AD Banker Tests Bundle Set

A person who negotiates insurance contracts with insurers on behalf of an applicant is known as a(n): a. Broker b. Consultant c. Advisor d. Agent/Producer CORRECT ANSWER a. Broker The contract type in which only one party is legally bound to its contractual obligations after a premium is paid...

Dividends if declared are paid: A. Annually B. Semi-annually C. Monthly D. Quarterly CORRECT ANSWER A. Annually An insured dies within the time limit of an Increasing Term Rider and the beneficiary receives the face amount plus the value of all paid premiums. Which rider is attached to the ...

Insurers CORRECT ANSWER (Insurance Companies or Carriers) provide insurance coverage by issuing particular insurance policies or contracts Insurance Agencies CORRECT ANSWER Independent sales organizations that provide service and distribute insurance policies to consumers Insurance Agents or P...

Legally speaking, a producer has a __________ duty when handling life insurance premiums and applications for an insurer. CORRECT ANSWER Fiduciary It is the _________ who issues a Certificate of Authority enabling an insurer to conduct insurance business within a particular state. CORRECT ANSWER ...

Where can an insured find insurance coverage after being rejected by Insurer A due to claims history? A Residual market B Risk retention insurer C Reinsurance market D Lloyd's of London CORRECT ANSWER A Residual Market The residual market is a coverage source of last resort for businesse...

Which of the following situations will require proof of insurability? CORRECT ANSWER Adjusting the face amount up on a Universal Life insurance policy with Option A death benefit selected Sean has a home with an mortgage. He needs life insurance to protect his family but also wants to leave them ...

1) The_______ department of an insurance company is responsible for providing service to policyholders at the time of a loss. CORRECT ANSWER Claims 2) An applicant completes the application and submits it to the insurer along with a premium check. When is the applicant's offer considered accepte...

Insurers (Insurance companies or Carriers) CORRECT ANSWER manufacture and sell insurance coverage by way of insurance policies or contracts. In California, any person capable of making a contract may be an insurer, subject to the restrictions imposed by the insurance code. In this case, a person is ...

Which of the follow is not a factor in premium determination? a. Reserves b. Interest c. Expesnes d. Mortality CORRECT ANSWER a. Reserves Which of the following best describes a Statement of Good Health? a. It is a sworn oral statement made by the insured at time of delivery which allows for...

John is the agent for ABC Insurance and Jane is the insured. Who is the principal in this agency relationship? A. ABC Insurance B. None C. John D. Jane CORRECT ANSWER A. ABC Insurance In an insurance contract the value that each party gives the other is said to be the: A. Subject matter B. ...

A ______ insurance company is owned by its policyholders A. Stock B. Reciprocal C. Fraternal Benefits Society D. Mutual CORRECT ANSWER D. Mutual Which of the following is an Insurance company that is organized under the laws of another state within the US? A. Domestic B. Alien C. Forei...

Commercial Inland Marine Insurance CORRECT ANSWER provided practically all of the transportation insurance needed in this country because most major cities were located on coasts or major rivers; and most goods were shipped either by ocean or inland waterways. Nationwide Marine Definition CORRECT...

Insurance companies (known as Insurers or Carriers) CORRECT ANSWER they manufacture & sell insurance coverage in form of insurance policies or contracts of insurance. Insurance Agencies CORRECT ANSWER are captive or independent organizations that recruit, contract with, train, & support insurance...

Which of the following is a requirement in order for a third-party ownership policy to be issued by a life insurance company? a. The policy must be for no more than $100,000 b. A proper beneficiary must be named c. An annual premiums must be paid with the application d. Insurable interest must e...