OKLAHOMA LIFE INSURANCE
LICENSING EXAM 2026 ALL
QUESTION AND VERIFIED ANSWERS |
RATED A + | NEW AND REVISED
What is known as the immediate specific event causing loss and giving
rise to risk? - ANSWER- peril
Which of the following is considered to be an event or condition that
increases the probability of an insured's loss? - ANSWER- hazard
An example of risk sharing would be - ANSWER- Doctors pooling their
money to cover malpractice exposures
An individual who removes the risk of losing money in the stock market
by never purchasing stocks is said to be engaging in - ANSWER- Risk
avoidance
Insurance companies determine risk exposure by which of the
following? - ANSWER- Law of large numbers and risk pooling
Insurance represents the process of risk - ANSWER- transference
,The cause of a loss is referred to as a - ANSWER- peril
People with higher loss exposure have the tendency to purchase
insurance more often than those at average risk. This is called -
ANSWER- Adverse selection
Legal purpose is a term used in contract law meaning - ANSWER-
There must be legal reasons for entering into the contract
The authority granted to a licensed producer is provided via the -
ANSWER- Law of agency
Which of the following is present when an applicant stands to lose value
if the insured dies? - ANSWER- Insurable interest
Bob and Tom start a business. Since each partner contributes an
important element to the success of the business, they decide to take life
insurance policies out on each other, and name each other as
beneficiaries. Eventually, they retire and dissolve the business. Bob dies
12 months later. The policies continue in force with no change. Both
partners are still married at the time of Bob's death. In this situation, who
will receive Bob's policy proceeds? - ANSWER- Tom
In an insurance contract, the insurer is the only party legally obligated to
perform. Because of this, an insurance contract is considered -
ANSWER- unilateral
, Which contract element is insurable interest a component of? -
ANSWER- Legal purpose
Intentional withholding of material facts that would affect an insurance
policy's validity is called a - ANSWER- concealment
What is implied authority defined as? - ANSWER- Authority that is not
specifically given to an agent in the agency contract, but that an agent
can reasonably assume to carry out his/her duties
Which of the following is an example of the insured's consideration? -
ANSWER- A paid premium
Which type of clause describes the following statement - ANSWER-
"We have issued the policy in consideration of the representations in
your applications and payment of the first-term premium.":
Consideration clause
Julie has a $100,000 30-year mortgage on her new home. What type of
life insurance could she purchase that is designed to pay off the loan
balance if she dies within the 30-year period? - ANSWER- Decreasing
term insurance
The type of policy which pays on the death of the last person is called -
ANSWER- Survivorship life
LICENSING EXAM 2026 ALL
QUESTION AND VERIFIED ANSWERS |
RATED A + | NEW AND REVISED
What is known as the immediate specific event causing loss and giving
rise to risk? - ANSWER- peril
Which of the following is considered to be an event or condition that
increases the probability of an insured's loss? - ANSWER- hazard
An example of risk sharing would be - ANSWER- Doctors pooling their
money to cover malpractice exposures
An individual who removes the risk of losing money in the stock market
by never purchasing stocks is said to be engaging in - ANSWER- Risk
avoidance
Insurance companies determine risk exposure by which of the
following? - ANSWER- Law of large numbers and risk pooling
Insurance represents the process of risk - ANSWER- transference
,The cause of a loss is referred to as a - ANSWER- peril
People with higher loss exposure have the tendency to purchase
insurance more often than those at average risk. This is called -
ANSWER- Adverse selection
Legal purpose is a term used in contract law meaning - ANSWER-
There must be legal reasons for entering into the contract
The authority granted to a licensed producer is provided via the -
ANSWER- Law of agency
Which of the following is present when an applicant stands to lose value
if the insured dies? - ANSWER- Insurable interest
Bob and Tom start a business. Since each partner contributes an
important element to the success of the business, they decide to take life
insurance policies out on each other, and name each other as
beneficiaries. Eventually, they retire and dissolve the business. Bob dies
12 months later. The policies continue in force with no change. Both
partners are still married at the time of Bob's death. In this situation, who
will receive Bob's policy proceeds? - ANSWER- Tom
In an insurance contract, the insurer is the only party legally obligated to
perform. Because of this, an insurance contract is considered -
ANSWER- unilateral
, Which contract element is insurable interest a component of? -
ANSWER- Legal purpose
Intentional withholding of material facts that would affect an insurance
policy's validity is called a - ANSWER- concealment
What is implied authority defined as? - ANSWER- Authority that is not
specifically given to an agent in the agency contract, but that an agent
can reasonably assume to carry out his/her duties
Which of the following is an example of the insured's consideration? -
ANSWER- A paid premium
Which type of clause describes the following statement - ANSWER-
"We have issued the policy in consideration of the representations in
your applications and payment of the first-term premium.":
Consideration clause
Julie has a $100,000 30-year mortgage on her new home. What type of
life insurance could she purchase that is designed to pay off the loan
balance if she dies within the 30-year period? - ANSWER- Decreasing
term insurance
The type of policy which pays on the death of the last person is called -
ANSWER- Survivorship life
