AD Banker Comprehensive Test Questions Answered Correctly Latest Version 2025-2026
_____________ is/are not considered material to the policy issuance. - Answers age and/or
gender
Individuals covered under a Blue Cross/Blue Shield HMO plan are typically referred to as: -
Answers subscribers
All of the following would be reasons why a policyowner would sell their policy in a life
settlement transaction, except: - Answers There are no alternative ways to obtain needed cash
The reinsurance agreement that automatically accepts all new risks presented by the company
seeking or requesting reinsurance from the reinsurer is known as a ____________ agreement. -
Answers Treaty
All of the following are true regarding IRA rollovers, except: - Answers A 10% withholding is
required if the distribution is paid directly to the account owner
Z chooses a life income with 10 year period certain settlement option for the annuity Z owns. Z
dies after 15 years of receiving income benefit payments. What does Z's beneficiary receive? -
Answers Nothing
Managed Health Care attempts to contain costs by controlling the behavior of participants in all
of the following ways, except: - Answers Partial Case Management
What is an impairment rider? - Answers It excludes specific conditions that normally would
cause the entire policy to be declined
How often can adjustments be made to Adjustable Life? - Answers Annually
_______ income benefits received by an employee are subject to taxation in proportion to the
amount of premium that the employer paid. That income attributable to the employee's
premium is not taxable. - Answers Disability
An insured should receive necessary claim forms within _____ days after notice of claim -
Answers 15
All of the following describe the responsibilities of an agent or producer, except: - Answers
Determine the rate the insurer will charge the applicant/insured
Which Act was implemented in order to protect consumers from questionable Medicare
Supplement Policy marketing practices? - Answers NAIC Model Law
Which of the following elimination periods found in a disability income policy will result in the
highest premium? - Answers One Month
Jay, who is employed by Carson Company, is assigned to work temporarily in another state.
, While in the other state, Jay is injured on the job. He is entitled to benefits of the Workers'
Compensation law in the state in which he was hired even though his injury occurred in a
different state. This indicates that the Workers' Compensation law in the state where Jay was
hired: - Answers Includes extraterritorial provisions
In a long-term care policy transaction, when must the outline of coverage be provided to the
applicant? - Answers At the time of initial solicitation and prior to the application
Which of the following is not part of the Affordable Care Act? - Answers $5,000,000 Lifetime and
$1,000,000 annual benefit limits
Clarice pays a $99 monthly health insurance premium, due on the first day of each month. After
paying her premium on April 1, how much of her premium has been earned by the insurance
company on April 10. - Answers $33
Social Security Benefits provided are: - Answers Retirement, Death, and Survivor
Which of the following annuities offers the best opportunity to offset the effects of purchasing
power loss over the long-run? - Answers Variable
The employee or the beneficiary must notify the employer within ______ days if they elect to
continue coverage under COBRA. - Answers 60
Every Long-Term Care policy must provide a ______-day free look period from the date the policy
is delivered. - Answers 30
ERISA requires which of the following - Answers Qualified plans must meet certain minimum
standards
In Individual Disability Income underwriting, the single most important rating factor from an
underwriting standpoint is the applicant's - Answers Occupation
With a Noncontributory Group Life Plan, what percentage of the employer's employees must
participate? - Answers 100%
A Medicare Supplement Policy must include, as a core benefit, Medicare Part B coinsurance in
the amount of _______ - Answers 20%
All of the following are coverages provided under a Basic Hospital Expense Policy, except: -
Answers Physician/Surgeon expenses
All of the following are Optional Uniform Provisions, except - Answers Legal Actions
The optional guaranteed purchase option rider allows the insured to purchase additional
coverage in all of the following situations, except - Answers Job Change
Guaranteed Renewable means - Answers Renewable with adjustable premiums, by
_____________ is/are not considered material to the policy issuance. - Answers age and/or
gender
Individuals covered under a Blue Cross/Blue Shield HMO plan are typically referred to as: -
Answers subscribers
All of the following would be reasons why a policyowner would sell their policy in a life
settlement transaction, except: - Answers There are no alternative ways to obtain needed cash
The reinsurance agreement that automatically accepts all new risks presented by the company
seeking or requesting reinsurance from the reinsurer is known as a ____________ agreement. -
Answers Treaty
All of the following are true regarding IRA rollovers, except: - Answers A 10% withholding is
required if the distribution is paid directly to the account owner
Z chooses a life income with 10 year period certain settlement option for the annuity Z owns. Z
dies after 15 years of receiving income benefit payments. What does Z's beneficiary receive? -
Answers Nothing
Managed Health Care attempts to contain costs by controlling the behavior of participants in all
of the following ways, except: - Answers Partial Case Management
What is an impairment rider? - Answers It excludes specific conditions that normally would
cause the entire policy to be declined
How often can adjustments be made to Adjustable Life? - Answers Annually
_______ income benefits received by an employee are subject to taxation in proportion to the
amount of premium that the employer paid. That income attributable to the employee's
premium is not taxable. - Answers Disability
An insured should receive necessary claim forms within _____ days after notice of claim -
Answers 15
All of the following describe the responsibilities of an agent or producer, except: - Answers
Determine the rate the insurer will charge the applicant/insured
Which Act was implemented in order to protect consumers from questionable Medicare
Supplement Policy marketing practices? - Answers NAIC Model Law
Which of the following elimination periods found in a disability income policy will result in the
highest premium? - Answers One Month
Jay, who is employed by Carson Company, is assigned to work temporarily in another state.
, While in the other state, Jay is injured on the job. He is entitled to benefits of the Workers'
Compensation law in the state in which he was hired even though his injury occurred in a
different state. This indicates that the Workers' Compensation law in the state where Jay was
hired: - Answers Includes extraterritorial provisions
In a long-term care policy transaction, when must the outline of coverage be provided to the
applicant? - Answers At the time of initial solicitation and prior to the application
Which of the following is not part of the Affordable Care Act? - Answers $5,000,000 Lifetime and
$1,000,000 annual benefit limits
Clarice pays a $99 monthly health insurance premium, due on the first day of each month. After
paying her premium on April 1, how much of her premium has been earned by the insurance
company on April 10. - Answers $33
Social Security Benefits provided are: - Answers Retirement, Death, and Survivor
Which of the following annuities offers the best opportunity to offset the effects of purchasing
power loss over the long-run? - Answers Variable
The employee or the beneficiary must notify the employer within ______ days if they elect to
continue coverage under COBRA. - Answers 60
Every Long-Term Care policy must provide a ______-day free look period from the date the policy
is delivered. - Answers 30
ERISA requires which of the following - Answers Qualified plans must meet certain minimum
standards
In Individual Disability Income underwriting, the single most important rating factor from an
underwriting standpoint is the applicant's - Answers Occupation
With a Noncontributory Group Life Plan, what percentage of the employer's employees must
participate? - Answers 100%
A Medicare Supplement Policy must include, as a core benefit, Medicare Part B coinsurance in
the amount of _______ - Answers 20%
All of the following are coverages provided under a Basic Hospital Expense Policy, except: -
Answers Physician/Surgeon expenses
All of the following are Optional Uniform Provisions, except - Answers Legal Actions
The optional guaranteed purchase option rider allows the insured to purchase additional
coverage in all of the following situations, except - Answers Job Change
Guaranteed Renewable means - Answers Renewable with adjustable premiums, by
