Oklahoma Adjuster Exam Prep 1930
Questions and Answers (Graded
A+)2026-2027 Update.
What is insurance - Answer Financial tool that protects individuals and organizations from
unforeseen and extraordinary financial losses by transferring risk to another party
Pays premium to insurance company - Answer Piece of mind that you are covered
Premium payments go into - Answer Pools or reserves
Pools/Reserves should be - Answer More than the cost of claims
Principle of Indemnity - Answer Insured is restored to the same financial or economic
condition that existed prior to the loss.
Insured should not profit from an insurance transaction.
Policy - Answer It is the legal binding part of an insurance contact
These must all be in place for policy on insurance contacts - Answer All parties must agree
All must contribute
All must be competent and 18+
Must be legal
Offerer - Answer Offering
Offeree - Answer is the only one that can legally accept
Rejecting Contact - Answer Asking for more information does not count as a rejection
Insurance Policy - Answer Is persona, there to protect person financially
Adhesion - Answer One party makes the terms
, Doctrine of Reasonable Expectations - Answer States that a policy includes coverages that an
average person would reasonably expect it to include, regardless of what the policy actually
provides.
Upmost good faith - Answer The fair and equal bargaining by both parties in forming the
contract, where the applicant must make full disclosure of risk to the company, and the
insurance company must be fair in underwriting the risk.
Aleatory - Answer depending on an unknown future event
Unilateral - Answer only the insurer makes a legally enforceable promise
Conditional - Answer Only has to perform if conditions are met
Declarations Page - Answer An insurance policy information page or pages providing specific
details about the insured and the subject of the insurance. Usually first page or section.
Insuring Agreement - Answer Summary of the major promises of the insurer (what the policy
covers)
Conditions - Answer If conditions are not met, insurer can cancel policy at any time
Exclusions - Answer What is not covered under policy
Definitions - Answer meanings provided for words that are unfamiliar to listeners or technical
in nature
Endorsements - Answer Last section, and can modify coverages. Adding new driver to policy,
or take away coverages in policy.
Certification of Insurance - Answer Basic details, proof of coverage, coverage datges
Government Insurance - Answer Non-profit
Medicare, Medicaid, FEMA
Mandatory
Best meets the needs of the public as a whole
Monopoly
Questions and Answers (Graded
A+)2026-2027 Update.
What is insurance - Answer Financial tool that protects individuals and organizations from
unforeseen and extraordinary financial losses by transferring risk to another party
Pays premium to insurance company - Answer Piece of mind that you are covered
Premium payments go into - Answer Pools or reserves
Pools/Reserves should be - Answer More than the cost of claims
Principle of Indemnity - Answer Insured is restored to the same financial or economic
condition that existed prior to the loss.
Insured should not profit from an insurance transaction.
Policy - Answer It is the legal binding part of an insurance contact
These must all be in place for policy on insurance contacts - Answer All parties must agree
All must contribute
All must be competent and 18+
Must be legal
Offerer - Answer Offering
Offeree - Answer is the only one that can legally accept
Rejecting Contact - Answer Asking for more information does not count as a rejection
Insurance Policy - Answer Is persona, there to protect person financially
Adhesion - Answer One party makes the terms
, Doctrine of Reasonable Expectations - Answer States that a policy includes coverages that an
average person would reasonably expect it to include, regardless of what the policy actually
provides.
Upmost good faith - Answer The fair and equal bargaining by both parties in forming the
contract, where the applicant must make full disclosure of risk to the company, and the
insurance company must be fair in underwriting the risk.
Aleatory - Answer depending on an unknown future event
Unilateral - Answer only the insurer makes a legally enforceable promise
Conditional - Answer Only has to perform if conditions are met
Declarations Page - Answer An insurance policy information page or pages providing specific
details about the insured and the subject of the insurance. Usually first page or section.
Insuring Agreement - Answer Summary of the major promises of the insurer (what the policy
covers)
Conditions - Answer If conditions are not met, insurer can cancel policy at any time
Exclusions - Answer What is not covered under policy
Definitions - Answer meanings provided for words that are unfamiliar to listeners or technical
in nature
Endorsements - Answer Last section, and can modify coverages. Adding new driver to policy,
or take away coverages in policy.
Certification of Insurance - Answer Basic details, proof of coverage, coverage datges
Government Insurance - Answer Non-profit
Medicare, Medicaid, FEMA
Mandatory
Best meets the needs of the public as a whole
Monopoly
