Property And Casualty Insurance - Oklahoma

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  • 1/105 Questions

    What are the minimum limits of coverage for a motor vehicle liability policy issued in Oklahoma?

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    • 20/50/10
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About This Quiz

Created Sep. 2014. Property and Casualty Insurance Exam Cram - OklahomaFor additional information and study material:Oklahoma Legislature Statues by Title

Property And Casualty Insurance - Oklahoma - Quiz

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  • 2. 

    An insurance company's license to do business in Oklahoma is called...

    • A notice of risk assignment

    • A certificate of authority

    • A mutual benefit card

    • A license to solicit registration

    Correct Answer
    A. A certificate of authority
    Explanation
    An insurance company must obtain a certificate of authority from the Commissioner to transact insurance business in Oklahoma.

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  • 3. 

    What is the licensing fee for an insurance producer's biennial license, regardless of the number of companies represented?

    • $40

    • $60

    • $100

    • $20

    Correct Answer
    A. $60
    Explanation
    The correct answer is $60. This is the licensing fee for an insurance producer's biennial license, regardless of the number of companies represented. This means that regardless of how many insurance companies the producer represents, they will still have to pay a fee of $60 for their license every two years.

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  • 4. 

    What is the age requirement for a person to obtain a Insurance Adjusters License?

    • 18

    • 21

    • 19

    • 25

    Correct Answer
    A. 18
    Explanation
    The age requirement for a person to obtain an Insurance Adjusters License is 18.

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  • 5. 

    To be licensed, a producer must meet which of the following qualifications?

    • Be 21 years old

    • Have been an Oklahoma resident for at least one year

    • Pass an examination

    • Have a financial college degree

    Correct Answer
    A. Pass an examination
    Explanation
    Before approving the application, the Insurance Commissioner must find that the individual:
    is at least 18 years of age;
    has not committed any act that is a ground for denial, suspension, or revocation;
    has paid the appropriate fees; and
    has successfully passed the examinations for the lines of authority for which the person has applied.

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  • 6. 

    Circulating a maliciously critical statement about an insurer's financial condition in order to injure the insurer is called...

    • Conservation

    • Unfair discrimination

    • Defamation

    • Coercion

    Correct Answer
    A. Defamation
    Explanation
    36 O.S. Sec. 1204
    3. Defamation. Making, publishing, disseminating, or circulating, directly or indirectly, or aiding, abetting or encouraging the making, publishing, disseminating or circulating of any oral or written statement or any pamphlet, circular, article or literature which is false, or maliciously critical of or derogatory to the financial condition of an insurer, and which is calculated to injure any person engaged in the business of insurance.

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  • 7. 

    Which of the following licensing fees is CORRECT?

    • $40 annually for a temporary license

    • $50 annually for a producer's license

    • $55 for a duplicate license

    • $60 biennially for a producer's license

    Correct Answer
    A. $60 biennially for a producer's license
    Explanation
    $60 for an insurance producer's biennial license, regardless of the number of companies represented.
    $20 for a temporary license as producer.
    Duplicate license fees (half of the original license fee) [no fee of $110]
    There is no annual license for a producer.

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  • 8. 

    A person licensed to sell, solicit, or negotiate insurance.

    • Producer

    • Insurer

    • Provider

    • Counselor

    Correct Answer
    A. Producer
    Explanation
    A person licensed to sell, solicit, or negotiate insurance is commonly referred to as a "producer" in the insurance industry. They are responsible for selling insurance policies to individuals or businesses, as well as providing information and advice on insurance options. The term "producer" is used to highlight their role in generating sales and promoting insurance products.

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  • 9. 

    An insurance company must obtain a _________________ from the Commissioner to transact insurance business in Oklahoma.

    • Certificate of Authority

    • Right to Insure

    • Insurer License

    • Insurer Certificate

    Correct Answer
    A. Certificate of Authority
    Explanation
    In order to conduct insurance business in Oklahoma, an insurance company must obtain a Certificate of Authority from the Commissioner. This certificate grants the company the legal permission to operate and transact insurance business within the state. It is a formal authorization that ensures the company meets all the necessary requirements and regulations to provide insurance services to the public.

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  • 10. 

    What is the fee to renew a biennial license, regardless of the number of companies represented?

    • $60

    • $40

    • $100

    • $20

    Correct Answer
    A. $60
    Explanation
    Renewal fees for all licenses (equal to the current initial license fee)

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  • 11. 

    Which of the following jobs does NOT require a certificate of authority or license?

    • Delivering insurance contracts

    • Collecting insurance premiums

    • Providing insurance to nonprofit educational institutions

    • Writing advertisements for insurance companies

    Correct Answer
    A. Writing advertisements for insurance companies
    Explanation
    An insurance producer license is not required of the following:
    -Non commissioned persons who perform functions do not include or engage in the sale, solicitation, or negotiation of insurance
    -Such persons include officers, directors, administrators, inspectors, raters, training supervisors, advertisers (not limited to Oklahoma residents)
    -Non residents of Oklahoma who are licensed in other states whose clients have risks and their principle place of business in in the producers's state of license, and the contract insures risks located in that state
    -salaried full time employees who advise employers about the employer's insurance interests (provided they do not sell insurance or receive a commission)
    -A volunteer counselor assisting Medicare beneficiaries

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  • 12. 

    Insurance producers must complete how many continuing education hours every two years?

    • 24

    • 13

    • 15

    • 20

    Correct Answer
    A. 24
    Explanation
    Three of the hours must be in ethics, including fiduciary responsibility, commingling of funds, commissions, unfair claims practices, policy replacement, and conflicts of interest.
    Two of the hours must be in state legislative updates or federal legislative updates.

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  • 13. 

    A person who is authorized by the Commissioner to sell, solicit, or negotiate limited lines insurance.

    • Limited Lines Producer

    • Limited Options Producer

    • Managing General Agent

    • Customer Service Representative

    Correct Answer
    A. Limited Lines Producer
    Explanation
    A Limited Lines Producer is a person who has been given authorization by the Commissioner to sell, solicit, or negotiate limited lines insurance. This means that they are specifically licensed to handle and offer insurance policies within a specific area or type of insurance coverage. Unlike other options such as Limited Options Producer, Managing General Agent, or Customer Service Representative, a Limited Lines Producer has the specific authority to deal with limited lines insurance products.

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  • 14. 

    How many continuing education hours must an insurance adjuster complete within the twenty-four (24)-month period, beginning on the first day of the month following the month in which the license is granted and for each succeeding 24-month period?

    • 24

    • 13

    • 20

    • 18

    Correct Answer
    A. 24
    Explanation
    Insurance adjusters must complete 24 continuing education hours within a 24-month period, beginning on the first day of the month following the month in which their license is granted. This requirement applies to each succeeding 24-month period.

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  • 15. 

    In a liability case, who is the third-party?

    • The person or party who suffered the injury or damage.

    • Insurer

    • Insured

    • Umpire

    Correct Answer
    A. The person or party who suffered the injury or damage.
    Explanation
    In a liability case, the third-party refers to the person or party who suffered the injury or damage. In such cases, there are typically three parties involved: the plaintiff (the injured party), the defendant (the party allegedly responsible for the injury or damage), and the third-party who is directly affected by the incident. The third-party is seeking compensation or legal recourse for the harm they have experienced.

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  • 16. 

    A producer is offering $500 gift certificates as an incentive to buy a homeowners insurance policy. The producer is guilty of...

    • Defamation

    • Rebating

    • Coercion

    • Boycotting

    Correct Answer
    A. Rebating
    Explanation
    36 O.S. Sec. 1204
    8. Rebates. (a) Except as otherwise expressly provided by law, knowingly permitting or offering to make or making any contract of insurance or agreement as to such contract other than as plainly expressed in the contract issued thereon; or paying or allowing, or giving or offering to pay, allow or give, directly or indirectly, as inducement to any contract of insurance, any rebate of premiums payable on the contract, or any special favor or advantage in the dividends or other benefits thereon, or any valuable consideration or inducement whatever not specified in the contract; except in accordance with an applicable rate filing, rating plan or rating system filed with and approved by the Insurance Commissioner; or giving or selling or purchasing or offering to give, sell, or purchase as inducement to such insurance, or in connection therewith, any stocks, bonds or other securities of any company, or any dividends or profits accrued thereon, or anything of value whatsoever not specified in the contract or receiving or accepting as inducement to contracts of insurance, any rebate of premium payable on the contract, or any special favor or advantage in the dividends or other benefit to accrue thereon, or any valuable consideration or inducement not specified in the contract.

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  • 17. 

    State employees are excluded from Workers Compensation.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    State employees are not excluded from Workers Compensation. Workers Compensation is a type of insurance that provides benefits to employees who are injured or become ill as a result of their job. It covers medical expenses, rehabilitation costs, and lost wages. State employees, like any other employees, are eligible for Workers Compensation benefits if they meet the criteria for coverage. Therefore, the correct answer is False.

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  • 18. 

    Written or verbal misstatement of a material fact involved in the contract on which the insurer relies.

    • Misrepresentation

    • Cohersion

    • Concealment

    • Avoidance

    Correct Answer
    A. Misrepresentation
    Explanation
    Misrepresentation refers to a situation where there is a false statement made by one party involved in a contract, which is material to the agreement. In this case, the false statement relates to a material fact that the insurer relies upon. The misrepresentation can be either written or verbal. It is important to note that misrepresentation can lead to the avoidance of the contract, as the false statement undermines the basis of the agreement between the parties.

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  • 19. 

    Payments for temporary partial disability may NOT exceed how many weeks in the aggregate?

    • 42

    • 52

    • 156

    • 300

    Correct Answer
    A. 52
    Explanation
    85A O.S. Sec. 45 (B)
    If the injured employee is temporarily unable to perform her job, but may perform alternative work offered by the employer, she will be entitled to receive compensation equal to the greater of 70% of the difference between the injured employee's average weekly wage before the injury and her weekly wage for performing alternative work after the injury, but only if her weekly wave for performing the alternative work is less than the temporary total disability.
    -Compensation under this section may not exceed 52 weeks.
    -If the employee refuses to perform the alternative work offered by the employer, she will not be entitled to benefits under this section.

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  • 20. 

    Withholding material facts involved in the contract on which the insurer relies.

    • Concealment

    • Misrepresentation

    • Avoidance

    • Deliniation

    Correct Answer
    A. Concealment
    Explanation
    Concealment refers to the act of intentionally withholding important information or material facts related to a contract, which the insurer relies on. This can be seen as a form of deception or misrepresentation, as it prevents the insurer from making an informed decision. By concealing such facts, the insured party may be trying to obtain more favorable terms or coverage. In insurance contracts, concealment can lead to the avoidance or cancellation of the policy, as it undermines the principle of utmost good faith that should govern the relationship between the parties involved.

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  • 21. 

    Which type of insurer is incorporated or organized under the laws of a country other than the United States?

    • Foreign

    • Domestic

    • Alien

    • International

    Correct Answer
    A. Alien
    Explanation
    A Domestic insurer is an insurance company organized under the laws of Oklahoma.
    A Foreign insurer is organized under the laws of a state other than Oklahoma.
    An Alien insurer is organized under the laws of any country other than the United States.
    An International insurer is not listed.

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  • 22. 

    Spouses of deceased employees are entitled to what percentage of the employee's average weekly wages?

    • 20%

    • 25%

    • 50%

    • 70%

    Correct Answer
    A. 70%
    Explanation
    85A O.S. §47 (C)
    1. If there is a surviving spouse, a lump-sum payment of One Hundred Thousand Dollars ($100,000.00) and seventy percent (70%) of the lesser of the deceased employee's average weekly wage and the state average weekly wage. In addition to the benefits theretofore paid or due, two (2) years' indemnity benefit in one lump sum shall be payable to a surviving spouse upon remarriage;

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  • 23. 

    Insured motorists who successfully complete a motor vehicle accident prevention course are entitled to a reduced premium for how long?

    • 6 months

    • 1 year

    • 3 years

    • 5 years

    Correct Answer
    A. 3 years
    Explanation
    36 O.S. § 924.1.
    B. All insurance companies writing automobile or motorcycle liability and physical damage insurance in this state shall allow an appropriate reduction in premium charges to all eligible persons pursuant to this section.
    C. Upon successfully completing the approved course, each participant shall be issued by the sponsoring agency of the course, a certificate which shall be the basis of qualification for the discount on insurance.
    D. Each participant shall successfully complete an approved course each three (3) years to continue to be eligible for the discount on insurance.

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  • 24. 

    Acme Imports has purchased a large number of wooden salt and pepper shakers from Poland and will import them to the United States. The shipment will be covered by an inland marine insurance policy while in all of the following places EXCEPT...

    • On a trans-Atlantic ship

    • In a truck traveling to the destination retail store

    • While traveling on a bridge over the Mississippi River

    • While stocked on shelves a the retail store

    Correct Answer
    A. While stocked on shelves a the retail store
    Explanation
    Reg. 365:15-1-6
    Property loses its characteristics as an import when it is:
    -sold and delivered by the importer;
    -removed from storage and placed for sale as stock in trade; or
    -delivered for manufacture or processing

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  • 25. 

    Which of the following is NOT a duty of the Insurance Commissioner?

    • Maintaining records

    • Issuing certificates of authority to transact insurance business in Oklahoma

    • Writing Oklahoma insurance laws

    • Conducting hearings

    Correct Answer
    A. Writing Oklahoma insurance laws
    Explanation
    The Commissioner is elected to office and has the following powers and duties:

    Jurisdiction over complaints
    Authority to conduct hearings
    Responsibility to maintain all required books and records
    Responsibility to maintain a complete record of proceedings
    Responsibility to provide an annual report to the governor concerning the affairs of the Commissioner's office
    Responsibility to adopt reasonable rules and regulations for the implementation and administration of the Insurance Code

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  • 26. 

    If an insurer takes an adverse action based upon credit information, the insurer...

    • May use "poor credit rating" as the reason

    • May use "poor insurance score" as the reason

    • May use standardized credit explanations provided by the consumer reporting agency as the reason

    • Is guilty of an unfair trade practice

    Correct Answer
    A. May use standardized credit explanations provided by the consumer reporting agency as the reason
    Explanation
    The use of terms such as "poor credit history," "poor credit rating," or "poor insurance score" will not meet the requirements of the Oklahoma Credit Law. Standardized credit explanations provided by consumer reporting agencies or other third-party vendors are deemed to comply with this section.

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  • 27. 

    Which of the following would NOT be covered under the uninsured/underinsured motorists provision in a motor vehicle liability policy?

    • A hit-and-run motorist collides with the insured owner of a vehicle.

    • A motorist insured with less than the minimum liability limits collides with the insured vehicle owner, causing damages that are higher than these limits.

    • An uninsured motorist collides with the operator of a vehicle who does not own the vehicle he is driving.

    • All of the listed situations would be covered.

    Correct Answer
    A. All of the listed situations would be covered.
    Explanation
    36 O.S. § 3636
    B. The policy referred to in subsection A of this section shall provide coverage therein or supplemental thereto for the protection of persons insured thereunder who are legally entitled to recover damages from owners or operators of uninsured motor vehicles and hit-and-run motor vehicles because of bodily injury, sickness or disease, including death resulting therefrom. Coverage shall be not less than the amounts or limits prescribed for bodily injury or death for a policy meeting the requirements of Section 7-204 of Title 47 of the Oklahoma Statutes, as the same may be hereafter amended; provided, however, that increased limits of liability shall be offered and purchased if desired, not to exceed the limits provided in the policy of bodily injury liability of the insured. The uninsured motorist coverage shall be upon a form approved by the Insurance Commissioner as otherwise provided in the Insurance Code and may provide that the parties to the contract shall, upon demand of either, submit their differences to arbitration; provided, that if agreement by arbitration is not reached within three (3) months from date of demand, the insured may sue the tort-feasor.
    C. For the purposes of this coverage the term "uninsured motor vehicle" shall include an insured motor vehicle where the liability insurer thereof is unable to make payment with respect to the legal liability of its insured within the limits specified therein because of insolvency. For the purposes of this coverage the term "uninsured motor vehicle" shall also include an insured motor vehicle, the liability limits of which are less than the amount of the claim of the person or persons making such claim, regardless of the amount of coverage of either of the parties in relation to each other.

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  • 28. 

    A licensee must provide to customers a clear and conspicuous written notice of the insurer's privacy policies and practices no less frequently than...

    • At the time of sale and semi-annually thereafter

    • At the time of sale only

    • Only when requested by any consumer

    • At the time of sale and annually thereafter

    Correct Answer
    A. At the time of sale and annually thereafter
    Explanation
    Reg. 365:35-1-10
    A licensee must initially provide clear and conspicuous notice that accurately reflects its privacy policies and practices to customers and consumers.
    Reg. 365:35-1-11
    A licensee must annually provide a clear and conspicuous notice to customers that accurately reflects its privacy policies and practices.

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  • 29. 

    According to the Oklahoma Workers' Compensation Act, the most an employer will have to pay for actual funeral expenses for a deceased employee is...

    • $5,000

    • $10,000

    • $0

    • $7,000

    Correct Answer
    A. $10,000
    Explanation
    85A O.S. Sec 45 - Time of death; common law spouse; beneficiary
    g. The employer will pay the actual funeral expenses, not to exceed $10,000.

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  • 30. 

    All motor vehicle liability policies expire at...

    • 12.00 midnight standard time on the expiration date noted in the policy

    • 12:01 am standard time on the expiration date noted in the policy

    • 12:00 midnight standard time 1 year to the day from the policy's effective date

    • 12:01 am standard time 1 year to the day from the policy's effective date

    Correct Answer
    A. 12:01 am standard time on the expiration date noted in the policy
    Explanation
    36 O.S. § 3635.1. Time of expiration of certain policies.
    All policies insuring against loss resulting from liability imposed by law for bodily injury or death suffered by any person arising out of the ownership, maintenance or use of a motor vehicle, as defined in Section 3635 of this title, shall expire at 12:01 a.m. Standard Time on the expiration date stated in the policy. This section shall apply to all such policies on the first policy renewal date after December 31, 1982.

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  • 31. 

    Sole proprietors are exempt from Workers Compensation.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    Sole proprietors are exempt from Workers Compensation because they are considered self-employed individuals and do not have any employees. Workers Compensation insurance is designed to provide benefits to employees who are injured or become ill while performing their job duties. Since sole proprietors do not have employees, they are not required to carry Workers Compensation insurance for themselves. However, they may choose to purchase it voluntarily to provide coverage for their own injuries or illnesses.

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  • 32. 

    Under Workers' Compensation, the vocational rehabilitation services or training will not extend for a period of more than ___ weeks.

    • 52

    • 104

    • 156

    • 27

    Correct Answer
    A. 52
    Explanation
    Under Workers' Compensation, the vocational rehabilitation services or training will not extend for a period of more than 52 weeks. This means that injured workers who require vocational rehabilitation will receive support for up to one year to help them regain employment or acquire new skills. Vocational rehabilitation services aim to assist individuals in returning to work and achieving economic self-sufficiency after a work-related injury or illness.

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  • 33. 

    A deliberate misrepresentation that causes harm.

    • Fraud

    • Concealment

    • Malicious Lie

    • Misdirection

    Correct Answer
    A. Fraud
    Explanation
    Fraud differs from misrepresentation in that misrepresentation may be intentional or unintentional. Fraud is always intentional and involves an all-out effort by one party to deceive and cheat the other.

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  • 34. 

    A person being 16 years old in Oklahoma is able to purchase any type of insurance.

    • True

    • False

    Correct Answer
    A. True
    Explanation
    In Oklahoma, a person who is 16 years old is legally allowed to purchase any type of insurance. There are no age restrictions or limitations in place for purchasing insurance in this state. Therefore, the statement is true.

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  • 35. 

    A person, being 15 years old, in Oklahoma is able to purchase auto insurance.

    • True

    • False

    Correct Answer
    A. False
    Explanation
    In Oklahoma a person must be at least 16 to purchase any insurance other than life and health insurance.

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  • 36. 

    When two appraisers cannot agree on an amount, they submit their differences to...

    • An umpire.

    • A mediator.

    • A third appraiser

    • The commissioner.

    Correct Answer
    A. An umpire.
    Explanation
    When two appraisers cannot agree on an amount, they submit their differences to an umpire. An umpire is a neutral third party who is called upon to make a final decision or resolution in a dispute. In this case, the umpire would review the differing opinions of the appraisers and make a final determination on the amount.

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  • 37. 

    Statements the applicant believes are true.

    • Representations

    • Honest Statements

    • Assurance

    • Points of Contention

    Correct Answer
    A. Representations
    Explanation
    The given correct answer is "Representations". In this context, "representations" refer to statements or claims made by the applicant that they believe to be true. These statements can be seen as an assurance or guarantee of the applicant's honesty and credibility. However, it is important to note that these representations may still be points of contention or subject to further examination and verification.

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  • 38. 

    All of the following are requirements to be licensed as an adjuster in Oklahoma EXCEPT...

    • Being at least 21 years old

    • Having experience or special education and training sufficient to make the person competent to carry out the duties of an adjuster

    • Having successfully passed or been exempted from the adjuster's licensing exam

    • Being a trustworthy person

    Correct Answer
    A. Being at least 21 years old
    Explanation
    36 O.S. SEC. 6206
    A. The Insurance Commissioner shall license as an adjuster only an individual who has fully complied with the provisions of the Insurance Adjusters Licensing Act, including the furnishing of evidence satisfactory to the Commissioner that the applicant:

    1. Is at least eighteen (18) years of age;

    2. Is a bona fide resident of this state or is a resident of a state or country which permits adjusters who are residents of this state to act as adjusters in such other state or country;

    3. If a nonresident of the United States, has complied with all federal laws pertaining to employment and the transaction of business in the United States;

    4. Is a trustworthy person;

    5. Has had experience or special education or training of sufficient duration and extent with reference to the handling of loss claims pursuant to insurance contracts to make the applicant competent to fulfill the responsibilities of an adjuster;

    6. Has successfully passed an examination as required by the Commissioner within two (2) years prior to date of application, or has been exempted from examination, in accordance with the provisions of Section 6208 of this title; and

    7. If the application is for a public adjuster's license, the applicant has filed the bond required by Section 6214 of this title

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  • 39. 

    Except those who are exempt from licensure, what is the penalty for an unlicensed person to do or perform any of the acts of a licensed person?

    • Guilty of a misdemeanor and fined not more than $250, jailed up to 6 months, or both

    • Guilty of a misdemeanor and fined not more than $500, jailed 6-12 months, or both

    • Guilty of a misdemeanor and fined not more than $600

    • Guilty of a misdemeanor and fined not more than $800

    Correct Answer
    A. Guilty of a misdemeanor and fined not more than $500, jailed 6-12 months, or both
    Explanation
    An unlicensed person who performs the acts of a licensed person, except for those who are exempt from licensure, will be guilty of a misdemeanor. They can be fined up to $500 and may face imprisonment for a period of 6-12 months, or both. This penalty is imposed to ensure that only licensed individuals with the necessary qualifications and expertise are allowed to perform certain acts, thus maintaining the standards and safety in the respective field.

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  • 40. 

    What condition covers disagreement or dispute with regard to value of loss, or other areas of disagreement between the insured and the insurance company, between the company and a third party in the case of liability insurance, or between two insurers? 

    • Arbitration

    • Negotiation

    • Pro rata

    • Subrogation

    Correct Answer
    A. Arbitration
    Explanation
    Arbitration is the correct answer because it is a process used to resolve disagreements or disputes between the insured and the insurance company, between the company and a third party in liability insurance, or between two insurers. It involves a neutral third party who reviews the evidence and arguments from both sides and makes a final decision or settlement. Arbitration is often used when the parties involved cannot come to a resolution through negotiation.

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  • 41. 

    Who does an insurance producer represent when negotiating an insurance contract?

    • Policyholder

    • Insurer

    • State of Oklahoma

    • Broker

    Correct Answer
    A. Insurer
    Explanation
    Every insurance producer, customer service representative, or limited lines producer who solicits or negotiates an application for insurance shall, in any controversy between the insured or the insured's beneficiary and the insurer, be regarded as representing the insurer and not the insured or the insured's beneficiary.

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  • 42. 

    What is the purpose of the Property and Casualty Insurance Guaranty Association?

    • To ensure that consumers have access to the lowest possible insurance rates

    • To protect policy holders, insureds, and claimants from insurers who become insolvent

    • To increase competition among insurers in Oklahoma

    • To guarantee that all applicants for insurance are able to obtain it from an authorized insurer

    Correct Answer
    A. To protect policy holders, insureds, and claimants from insurers who become insolvent
    Explanation
    The Oklahoma Property and Casualty Insurance Guaranty Association protects policy holders, insured, and claimants from the financial dangers caused by insurers who become insolvent or otherwise unable to perform their contractual obligations; assesses its members for the funds to pay claims and continue coverage for impaired and insolvent insurers; and helps the Commissioner detect and prevent insurer impairments and insolvency.

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  • 43. 

    A new homeowner is being forced to buy insurance from a particular insurer as a condition of receiving a mortgage. The lender is guilty of...

    • Rebating

    • Misrepresentation

    • Coercion of borrowers

    • Intimidation

    Correct Answer
    A. Coercion of borrowers
    Explanation
    36 O.S. Sec. 1204
    9. Coercion prohibited. Requiring as a condition precedent to the purchase of, or the lending of money upon the security of, real or personal property, that any insurance covering such property, or liability arising from the ownership, maintenance or use thereof, be procured by or on behalf of the vendee or by the borrower in connection with such purchase or loan through any particular person or agent or in any particular insurer, or requiring the payment of a reasonable fee as a condition precedent to the replacement of insurance coverage on mortgaged property at the anniversary date of the policy; provided, however, that this provision shall not prevent the exercise by any such vendor or lender of the right to approve or disapprove any insurer selected to underwrite the insurance; but any disapproval of any insurer shall be on reasonable grounds.

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  • 44. 

    What qualifies as a customer's continuing relationship being established?

    • When the customer becomes a policy holder or agrees to obtain insurance-related services for a fee from the licensee.

    • When the customer sets an appointment to discuss the terms of an policy.

    • When the licensee receives contact information and arranges an appointment to discuss the terms of an policy.

    • When a customer moves into the neighborhood of a licensee or is found to be related to the licensee.

    Correct Answer
    A. When the customer becomes a policy holder or agrees to obtain insurance-related services for a fee from the licensee.
    Explanation
    The customer's continuing relationship is established when they become a policy holder or agree to obtain insurance-related services for a fee from the licensee. This means that once the customer has purchased a policy or agreed to pay for insurance-related services, they have established a relationship with the licensee that goes beyond just initial contact or setting an appointment. This indicates a commitment from the customer to engage in ongoing business with the licensee, solidifying their relationship.

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  • 45. 

    An official inventory of the damages.

    • Proof of Loss

    • Appraisal

    • Salvage List.

    • Damages Audit.

    Correct Answer
    A. Proof of Loss
    Explanation
    Proof of Loss is the correct answer because it refers to a document or statement provided by the insured individual to the insurance company, detailing the extent of damages or loss suffered. This serves as evidence of the claimed damages and is necessary for the insurance company to assess and process the claim. It typically includes information such as the cause of loss, itemized list of damaged property, and the estimated value of the loss. The Proof of Loss helps ensure that the insurance claim is valid and facilitates the settlement process.

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  • 46. 

    What is the surplus lines premium tax rate?

    • 4%

    • 6%

    • 2%

    • 5%

    Correct Answer
    A. 6%
    Explanation
    36 O.S. 1115
    A. Where Oklahoma is the home state of the insured, every person licensed pursuant to Section 1106 of this title shall collect and pay as provided in this section a sum for premium tax based on the total gross premiums charged in connection with any broker-procured surplus lines insurance, less any return premiums, for surplus lines insurance sold to the Oklahoma home-state insureds by the surplus lines broker or licensee.

    B. Where Oklahoma is the home state of the insured and the insurance covers properties, risks or exposures located or to be performed both in and out of Oklahoma, the sum payable to the Oklahoma Insurance Commissioner shall be computed based on an amount equal to six percent (6%) of the total gross premiums whether the properties, risks or exposures are located or to be performed inside or outside Oklahoma. Any such unearned gross premium credited by the state to the surplus lines broker or licensee shall be returned to the policyholder by the broker or licensee. The surplus lines licensee or broker is prohibited from rebating, for any reason, any part of the tax.

    C. Where Oklahoma is the home state of the insured, gross premiums charged for independently procured insurance, less any return premiums, are subject to a premium tax at the rate of six percent (6%) payable to the Oklahoma Insurance Commissioner, whether the properties, risks or exposures are located or to be performed inside or outside Oklahoma.

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  • 47. 

    Which of the following are required provisions in a motor vehicle policy issued in Oklahoma?

    • Social Security number of the insured

    • Premium charged

    • Coverage provided

    • Limits of liability

    Correct Answer(s)
    A. Premium charged
    A. Coverage provided
    A. Limits of liability
    Explanation
    47 O.S. § 7-324
    (d) Required statements in policies. Such motor vehicle liability policy shall state the name and address of the named insured, the coverage afforded by the policy, the premium charged therefor, the policy period and the limits of liability, and shall contain an agreement or be endorsed that insurance is provided thereunder in accordance with the coverage defined in this chapter as respects bodily injury and death or property damage, or both, and is subject to all the provisions of this title.

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  • 48. 

    The required motor vehicle liability limits for the State of Oklahoma are 25/50/25. What is the required liability coverage for injury to or destruction of property of others in any one accident?

    • $25,000

    • $50,000

    • $1,000,000

    • $500,000

    Correct Answer
    A. $25,000
    Explanation
    25/50/25 BI1/BI2+/PD
    $25,000 for BODILY INJURY or DEATH of ONE PERSON in any one accident.
    $50,000 for BODILY INJURY or DEATH of TWO OR MORE PERSONS in any one accident.
    $25,000 for INJURY or DESTRUCTION of PROPERTY of others in any one accident.

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  • 49. 

    In a liability case, who is the first-party?

    • The person or party who suffered the injury or damage.

    • Insurer

    • Insured

    • Umpire

    Correct Answer
    A. Insured
    Explanation
    *Property losses are considered first-party losses. The insured is the first party.

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Quiz Review Timeline (Updated): Feb 2, 2024 +

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  • Current Version
  • Feb 02, 2024
    Quiz Edited by
    ProProfs Editorial Team
  • Sep 22, 2014
    Quiz Created by
    Allenairtag

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