AD Banker Chapter 1 2025/2026 Exam
Questions with 100% Correct Answers |
Latest Update
Producer - 🧠ANSWER ✔✔Which of the following is considered field
underwriter?
An admitted insurer - 🧠ANSWER ✔✔"Admitted" only means the insurer is
authorized to do business in this state. Admittance is not the same as
domicile. Admitted insurers might have domestic, foreign, or alien domicile.
The National Association of Insurance Commissioners (NAIC): - 🧠ANSWER
✔✔The NAIC does not have legal authority over insurance regulation, but
promotes uniformity in the interpretation of insurance legislation and
regulation.
,Domicile - 🧠ANSWER ✔✔Domicile refers to the jurisdiction either state or
country where an insurer was formed or incorporated.
Which of the following statements is not correct regarding rates and
premiums? - 🧠ANSWER ✔✔Rates may not be excessive or unfairly
discriminatory for any reason.
A producer must be ______ by an insurer in order to act as agent for that
insurer. - 🧠ANSWER ✔✔Appointed:
An agent must have an appointment with an insurer in order to represent
that insurer. Licenses are granted by the state, not by insurance
companies.
The Financial Privacy rule requires insurers to provide consumers with a
privacy notice: - 🧠ANSWER ✔✔At the time the consumer relationship is
established and annually thereafter:
The Financial Privacy rule requires insurers, to provide each consumer with
a privacy notice at the time the consumer relationship is established and
annually thereafter.
, Apparent authority is: - 🧠ANSWER ✔✔The demonstrated general
appearance that authority exist:
Apparent authority is the demonstrated appearance that authority exists.
Example: A producer using letterhead and business cards with the insurer's
company logo is demonstrating apparent authority.
A person who negotiates insurance contracts with insurers on behalf of an
applicant is known as a(n): - 🧠ANSWER ✔✔Broker:
Agents/producers are deemed to be representatives of the insurer, while a
broker is deemed to be a representative of the applicant/insured.
Which of the following is NOT an essential element of an insurable risk? -
🧠ANSWER ✔✔The loss must be intentional:
Intentional losses are excluded. The loss must be accidental.
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
Questions with 100% Correct Answers |
Latest Update
Producer - 🧠ANSWER ✔✔Which of the following is considered field
underwriter?
An admitted insurer - 🧠ANSWER ✔✔"Admitted" only means the insurer is
authorized to do business in this state. Admittance is not the same as
domicile. Admitted insurers might have domestic, foreign, or alien domicile.
The National Association of Insurance Commissioners (NAIC): - 🧠ANSWER
✔✔The NAIC does not have legal authority over insurance regulation, but
promotes uniformity in the interpretation of insurance legislation and
regulation.
,Domicile - 🧠ANSWER ✔✔Domicile refers to the jurisdiction either state or
country where an insurer was formed or incorporated.
Which of the following statements is not correct regarding rates and
premiums? - 🧠ANSWER ✔✔Rates may not be excessive or unfairly
discriminatory for any reason.
A producer must be ______ by an insurer in order to act as agent for that
insurer. - 🧠ANSWER ✔✔Appointed:
An agent must have an appointment with an insurer in order to represent
that insurer. Licenses are granted by the state, not by insurance
companies.
The Financial Privacy rule requires insurers to provide consumers with a
privacy notice: - 🧠ANSWER ✔✔At the time the consumer relationship is
established and annually thereafter:
The Financial Privacy rule requires insurers, to provide each consumer with
a privacy notice at the time the consumer relationship is established and
annually thereafter.
, Apparent authority is: - 🧠ANSWER ✔✔The demonstrated general
appearance that authority exist:
Apparent authority is the demonstrated appearance that authority exists.
Example: A producer using letterhead and business cards with the insurer's
company logo is demonstrating apparent authority.
A person who negotiates insurance contracts with insurers on behalf of an
applicant is known as a(n): - 🧠ANSWER ✔✔Broker:
Agents/producers are deemed to be representatives of the insurer, while a
broker is deemed to be a representative of the applicant/insured.
Which of the following is NOT an essential element of an insurable risk? -
🧠ANSWER ✔✔The loss must be intentional:
Intentional losses are excluded. The loss must be accidental.
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
