Property And Casualty Insurance - Oklahoma

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Property And Casualty Insurance - Oklahoma - Quiz

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


Questions and Answers
  • 1. 

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

    • A.

      Concealment

    • B.

      Misrepresentation

    • C.

      Avoidance

    • D.

      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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  • 2. 

    How many days' written notice must be given if an insurer wishes to change the deductible within a policy?

    • A.

      45

    • B.

      60

    • C.

      15

    • D.

      30

    Correct Answer
    A. 45
    Explanation
    An insurer must give 45 days' written notice if they wish to change the deductible within a policy. This notice period allows policyholders to be informed and make any necessary adjustments or decisions regarding their coverage. It ensures transparency and gives them sufficient time to review the changes and potentially seek alternative insurance options if needed.

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  • 3. 

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

    • A.

      Being at least 21 years old

    • B.

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

    • C.

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

    • D.

      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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  • 4. 

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

    • A.

      6 months

    • B.

      1 year

    • C.

      3 years

    • D.

      5 years

    Correct Answer
    C. 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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  • 5. 

    A deliberate misrepresentation that causes harm.

    • A.

      Fraud

    • B.

      Concealment

    • C.

      Malicious Lie

    • D.

      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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  • 6. 

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

    • A.

      $60

    • B.

      $40

    • C.

      $100

    • D.

      $20

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

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  • 7. 

    A person who has been convicted of any criminal felony involving dishonesty or a breach of trust who participates in the business of insurance in Oklahoma without express authorization from the Commissioner will be subject to what fine?

    • A.

      $10,000 for each act of violation and for each day of violation.

    • B.

      $10,000 for each day of violation.

    • C.

      $15,000 for each act of violation.

    • D.

      15,000 for each act of violation and for each day of violation.

    Correct Answer
    A. $10,000 for each act of violation and for each day of violation.
    Explanation
    A person who has been convicted of a criminal felony involving dishonesty or a breach of trust and participates in the business of insurance in Oklahoma without authorization from the Commissioner will be fined $10,000 for each act of violation and for each day of violation. This means that for every instance of violating the law and for every day that the violation continues, the person will be fined $10,000.

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  • 8. 

    An insurer must appoint a producer within how many days after accepting business from that producer?

    • A.

      5

    • B.

      7

    • C.

      15

    • D.

      30

    Correct Answer
    C. 15
    Explanation
    An appointment by an insurer may be made within 15 days after the contract is executed or the first insurance application is submitted.

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  • 9. 

    All motor vehicle liability policies expire at...

    • A.

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

    • B.

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

    • C.

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

    • D.

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

    Correct Answer
    B. 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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  • 10. 

    How many days' written notice must be given if an insurer wishes to make a reduction in limits or coverage within a policy?

    • A.

      45

    • B.

      30

    • C.

      60

    • D.

      15

    Correct Answer
    A. 45
    Explanation
    An insurer must provide 45 days' written notice if they wish to make a reduction in limits or coverage within a policy. This allows the policyholder sufficient time to review the changes and make any necessary adjustments or find alternative coverage if needed.

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  • 11. 

    If an insurer engages in any trade practice that involves unfair competition or deceptive acts, the Commissioner may investigate possible unfair trade practices and do which of the following.  (Choose all those are correct)

    • A.

      Fine the insurer

    • B.

      Suspend the insurer's license

    • C.

      Revoke the insurer's license

    • D.

      Censure the insurer

    Correct Answer(s)
    A. Fine the insurer
    B. Suspend the insurer's license
    C. Revoke the insurer's license
    Explanation
    If an insurer engages in any trade practice that involves unfair competition or deceptive acts, the Commissioner may investigate possible unfair trade practices and take the following actions: fine the insurer, suspend the insurer's license, and revoke the insurer's license. These actions are taken to hold the insurer accountable for their unfair practices and to protect consumers from deceptive practices in the insurance industry. Censuring the insurer may also be a possible action, which involves publicly expressing disapproval of their actions.

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  • 12. 

    May an insurer cancel, refuse to renew, or increase the premium of a homeowners insurance policy solely because the insured filed a first claim against the policy?

    • A.

      Yes, before the policy has been in effect for 45 days.

    • B.

      No.

    • C.

      No, unless the policy is within 45 days of expiration.

    • D.

      Yes, only after the policy has been in effect for 45 days.

    Correct Answer
    A. Yes, before the policy has been in effect for 45 days.
    Explanation
    An insurer may cancel, refuse to renew, or increase the premium of a homeowners insurance policy solely because the insured filed a first claim against the policy before the policy has been in effect for 45 days. After the 45-day period, the insurer cannot take such actions solely based on the insured filing a first claim.

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  • 13. 

    Which of the following are elements of an act of fraud?

    • A.

      Someone deliberately lies.

    • B.

      The intent of the lie is for someone else to rely on that lie.

    • C.

      Another person relies on that lie.

    • D.

      The other person suffers harm as a result of relying on that lie.

    Correct Answer(s)
    A. Someone deliberately lies.
    B. The intent of the lie is for someone else to rely on that lie.
    C. Another person relies on that lie.
    D. The other person suffers harm as a result of relying on that lie.
    Explanation
    An act of fraud involves someone intentionally lying with the intention of causing someone else to rely on that lie. Another person then relies on the lie and as a result, suffers harm. This sequence of events constitutes the elements of an act of fraud.

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  • 14. 

    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? 

    • A.

      Arbitration

    • B.

      Negotiation

    • C.

      Pro rata

    • D.

      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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  • 15. 

    Which of the following is NOT a consideration of the Commissioner while examining an insurer?

    • A.

      Actuarial opinions

    • B.

      Analysis of financial statements

    • C.

      Changes in management

    • D.

      Internal revenue returns

    Correct Answer
    D. Internal revenue returns
    Explanation
    In determining when to examine a company, the Commission will consider:
    analyses of financial statements;
    changes in management or ownership;
    actuarial opinions;
    reports of independent certified financial examiners or public accountants; and
    other criteria described in the Examiner' Handbook

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  • 16. 

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

    • A.

      $5,000

    • B.

      $10,000

    • C.

      $0

    • D.

      $7,000

    Correct Answer
    B. $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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  • 17. 

    The Commissioner must examine the affairs of all domestic insurance companies every...

    • A.

      Year

    • B.

      3 years

    • C.

      5 years

    • D.

      Time there is a question regarding a company's financial condition

    Correct Answer
    C. 5 years
    Explanation
    Whenever necessary, the Commissioner can examine an insurer's financial condition and dealings with policyowners.
    All domestic insurers must be examined at least once every (5) years.
    Every foreign insurer licensed in Oklahoma must be examined at least once every five years or the Commissioner may accept the examinations conducted by other states' insurance departments.
    At the request of at least one person who has a financial interest in an insurer.

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  • 18. 

    A person, being 15 years old, in the state of Oklahoma is able to purchase life and/or health insurance.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    In the state of Oklahoma, a person who is 15 years old is legally allowed to purchase life and/or health insurance. This means that even though they are a minor, they have the ability to enter into insurance contracts and obtain coverage for themselves. It is important to note that insurance companies may have their own specific requirements and limitations for issuing policies to minors, but in general, this statement is true for Oklahoma.

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  • 19. 

    Limited lines producers may be licensed to transact all of the following insurance business EXCEPT...

    • A.

      Casualty

    • B.

      Limited travel accident

    • C.

      Multiperil crop hail

    • D.

      Prepaid dental

    Correct Answer(s)
    A. Casualty
    D. Prepaid dental
    Explanation
    A limited lines producer may receive a license to sell one or more of the following limited lines of insurance:
    -Crop - unfavorable weather conditions, fire or lightning, flood, hail, insect infestation, disease, or other yield-reducing conditions or perils.
    -Car rental
    -Credit - credit life, credit disability, credit property, credit unemployment, involuntary unemployment, mortgage life, mortgage guaranty, mortgage disability, guaranteed automobile protection insurance, or any other insurance offered in connection with the extension of credit...
    -Prepaid legal - provide legal services, or to reimburse policyholders for legal expenses
    -Surety - covers obligations to pay the debts of or answer for the default of another, including faithlessness in a position of public or private trust (does not include bail bonds).
    -Travel - trip cancellation, trip interruption, baggage, life, sickness, accident, disability, and personal effects

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  • 20. 

    Within how many days of being informed of an employee workplace injury must the employer provide reasonable and necessary medical care?

    • A.

      Immediately

    • B.

      Within 3 days

    • C.

      Within 5 days

    • D.

      Within 14 days

    Correct Answer
    C. Within 5 days
    Explanation
    85A O.S. §85A-50. Failure to provide medical treatment - Medical examination - Fee schedule - Formulary.
    A. The employer shall promptly provide an injured employee with medical, surgical, hospital, optometric, podiatric, and nursing services, along any with medicine, crutches, ambulatory devices, artificial limbs, eyeglasses, contact lenses, hearing aids, and other apparatus as may be reasonably necessary in connection with the injury received by the employee. The employer shall have the right to choose the treating physician.
    B. If the employer fails or neglects to provide medical treatment within five (5) days after actual knowledge is received of an injury, the injured employee may select a physician to provide medical treatment at the expense of the employer; provided, however, that the injured employee, or another in the employee's behalf, may obtain emergency treatment at the expense of the employer where such emergency treatment is not provided by the employer.

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  • 21. 

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

    • A.

      An umpire.

    • B.

      A mediator.

    • C.

      A third appraiser

    • D.

      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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  • 22. 

    Which of the following is a penalty for being complained of or engaging in a method of competition or practice in violation of the Unfair Practices and Frauds Act?

    • A.

      Cease and desist order

    • B.

      Imprisonment up to 15 years

    • C.

      $10,000 fine

    • D.

      $500 fine and 180 days probation

    Correct Answer
    A. Cease and desist order
    Explanation
    The Insurance Commissioner shall issue a cease and desist order upon a person after finding the person complained of or has engaged in a method of competition or practice in violation of the Unfair Practices and Frauds Act.

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  • 23. 

    Binders, written or oral, expire when?

    • A.

      90 days after its effective date, or when the policy is issued.

    • B.

      180 days after its effective date, or when the policy is issued.

    • C.

      30 days after its effective date, or when the policy is issued.

    • D.

      60 days after its effective date, or when the policy is issued.

    Correct Answer
    A. 90 days after its effective date, or when the policy is issued.
    Explanation
    Binders, whether written or oral, expire either 90 days after their effective date or when the policy is issued. This means that if the binder is not replaced by an actual policy within 90 days of its effective date, it will no longer be valid. The expiration date can also be earlier if the policy is issued before the 90-day mark.

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  • 24. 

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

    • A.

      True

    • B.

      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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  • 25. 

    Who is responsible for providing the proof of loss form?

    • A.

      Insurer

    • B.

      Insured

    • C.

      Commissioner

    • D.

      Guaranty Association

    Correct Answer
    A. Insurer
    Explanation
    36 O.S. 3629
    A. An insurer shall furnish, upon written request of any insured claiming to have a loss under an insurance contract issued by such insurer, forms of proof of loss for completion by such person, but such insurer shall not, by reason of the requirement so to furnish forms, have any responsibility for or with reference to the completion of such proof or the manner of any such completion or attempted completion.

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  • 26. 

    Which of the following DO NOT provide motor vehicle liability insurance to those applicants who would otherwise be uninsurable?

    • A.

      Auto Insurance Guaranty Association

    • B.

      Property and Casualty Insurance Guaranty Association

    • C.

      Auto Assigned Risk Plan

    • D.

      State Board for Property and Casualty Rates

    Correct Answer(s)
    A. Auto Insurance Guaranty Association
    B. Property and Casualty Insurance Guaranty Association
    D. State Board for Property and Casualty Rates
    Explanation
    36 O.S. § 996.1. Assigned risk plans.
    After consultation with the insurance companies authorized to issue automobile liability policies in this state, the Insurance Commissioner shall approve a reasonable plan or plans, fair to the insurers and equitable to their policyholders, for the apportionment among such companies of applicants for such policies and for motor vehicle liability policies who are in good faith entitled to but are unable to procure such policies through ordinary methods. When any such plan has been approved, all such insurance companies shall subscribe thereto and participate therein.

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  • 27. 

    An official inventory of the damages.

    • A.

      Proof of Loss

    • B.

      Appraisal

    • C.

      Salvage List.

    • D.

      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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  • 28. 

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

    • A.

      May use "poor credit rating" as the reason

    • B.

      May use "poor insurance score" as the reason

    • C.

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

    • D.

      Is guilty of an unfair trade practice

    Correct Answer
    C. 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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  • 29. 

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

    • A.

      True

    • B.

      False

    Correct Answer
    B. 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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  • 30. 

    Unless otherwise provided, insurers shall give at least ___ days of notice prior to the date of cancellation and ___ days of notice prior to the date of non-renewal of the insurance policy. Insurers shall give at least ___ days' notice prior to the date of non-renewal of a homeowners insurance policy or any other personal residential insurance coverage.

    • A.

      10, 20, 30

    • B.

      30, 30, 60

    • C.

      10, 20, 60

    • D.

      10, 30, 30

    Correct Answer
    A. 10, 20, 30
    Explanation
    Insurers are required to give at least 10 days of notice prior to the date of cancellation and 20 days of notice prior to the date of non-renewal of an insurance policy. However, for homeowners insurance policy or any other personal residential insurance coverage, insurers must give at least 30 days' notice prior to the date of non-renewal.

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  • 31. 

    Marine and transportation policies may provide coverage for which of the following?

    • A.

      Imported property

    • B.

      Exported property

    • C.

      Merchandise in storage

    • D.

      Domestic shipments on consignment

    Correct Answer(s)
    A. Imported property
    B. Exported property
    D. Domestic shipments on consignment
    Explanation
    Reg. 365:15-1-6
    Marine and transportation policies may provide coverage for the following types of property under certain conditions:
    -Imports
    -Exports
    -Domestic shipments on and not on consignment
    -etc.

    Marine or transportation policies need not cover the storage of the insured's merchandise unless otherwise provided by law.

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  • 32. 

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

    • A.

      Foreign

    • B.

      Domestic

    • C.

      Alien

    • D.

      International

    Correct Answer
    C. 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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  • 33. 

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

    • A.

      At the time of sale and semi-annually thereafter

    • B.

      At the time of sale only

    • C.

      Only when requested by any consumer

    • D.

      At the time of sale and annually thereafter

    Correct Answer
    D. 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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  • 34. 

    At least how many days in advance must the insurer give the insured a written renewal notice including any changes to the policy?

    • A.

      45

    • B.

      60

    • C.

      30

    • D.

      15

    Correct Answer
    C. 30
    Explanation
    If the insurer fails to provide such notice, the premium, deductible, limits, and coverage provided to the named insurer prior to the change shall remain in effect until notice is given or until the effective date of replacement coverage obtained by the named insured, which ever occurs first.

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  • 35. 

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

    • A.

      The person or party who suffered the injury or damage.

    • B.

      Insurer

    • C.

      Insured

    • D.

      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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  • 36. 

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

    • A.

      24

    • B.

      13

    • C.

      15

    • D.

      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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  • 37. 

    Every agent, adjuster, administrator, insurance company representative, or insurer must respond to a Commissioner's request for information within how many days?

    • A.

      30

    • B.

      60

    • C.

      90

    • D.

      10

    Correct Answer
    A. 30
    Explanation
    Every agent, adjuster, administrator, insurance company representative, or insurer must respond to a Commissioner's request for information within 30 days. This timeframe allows for a reasonable amount of time for the requested party to gather and provide the necessary information to the Commissioner. It ensures that the Commissioner can effectively carry out their duties and responsibilities in regulating the insurance industry.

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  • 38. 

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

    • A.

      A notice of risk assignment

    • B.

      A certificate of authority

    • C.

      A mutual benefit card

    • D.

      A license to solicit registration

    Correct Answer
    B. 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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  • 39. 

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

    • A.

      Defamation

    • B.

      Rebating

    • C.

      Coercion

    • D.

      Boycotting

    Correct Answer
    B. 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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  • 40. 

    How long after a property and casualty claim has been made must an insurer acknowledge the receipt of notification unless payment is made before these days have past?

    • A.

      30

    • B.

      60

    • C.

      90

    • D.

      10

    Correct Answer
    A. 30
    Explanation
    An insurer must acknowledge the receipt of notification after a property and casualty claim has been made within 30 days, unless payment is made before these days have passed. This means that the insurer is required to provide confirmation that they have received the claim within this time frame.

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  • 41. 

    State employees are excluded from Workers Compensation.

    • A.

      True

    • B.

      False

    Correct Answer
    B. 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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  • 42. 

    Usually, a proof of loss form must be completed by the insured and returned within how many days of receipt?

    • A.

      15

    • B.

      30

    • C.

      60

    • D.

      90

    Correct Answer
    C. 60
    Explanation
    36 O.S. 4805
    When any insurance policy subject to the provisions of this article contains a provision that the insured must render a written sworn proof of loss within sixty (60) days from the date of fire or loss to the insurer, or the same is required by law to be so rendered, the insurer cannot assert the failure of insured to so render such proof of loss in any litigation or court proceeding, unless the insurer plead and prove that it has furnished the insured with two blank forms for the execution of proof of loss, that has printed thereon, in bold-faced type in a conspicuous place, the warning that a proof of loss must be rendered to the insurer within sixty (60) days from the date of receipt of the blank forms for proof of loss by the insured, or by putting such warning in a like form in a letter of instruction for executing a proof of loss that will accompany the proof of loss blanks furnished the insured, and the insurer has further executed and furnished the insured its written extension of time, giving the insured sixty (60) days from the date such blanks were received by the insured. These requirements cannot be waived by any agreement between the parties or otherwise.

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  • 43. 

    Customer service representatives must complete how many continuing education hours every two years?

    • A.

      20

    • B.

      13

    • C.

      15

    • D.

      24

    Correct Answer
    B. 13
    Explanation
    Customer service representatives must complete 13 continuing education hours every two years. This requirement ensures that they stay updated with the latest industry trends, regulations, and best practices. Continuing education helps them enhance their skills, knowledge, and professionalism, enabling them to provide better service to customers. It also demonstrates their commitment to ongoing learning and professional development, which is essential in a rapidly evolving customer service landscape.

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  • 44. 

    Statements the applicant believes are true.

    • A.

      Representations

    • B.

      Honest Statements

    • C.

      Assurance

    • D.

      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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  • 45. 

    Federal employees are exempt from Workers Compensation.

    • A.

      True

    • B.

      False

    Correct Answer
    B. False
    Explanation
    Federal employees are not exempt from Workers Compensation. Workers Compensation laws generally cover all employees, including federal employees, who suffer work-related injuries or illnesses. Therefore, the correct answer is False.

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  • 46. 

    Sole proprietors are exempt from Workers Compensation.

    • A.

      True

    • B.

      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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  • 47. 

    After an insurance policy has been renewed, the policy may be canceled within 10 days' notice for which of the following reasons?

    • A.

      Nonpayment of premium

    • B.

      Filing a fraudulent claim

    • C.

      A change in risk that substantially increases any hazard insured against

    • D.

      The insurer obtaining reinsurance

    Correct Answer(s)
    A. Nonpayment of premium
    B. Filing a fraudulent claim
    C. A change in risk that substantially increases any hazard insured against
    Explanation
    36 O.S. Sec. 3639
    C. After coverage has been in effect for more than forty-five (45) business days or after the effective date of the renewal of a commercial marine, commercial automobile, commercial property, commercial casualty or commercial fire insurance policy, a notice of cancellation shall not be issued by any licensed insurer or surplus or excess lines insurer unless it is based on at least one of the following reasons with at least ten (10) days notice to the insured:

    1. Nonpayment of premium;

    2. Discovery of fraud or material misrepresentation in the procurement of the insurance or with respect to any claims submitted thereunder;

    3. Discovery of willful or reckless acts or omissions on the part of the named insured which increase any hazard insured against;

    4. The occurrence of a change in the risk which substantially increases any hazard insured against after insurance coverage has been issued or renewed;

    5. A violation of any local fire, health, safety, building, or construction regulation or ordinance with respect to any insured property or the occupancy thereof which substantially increases any hazard insured against;

    6. A determination by the Commissioner that the continuation of the policy would place the insurer in violation of the insurance laws of this state;

    7. Conviction of the named insured of a crime having as one of its necessary elements an act increasing any hazard insured against; or

    8. Loss of or substantial changes in applicable reinsurance.

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  • 48. 

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

    • A.

      18

    • B.

      21

    • C.

      19

    • D.

      25

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

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  • 49. 

    Bill, an insured resident motorist, has uninsured motorist coverage. While driving to the grocery store, Bill's car is T-boned by Ann's truck as she runs a red light. Damage to Bill's car totals $9,500, and he incurs $45,000 in bodily injury as a result of the collision. Ann has liability coverage which meets the state's minimum requirements.How much will Bill's insurance company pay (not including any deductibles) for damages?

    • A.

      Nothing

    • B.

      $15,000 for Bill's bodily injury.

    • C.

      $5,000 for Bill's bodily injury.

    • D.

      $20,000 for Bill's bodily injury.

    Correct Answer
    D. $20,000 for Bill's bodily injury.
    Explanation
    The term uninsured motor vehicle also includes a motor vehicle insured under a policy in which the liability limits are not high enough to pay the amount of damages claimed.
    A person may obtain uninsured motorist coverage in an amount equal to $25,000 per person/$50,000 per occurrence, up to her bodily injury liability coverage limit.

    Ann had minimum state liability coverage, 25/50/25, which covers up to $25,000 for body injury for one person, as well as up to $25,000 for property damage. Her insurance company would pay $25,000 for Bill's medical bills, as well as $9,500 for damages to Bills car. Ann's coverage is $20,000 short from covering Bill's total medical bills.
    Bill's insurance includes uninsured motorist coverage, which would cover the remaining $20,000.

    Could Ann be sued by Bill's Insurer for $20,000? Subrogation...

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  • 50. 

    An employee whose employer is liable under the Federal Employees' Compensation Act is exempt from Workers Compensation.

    • A.

      True

    • B.

      False

    Correct Answer
    A. True
    Explanation
    Under the Federal Employees' Compensation Act, employees who work for the federal government are covered by a separate compensation system. This means that if an employee's employer is liable under this act, they are exempt from the traditional workers' compensation system. Therefore, the statement "An employee whose employer is liable under the Federal Employees' Compensation Act is exempt from Workers Compensation" is true.

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Quiz Review Timeline +

Our quizzes are rigorously reviewed, monitored and continuously updated by our expert board to maintain accuracy, relevance, and timeliness.

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