AD BANKER comprehensive Exam
Questions And Answers
/. If glass that is part of an insured dwelling is broken, a Special Form Homeowners
policy will cover the loss under all of the following circumstances, except: - Answer-A
falling tree is the cause of loss
B
The dwelling has been unoccupied for 90 consecutive days
C
!!!!!The dwelling has been vacant for 70 consecutive days!!!!!!
D
An earthquake is the proximate cause of loss
/.Tenants of mobile homes may obtain insurance on which form? - Answer-Modified
Coverage Form (HO-8) Homeowners policy, with the Mobile Home Endorsement
/.L and S own and occupy a single-family home that they insure on a Special Form
Homeowners policy. If the policy includes no endorsements, L and S may have up to
how many roomers or boarders and still maintain their eligibility for Homeowners
insurance? - Answer-Two
/.Which of the following coverages is not provided by the Personal Liability Supplement?
- Answer-A
First aid expenses
B (CORRECT)
!!!!!Medical payments to a regular resident of the dwelling who sustains an injury!!!!!
C
Defense costs
D
Medical payments to an injured residence employee
/.Under the Equipment Breakdown Protection Coverage Form, covered equipment
owned by a public utility that is used to supply utility services to the insured's premises
is covered up to what limit of insurance? - Answer-$1
/.Which of the party may assign a standard property policy? - Answer-The insured with
prior written permission of the insurer
/.Under the Businessowners Coverage Form, which of the following statements about
the policy deductible is correct? - Answer-The standard deductible is a flat deductible of
$500
,/.Which statement about watercraft coverage provided by a Homeowners policy is
correct? - Answer-A $1,500 special limit applies to watercraft damaged by a covered
peril
/.The general aggregate limit of a Commercial General Liability policy may be subject to
sublimits for all of the following losses, except: - Answer-A (CORRECT)
!!!!!A claim payable after the insured's faulty completed operations damages a
customer's home!!!!!
B
Necessary medical and surgical costs paid to one customer injured due to the insured's
operations
C
A claim payable after the insured is found responsible for fire damage to a premises the
insured rents
D
A claim payable after the insured libels a competitor in a print advertisement
/.Which of the following methods of writing insurance is used to provide insurance on
properties at different locations, using a single policy, and a single limit of insurance? -
Answer-Blanket
/.The DP-3 would exclude coverage for partial damage to the dwelling resulting from all
of the following perils, except: - Answer-A
Deterioration
B
Termite infestation
C
Settling foundation
D (CORRECT)
!!!!!Falling objects!!!!!
/.Unlike the Broad Form, the Special Form (HO-3) does which of the following? -
Answer-Insures the dwelling and other structures on an open perils basis
/.Flood is a specified cause of loss under which section of the Garage Coverage Form?
- Answer-Section IV
/.The purpose of Part Two - Employers Liability Insurance of a Workers' Compensation
policy is to: - Answer-Handle suits against the employer for damages arising from an
injury to an employee when those damages are not covered by Workers' Compensation
/.Which of the following applies when two parties rely upon the promises of the other? -
Answer-Concept of utmost good faith
/.Which of the following is not an unfair claims practice? - Answer-A
, Attempting to settle claims on the basis of an altered application
B (CORRECT)
!!!!!Failing to inform a claimant about appealing arbitration awards!!!!!
C
Requiring an insured to sue by offering less than the amount due
D
Misrepresenting pertinent policy facts or provisions to claimants
/.Commercial General Liability policies define bodily injury to refer to all of the following,
except: - Answer-Personal injury
/.Which of the following is not an Optional Coverage on the Business Income and Extra
Expense Coverage Form? - Answer-Extra Expenses Stated Value
/.Under a Commercial General Liability policy, which of the following would cause the
insured's legal liability associated with a product to be excluded from policy coverage? -
Answer-Expected or intended injury
/.Which part of a property insurance policy describes the perils? - Answer-Insuring
Agreement
/.Pursuant to the Insurance Claims Fraud Prevention Act, insurers are to report
suspected insurance fraud related to the following, except: - Answer-A (CORRECT)
!!!!Policy provisions!!!!!
B
Claims
C
Applications
D
Premiums
/.Under a Commercial General Liability policy, which of the following is considered an
insured's product? - Answer-Goods sold by the insured at a trade show
/.Which of the following statements about an aggregate limit is correct? - Answer-It
applies to losses from all occurrences within a specified policy period
/.A manufacturer is held liable if a product caused an injury whether the product was or
was not defective. This describes what type of liability? - Answer-Strict liability
/.Damaged household and personal property in transit between the insured's old and
new residences is covered by the DP-1 for up to: - Answer-10% of the Coverage C limit
/.When the named insured's personal effects are insured by the Personal Effects
Coverage Extension of a Businessowners policy, coverage is provided against all of the
following perils, except: - Answer-Theft
Questions And Answers
/. If glass that is part of an insured dwelling is broken, a Special Form Homeowners
policy will cover the loss under all of the following circumstances, except: - Answer-A
falling tree is the cause of loss
B
The dwelling has been unoccupied for 90 consecutive days
C
!!!!!The dwelling has been vacant for 70 consecutive days!!!!!!
D
An earthquake is the proximate cause of loss
/.Tenants of mobile homes may obtain insurance on which form? - Answer-Modified
Coverage Form (HO-8) Homeowners policy, with the Mobile Home Endorsement
/.L and S own and occupy a single-family home that they insure on a Special Form
Homeowners policy. If the policy includes no endorsements, L and S may have up to
how many roomers or boarders and still maintain their eligibility for Homeowners
insurance? - Answer-Two
/.Which of the following coverages is not provided by the Personal Liability Supplement?
- Answer-A
First aid expenses
B (CORRECT)
!!!!!Medical payments to a regular resident of the dwelling who sustains an injury!!!!!
C
Defense costs
D
Medical payments to an injured residence employee
/.Under the Equipment Breakdown Protection Coverage Form, covered equipment
owned by a public utility that is used to supply utility services to the insured's premises
is covered up to what limit of insurance? - Answer-$1
/.Which of the party may assign a standard property policy? - Answer-The insured with
prior written permission of the insurer
/.Under the Businessowners Coverage Form, which of the following statements about
the policy deductible is correct? - Answer-The standard deductible is a flat deductible of
$500
,/.Which statement about watercraft coverage provided by a Homeowners policy is
correct? - Answer-A $1,500 special limit applies to watercraft damaged by a covered
peril
/.The general aggregate limit of a Commercial General Liability policy may be subject to
sublimits for all of the following losses, except: - Answer-A (CORRECT)
!!!!!A claim payable after the insured's faulty completed operations damages a
customer's home!!!!!
B
Necessary medical and surgical costs paid to one customer injured due to the insured's
operations
C
A claim payable after the insured is found responsible for fire damage to a premises the
insured rents
D
A claim payable after the insured libels a competitor in a print advertisement
/.Which of the following methods of writing insurance is used to provide insurance on
properties at different locations, using a single policy, and a single limit of insurance? -
Answer-Blanket
/.The DP-3 would exclude coverage for partial damage to the dwelling resulting from all
of the following perils, except: - Answer-A
Deterioration
B
Termite infestation
C
Settling foundation
D (CORRECT)
!!!!!Falling objects!!!!!
/.Unlike the Broad Form, the Special Form (HO-3) does which of the following? -
Answer-Insures the dwelling and other structures on an open perils basis
/.Flood is a specified cause of loss under which section of the Garage Coverage Form?
- Answer-Section IV
/.The purpose of Part Two - Employers Liability Insurance of a Workers' Compensation
policy is to: - Answer-Handle suits against the employer for damages arising from an
injury to an employee when those damages are not covered by Workers' Compensation
/.Which of the following applies when two parties rely upon the promises of the other? -
Answer-Concept of utmost good faith
/.Which of the following is not an unfair claims practice? - Answer-A
, Attempting to settle claims on the basis of an altered application
B (CORRECT)
!!!!!Failing to inform a claimant about appealing arbitration awards!!!!!
C
Requiring an insured to sue by offering less than the amount due
D
Misrepresenting pertinent policy facts or provisions to claimants
/.Commercial General Liability policies define bodily injury to refer to all of the following,
except: - Answer-Personal injury
/.Which of the following is not an Optional Coverage on the Business Income and Extra
Expense Coverage Form? - Answer-Extra Expenses Stated Value
/.Under a Commercial General Liability policy, which of the following would cause the
insured's legal liability associated with a product to be excluded from policy coverage? -
Answer-Expected or intended injury
/.Which part of a property insurance policy describes the perils? - Answer-Insuring
Agreement
/.Pursuant to the Insurance Claims Fraud Prevention Act, insurers are to report
suspected insurance fraud related to the following, except: - Answer-A (CORRECT)
!!!!Policy provisions!!!!!
B
Claims
C
Applications
D
Premiums
/.Under a Commercial General Liability policy, which of the following is considered an
insured's product? - Answer-Goods sold by the insured at a trade show
/.Which of the following statements about an aggregate limit is correct? - Answer-It
applies to losses from all occurrences within a specified policy period
/.A manufacturer is held liable if a product caused an injury whether the product was or
was not defective. This describes what type of liability? - Answer-Strict liability
/.Damaged household and personal property in transit between the insured's old and
new residences is covered by the DP-1 for up to: - Answer-10% of the Coverage C limit
/.When the named insured's personal effects are insured by the Personal Effects
Coverage Extension of a Businessowners policy, coverage is provided against all of the
following perils, except: - Answer-Theft
