OKLAHOMA ADJUSTER EXAM 2
QUESTIONS AND CORRECT ANSWERS
VERIFIED LATEST 2023-2024 GRADE A +
An individual applied for auto insurance and obtained coverage
from EMU Insurance Company. Who is the first party in the
contract? - CORRECT ANSWER >>The Insured
If a fire hazard causes damage to a building, the fire is? -
CORRECT ANSWER >>A peril
wearing a seatbelt in a car is an example of which method or
managing risk? - CORRECT 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? -
CORRECT ANSWER >>Morale
A flood is an example of - CORRECT 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? - CORRECT ANSWER >>Foreign
Which of the following is true about stock companies - CORRECT
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 - CORRECT
ANSWER >>The law of large numbers
States require companies to have a license to sell insurance in
the state. The license is called - CORRECT ANSWER >>A
certificate of authority
What is a requirement of an insurable pure risk - CORRECT
ANSWER >>Premium must be affordable
Insurers may be classified according to their financial strength.
This does NOT include - CORRECT 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 -
CORRECT 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 - CORRECT
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? - CORRECT ANSWER >>direct response
,Which of the following individuals represent only one insurance
company - CORRECT 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? -
CORRECT ANSWER >>a contract
Which of the following is not an element of a legal contract? -
CORRECT ANSWER >>Unilateral
Jill is filling out an insurance application with information that she
believes to be true. The information she is providing is considered
- CORRECT ANSWER >>A representation
A guarantee that something is true is - CORRECT ANSWER >>a
warranty
The heart of an insurance policy that sates what will be covered is
called? - CORRECT ANSWER >>The insuring agreement
What can be found on the declaration page? - CORRECT
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
- CORRECT 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 - CORRECT 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 - CORRECT 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? -
CORRECT 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? - CORRECT ANSWER >>a binder
Which of the following is an example of insurable interest? -
CORRECT ANSWER >>A person's interest in the home they own
How is the expense ratio calculated ? - CORRECT ANSWER
>>by dividing the underwriting expenses by the written premium
What is the primary source of underwriting information? -
CORRECT ANSWER >>the application
Which of the following premium rating methods is determined by
considering the individual risk and using careful judgement and
QUESTIONS AND CORRECT ANSWERS
VERIFIED LATEST 2023-2024 GRADE A +
An individual applied for auto insurance and obtained coverage
from EMU Insurance Company. Who is the first party in the
contract? - CORRECT ANSWER >>The Insured
If a fire hazard causes damage to a building, the fire is? -
CORRECT ANSWER >>A peril
wearing a seatbelt in a car is an example of which method or
managing risk? - CORRECT 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? -
CORRECT ANSWER >>Morale
A flood is an example of - CORRECT 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? - CORRECT ANSWER >>Foreign
Which of the following is true about stock companies - CORRECT
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 - CORRECT
ANSWER >>The law of large numbers
States require companies to have a license to sell insurance in
the state. The license is called - CORRECT ANSWER >>A
certificate of authority
What is a requirement of an insurable pure risk - CORRECT
ANSWER >>Premium must be affordable
Insurers may be classified according to their financial strength.
This does NOT include - CORRECT 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 -
CORRECT 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 - CORRECT
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? - CORRECT ANSWER >>direct response
,Which of the following individuals represent only one insurance
company - CORRECT 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? -
CORRECT ANSWER >>a contract
Which of the following is not an element of a legal contract? -
CORRECT ANSWER >>Unilateral
Jill is filling out an insurance application with information that she
believes to be true. The information she is providing is considered
- CORRECT ANSWER >>A representation
A guarantee that something is true is - CORRECT ANSWER >>a
warranty
The heart of an insurance policy that sates what will be covered is
called? - CORRECT ANSWER >>The insuring agreement
What can be found on the declaration page? - CORRECT
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
- CORRECT 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 - CORRECT 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 - CORRECT 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? -
CORRECT 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? - CORRECT ANSWER >>a binder
Which of the following is an example of insurable interest? -
CORRECT ANSWER >>A person's interest in the home they own
How is the expense ratio calculated ? - CORRECT ANSWER
>>by dividing the underwriting expenses by the written premium
What is the primary source of underwriting information? -
CORRECT ANSWER >>the application
Which of the following premium rating methods is determined by
considering the individual risk and using careful judgement and
