Oklahoma Insurance Licensing Exam Questions with Verified Solutions

Oklahoma Insurance Licensing Exam Questions with Verified Solutions 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 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 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 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 In a personal auto policy, the medical payments coverage is similar to 1) accident insurance, because it has the same limits 2) bodily injury coverage, because it pays the insured's doctor bills 3) bodily injury coverage, because it provides legal