AD BANKER COMPREHENSIVE EXAM
2025
AD BANKER Comprehensive Exam Questions and
Correct Answers Brand New Version 2025 Top
Rated A+.
When coverage applies to losses from all perils except those specifically excluded, the policy is said
to be written on which of the following basis?
A
Open Perils
B
Valued
C
Named Perils
D
Agreed Amount
A Open Perils
The open perils policy insures against all perils that are not excluded, rather than enumerating the
perils being insured against.
The part of a property policy that gives basic information such as the named insured, a description of
the property, the location of the property, and the amount of premium involved, is known as the:
A
Declarations
B
Insuring Agreement
C
Policy Provisions
D
Conditions
A Declarations
The Declarations contain the information that is specific to the individual and property being insured.
Actual Cash Value is best defined as which of the following?
A
Appraised value
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, AD BANKER COMPREHENSIVE EXAM
2025
B
Replacement cost
C
Today's current price, minus depreciation
D
Market value
C Today's current price, minus depreciation
Actual Cash Value valuation provides that the policy will pay the cost to repair or replace the
damaged property at the time of loss, less a depreciation factor based upon the age of the property.
When the insurance company and insured cannot agree upon the amount of the loss, the person
selected to help the two hired appraisers is called a(n):
A
Adjuster
B
Claim representative
C
Agent
D
Umpire
D Umpire
Both the insurance company and insured's representatives (usually appraisers) will select a third
person to serve as an umpire. If the two appraisers fail to agree on the appraisal, they will submit
their differences to the umpire, and an agreement of any two of the three will set the amount of the
loss.
Which property insurance condition states that a suit may not be filed by the insured against the
insurer under certain circumstances?
A
Ordinance or Law
B
Legal Action Against Us
C
Loss Payment
D
Claim settlement
B Legal Action Against Us
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, AD BANKER COMPREHENSIVE EXAM
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Unless all terms of the policy have been complied with by the insured, the insured cannot file suit
against the insurer. An insured cannot ignore his/her responsibilities under the policy, then
subsequently bring legal action against the insurer.
The maximum amount payable for all losses within a policy period is known as the:
A
Aggregate limit
B
Per occurrence limit
C
Combined single limit
D
Per person limit
A Aggregate limit
The aggregate limit is reduced by the amount paid each time a claim is paid during the policy term.
Which of the following would be considered an attractive nuisance?
A
A back lawn
B
A toy store
C
A trampoline
D
A candy store
C A trampoline
Bodily Injury may include which of the following?
A
Loss of Earnings
B
False Arrest
C
Invasion of Privacy
D
Slander
A Loss of Earnings
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, AD BANKER COMPREHENSIVE EXAM
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Bodily injury includes such items as medical expenses, lost wages, mental anguish, death and
disfigurement.
The maximum amount a policy will pay in the event of a loss, regardless of the number of insureds,
claims made, lawsuits filed, or parties making claims is the:
A
Deductible
B
Premium
C
Limit of liability
D
Split limit
C Limit of liability
The limit of liability, or limits of insurance, are shown on the policy declarations page and are the
most paid by the policy regardless of the number of insureds, claims made, lawsuits filed, or parties
making claims or filing lawsuits.
A liability policy contains a per person bodily injury limit of $25,000 and a per occurrence limit of
$50,000. If an accident were to occur and three persons have claims of $20,000 each, the total
amount paid is:
A
$75,000
B
$50,000
C
$60,000
D
$25,000
B $50,000
The policy pays up to $25,000 for each person injured, but no more than $50,000 per occurrence,
regardless of the number of persons injured. Therefore, the limit for this accident is $50,000.
A+ TEST BANK 4
2025
AD BANKER Comprehensive Exam Questions and
Correct Answers Brand New Version 2025 Top
Rated A+.
When coverage applies to losses from all perils except those specifically excluded, the policy is said
to be written on which of the following basis?
A
Open Perils
B
Valued
C
Named Perils
D
Agreed Amount
A Open Perils
The open perils policy insures against all perils that are not excluded, rather than enumerating the
perils being insured against.
The part of a property policy that gives basic information such as the named insured, a description of
the property, the location of the property, and the amount of premium involved, is known as the:
A
Declarations
B
Insuring Agreement
C
Policy Provisions
D
Conditions
A Declarations
The Declarations contain the information that is specific to the individual and property being insured.
Actual Cash Value is best defined as which of the following?
A
Appraised value
A+ TEST BANK 1
, AD BANKER COMPREHENSIVE EXAM
2025
B
Replacement cost
C
Today's current price, minus depreciation
D
Market value
C Today's current price, minus depreciation
Actual Cash Value valuation provides that the policy will pay the cost to repair or replace the
damaged property at the time of loss, less a depreciation factor based upon the age of the property.
When the insurance company and insured cannot agree upon the amount of the loss, the person
selected to help the two hired appraisers is called a(n):
A
Adjuster
B
Claim representative
C
Agent
D
Umpire
D Umpire
Both the insurance company and insured's representatives (usually appraisers) will select a third
person to serve as an umpire. If the two appraisers fail to agree on the appraisal, they will submit
their differences to the umpire, and an agreement of any two of the three will set the amount of the
loss.
Which property insurance condition states that a suit may not be filed by the insured against the
insurer under certain circumstances?
A
Ordinance or Law
B
Legal Action Against Us
C
Loss Payment
D
Claim settlement
B Legal Action Against Us
A+ TEST BANK 2
, AD BANKER COMPREHENSIVE EXAM
2025
Unless all terms of the policy have been complied with by the insured, the insured cannot file suit
against the insurer. An insured cannot ignore his/her responsibilities under the policy, then
subsequently bring legal action against the insurer.
The maximum amount payable for all losses within a policy period is known as the:
A
Aggregate limit
B
Per occurrence limit
C
Combined single limit
D
Per person limit
A Aggregate limit
The aggregate limit is reduced by the amount paid each time a claim is paid during the policy term.
Which of the following would be considered an attractive nuisance?
A
A back lawn
B
A toy store
C
A trampoline
D
A candy store
C A trampoline
Bodily Injury may include which of the following?
A
Loss of Earnings
B
False Arrest
C
Invasion of Privacy
D
Slander
A Loss of Earnings
A+ TEST BANK 3
, AD BANKER COMPREHENSIVE EXAM
2025
Bodily injury includes such items as medical expenses, lost wages, mental anguish, death and
disfigurement.
The maximum amount a policy will pay in the event of a loss, regardless of the number of insureds,
claims made, lawsuits filed, or parties making claims is the:
A
Deductible
B
Premium
C
Limit of liability
D
Split limit
C Limit of liability
The limit of liability, or limits of insurance, are shown on the policy declarations page and are the
most paid by the policy regardless of the number of insureds, claims made, lawsuits filed, or parties
making claims or filing lawsuits.
A liability policy contains a per person bodily injury limit of $25,000 and a per occurrence limit of
$50,000. If an accident were to occur and three persons have claims of $20,000 each, the total
amount paid is:
A
$75,000
B
$50,000
C
$60,000
D
$25,000
B $50,000
The policy pays up to $25,000 for each person injured, but no more than $50,000 per occurrence,
regardless of the number of persons injured. Therefore, the limit for this accident is $50,000.
A+ TEST BANK 4
