Oklahoma Adjuster Exam #2 2026 | Practice
Questions, Verified Answers & Detailed Explanations |
Complete Insurance Licensing Review
An individual applied for auto insurance and obtained coverage from
EMU Insurance Company. Who is the first party in the contract? -
Precise Answer ✔✔The Insured
If a fire hazard causes damage to a building, the fire is? - Precise Answer
✔✔A peril
wearing a seatbelt in a car is an example of which method or managing
risk? - Precise Answer ✔✔Reduce
Tiffany leaves her car unlocked when she goes shopping. She figures her
car and its contents are insured, so there is no reason to worry. Which
type of hazard is this an example of? - Precise Answer ✔✔Morale
A flood is an example of - Precise Answer ✔✔A peril
An insurance company incorporated in Oklahoma and conducting
business in Oklahoma is known as a domestic company. What kind of
company are they considered if they do business in Minnesota? - Precise
Answer ✔✔Foreign
Which of the following is true about stock companies - Precise Answer
✔✔a stock company pays dividends
What do insurance companies use to help predict how many losses will
occur in a group or class of individuals - Precise Answer ✔✔The law of
large numbers
States require companies to have a license to sell insurance in the state.
,The license is called - Precise Answer ✔✔A certificate of authority
What is a requirement of an insurable pure risk - Precise Answer
✔✔Premium must be affordable
Insurers may be classified according to their financial strength. This
does NOT include - Precise Answer ✔✔number of clients
Carl hands out a business card with his company's logo to all new
prospects that he meets at a golf outing. This is an example of - Precise
Answer ✔✔implied authority
Agency is a relationship in which one person is authorized to represent
and act for another person or corporations. In insurance, the insurance
agent acts on behalf of - Precise Answer ✔✔Principal
Which of the following types of advertising does not involve an agent
and is conducted through the mail, by advertisements in newspapers and
magazines, on television and radio, or through the internet? - Precise
Answer ✔✔direct response
Which of the following individuals represent only one insurance
company - Precise Answer ✔✔A captive agent
Which of the following terms describes a legal agreement between two
competent parties that promises a certain performance in exchange for a
certain consideration? - Precise Answer ✔✔a contract
Which of the following is not an element of a legal contract? - Precise
Answer ✔✔Unilateral
Jill is filling out an insurance application with information that she
believes to be true. The information she is providing is considered -
, Precise Answer ✔✔A representation
A guarantee that something is true is - Precise Answer ✔✔a warranty
The heart of an insurance policy that sates what will be covered is
called? - Precise Answer ✔✔The insuring agreement
What can be found on the declaration page? - Precise Answer ✔✔The
amount of coverage provided
Nancy purchased an auto policy on her new car. There are no other
insureds listed on the declaration page. Nancy is considered - Precise
Answer ✔✔The named insured
The duties following a loss condition lists the insured's responsibilities
after a loss. One of these duties requires that the insured completes an
official inventory of the damages. This is known as - Precise Answer
✔✔detailed proof of loss
Which statement regarding the rights and responsibilities of an insurer or
insured when an insurance contract is canceled or nonrenewed - Precise
Answer ✔✔If the insured had paid premiums in advance for future
months, any unused premium (unearned premium) must be returned to
the insured upon cancellation of a policy
Which ratios would an insurer use to evaluate performance? - Precise
Answer ✔✔Loss ratio, expense ratio, and/or combined ratio
Which of the following terms is an oral or written statement made by the
agent that gives the insured immediate coverage for a specified time? -
Precise Answer ✔✔a binder
Which of the following is an example of insurable interest? - Precise
Questions, Verified Answers & Detailed Explanations |
Complete Insurance Licensing Review
An individual applied for auto insurance and obtained coverage from
EMU Insurance Company. Who is the first party in the contract? -
Precise Answer ✔✔The Insured
If a fire hazard causes damage to a building, the fire is? - Precise Answer
✔✔A peril
wearing a seatbelt in a car is an example of which method or managing
risk? - Precise Answer ✔✔Reduce
Tiffany leaves her car unlocked when she goes shopping. She figures her
car and its contents are insured, so there is no reason to worry. Which
type of hazard is this an example of? - Precise Answer ✔✔Morale
A flood is an example of - Precise Answer ✔✔A peril
An insurance company incorporated in Oklahoma and conducting
business in Oklahoma is known as a domestic company. What kind of
company are they considered if they do business in Minnesota? - Precise
Answer ✔✔Foreign
Which of the following is true about stock companies - Precise Answer
✔✔a stock company pays dividends
What do insurance companies use to help predict how many losses will
occur in a group or class of individuals - Precise Answer ✔✔The law of
large numbers
States require companies to have a license to sell insurance in the state.
,The license is called - Precise Answer ✔✔A certificate of authority
What is a requirement of an insurable pure risk - Precise Answer
✔✔Premium must be affordable
Insurers may be classified according to their financial strength. This
does NOT include - Precise Answer ✔✔number of clients
Carl hands out a business card with his company's logo to all new
prospects that he meets at a golf outing. This is an example of - Precise
Answer ✔✔implied authority
Agency is a relationship in which one person is authorized to represent
and act for another person or corporations. In insurance, the insurance
agent acts on behalf of - Precise Answer ✔✔Principal
Which of the following types of advertising does not involve an agent
and is conducted through the mail, by advertisements in newspapers and
magazines, on television and radio, or through the internet? - Precise
Answer ✔✔direct response
Which of the following individuals represent only one insurance
company - Precise Answer ✔✔A captive agent
Which of the following terms describes a legal agreement between two
competent parties that promises a certain performance in exchange for a
certain consideration? - Precise Answer ✔✔a contract
Which of the following is not an element of a legal contract? - Precise
Answer ✔✔Unilateral
Jill is filling out an insurance application with information that she
believes to be true. The information she is providing is considered -
, Precise Answer ✔✔A representation
A guarantee that something is true is - Precise Answer ✔✔a warranty
The heart of an insurance policy that sates what will be covered is
called? - Precise Answer ✔✔The insuring agreement
What can be found on the declaration page? - Precise Answer ✔✔The
amount of coverage provided
Nancy purchased an auto policy on her new car. There are no other
insureds listed on the declaration page. Nancy is considered - Precise
Answer ✔✔The named insured
The duties following a loss condition lists the insured's responsibilities
after a loss. One of these duties requires that the insured completes an
official inventory of the damages. This is known as - Precise Answer
✔✔detailed proof of loss
Which statement regarding the rights and responsibilities of an insurer or
insured when an insurance contract is canceled or nonrenewed - Precise
Answer ✔✔If the insured had paid premiums in advance for future
months, any unused premium (unearned premium) must be returned to
the insured upon cancellation of a policy
Which ratios would an insurer use to evaluate performance? - Precise
Answer ✔✔Loss ratio, expense ratio, and/or combined ratio
Which of the following terms is an oral or written statement made by the
agent that gives the insured immediate coverage for a specified time? -
Precise Answer ✔✔a binder
Which of the following is an example of insurable interest? - Precise
