Oklahoma Insurance Licensing - Exam Questions And Answers With Verified Study Solutions Rated A+

A beauty parlor burns to the ground. What type of loss is this to the owner? 1) consecutive 2) direct 3) consequential 4) specific - 2) direct A bond is written for a set limit, and the surety will be liable for only this amount of the limit. This limit is known as 1) penalty 2) face value 3) stated amount 4) limit of liability - 1) penalty A business owner has a building and personal property policy that covers a shed in which he stores extra parts. If he buys a second shed for the same purposes, this will be automatically covered for how long? 1) 15 days 2) 20 days 3) 30 days 4) 45 days - ?3) 30 days A commercial property special form covers property in transit up to 1) actual cash value 2) $500 3) full replacement cost 4) $5,000 - 4) $5,000 A contract for the transport of goods between the shipper and the carrier is called 1) bill of sale 2) bill of lading 3) bailment 4) a binder - 2) bill of lading 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 A dwelling policy has a standard deductible that applies to all property coverage, except fair rental value, additional living expense, and the fire department service charge. How much is this deducible? 1) $100 2) $250 3) $500 4) $1,000 - 2) $250 A homeowner sells his house to a friend. The friend wants to keep the homeowner's current policy in effect. Under the assignment provision, which of the following is most likely? 1) the friend will have to apply for coinsurance from another insurance company 2) the homeowner will need to get written consent from the insurer before the policy can be reassigned 3) the policy will have to be cancelled 4)the homeowner should let the friend take over the premium payments - 2) the homeowner will need to get written consent from the insurer before the policy can be reassigned A participation insurance policy may do which of the following? 1) require 80% participation 2) pay dividends to the policy owner 3) provide group coverage 4) pay dividends to the stockholder - 2) pay dividends to the policy owner A pizza shop has a neon sign attached to it building during a severe thunderstorm the sign is damaged by wind and hail what is the maximum the business and personal policy will pay for the damage to the sign? 1) $500 2) $1,000 3) $2,500 4) $5,000 - 3) $2,500 A plasterer has finished a job. What kind of liability coverage would protect him if the plaster falls and hurts someone because he did not do the job correctly? 1) medical payments 2) products 3) professional errors and omissions 4) completed operations - 4) completed operations 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 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 According to state workers compensation regulations, if an employee dies from an occupational illness, how much will the employer pay to the surviving spouse for funeral expenses? 1) $1,000 2) $5,000 3) $10,000 4) Nothing. Funeral expenses are not covered - 3) $10,000