Oklahoma Insurance Licensing Exam
Questions with 100% Correct Answers
All of the following are categories of a limited insurance license EXCEPT 1)
crop insurance 2) variable life insurance 3) credit life insurance 4) travel
insurance - ✔✔2) variable life insurance
What term best describes the act of withholding material information that
would be crucial to an underwriting decision? 1) concealment 2)
withholding 3) leading 4) breach of warranty - ✔✔1) concealment
Johanna purchased a National Flood Insurance policy 10 days after her
community entered an emergency program. When would her coverage be
effective? 1) 30 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 premium payment are mailed 4) 12:01 am the day
after the application and premium payment are mailed - ✔✔4) 12:01 am the
day after the application and premium payment are mailed
A tornado that destroys property would be an example of which of the
following? 1) peril 2) pure risk 3) loss 4) physical hazard - ✔✔1) peril
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,What term includes damage where the insured peril was the proximate
cause of loss? 1) indirect loss 2) consequential loss 3) negligent loss 4)
direct loss - ✔✔4) direct loss
An insured's roof cost $4,000 when installed 5 years ago. It has been
damaged by hail and must be replaced. 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 - ✔✔3) $5,000
While an insurance was towing a utility trailer with his auto, the trailer cam
loose and ran into a store front. 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 - ✔✔1) property damage liability
The Mail Coverage Form is always written on a reporting 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 - ✔✔3) 45 days
A startup used car dealership buys cars at auto auctions in 30 states. It
wants to be certain that damage coverage is provided when the cars are
driven or transported from the auctions to the dealership. In regard to the
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,business auto physical damage coverage, which is true? 1) coverage is
provided if dealership employees are in possession of the subject
automobile 2) coverage is provided at additional premium 3) coverage is
provided for the wholesale amount only 4) coverage is not provided under
the form - ✔✔1) coverage is provided if dealership employees are in
possession of the subject automobile
What is NOT an insured liability on a BAP? 1) the owner of a car the
insured borrows 2) anyone using a covered auto with permission 3) anyone
liable for the conduct of the insured 4) the named insured in any covered
auto - ✔✔1) the owner of a car the insured borrows
When applying for an individual life insurance policy, an applicant states
that he went to the doctor for nausea, but fails to mention that he was also
having severe chest pains. This is an example of 1) misrepresentation 2)
fraud 3) warranty 4) concealment - ✔✔4) concealment
Which of the following statements is true regarding 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 - ✔✔1) it's elective
3
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, Which of the following commercial crime coverages would cover a loss
resulting from theft of the company's money and securities from the
armored vehicle making a delivery? 1) outside the premises 2)
forgery/alteration 3) robbery and safe burglary 4) inside the premises -
✔✔1) outside the premises
Which of the following is NOT a necessary qualification in order for a
person to serve as a Commissioner of Insurance in Oklahoma? 1) state
residency for at 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 - ✔✔3) a minimum of 5 years
of experience as a director of an insurance company
A dealership loans a car to its customer to use while the dealership is
repairing the customer's car. If the dealership has business auto physical
damage coverage 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 - ✔✔1) the loaner vehicle is covered by the business
auto policy
4
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
Questions with 100% Correct Answers
All of the following are categories of a limited insurance license EXCEPT 1)
crop insurance 2) variable life insurance 3) credit life insurance 4) travel
insurance - ✔✔2) variable life insurance
What term best describes the act of withholding material information that
would be crucial to an underwriting decision? 1) concealment 2)
withholding 3) leading 4) breach of warranty - ✔✔1) concealment
Johanna purchased a National Flood Insurance policy 10 days after her
community entered an emergency program. When would her coverage be
effective? 1) 30 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 premium payment are mailed 4) 12:01 am the day
after the application and premium payment are mailed - ✔✔4) 12:01 am the
day after the application and premium payment are mailed
A tornado that destroys property would be an example of which of the
following? 1) peril 2) pure risk 3) loss 4) physical hazard - ✔✔1) peril
1
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,What term includes damage where the insured peril was the proximate
cause of loss? 1) indirect loss 2) consequential loss 3) negligent loss 4)
direct loss - ✔✔4) direct loss
An insured's roof cost $4,000 when installed 5 years ago. It has been
damaged by hail and must be replaced. 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 - ✔✔3) $5,000
While an insurance was towing a utility trailer with his auto, the trailer cam
loose and ran into a store front. 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 - ✔✔1) property damage liability
The Mail Coverage Form is always written on a reporting 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 - ✔✔3) 45 days
A startup used car dealership buys cars at auto auctions in 30 states. It
wants to be certain that damage coverage is provided when the cars are
driven or transported from the auctions to the dealership. In regard to the
2
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
,business auto physical damage coverage, which is true? 1) coverage is
provided if dealership employees are in possession of the subject
automobile 2) coverage is provided at additional premium 3) coverage is
provided for the wholesale amount only 4) coverage is not provided under
the form - ✔✔1) coverage is provided if dealership employees are in
possession of the subject automobile
What is NOT an insured liability on a BAP? 1) the owner of a car the
insured borrows 2) anyone using a covered auto with permission 3) anyone
liable for the conduct of the insured 4) the named insured in any covered
auto - ✔✔1) the owner of a car the insured borrows
When applying for an individual life insurance policy, an applicant states
that he went to the doctor for nausea, but fails to mention that he was also
having severe chest pains. This is an example of 1) misrepresentation 2)
fraud 3) warranty 4) concealment - ✔✔4) concealment
Which of the following statements is true regarding 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 - ✔✔1) it's elective
3
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
, Which of the following commercial crime coverages would cover a loss
resulting from theft of the company's money and securities from the
armored vehicle making a delivery? 1) outside the premises 2)
forgery/alteration 3) robbery and safe burglary 4) inside the premises -
✔✔1) outside the premises
Which of the following is NOT a necessary qualification in order for a
person to serve as a Commissioner of Insurance in Oklahoma? 1) state
residency for at 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 - ✔✔3) a minimum of 5 years
of experience as a director of an insurance company
A dealership loans a car to its customer to use while the dealership is
repairing the customer's car. If the dealership has business auto physical
damage coverage 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 - ✔✔1) the loaner vehicle is covered by the business
auto policy
4
©JOSHCLAY 2024/2025. YEAR PUBLISHED 2024.
