OKLAHOMA INSURANCE LICENSING EXAM

PDF Download

OKLAHOMA INSURANCE LICENSING EXAM

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Which of the following is a common exclusion found in Part D: Coverage for Damage to Your Auto of a PAP?1) riot or civil commotion 2) towing and labor 3) mechanical breakdown 4) glass breakage

Answer:

3) mechanical breakdown (damage due to wear and tear, freezing, mechanical or electrical breakdown, and road damage to tires is a common exclusion to the physical damage covered section) Question 2: If the Commissioner has reason to believe that a person or insurer has violated the Insurance Code, the Commissioner may set a hearing. The notice of hearing must be given how many days in advance?1) 10 days 2) 15 days 3) 30 days 4) 7 days

Answer:

1) 10 days

Question 3: Insurance is the transfer of

1) loss 2) hazard 3) peril 4) risk

Answer:

4) risk Question 4: All of the following are categories of a limited insurance license EXCEPT 1) crop insurance 2) variable life insurance 3) credit life insurance 4) travel insurance

Answer:

2) variable life insurance Question 5: An insured is applying for a casualty insurance policy. One of the conditions of the policy allows the insurance company to inspect the insured's books at the end of the policy term to make sure sufficient premium has been collected for the exposure she plans to insure.Which condition is part of the insured's policy?1) contract bond 2) errors and omissions insurance 3) deposit premium audit 4) excess liability coverage

Answer:

3) deposit premium audit Question 6: What term best describes the act of withholding material information that would be crucial to an underwriting decision?1) concealment 2) withholding 3) leading 4) breach of warranty

Answer:

1) concealment Question 7: An insured's roof cost $4,000 when installed 5 years ago. It has been damaged by hail and must be replaced. The new roof will cost $6,000 at today's prices. If the roof has been depreciating at $200 per year and his policy is ACV, how much will it pay toward the insured's new roof?

1) $1,000

2) $4,000

3) $5,000

4) $6,000

Answer:

3) $5,000

Question 8: All of the following are factors in the determination of actual cash value EXCEPT 1) replacement cost 2) insurance premium paid 3) type and quality of property 4) age of the property

Answer:

2) insurance premium paid

Question 9: Which of the following best defines the term "robbery"

1) property that disappears without the owner's knowledge of how or when it happened 2) breaking into one's home with felonious intent 3) taking another's property with violence or the threat of violence 4) stealing the property of another

Answer:

3) taking another's property with violence or the threat of violence Question 10: An insurance application cannot ask about which of the following info about an applicant?1) gender 2) address 3) sexual orientation 4) age

Answer:

3) sexual orientation Question 11: Following a property loss that is covered under a business owners policy, if the insurer and insured cannot agree on the amount of the loss, what method is used to resolve the issue?1) no-fault procedure 2) appraisal 3) arbitration 4) adjudication

Answer:

2) appraisal Question 12: When the amount of insurance written in a property policy is not subject to any coinsurance provision and that amount is paid in the event of a covered loss, the coverage is said to be written as 1) actual cash value 2) specific insurance 3) stated amount

4) replacement cost

Answer:

3) stated amount Question 13: Which of the following is a method of claim settlement used in casualty insurance when the insured and insurer cannot agree on how to settle a claim?1) appraisal 2) arbitration 3) proof of loss 4) restoration

Answer:

2) arbitration Question 14: An insured has four separate but identical policies written by different insurers to cover her $100,000 building. Each policy is written for $100,000, and each has the pro rata liability other insurance clause. In the event of a total loss to the building, what would each insurer pay?1) each policy will pay $25,000 of the loss 2) each policy will pay the total policy limits of $100,000 3) the first policy written will pay $75,000 and the other three will contribute proportionately to pay for the remaining $25,000 4) the policy with the earliest effective date will pay the entire loss, and the other policies will pay nothing

Answer:

1) each policy will pay $25,000 of the loss Question 15: Which of the following would NOT constitute doing the business of insurance in this state?1) investigating claims 2) holding an insurance license 3) delivering insurance contracts 4) examining insurer records

Answer:

4) examining insurer records Question 16: An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated?1) adhesion 2) consideration 3) good faith 4) representation