Oklahoma Exams – Study Guides &
Practice Tests Available
Life Insurance - CORRECT ANSWER✔✔Transfers to a life insurance company the risk of financial loss to
an insurance company.
Health Insurance - CORRECT ANSWER✔✔transfers to a health insurance policy the risk of financial loss
resulting from illness, injury, disability of an insured person.
Risk - CORRECT ANSWER✔✔Chance of loss: only pure risk is insurable.
Loss - CORRECT ANSWER✔✔Unplanned reduction in economic value.
hazard - CORRECT ANSWER✔✔a condition that increases the chance of a peril/setback/danger.
Risk Transfer - CORRECT ANSWER✔✔Risk management role played by insurance.
Underwriting - CORRECT ANSWER✔✔Assessing an applicant to determine insurability.
Law of Large Numbers - CORRECT ANSWER✔✔Mathematical principle of probability underlying
insurance.
,Mutual Companies - CORRECT ANSWER✔✔owned by policy owners
participating policies which pay policy dividends to their policy owners
may sell life/health insurance
Stock Companies - CORRECT ANSWER✔✔DO NOT issue participating policies
Pay stock dividends to stockholders
Sell health/life
Home Service Companies - CORRECT ANSWER✔✔issues industrial life insurance in small amounts
Ordinary Life Insurance - CORRECT ANSWER✔✔Life insurance issued in face amounts of greater than
25k
Medical Care Service Providers - CORRECT ANSWER✔✔blend features of insurance companies and
medical care providers.
Federal and State Government Insurance Programs - CORRECT ANSWER✔✔Medicare
Social Security
Medicaid
Admitted vs. Non-admitted - CORRECT ANSWER✔✔Refers to whether or not an insurer is approved or
authorized to write business in this State.
Certificate of Authority
Insurance Providers - CORRECT ANSWER✔✔Mutual Companies
Stock Companies
Home Service Companies
, Ordinary Life Insurance
Medical Care Service Providers
Federal and State Government Programs
Admitted vs Non-Admitted
Insurance Producers - CORRECT ANSWER✔✔Producers
Producers Authority
Cost Indexes
Required Disclosures
Producers 1 - CORRECT ANSWER✔✔Must act in Good Faith and integrity in their dealings with both
customers and Insurers.
Producers Authority - CORRECT ANSWER✔✔1. Express Authority: Defined in contract with insurer
2. Implied Authority: Understood to be a part of the job
3. Apparent Authority: Producer allows to exist, but not approved by insurer
Cost Indexes - CORRECT ANSWER✔✔1. L ins surrender cost index (future cash value withdrawal)
2. L ins Net Payment Cost Index (no cash value withdrawal)
Required Disclosures - CORRECT ANSWER✔✔Buyers Guide explains the general features, benefits and
conditions of the type of ins being considered.
Loss Must be: - CORRECT ANSWER✔✔1. Defineable: time, place, location
2. Measurable: financial setback of the loss
3. Results from a peril: our of the insured's control
Practice Tests Available
Life Insurance - CORRECT ANSWER✔✔Transfers to a life insurance company the risk of financial loss to
an insurance company.
Health Insurance - CORRECT ANSWER✔✔transfers to a health insurance policy the risk of financial loss
resulting from illness, injury, disability of an insured person.
Risk - CORRECT ANSWER✔✔Chance of loss: only pure risk is insurable.
Loss - CORRECT ANSWER✔✔Unplanned reduction in economic value.
hazard - CORRECT ANSWER✔✔a condition that increases the chance of a peril/setback/danger.
Risk Transfer - CORRECT ANSWER✔✔Risk management role played by insurance.
Underwriting - CORRECT ANSWER✔✔Assessing an applicant to determine insurability.
Law of Large Numbers - CORRECT ANSWER✔✔Mathematical principle of probability underlying
insurance.
,Mutual Companies - CORRECT ANSWER✔✔owned by policy owners
participating policies which pay policy dividends to their policy owners
may sell life/health insurance
Stock Companies - CORRECT ANSWER✔✔DO NOT issue participating policies
Pay stock dividends to stockholders
Sell health/life
Home Service Companies - CORRECT ANSWER✔✔issues industrial life insurance in small amounts
Ordinary Life Insurance - CORRECT ANSWER✔✔Life insurance issued in face amounts of greater than
25k
Medical Care Service Providers - CORRECT ANSWER✔✔blend features of insurance companies and
medical care providers.
Federal and State Government Insurance Programs - CORRECT ANSWER✔✔Medicare
Social Security
Medicaid
Admitted vs. Non-admitted - CORRECT ANSWER✔✔Refers to whether or not an insurer is approved or
authorized to write business in this State.
Certificate of Authority
Insurance Providers - CORRECT ANSWER✔✔Mutual Companies
Stock Companies
Home Service Companies
, Ordinary Life Insurance
Medical Care Service Providers
Federal and State Government Programs
Admitted vs Non-Admitted
Insurance Producers - CORRECT ANSWER✔✔Producers
Producers Authority
Cost Indexes
Required Disclosures
Producers 1 - CORRECT ANSWER✔✔Must act in Good Faith and integrity in their dealings with both
customers and Insurers.
Producers Authority - CORRECT ANSWER✔✔1. Express Authority: Defined in contract with insurer
2. Implied Authority: Understood to be a part of the job
3. Apparent Authority: Producer allows to exist, but not approved by insurer
Cost Indexes - CORRECT ANSWER✔✔1. L ins surrender cost index (future cash value withdrawal)
2. L ins Net Payment Cost Index (no cash value withdrawal)
Required Disclosures - CORRECT ANSWER✔✔Buyers Guide explains the general features, benefits and
conditions of the type of ins being considered.
Loss Must be: - CORRECT ANSWER✔✔1. Defineable: time, place, location
2. Measurable: financial setback of the loss
3. Results from a peril: our of the insured's control
