AD BANKER COMPREHENSIVE EXAM
2025
AD BANKER COMPREHENSIVE EXAM
2025/2026 COMPLETE verifies
QUESTIONS AND CORRECT ANSWERS
|ALREADY GRADED A+||BRAND NEW!!
Beth exercised an owner's option on a life policy to stop paying premiums but continue to be
covered until she was age 100. Which Nonforfeiture Option did she choose?
A Paid-Up Additions
B Extended Term
C Reduced Paid-Up
D Paid-Up Option
C Reduced Paid-Up
The Nonforfeiture Option that would allow Beth to stop making premium payments and continue to
be covered to age 100, but for a reduced face amount, is Reduced Paid-Up. Paid-Up Additions and
the Paid-Up Option are Dividend Options.
What taxes apply to the benefits under an individual Disability Income Policy on which the insured
has paid the premiums?
A Capital gains tax
B FICA tax
C Income tax
D No tax
A+ TEST BANK 1
, AD BANKER COMPREHENSIVE EXAM
2025
D No tax
Benefits received from an individual Disability Income Policy are not subject to taxation.
If the insured dies while the _______ period is in effect, the death benefit paid is the face amount,
minus the premiums due.
A Settlement
B Grace
C Incontestability
D Reinstatement
B Grace
If the insured dies during the grace period, the death benefit of the policy is payable to the
beneficiary, minus any premiums or loans due.
All of the following statements about Group Life Insurance are true, except:
Employer-paid premiums are tax-deductible
B Employee paid premiums are not tax-deductible
C Employees receive a tax deduction for employer paid premiums
D Employees are taxed on any premiums paid on insurance in excess of $50,000
C Employees receive a tax deduction for employer paid premiums
Employer, not employee, paid premiums are tax deductible. Only when the insurance benefit
exceeds $50,000 does the employee have to report it as taxable income.
Which of the following is not a duty that the Commissioner must administer?
A Administer the Workers' Compensation system
B Enforce the state insurance laws
C Approve an insurance license for a producer
A+ TEST BANK 2
, AD BANKER COMPREHENSIVE EXAM
2025
D Make state insurance laws
D
Make state insurance laws
The Commissioner does not make or establish state insurance laws.
The waiting period from the start of a disability to be eligible to apply for Social Security disability is:
A 6 months
B 3 months
C 5 months
D 12 months
C 5 months
The waiting period to apply for Social Security is 5 full months from the start of a qualified disability.
A surgical procedure with a high level of difficulty is assigned a value and benefits for all other
procedures are paid based on a percentage of that value. These benefits are determined using a:
A Surgical schedule
B Coinsurance
C Flat benefit
D Relative value scale
D Relative value scale
A relative value scale assigns a value to a procedure with the highest level of difficulty and benefits
for all other covered procedures are based on a percentage. A surgical schedule fee specifies benefit
dollar limits for each covered surgical procedure.
A+ TEST BANK 3
, AD BANKER COMPREHENSIVE EXAM
2025
Which of the following will receive the smallest monthly income benefit check if an annuity is
annuitized?
A 65 year old male
B 65 year old female
C 50 year old female
D 50 year old male
C 50 year old female
The younger ages receive the smaller payments because they can be paid out for a longer period of
time. Females also receive smaller income checks due to a longer life expectancy.
Insurers include provisions in contracts to help reduce unnecessary claims and the overpayment of
claims. Which of the following is not one of those provisions?
A Emergency Services
B Concurrent Review
C Consideration Clause
D Mandatory Second Surgical Option
C Consideration Clause
The other choices are Managed Care Provisions designed to contain costs. The Consideration Clause
stipulates that the payment of the first premium and the statements in the application are the
applicant's consideration, and the insurer's consideration is the promise to pay within the contract
terms.
If the producer discovers that the applicant is not in good health at the time of policy delivery, what
should the next step be?
A+ TEST BANK 4
2025
AD BANKER COMPREHENSIVE EXAM
2025/2026 COMPLETE verifies
QUESTIONS AND CORRECT ANSWERS
|ALREADY GRADED A+||BRAND NEW!!
Beth exercised an owner's option on a life policy to stop paying premiums but continue to be
covered until she was age 100. Which Nonforfeiture Option did she choose?
A Paid-Up Additions
B Extended Term
C Reduced Paid-Up
D Paid-Up Option
C Reduced Paid-Up
The Nonforfeiture Option that would allow Beth to stop making premium payments and continue to
be covered to age 100, but for a reduced face amount, is Reduced Paid-Up. Paid-Up Additions and
the Paid-Up Option are Dividend Options.
What taxes apply to the benefits under an individual Disability Income Policy on which the insured
has paid the premiums?
A Capital gains tax
B FICA tax
C Income tax
D No tax
A+ TEST BANK 1
, AD BANKER COMPREHENSIVE EXAM
2025
D No tax
Benefits received from an individual Disability Income Policy are not subject to taxation.
If the insured dies while the _______ period is in effect, the death benefit paid is the face amount,
minus the premiums due.
A Settlement
B Grace
C Incontestability
D Reinstatement
B Grace
If the insured dies during the grace period, the death benefit of the policy is payable to the
beneficiary, minus any premiums or loans due.
All of the following statements about Group Life Insurance are true, except:
Employer-paid premiums are tax-deductible
B Employee paid premiums are not tax-deductible
C Employees receive a tax deduction for employer paid premiums
D Employees are taxed on any premiums paid on insurance in excess of $50,000
C Employees receive a tax deduction for employer paid premiums
Employer, not employee, paid premiums are tax deductible. Only when the insurance benefit
exceeds $50,000 does the employee have to report it as taxable income.
Which of the following is not a duty that the Commissioner must administer?
A Administer the Workers' Compensation system
B Enforce the state insurance laws
C Approve an insurance license for a producer
A+ TEST BANK 2
, AD BANKER COMPREHENSIVE EXAM
2025
D Make state insurance laws
D
Make state insurance laws
The Commissioner does not make or establish state insurance laws.
The waiting period from the start of a disability to be eligible to apply for Social Security disability is:
A 6 months
B 3 months
C 5 months
D 12 months
C 5 months
The waiting period to apply for Social Security is 5 full months from the start of a qualified disability.
A surgical procedure with a high level of difficulty is assigned a value and benefits for all other
procedures are paid based on a percentage of that value. These benefits are determined using a:
A Surgical schedule
B Coinsurance
C Flat benefit
D Relative value scale
D Relative value scale
A relative value scale assigns a value to a procedure with the highest level of difficulty and benefits
for all other covered procedures are based on a percentage. A surgical schedule fee specifies benefit
dollar limits for each covered surgical procedure.
A+ TEST BANK 3
, AD BANKER COMPREHENSIVE EXAM
2025
Which of the following will receive the smallest monthly income benefit check if an annuity is
annuitized?
A 65 year old male
B 65 year old female
C 50 year old female
D 50 year old male
C 50 year old female
The younger ages receive the smaller payments because they can be paid out for a longer period of
time. Females also receive smaller income checks due to a longer life expectancy.
Insurers include provisions in contracts to help reduce unnecessary claims and the overpayment of
claims. Which of the following is not one of those provisions?
A Emergency Services
B Concurrent Review
C Consideration Clause
D Mandatory Second Surgical Option
C Consideration Clause
The other choices are Managed Care Provisions designed to contain costs. The Consideration Clause
stipulates that the payment of the first premium and the statements in the application are the
applicant's consideration, and the insurer's consideration is the promise to pay within the contract
terms.
If the producer discovers that the applicant is not in good health at the time of policy delivery, what
should the next step be?
A+ TEST BANK 4
