Oklahoma Insurance Exam Questions With Verified Answer

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ALL RIGHTS RESERVED.


Oklahoma Insurance Exam Questions With
Verified Answers


Life Insurance - Answers✔Transfers to a life insurance company the risk of financial loss to an
insurance company.

Health Insurance - Answers✔transfers to a health insurance policy the risk of financial loss
resulting from illness, injury, disability of an insured person.

Risk - Answers✔Chance of loss: only pure risk is insurable.

Loss - Answers✔Unplanned reduction in economic value.

hazard - Answers✔a condition that increases the chance of a peril/setback/danger.

Risk Transfer - Answers✔Risk management role played by insurance.

Underwriting - Answers✔Assessing an applicant to determine insurability.

Law of Large Numbers - Answers✔Mathematical principle of probability underlying insurance.

Mutual Companies - Answers✔owned by policy owners
participating policies which pay policy dividends to their policy owners
may sell life/health insurance

Stock Companies - Answers✔DO NOT issue participating policies
Pay stock dividends to stockholders
Sell health/life

Home Service Companies - Answers✔issues industrial life insurance in small amounts

Ordinary Life Insurance - Answers✔Life insurance issued in face amounts of greater than 25k

Medical Care Service Providers - Answers✔blend features of insurance companies and medical
care providers.


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ALL RIGHTS RESERVED.
Federal and State Government Insurance Programs - Answers✔Medicare
Social Security
Medicaid

Admitted vs. Non-admitted - Answers✔Refers to whether or not an insurer is approved or
authorized to write business in this State.
Certificate of Authority

Insurance Providers - Answers✔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 - Answers✔Producers
Producers Authority
Cost Indexes
Required Disclosures

Producers 1 - Answers✔Must act in Good Faith and integrity in their dealings with both
customers and Insurers.

Producers Authority - Answers✔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 - Answers✔1. L ins surrender cost index (future cash value withdrawal)
2. L ins Net Payment Cost Index (no cash value withdrawal)

Required Disclosures - Answers✔Buyers Guide explains the general features, benefits and
conditions of the type of ins being considered.

Loss Must be: - Answers✔1. Defineable: time, place, location


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2. Measurable: financial setback of the loss
3. Results from a peril: our of the insured's control
4. Part of a large group:

Risk Management involves: - Answers✔1. Risk
2. Loss
3. Peril
4. Hazard
5. Exposure

Two Types of Risk - Answers✔1. Pure Risk
2. Speculative Risk

Pure Risk - Answers✔insurable
no chance of gain
untimely death
serious illness/disability
( definable, measurable, accidental,Large group, catastrophic).

Speculative Risk - Answers✔Results in loss or gain. NOT insurable

Two Kinds of Speculative Risk - Answers✔1. Direct: immediate result of a loss or insured peril
2. Indirect: loss that results from a direct loss

Loss Exposure - Answers✔Subject to a possible loss: measured by EXPOSURE UNITS (the
basis for a premium).

Exposure Units - Answers✔Insurance policies based on a number of Exposure Units: Basis for
premiums

Peril - Answers✔A direct cause of a loss

Life Insurance Perils - Answers✔1. death
2. disability
3. sickness

Hazard - Answers✔A condition that increases the chance./frequency of loss due to peril.

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