Oklahoma Insurance Licensing Exam
Study online at https://quizlet.com/_6w301b
1. All of the following are categories of a limited insur- 2) variable life insurance
ance license EXCEPT 1) crop insurance 2) variable life
insurance 3) credit life insurance 4) travel insurance
2. What term best describes the act of withholding mate- 1) concealment
rial information that would be crucial to an underwrit-
ing decision? 1) concealment 2) withholding 3) leading
4) breach of warranty
3. Johanna purchased a National Flood Insurance policy 4) 12:01 am the day after
10 days after her community entered an emergency the application and pre-
program. When would her coverage be effective? 1) 30 mium payment are mailed
days after the application has been accepted 2) 12:01
pm on the 5th day after the endorsement request has
been mailed 3) 5 days after the application and premi-
um payment are mailed 4) 12:01 am the day after the
application and premium payment are mailed
4. A tornado that destroys property would be an exam- 1) peril
ple of which of the following? 1) peril 2) pure risk 3)
loss 4) physical hazard
5. What term includes damage where the insured peril 4) direct loss
was the proximate cause of loss? 1) indirect loss 2)
consequential loss 3) negligent loss 4) direct loss
6. An insured's roof cost $4,000 when installed 5 years 3) $5,000
ago. It has been damaged by hail and must be re-
placed. The new roof will cost $6,000 at today's prices.
If the roof has been depreciating at $200 per year
and his policy is ACV, how much will it pay toward the
insured's new roof? 1) $1,000 2) $4,000 3) $5,000 4)
$6,000
, Oklahoma Insurance Licensing Exam
Study online at https://quizlet.com/_6w301b
7. While an insurance was towing a utility trailer with his 1) property damage liabil-
auto, the trailer cam loose and ran into a store front. ity
What part of the insured's auto policy would pay for
the damage to the store? 1) property damage liability
2) collision coverage 3) comprehensive coverage 4)
this loss would not be covered
8. The Mail Coverage Form is always written on a report- 3) 45 days
ing form basis; after the end of each reporting period
shown in the declarations, reports are due within 1) 30
days 2) 31 days 3) 45 days 4) 15 days
9. A startup used car dealership buys cars at auto auc- 1) coverage is provided if
tions in 30 states. It wants to be certain that dam- dealership employees are
age coverage is provided when the cars are driven or in possession of the sub-
transported from the auctions to the dealership. In re- ject automobile
gard to the business auto physical damage coverage,
which is true? 1) coverage is provided if dealership
employees are in possession of the subject automo-
bile 2) coverage is provided at additional premium 3)
coverage is provided for the wholesale amount only 4)
coverage is not provided under the form
10. What is NOT an insured liability on a BAP? 1) the owner 1) the owner of a car the
of a car the insured borrows 2) anyone using a covered insured borrows
auto with permission 3) anyone liable for the conduct
of the insured 4) the named insured in any covered
auto
11. When applying for an individual life insurance policy, 4) concealment
an applicant states that he went to the doctor for
nausea, but fails to mention that he was also having
, Oklahoma Insurance Licensing Exam
Study online at https://quizlet.com/_6w301b
severe chest pains. This is an example of 1) misrepre-
sentation 2) fraud 3) warranty 4) concealment
12. Which of the following statements is true regarding 1) it's elective
workers compensation coverage for sole proprietors?
1) it's elective 2) it's not allowed 3) it's only allowed for
sole proprietors involved in high risk occupations 4)
it's mandatory
13. Which of the following commercial crime coverages 1) outside the premises
would cover a loss resulting from theft of the com-
pany's money and securities from the armored ve-
hicle making a delivery? 1) outside the premises 2)
forgery/alteration 3) robbery and safe burglary 4) in-
side the premises
14. Which of the following is NOT a necessary qualifica- 3) a minimum of 5 years of
tion in order for a person to serve as a Commissioner experience as a director of
of Insurance in Oklahoma? 1) state residency for at an insurance company
least 5 years 2) minimum age of 25 3) a minimum of
5 years of experience as a director of an insurance
company 4) minimum of 5 years of experience in the
insurance industry
15. A dealership loans a car to its customer to use while 1) the loaner vehicle is
the dealership is repairing the customer's car. If the covered by the business
dealership has business auto physical damage cover- auto policy
age and a customer's automobile insurance does not
cover damages to loaner cars, which of the following
is true? 1) the loaner vehicle is covered by the business
auto policy 2) no coverage is provided 3) only coverage
for damage to a third party's vehicle is provided 4) the
customer is personally liable
, Oklahoma Insurance Licensing Exam
Study online at https://quizlet.com/_6w301b
16. In a personal auto policy, the medical payments cov- 4) accident insurance, be-
erage is similar to 1) accident insurance, because it cause it pays medical ex-
has the same limits 2) bodily injury coverage, because penses regardless of fault.
it pays the insured's doctor bills 3) bodily injury cov-
erage, because it provides legal protection if the in-
sured causes injuries to others 4) accident insurance,
because it pays medical expenses regardless of fault.
17. Negligence may be defined as 1) the failure to use rea- 1) the failure to use rea-
sonable and prudent care 2) a situation that creates a sonable and prudent care
probability of loss 3) a latent defect or fault in property
4) the inability to meet the burden of proof
18. Liability imposed on one party as a result of the ac- 1) vicarious liability
tions of another person is known as 1) vicarious li-
ability 2) comparative negligence 3) strict liability 4)
absolute liability
19. When a producer was reviewing a potential cus- 3) defamation
tomer's coverage written by another company, the
producer made several remarks that were maliciously
critical of that other insurer. The producer could be
found guilty of 1) discrimination 2) nothing, unless the
remarks were in writing 3) defamation 4) misrepresen-
tation
20. Which of the following is covered under the Camera 4) a customer's camera
and Musical Instruments Dealers floater? 1) a musical left at a camera shop for
instrument sold and delivered to a customer 2) fur- repair
niture, fixtures and office supplies in a music store
3) money kept on premises of a camera shop 4) a
customer's camera left at a camera shop for repair
Study online at https://quizlet.com/_6w301b
1. All of the following are categories of a limited insur- 2) variable life insurance
ance license EXCEPT 1) crop insurance 2) variable life
insurance 3) credit life insurance 4) travel insurance
2. What term best describes the act of withholding mate- 1) concealment
rial information that would be crucial to an underwrit-
ing decision? 1) concealment 2) withholding 3) leading
4) breach of warranty
3. Johanna purchased a National Flood Insurance policy 4) 12:01 am the day after
10 days after her community entered an emergency the application and pre-
program. When would her coverage be effective? 1) 30 mium payment are mailed
days after the application has been accepted 2) 12:01
pm on the 5th day after the endorsement request has
been mailed 3) 5 days after the application and premi-
um payment are mailed 4) 12:01 am the day after the
application and premium payment are mailed
4. A tornado that destroys property would be an exam- 1) peril
ple of which of the following? 1) peril 2) pure risk 3)
loss 4) physical hazard
5. What term includes damage where the insured peril 4) direct loss
was the proximate cause of loss? 1) indirect loss 2)
consequential loss 3) negligent loss 4) direct loss
6. An insured's roof cost $4,000 when installed 5 years 3) $5,000
ago. It has been damaged by hail and must be re-
placed. The new roof will cost $6,000 at today's prices.
If the roof has been depreciating at $200 per year
and his policy is ACV, how much will it pay toward the
insured's new roof? 1) $1,000 2) $4,000 3) $5,000 4)
$6,000
, Oklahoma Insurance Licensing Exam
Study online at https://quizlet.com/_6w301b
7. While an insurance was towing a utility trailer with his 1) property damage liabil-
auto, the trailer cam loose and ran into a store front. ity
What part of the insured's auto policy would pay for
the damage to the store? 1) property damage liability
2) collision coverage 3) comprehensive coverage 4)
this loss would not be covered
8. The Mail Coverage Form is always written on a report- 3) 45 days
ing form basis; after the end of each reporting period
shown in the declarations, reports are due within 1) 30
days 2) 31 days 3) 45 days 4) 15 days
9. A startup used car dealership buys cars at auto auc- 1) coverage is provided if
tions in 30 states. It wants to be certain that dam- dealership employees are
age coverage is provided when the cars are driven or in possession of the sub-
transported from the auctions to the dealership. In re- ject automobile
gard to the business auto physical damage coverage,
which is true? 1) coverage is provided if dealership
employees are in possession of the subject automo-
bile 2) coverage is provided at additional premium 3)
coverage is provided for the wholesale amount only 4)
coverage is not provided under the form
10. What is NOT an insured liability on a BAP? 1) the owner 1) the owner of a car the
of a car the insured borrows 2) anyone using a covered insured borrows
auto with permission 3) anyone liable for the conduct
of the insured 4) the named insured in any covered
auto
11. When applying for an individual life insurance policy, 4) concealment
an applicant states that he went to the doctor for
nausea, but fails to mention that he was also having
, Oklahoma Insurance Licensing Exam
Study online at https://quizlet.com/_6w301b
severe chest pains. This is an example of 1) misrepre-
sentation 2) fraud 3) warranty 4) concealment
12. Which of the following statements is true regarding 1) it's elective
workers compensation coverage for sole proprietors?
1) it's elective 2) it's not allowed 3) it's only allowed for
sole proprietors involved in high risk occupations 4)
it's mandatory
13. Which of the following commercial crime coverages 1) outside the premises
would cover a loss resulting from theft of the com-
pany's money and securities from the armored ve-
hicle making a delivery? 1) outside the premises 2)
forgery/alteration 3) robbery and safe burglary 4) in-
side the premises
14. Which of the following is NOT a necessary qualifica- 3) a minimum of 5 years of
tion in order for a person to serve as a Commissioner experience as a director of
of Insurance in Oklahoma? 1) state residency for at an insurance company
least 5 years 2) minimum age of 25 3) a minimum of
5 years of experience as a director of an insurance
company 4) minimum of 5 years of experience in the
insurance industry
15. A dealership loans a car to its customer to use while 1) the loaner vehicle is
the dealership is repairing the customer's car. If the covered by the business
dealership has business auto physical damage cover- auto policy
age and a customer's automobile insurance does not
cover damages to loaner cars, which of the following
is true? 1) the loaner vehicle is covered by the business
auto policy 2) no coverage is provided 3) only coverage
for damage to a third party's vehicle is provided 4) the
customer is personally liable
, Oklahoma Insurance Licensing Exam
Study online at https://quizlet.com/_6w301b
16. In a personal auto policy, the medical payments cov- 4) accident insurance, be-
erage is similar to 1) accident insurance, because it cause it pays medical ex-
has the same limits 2) bodily injury coverage, because penses regardless of fault.
it pays the insured's doctor bills 3) bodily injury cov-
erage, because it provides legal protection if the in-
sured causes injuries to others 4) accident insurance,
because it pays medical expenses regardless of fault.
17. Negligence may be defined as 1) the failure to use rea- 1) the failure to use rea-
sonable and prudent care 2) a situation that creates a sonable and prudent care
probability of loss 3) a latent defect or fault in property
4) the inability to meet the burden of proof
18. Liability imposed on one party as a result of the ac- 1) vicarious liability
tions of another person is known as 1) vicarious li-
ability 2) comparative negligence 3) strict liability 4)
absolute liability
19. When a producer was reviewing a potential cus- 3) defamation
tomer's coverage written by another company, the
producer made several remarks that were maliciously
critical of that other insurer. The producer could be
found guilty of 1) discrimination 2) nothing, unless the
remarks were in writing 3) defamation 4) misrepresen-
tation
20. Which of the following is covered under the Camera 4) a customer's camera
and Musical Instruments Dealers floater? 1) a musical left at a camera shop for
instrument sold and delivered to a customer 2) fur- repair
niture, fixtures and office supplies in a music store
3) money kept on premises of a camera shop 4) a
customer's camera left at a camera shop for repair
