AD Banker Property and Casualty Comprehensive
Exam NEWEST 2025-2026 COMPLETE QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+||BRAND NEW
VERSION!!
Which of the following would not be covered under an Installation Floater? - CORRECT ANSWER-
A Electrical equipment
B Carpeting
C Construction equipment ( Not Covered )(*)
D Elevators
Under the PAP, a temporary substitute would be covered if used: - CORRECT ANSWER- A
temporary substitute is a covered auto as long as an owned car is out of normal use due to
breakdown, repair, servicing, loss, or destruction.
preservation of property under the Building and Personal Property Coverage Form? - CORRECT
ANSWER- The policy provides open perils coverage for 30 days on insured property that is being
moved or temporarily stored at another location because of the endangerment of a covered
peril
,Employee theft or dishonesty
a commercial crime policy - CORRECT ANSWER- covers loss of, or damage to, money, securities,
and other property committed by an employee, whether acting alone or in collusion with
others, that results directly from theft.
After noticing the disappearance of office supplies from within a private office facility is an
example.
In which section of the Workers' Compensation and Employer Liability policy would the policy
conditions be found? - CORRECT ANSWER- The policy Workers' Compensation contains the
following parts: General Section, Part One - Workers' Compensation Insurance, Part Two -
Employers Liability Insurance, Part Three - Other States Insurance, Part Four - Your Duties if
Injury Occurs, Part Five - Premium, Part Six - (Conditions).
Which of the following powers describes the authority stated in an agent's agency contract? -
CORRECT ANSWER- Express
The agency contract, which exists between an insurer and a producer, sets forth the powers
that are granted to the producer. These powers are referred to as express because they are
directly stated in the contract.
Pure Risk
Insurance is designed to provide protection against which of the following? - CORRECT ANSWER-
With pure risk, the only consideration is the possibility of loss or no loss. By contrast,
speculative entails a chance of gain as well as a chance of loss.
Temporary Total Disability may be described as: - CORRECT ANSWER- Inability to return to any
employment while recovering
Supplementary Payment under Part A of the Personal Auto Policy? - CORRECT ANSWER- A Up to
$250 for the cost of bail bonds
B Payment for lost earnings up to $200/day
,C Medical payments for an occupant of an insured vehicle (Not included)(*)
D Reasonable expenses incurred at the insurer's request
The Commercial basic Cause of Loss Form does not cover which of the following perils? -
CORRECT ANSWER- A Sinkhole collapse
B Sprinkler leakage
C Smoke
D Earth Movement ( Not Covered )(*)
Contribution by equal shares - CORRECT ANSWER- Under a contribution by equal shares
provision, each insurer pays an equal amount to the loss settlement until the loss is paid, or
until each insurer has exhausted its limits of insurance, whichever comes first.
The policy limit - CORRECT ANSWER- A total loss under a valued policy is payable based on the
policy limit listed on the declarations page.
An insured owns a home with a replacement cost of $300,000 and a market value of $250,000.
What is the most a valued policy will pay in the event of a total loss without a deductible( is an
example )
Occurrence - CORRECT ANSWER- An event that happens
An occurrence form provides coverage for losses that take place during the policy period.
It doesn't matter when the loss is reported; what matters is when the loss occurred.
The key in this form is the date the loss actually happened and if it happened when the policy
was in effect.
Supplementary payments under Part A of the Personal Auto Policy - CORRECT ANSWER- Only bail
bonds is a supplementary payment. The policy limit is $250.
$100 for bail bonds
, Choose the statement that is false about the FAIR plan. - CORRECT ANSWER- A FAIR means Fair
Access to Insurance Requirements
B It provides basic property coverage to those who have been rejected in the standard market
C It provides property coverage to both residential and farm dwellings (Farm property is not
eligible)(*)
D Agents cannot bind FAIR plan coverage
Which of the following workers would be eligible for Workers' Compensation? - CORRECT
ANSWER- A Domestic employees
B Part-time worker (*)
C Casual laborer
D Farm laborer
Which of the following is true regarding the Self-Insured Workers' Compensation Program? -
CORRECT ANSWER- A
Sometimes large employers are attracted to self-insurance plans because losses can be
predictable and benefits are capped by statute (*)
B
Self-insurance for Workers' Compensation is most generally used by smaller employers, who
cannot afford to purchase Workers' Compensation insurance
C
Benefits under self-insurance differ from those provided by Workers' Compensation insurers
D
Self-insurance is allowed in all states
Exam NEWEST 2025-2026 COMPLETE QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+||BRAND NEW
VERSION!!
Which of the following would not be covered under an Installation Floater? - CORRECT ANSWER-
A Electrical equipment
B Carpeting
C Construction equipment ( Not Covered )(*)
D Elevators
Under the PAP, a temporary substitute would be covered if used: - CORRECT ANSWER- A
temporary substitute is a covered auto as long as an owned car is out of normal use due to
breakdown, repair, servicing, loss, or destruction.
preservation of property under the Building and Personal Property Coverage Form? - CORRECT
ANSWER- The policy provides open perils coverage for 30 days on insured property that is being
moved or temporarily stored at another location because of the endangerment of a covered
peril
,Employee theft or dishonesty
a commercial crime policy - CORRECT ANSWER- covers loss of, or damage to, money, securities,
and other property committed by an employee, whether acting alone or in collusion with
others, that results directly from theft.
After noticing the disappearance of office supplies from within a private office facility is an
example.
In which section of the Workers' Compensation and Employer Liability policy would the policy
conditions be found? - CORRECT ANSWER- The policy Workers' Compensation contains the
following parts: General Section, Part One - Workers' Compensation Insurance, Part Two -
Employers Liability Insurance, Part Three - Other States Insurance, Part Four - Your Duties if
Injury Occurs, Part Five - Premium, Part Six - (Conditions).
Which of the following powers describes the authority stated in an agent's agency contract? -
CORRECT ANSWER- Express
The agency contract, which exists between an insurer and a producer, sets forth the powers
that are granted to the producer. These powers are referred to as express because they are
directly stated in the contract.
Pure Risk
Insurance is designed to provide protection against which of the following? - CORRECT ANSWER-
With pure risk, the only consideration is the possibility of loss or no loss. By contrast,
speculative entails a chance of gain as well as a chance of loss.
Temporary Total Disability may be described as: - CORRECT ANSWER- Inability to return to any
employment while recovering
Supplementary Payment under Part A of the Personal Auto Policy? - CORRECT ANSWER- A Up to
$250 for the cost of bail bonds
B Payment for lost earnings up to $200/day
,C Medical payments for an occupant of an insured vehicle (Not included)(*)
D Reasonable expenses incurred at the insurer's request
The Commercial basic Cause of Loss Form does not cover which of the following perils? -
CORRECT ANSWER- A Sinkhole collapse
B Sprinkler leakage
C Smoke
D Earth Movement ( Not Covered )(*)
Contribution by equal shares - CORRECT ANSWER- Under a contribution by equal shares
provision, each insurer pays an equal amount to the loss settlement until the loss is paid, or
until each insurer has exhausted its limits of insurance, whichever comes first.
The policy limit - CORRECT ANSWER- A total loss under a valued policy is payable based on the
policy limit listed on the declarations page.
An insured owns a home with a replacement cost of $300,000 and a market value of $250,000.
What is the most a valued policy will pay in the event of a total loss without a deductible( is an
example )
Occurrence - CORRECT ANSWER- An event that happens
An occurrence form provides coverage for losses that take place during the policy period.
It doesn't matter when the loss is reported; what matters is when the loss occurred.
The key in this form is the date the loss actually happened and if it happened when the policy
was in effect.
Supplementary payments under Part A of the Personal Auto Policy - CORRECT ANSWER- Only bail
bonds is a supplementary payment. The policy limit is $250.
$100 for bail bonds
, Choose the statement that is false about the FAIR plan. - CORRECT ANSWER- A FAIR means Fair
Access to Insurance Requirements
B It provides basic property coverage to those who have been rejected in the standard market
C It provides property coverage to both residential and farm dwellings (Farm property is not
eligible)(*)
D Agents cannot bind FAIR plan coverage
Which of the following workers would be eligible for Workers' Compensation? - CORRECT
ANSWER- A Domestic employees
B Part-time worker (*)
C Casual laborer
D Farm laborer
Which of the following is true regarding the Self-Insured Workers' Compensation Program? -
CORRECT ANSWER- A
Sometimes large employers are attracted to self-insurance plans because losses can be
predictable and benefits are capped by statute (*)
B
Self-insurance for Workers' Compensation is most generally used by smaller employers, who
cannot afford to purchase Workers' Compensation insurance
C
Benefits under self-insurance differ from those provided by Workers' Compensation insurers
D
Self-insurance is allowed in all states
