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Oklahoma Adjuster License – 3 Exam
Questions With Verified Answers
All of the following statements are TRUE regarding a proof of loss statement, EXCEPT: -
Answers✔A proof of loss is also known as a loss notice
The "loss notice" is NOT the formal proof of loss. The loss notice is provided by the insured to
the agent or insurer as soon as possible after the loss has occurred.
Which of the following acts is NOT considered to be "transacting insurance" within the state of
Oklahoma? - Answers✔Taking an agency's incoming payments, sometimes containing premium
payments, to the bank for deposit
A staff person in an agency office who is simply taking a deposit to the bank is not transacting
insurance even if that bank deposit contained premium payments.
In Oklahoma, employers may contract with a managed care plan to provide medical care for their
injured workers at a reduced cost. These plans are known as: - Answers✔Certified Workplace
Medical Plan
A Certified Workplace Medical Plan is the name that Oklahoma titles managed care plans for
employers.
Which of the following statements is TRUE regarding the Personal Effects Floater? -
Answers✔It can be purchased either on a permanent basis for frequent travelers or for a single
trip
The standardized Building and Personal Property Coverage form requires the insured to submit a
signed, sworn proof of loss statement: - Answers✔Within 60 days of the insurance company's
request
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All of the following statements regarding the basic extended reporting period in a Commercial
General Liability policy are TRUE, EXCEPT: - Answers✔It extends the policy period by 60
days
The basic extended reporting period of a claims-made CGL policy does not extend the policy
period by 60 days. However, it DOES pay claims first received and recorded within 60 days of
the policy expiration date.
In Oklahoma, which of the following will the Commissioner impose on a person for engaging in
an unfair method of competition? - Answers✔A cease and desist order
For engaging in an unfair method of competition, licensees would be subject to a cease and
desist order after a hearing.
Which of the following Dwelling insuring agreements would be included on a DP-3 form but not
on a DP-1 form? - Answers✔Additional Living Expenses
Which of the following BEST DESCRIBES the function of a retroactive date in a Commercial
General Liability policy? - Answers✔It establishes the date when claims-made coverage begins
A retroactive date is applicable only on a claims-made CGL policy and it establishes the date
when that coverage begins under the current policy.
Allen, an insured in Oklahoma, was stopped at a DUI checkpoint while driving his car one
evening. The officer at the checkpoint arrested him for driving under the influence, but when
Allen was taken back to the station, it was determined that his blood-alcohol content was not
above the legal limit. Allen's insurer, Binders Keepers, Inc. raises his automobile insurance
premium rate due to the arrest. Which of the following statements is CORRECT in this situation?
- Answers✔The Oklahoma Commissioner may revoke Binders Keepers' certificate of authority
Because Allen was arrested but no charges were filed, Binders Keepers is not permitted by
Oklahoma law to raise Allen's insurance premium. However, the Commissioner may revoke the
insurer's certificate of authority, censure or fine the insurer for raising Allen's premium rate.
A standard Homeowners policy has been issued to cover a one-family structure with a coverage
limit of $75,000 on the dwelling (Coverage A). What is the automatic amount of insurance
coverage on personal property (Coverage C)? - Answers✔$37,500.
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Personal property is automatically covered for 50% of the amount of the dwelling limit for one
or two-family dwellings.
Which of the following is NOT usually excluded under a Professional Liability policy? -
Answers✔Financial losses
Economic and financial losses are the subject of coverage under a Professional Liability policy.
Therefore, financial losses are NOT excluded.
Personal property that is covered under the Personal Property Replacement Cost Endorsement of
a Homeowners policy is damaged and a claim has been filed. The replacement cost of the
property at the time of the loss is $2,500. The full cost to repair the property is $2,000. The
Coverage C limit of the Homeowners policy is $8,000. No special limits apply to this property
and there is no limit applied to the type of property being claimed. Which of the following is the
amount that will be paid under the endorsement? - Answers✔$2,000.
The endorsement will pay the smallest amount of the replacement cost at the time of the loss, the
full repair cost, the Coverage C limit, any applicable special limits, or the limit that applies to the
type of property being claimed.
With a "claims-made" CGL form, the policy is: - Answers✔Excess over any other policy that is
not claims-made
A claims-made CGL form is excess over any other policy that is not claims-made.
Coverage A - Dwelling of a standard Homeowners policy provides coverage for all of the
following, EXCEPT: - Answers✔The land where an insured structure is being built
Land is NOT covered under the Coverage A insuring agreement of a standard Homeowners
policy.
Which of the following is a coverage that may be selected on an Equipment Breakdown form by
showing a limit of liability amount next to the coverage? - Answers✔Brands and labels
Of all the answer choices listed, "brands and labels" is the only one that is a coverage listed on
the form that can be selected by the insured by showing a limit amount.
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