AD BANKER COMPREHENSIVE EXAM
2025
AD BANKER COMPREHENSIVE EXAM
2025/2026 COMPLETE verifies
QUESTIONS AND CORRECT ANSWERS
|ALREADY GRADED A+||BRAND NEW!!
Which provision states that the insurance company must pay claims immediately?
A Payment of Claims
B Time of Payment of Claims
C Legal Actions
D Relation of Earnings to Insurance
B Time of Payment of Claims
Time of Payment of Claims (a Mandatory Uniform Provision) stipulates that claims are to be paid
immediately upon written proof of loss.
In the event a parent becomes disabled or dies while paying premiums on a life insurance policy for a
minor child, which provision would allow the policy to continue in force until the child reaches a
predetermined age?
A Return of Premium Rider
B Minor Child Rider
C Payor Benefit (Waiver of Payor Premium)
D Cost of Premium Rider
C Payor Benefit (Waiver of Payor Premium)
A Payor benefit rider waives the policy premium in the event of the death or total disability of the
premium payor. Usually found in policies covering children to the child's age 21 or 25.
If Jon dies with an outstanding policy loan of $10,000 on his $100,000 interest-sensitive whole life
policy that has $15,000 of cash value, what will his beneficiary receive at the time of claim?
A+ TEST BANK 1
, AD BANKER COMPREHENSIVE EXAM
2025
A $90,000
B $105,000
C $115,000
D $100,000
A $90,000
Upon death, the insurance company recovers any outstanding loan prior to paying out a claim to the
beneficiary.
Which is not a qualifying event for the continuation of dependent coverage under the Consolidated
Omnibus Budget Reconciliation Act?
A The employee's eligibility for Medicare benefits
B Termination of the employee for theft
C Death of the employee
D Divorce or legal separation
B Termination of the employee for theft
This would be termination for gross misconduct and neither the employee nor his/her dependents
would be eligible for continuation under COBRA.
Which of the following is TRUE of a term rider when attached to a permanent life policy?
A It always is in the amount of the base policy
B It only pays out a death benefit in cases of accidental death
C It allows the policy to achieve paid up status at the end of the term
D It can provide additional temporary coverage on the insured or on other members of the family
D
It can provide additional temporary coverage on the insured or on other members of the family
A+ TEST BANK 2
, AD BANKER COMPREHENSIVE EXAM
2025
A term rider provides additional death benefit on the primary insured or other named insureds. At
some point, the coverage becomes unaffordable, can be converted, or it expires.
Who receives the endowment value of a whole life policy?
A The policyowner
B The beneficiary
C The producer
D The insurance company
AThe policyowner
The policyowner retains all rights in the policy up to and including receiving the endowment
proceeds.
All of these are payment structure options, except:
A Usual, Customary, Reasonable (UCR)
B Fee-for-service
C Prepaid
D Monthly Limit
D Monthly Limit
The payment structure options are: fee-for- service, prepaid, UCR, lifetime limit, annual limit, and per-
cause.
Jay receives an annual disability benefit of $10,000. His employer contributed 75% of the premium.
How much of Jay's benefit is subject to income tax?
A $7,500
A+ TEST BANK 3
, AD BANKER COMPREHENSIVE EXAM
2025
B $10,000
C $2,500
D None
A $7,500
Jay is covered under a contributory plan in which the employer is contributing 75% of the premium,
so 75% of the $10,000 benefit ($7,500) is subject to income tax.
A producer gathers information about the applicant for the insurer in order to avoid adverse
selection. This is considered to be:
A Application process
B Field underwriting
C Principle of indemnity
D Law of large numbers
B Field underwriting
The agent's primary underwriting role is to make sure the application provides proper information
for the insurer.
The following statement is true concerning the income received from an individually owned disability
income policy:
A Premiums are tax sheltered, Income benefit taxable
B Premiums paid with after tax dollars, Income benefit not taxable
C Premiums are tax sheltered, Income benefit not taxable
D Premiums paid with after tax dollars, Income benefit taxable
B Premiums paid with after tax dollars, Income benefit not taxable
The premiums are not tax deductible and the benefits are not subject to federal income or FICA tax.
A+ TEST BANK 4
2025
AD BANKER COMPREHENSIVE EXAM
2025/2026 COMPLETE verifies
QUESTIONS AND CORRECT ANSWERS
|ALREADY GRADED A+||BRAND NEW!!
Which provision states that the insurance company must pay claims immediately?
A Payment of Claims
B Time of Payment of Claims
C Legal Actions
D Relation of Earnings to Insurance
B Time of Payment of Claims
Time of Payment of Claims (a Mandatory Uniform Provision) stipulates that claims are to be paid
immediately upon written proof of loss.
In the event a parent becomes disabled or dies while paying premiums on a life insurance policy for a
minor child, which provision would allow the policy to continue in force until the child reaches a
predetermined age?
A Return of Premium Rider
B Minor Child Rider
C Payor Benefit (Waiver of Payor Premium)
D Cost of Premium Rider
C Payor Benefit (Waiver of Payor Premium)
A Payor benefit rider waives the policy premium in the event of the death or total disability of the
premium payor. Usually found in policies covering children to the child's age 21 or 25.
If Jon dies with an outstanding policy loan of $10,000 on his $100,000 interest-sensitive whole life
policy that has $15,000 of cash value, what will his beneficiary receive at the time of claim?
A+ TEST BANK 1
, AD BANKER COMPREHENSIVE EXAM
2025
A $90,000
B $105,000
C $115,000
D $100,000
A $90,000
Upon death, the insurance company recovers any outstanding loan prior to paying out a claim to the
beneficiary.
Which is not a qualifying event for the continuation of dependent coverage under the Consolidated
Omnibus Budget Reconciliation Act?
A The employee's eligibility for Medicare benefits
B Termination of the employee for theft
C Death of the employee
D Divorce or legal separation
B Termination of the employee for theft
This would be termination for gross misconduct and neither the employee nor his/her dependents
would be eligible for continuation under COBRA.
Which of the following is TRUE of a term rider when attached to a permanent life policy?
A It always is in the amount of the base policy
B It only pays out a death benefit in cases of accidental death
C It allows the policy to achieve paid up status at the end of the term
D It can provide additional temporary coverage on the insured or on other members of the family
D
It can provide additional temporary coverage on the insured or on other members of the family
A+ TEST BANK 2
, AD BANKER COMPREHENSIVE EXAM
2025
A term rider provides additional death benefit on the primary insured or other named insureds. At
some point, the coverage becomes unaffordable, can be converted, or it expires.
Who receives the endowment value of a whole life policy?
A The policyowner
B The beneficiary
C The producer
D The insurance company
AThe policyowner
The policyowner retains all rights in the policy up to and including receiving the endowment
proceeds.
All of these are payment structure options, except:
A Usual, Customary, Reasonable (UCR)
B Fee-for-service
C Prepaid
D Monthly Limit
D Monthly Limit
The payment structure options are: fee-for- service, prepaid, UCR, lifetime limit, annual limit, and per-
cause.
Jay receives an annual disability benefit of $10,000. His employer contributed 75% of the premium.
How much of Jay's benefit is subject to income tax?
A $7,500
A+ TEST BANK 3
, AD BANKER COMPREHENSIVE EXAM
2025
B $10,000
C $2,500
D None
A $7,500
Jay is covered under a contributory plan in which the employer is contributing 75% of the premium,
so 75% of the $10,000 benefit ($7,500) is subject to income tax.
A producer gathers information about the applicant for the insurer in order to avoid adverse
selection. This is considered to be:
A Application process
B Field underwriting
C Principle of indemnity
D Law of large numbers
B Field underwriting
The agent's primary underwriting role is to make sure the application provides proper information
for the insurer.
The following statement is true concerning the income received from an individually owned disability
income policy:
A Premiums are tax sheltered, Income benefit taxable
B Premiums paid with after tax dollars, Income benefit not taxable
C Premiums are tax sheltered, Income benefit not taxable
D Premiums paid with after tax dollars, Income benefit taxable
B Premiums paid with after tax dollars, Income benefit not taxable
The premiums are not tax deductible and the benefits are not subject to federal income or FICA tax.
A+ TEST BANK 4
