AD Banker Comprehensive Exam
2025/2026 Exam Questions and Answers
| A+ Score Assured
The field underwriter is the _________ and is not a determiner of
insurability. - 🧠ANSWER ✔✔Producer
The insurance industry is primarily regulated at the _________ level. -
🧠ANSWER ✔✔State
A contract that is drafted by an insurer and receives no input or alteration
from the insured, is considered a(n): - 🧠ANSWER ✔✔Contact of Adhesion
Insurable interest for life insurance is necessary only at the time of: -
🧠ANSWER ✔✔Application
All of the following are producer responsibilities to the applicant, except: -
🧠ANSWER ✔✔Offering and selling only the lowest premium policy
,_____________ insurance allows for insurance coverage to be obtained
when not available from admitted carriers. - 🧠ANSWER ✔✔Surplus Lines
The reinsurance agreement that allows the reinsurer an opportunity to
reject coverage for individual risks or price them higher due to their higher
risk is known as a(n) ___________ agreement. - 🧠ANSWER ✔✔Facultative
_____________ consists of groups of underwriters called syndicates, each
of which specializes in insuring a particular type of risk. - 🧠ANSWER
✔✔Lloyds of London
When the owner of the policy and insurer must meet certain conditions in
order for the health insurance policy to be enforceable, it is referred to as
a(n): - 🧠ANSWER ✔✔Conditional contract
When an applicant for life insurance faces potential financial loss in the
event of injury or sickness of an insured, it is said the applicant has: -
🧠ANSWER ✔✔Insurable Interest
Which of the following is NOT considered one of the essential elements of
a contract? - 🧠ANSWER ✔✔Conditions
, 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. - 🧠ANSWER ✔✔Treaty
With health and life insurance a/an _________ is required at the time of the
application. - 🧠ANSWER ✔✔Insurable Interest
An insurer which is formed under the laws of another country is a(n): -
🧠ANSWER ✔✔Alien insurer
The ____________ market is a private source of coverage of last resort for
individuals or businesses that have been rejected by voluntary market
insurers. - 🧠ANSWER ✔✔Residual
Which of the following is standard industry practice for producers in order to
prove that they delivered the policy mailed to them from the insurer? -
🧠ANSWER ✔✔Obtain a policy delivery receipt from the applicant whenever
and wherever policy delivery takes place
A producer must include their name and address on which of the following?
- 🧠ANSWER ✔✔a policy summary
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
2025/2026 Exam Questions and Answers
| A+ Score Assured
The field underwriter is the _________ and is not a determiner of
insurability. - 🧠ANSWER ✔✔Producer
The insurance industry is primarily regulated at the _________ level. -
🧠ANSWER ✔✔State
A contract that is drafted by an insurer and receives no input or alteration
from the insured, is considered a(n): - 🧠ANSWER ✔✔Contact of Adhesion
Insurable interest for life insurance is necessary only at the time of: -
🧠ANSWER ✔✔Application
All of the following are producer responsibilities to the applicant, except: -
🧠ANSWER ✔✔Offering and selling only the lowest premium policy
,_____________ insurance allows for insurance coverage to be obtained
when not available from admitted carriers. - 🧠ANSWER ✔✔Surplus Lines
The reinsurance agreement that allows the reinsurer an opportunity to
reject coverage for individual risks or price them higher due to their higher
risk is known as a(n) ___________ agreement. - 🧠ANSWER ✔✔Facultative
_____________ consists of groups of underwriters called syndicates, each
of which specializes in insuring a particular type of risk. - 🧠ANSWER
✔✔Lloyds of London
When the owner of the policy and insurer must meet certain conditions in
order for the health insurance policy to be enforceable, it is referred to as
a(n): - 🧠ANSWER ✔✔Conditional contract
When an applicant for life insurance faces potential financial loss in the
event of injury or sickness of an insured, it is said the applicant has: -
🧠ANSWER ✔✔Insurable Interest
Which of the following is NOT considered one of the essential elements of
a contract? - 🧠ANSWER ✔✔Conditions
, 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. - 🧠ANSWER ✔✔Treaty
With health and life insurance a/an _________ is required at the time of the
application. - 🧠ANSWER ✔✔Insurable Interest
An insurer which is formed under the laws of another country is a(n): -
🧠ANSWER ✔✔Alien insurer
The ____________ market is a private source of coverage of last resort for
individuals or businesses that have been rejected by voluntary market
insurers. - 🧠ANSWER ✔✔Residual
Which of the following is standard industry practice for producers in order to
prove that they delivered the policy mailed to them from the insurer? -
🧠ANSWER ✔✔Obtain a policy delivery receipt from the applicant whenever
and wherever policy delivery takes place
A producer must include their name and address on which of the following?
- 🧠ANSWER ✔✔a policy summary
3
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
STATEMENT. ALL RIGHTS RESERVED
