apparent Powers
residual Market - CORRECT ANSWERWhere can an insured find insurance coverage after
being rejected by insurer A due to claims history?
a risk - CORRECT ANSWERpossibility of a loss is called
The insured is restored to the same financial condition as prior to the loss, with no loss or gain -
CORRECT ANSWERWhich of the following best describes the principle of Indemnity?
A. The insured is restored to a financial condition as good as, or better than, the insured was
before the loss
B. The insured compensates the insurer for any expenses it incurs in adjusting the loss
C. The insured is restored to the same financial condition as prior to the loss, with no loss or
gain
, D. The insureds position is not improved after sustaining a loss
An operation of drug smuggling - CORRECT ANSWERAn applicant could purchase an
insurance policy to cover losses from all the following, except:
A. An operation of drug smuggling
B. Loss of assets through tort actions brought against the person
C. Sudden and direct damage to property by natural causes
D. Loss of property through burglary or theft
This statement is considered a ________.
Consideration - CORRECT ANSWERIn an insurance contract, the value that each party
gives the other is called the _____________.
Admitted - CORRECT ANSWERAn insurer that is authorized to do business in a particular
state is said to be ________.
Insuring Agreement - CORRECT ANSWERWhich part of a property insurance policy
describes the perils?
Questions and Answers Graded A+|100% Guarantee Pass!!!
Taking action to minimize the severity of a potential loss - CORRECT ANSWERWhich of
the following is an example of risk reduction?
A. Transferring risk to an insurance company
B. Taking action to minimize the severity of a potential loss
C. Insuring only those risks that threaten the financial stability of the insured
D. Eliminating exposure to a specific risk
,express powers - CORRECT ANSWERThe authority of a producer that is stated in his/her
agency contract, are said to be:
A. Express Powers
B. Implied Powers
C. Assumed Powers
D. Apparent Powers
residual Market - CORRECT ANSWERWhere can an insured find insurance coverage after
being rejected by insurer A due to claims history?
a risk - CORRECT ANSWERpossibility of a loss is called
The insured is restored to the same financial condition as prior to the loss, with no loss or gain -
CORRECT ANSWERWhich of the following best describes the principle of Indemnity?
A. The insured is restored to a financial condition as good as, or better than, the insured was
before the loss
B. The insured compensates the insurer for any expenses it incurs in adjusting the loss
C. The insured is restored to the same financial condition as prior to the loss, with no loss or
gain
, D. The insureds position is not improved after sustaining a loss
An operation of drug smuggling - CORRECT ANSWERAn applicant could purchase an
insurance policy to cover losses from all the following, except:
A. An operation of drug smuggling
B. Loss of assets through tort actions brought against the person
C. Sudden and direct damage to property by natural causes
D. Loss of property through burglary or theft
This statement is considered a ________.
Consideration - CORRECT ANSWERIn an insurance contract, the value that each party
gives the other is called the _____________.
Admitted - CORRECT ANSWERAn insurer that is authorized to do business in a particular
state is said to be ________.
Insuring Agreement - CORRECT ANSWERWhich part of a property insurance policy
describes the perils?
