AD BANKER COMPREHENSIVE EXAM
WITH 100% CORRECT ANSWERS
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 - correct answer ✔✔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 - correct answer ✔✔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
D
A foreign companyA company that is licensed to sell insurance in a particular state is: - correct answer
✔✔C
An insurance contract is an aleatory contract. This means:
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 - correct answer ✔✔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 - correct answer ✔✔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 - correct answer ✔✔D
All of the following are elements of a contract, except:
A
Offer and acceptance
B
Legal purpose
C
Authority
D
Consideration - correct answer ✔✔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
WITH 100% CORRECT ANSWERS
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 - correct answer ✔✔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 - correct answer ✔✔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
D
A foreign companyA company that is licensed to sell insurance in a particular state is: - correct answer
✔✔C
An insurance contract is an aleatory contract. This means:
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 - correct answer ✔✔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 - correct answer ✔✔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 - correct answer ✔✔D
All of the following are elements of a contract, except:
A
Offer and acceptance
B
Legal purpose
C
Authority
D
Consideration - correct answer ✔✔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
