AD BANKER COMPREHENSIVE EXAM
Page | 1
A producer who is acting as an agent is representing:
A
The insured, the applicant and the beneficiary
B
Always the insured
C
The insured and the insurer
D
Always the insurer
D
In order to be valid, a contract must be between individuals considered legally
able to enter into an agreement. This principle is known as:
A
Restricted persons
B
Considerations
C
Competent parties
D
Agreement
C
A company that is licensed to sell insurance in a particular state is:
A
A domiciled company
B
A nonadmitted company
C
An authorized company
, AD BANKER COMPREHENSIVE EXAM
D
A foreign companyA company that is licensed to sell insurance in a particular
state is:
C
An insurance contract is an aleatory contract. This means:
Page | 2
A
Equal value is not given by both parties to the contract
B
The contract must be for a legal purpose
C
Parties to the contract must have the legal capacity to enter into the contract
D
Statements made in the application are guaranteed to be true in all respects
A
Which of the following would be considered a speculative risk?
A
The possibility your car is totaled in an auto accident
B
The possibility the painting you bought might be a long-lost masterpiece
C
The possibility you will die on the job at a young age
D
The possibility you will become disabled
B
Which is the proper term for a company owned by its policyowners?
A
A charitable insurance company
B
A reciprocal insurance company
C
A domestic insurance company
D
A mutual insurance company
D
, AD BANKER COMPREHENSIVE EXAM
All of the following are elements of a contract, except:
A
Offer and acceptance
Page | 3 B
Legal purpose
C
Authority
D
Consideration
C
Each of the following would be an element in the definition of fraud, except:
A
A false statement on the application that is material to the acceptance of the risk
B
Withholding of known material facts
C
Intentional material misrepresentation with the intent of causing injury to another
party
D
An individual warrants a fact stated on the application
D
Legally speaking, a producer has a __________ duty when handling life insurance
premiums and applications for an insurer.
A
Fiduciary
B
Undisputed
C
Negotiated
D
Professional
A
_________ refers to the jurisdiction where an insurer was formed or incorporated.
, AD BANKER COMPREHENSIVE EXAM
A
Authorized
B
Approved
Page | 4
C
Domicile
D
Admitted
C
To address adverse selection what can an insurer legally do?
A
Limit the amount of coverage issued
B
Raise the premium higher than most people can afford to pay
C
Establish and enforce sound underwriting practices
D
Not offer policies to those over age 55
C
The relationship of a person who acts on behalf of a company whereby the
person's actions can bind the company is known as:
A
Surplus lines or excess insurance
B
The law of large numbers
C
The law of agency
D
Brokerage business
C
_____________ consists of groups of underwriters called syndicates, each of
which specializes in insuring a particular type of risk.
A
Lloyds of London
Page | 1
A producer who is acting as an agent is representing:
A
The insured, the applicant and the beneficiary
B
Always the insured
C
The insured and the insurer
D
Always the insurer
D
In order to be valid, a contract must be between individuals considered legally
able to enter into an agreement. This principle is known as:
A
Restricted persons
B
Considerations
C
Competent parties
D
Agreement
C
A company that is licensed to sell insurance in a particular state is:
A
A domiciled company
B
A nonadmitted company
C
An authorized company
, AD BANKER COMPREHENSIVE EXAM
D
A foreign companyA company that is licensed to sell insurance in a particular
state is:
C
An insurance contract is an aleatory contract. This means:
Page | 2
A
Equal value is not given by both parties to the contract
B
The contract must be for a legal purpose
C
Parties to the contract must have the legal capacity to enter into the contract
D
Statements made in the application are guaranteed to be true in all respects
A
Which of the following would be considered a speculative risk?
A
The possibility your car is totaled in an auto accident
B
The possibility the painting you bought might be a long-lost masterpiece
C
The possibility you will die on the job at a young age
D
The possibility you will become disabled
B
Which is the proper term for a company owned by its policyowners?
A
A charitable insurance company
B
A reciprocal insurance company
C
A domestic insurance company
D
A mutual insurance company
D
, AD BANKER COMPREHENSIVE EXAM
All of the following are elements of a contract, except:
A
Offer and acceptance
Page | 3 B
Legal purpose
C
Authority
D
Consideration
C
Each of the following would be an element in the definition of fraud, except:
A
A false statement on the application that is material to the acceptance of the risk
B
Withholding of known material facts
C
Intentional material misrepresentation with the intent of causing injury to another
party
D
An individual warrants a fact stated on the application
D
Legally speaking, a producer has a __________ duty when handling life insurance
premiums and applications for an insurer.
A
Fiduciary
B
Undisputed
C
Negotiated
D
Professional
A
_________ refers to the jurisdiction where an insurer was formed or incorporated.
, AD BANKER COMPREHENSIVE EXAM
A
Authorized
B
Approved
Page | 4
C
Domicile
D
Admitted
C
To address adverse selection what can an insurer legally do?
A
Limit the amount of coverage issued
B
Raise the premium higher than most people can afford to pay
C
Establish and enforce sound underwriting practices
D
Not offer policies to those over age 55
C
The relationship of a person who acts on behalf of a company whereby the
person's actions can bind the company is known as:
A
Surplus lines or excess insurance
B
The law of large numbers
C
The law of agency
D
Brokerage business
C
_____________ consists of groups of underwriters called syndicates, each of
which specializes in insuring a particular type of risk.
A
Lloyds of London
