©THEBRIGHT EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
Oklahoma Insurance Exam (Life insurance)
Questions With Verified Answers
What are two kinds of risk? - Answers✔Speculative risk
pure risk
what type of risk is the chance of financial loss with the possibility of gain or loss? Ex: Gambling
- Answers✔speculative risk
what type of risk is the chance of financial loss with no possibility of gain. the only potential
outcome is financial loss. - Answers✔Pure risk
what is another work for restoring or making financially whole? - Answers✔indemnify
the actual cause of a loss or the reason a loss occurred is called? - Answers✔peril
conditions increase the chance of a peril is called? - Answers✔hazard
what are the 3 types of hazards? and describe - Answers✔Physical Hazard-arises from visible
material or structural features
Moral Hazard-arises from morality of insured (intentional and deliberate)
Morale Hazard-arises from human carelessness, indifference, or irresponsibility
what are the 4 risk management techniques? (RRAT) - Answers✔Reduce
retain
avoid
transfer
what are the 6 requirements for a pure risk can be insurable? - Answers✔accidental loss
financial loss
calculable loss
affordable
non-catastrophic
1
, ©THEBRIGHT EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
predictable
what is it called when you are legally binding an individual between the insurer and the insured -
Answers✔insurance policy
what is the likelihood of going during a given year. these tables predict the probability of the
number of deaths in a given year. - Answers✔mortality
mortality tables assume everyone is statically dead at one age? - Answers✔100
The price (cost) of insurance per unit of exposure. - Answers✔rate
what are the three components of rates? - Answers✔mortality
interest rate
insurer expenses
what are the three types of performance ratios? - Answers✔loss ratio
expense ratio
combined ratio
what is the tendency for less favorable risk to apply for insurance? - Answers✔adverse selection
what are medical conditions the insured had before policy in effective? - Answers✔preexisting
conditions
what is the payment of a policy benefit (the conclusion of a claim) - Answers✔settlement
what are the 2 divisions of the US Judicial System? - Answers✔Criminal Court
Civil Court
What are the 4 essential elements of a legal contract? - Answers✔Legal purpose
agreement
consideration
competent parties
what is information that impacts the underwriters decision to accept or reject the offer. -
Answers✔material fact
A written statement regarding material fact that the policy owner believes to be true. -
Answers✔representation
2
ALL RIGHTS RESERVED.
Oklahoma Insurance Exam (Life insurance)
Questions With Verified Answers
What are two kinds of risk? - Answers✔Speculative risk
pure risk
what type of risk is the chance of financial loss with the possibility of gain or loss? Ex: Gambling
- Answers✔speculative risk
what type of risk is the chance of financial loss with no possibility of gain. the only potential
outcome is financial loss. - Answers✔Pure risk
what is another work for restoring or making financially whole? - Answers✔indemnify
the actual cause of a loss or the reason a loss occurred is called? - Answers✔peril
conditions increase the chance of a peril is called? - Answers✔hazard
what are the 3 types of hazards? and describe - Answers✔Physical Hazard-arises from visible
material or structural features
Moral Hazard-arises from morality of insured (intentional and deliberate)
Morale Hazard-arises from human carelessness, indifference, or irresponsibility
what are the 4 risk management techniques? (RRAT) - Answers✔Reduce
retain
avoid
transfer
what are the 6 requirements for a pure risk can be insurable? - Answers✔accidental loss
financial loss
calculable loss
affordable
non-catastrophic
1
, ©THEBRIGHT EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
predictable
what is it called when you are legally binding an individual between the insurer and the insured -
Answers✔insurance policy
what is the likelihood of going during a given year. these tables predict the probability of the
number of deaths in a given year. - Answers✔mortality
mortality tables assume everyone is statically dead at one age? - Answers✔100
The price (cost) of insurance per unit of exposure. - Answers✔rate
what are the three components of rates? - Answers✔mortality
interest rate
insurer expenses
what are the three types of performance ratios? - Answers✔loss ratio
expense ratio
combined ratio
what is the tendency for less favorable risk to apply for insurance? - Answers✔adverse selection
what are medical conditions the insured had before policy in effective? - Answers✔preexisting
conditions
what is the payment of a policy benefit (the conclusion of a claim) - Answers✔settlement
what are the 2 divisions of the US Judicial System? - Answers✔Criminal Court
Civil Court
What are the 4 essential elements of a legal contract? - Answers✔Legal purpose
agreement
consideration
competent parties
what is information that impacts the underwriters decision to accept or reject the offer. -
Answers✔material fact
A written statement regarding material fact that the policy owner believes to be true. -
Answers✔representation
2
