Property And Casualty Insurance - Oklahoma

75 Questions | Total Attempts: 2022

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Property And Casualty Insurance - Oklahoma

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


Questions and Answers
  • 1. 
    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

  • 2. 
    Who does an insurance producer represent when negotiating an insurance contract?
    • A. 

      Policyholder

    • B. 

      Insurer

    • C. 

      State of Oklahoma

    • D. 

      Broker

  • 3. 
    Which of the following is NOT a duty of the Insurance Commissioner?
    • A. 

      Maintaining records

    • B. 

      Issuing certificates of authority to transact insurance business in Oklahoma

    • C. 

      Writing Oklahoma insurance laws

    • D. 

      Conducting hearings

  • 4. 
    An insurer must appoint a producer within how many days after accepting business from that producer?
    • A. 

      5

    • B. 

      7

    • C. 

      15

    • D. 

      30

  • 5. 
    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

  • 6. 
    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

  • 7. 
    To be licensed, a producer must meet which of the following qualifications?
    • A. 

      Be 21 years old

    • B. 

      Have been an Oklahoma resident for at least one year

    • C. 

      Pass an examination

    • D. 

      Have a financial college degree

  • 8. 
    Which of the following jobs does NOT require a certificate of authority or license?
    • A. 

      Delivering insurance contracts

    • B. 

      Collecting insurance premiums

    • C. 

      Providing insurance to nonprofit educational institutions

    • D. 

      Writing advertisements for insurance companies

  • 9. 
    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

  • 10. 
    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

  • 11. 
    Which of the following licensing fees is CORRECT?
    • A. 

      $40 annually for a temporary license

    • B. 

      $50 annually for a producer's license

    • C. 

      $55 for a duplicate license

    • D. 

      $60 biennially for a producer's license

  • 12. 
    Homeowners policy renewal notices must be mailed at least how many days prior to policy expiration?
    • A. 

      45

    • B. 

      30

    • C. 

      60

    • D. 

      20

  • 13. 
    Which of the following is NOT an unfair trade practice?
    • A. 

      Rebating premiums

    • B. 

      Making derogatory statements regarding an insurer's financial condition

    • C. 

      Issuing company stock to induce people to purchase insurance

    • D. 

      Replacing life insurance policies

  • 14. 
    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

  • 15. 
    What is the purpose of the Property and Casualty Insurance Guaranty Association?
    • A. 

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

    • B. 

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

    • C. 

      To increase competition among insurers in Oklahoma

    • D. 

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

  • 16. 
    Which of the following statements about the appointment of producers is CORRECT?
    • A. 

      Insurers pay commissions to a producer before a producer's appointment has been approved.

    • B. 

      Insurers must give producers 60 days' advance written notice of any termination.

    • C. 

      A producer's appointment remains in effect for 2 years.

    • D. 

      A producer must be appointed to transact insurance business for at least one insurer.

  • 17. 
    A producer who does not comply with Oklahoma' continuing education requirements may be subject to all of the following EXCEPT...
    • A. 

      Non-renewal of license

    • B. 

      A fine of not more than $5,000

    • C. 

      License suspension

    • D. 

      Censure

  • 18. 
    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

  • 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

  • 20. 
    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

  • 21. 
    Circulating a maliciously critical statement about an insurer's financial condition in order to injure the insurer is called...
    • A. 

      Conservation

    • B. 

      Unfair discrimination

    • C. 

      Defamation

    • D. 

      Coercion

  • 22. 
    Which of the following constitute unfair trade practices?
    • A. 

      Making misleading statements about an producer's business in a direst mail letter

    • B. 

      Offering an applicant an expensive briefcase as an inducement to purchase a policy

    • C. 

      Calling a term insurance policy a savings plan

    • D. 

      Paying bonuses to policyowners out of surplus accumulated from nonparticipating insurance

  • 23. 
    Who is responsible for providing the proof of loss form?
    • A. 

      Insurer

    • B. 

      Insured

    • C. 

      Commissioner

    • D. 

      Guaranty Association

  • 24. 
    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

  • 25. 
    An insurer must submit a written offer of settlement or rejection of the claim to the insured after receiving the proof of loss form within how many days?
    • A. 

      15

    • B. 

      30

    • C. 

      60

    • D. 

      90

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