Oklahoma Insurance Licensing Exam Questions and Answers (Latest Update 2024), Exams of Nursing

Download Oklahoma Insurance Licensing Exam Questions and Answers (Latest Update 2024) and more Exams Nursing in PDF only on Docsity! Oklahoma Insurance Licensing Exam Questions and Answers (Latest Update 2024) 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 - Correct Answer ✅ 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 - Correct Answer ✅ 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 - Correct Answer ✅ 4) 12:01 am the day after the application and premium payment are mailed Oklahoma Insurance Licensing Exam Questions and Answers (Latest Update 2024) A tornado that destroys property would be an example of which of the following? 1) peril 2) pure risk 3) loss 4) physical hazard - Correct Answer ✅ 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 - Correct Answer ✅ 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 - Correct Answer ✅ 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) Oklahoma Insurance Licensing Exam Questions and Answers (Latest Update 2024) securities from the armored vehicle making a delivery? 1) outside the premises 2) forgery/alteration 3) robbery and safe burglary 4) inside the premises - Correct Answer ✅ 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 - Correct Answer ✅ 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 - Oklahoma Insurance Licensing Exam Questions and Answers (Latest Update 2024) Correct Answer ✅ 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 protection if the insured causes injuries to others 4) accident insurance, because it pays medical expenses regardless of fault. - Correct Answer ✅ 4) accident insurance, because it pays medical expenses regardless of fault. Negligence may be defined as 1) the failure to use reasonable and prudent care 2) a situation that creates a probability of loss 3) a latent defect or fault in property 4) the inability to meet the burden of proof - Correct Answer ✅ 1) the failure to use reasonable and prudent care Liability imposed on one party as a result of the actions of another person is known as 1) vicarious liability 2) Oklahoma Insurance Licensing Exam Questions and Answers (Latest Update 2024) comparative negligence 3) strict liability 4) absolute liability - Correct Answer ✅ 1) vicarious liability When a producer was reviewing a potential customer's coverage written by another company, the producer made several remarks that were maliciously critical of that other insurer. The producer could be found guilty of 1) discrimination 2) nothing, unless the remarks were in writing 3) defamation 4) misrepresentation - Correct Answer ✅ 3) defamation Which of the following is covered under the Camera and Musical Instruments Dealers floater? 1) a musical instrument sold and delivered to a customer 2) furniture, fixtures and office supplies in a music store 3) money kept on premises of a camera shop 4) a customer's camera left at a camera shop for repair - Correct Answer ✅ 4) a customer's camera left at a camera shop for repair An insured is driving her car through a residential area when she loses control and crashes into a neighbor's front porch. Oklahoma Insurance Licensing Exam Questions and Answers (Latest Update 2024) the surgeon's office - Correct Answer ✅ 3) medical supplies located in a hospital An insured carries a property policy on her home in the amount of $250,000. A bank is shown as the mortgagor in the policy. Last month the insured made her final mortgage payment, but did not remove the bank from the policy. In the event of a covered loss to her home, how much will the bank receive? 1) standard minimum of 10% that is paid to lenders 2) all of the payment would be made to the mortgagor shown in the policy 3) nothing 4) up to the amount of debt that the insured has with the bank - Correct Answer ✅ 3) nothing Tom's Truck Service's vehicle is stolen. The policyholder may obtain coverage for transportation expenses subject to which of the following limits? 1) $25/day; $450 maximum 2) $20/day; $600 maximum 3) $15/day; $300 maximum 4) $15/day; $450 maximum - Correct Answer ✅ 2) $20/day; $600 maximum Oklahoma Insurance Licensing Exam Questions and Answers (Latest Update 2024) Which of the following best describes liberalization clause in a policy? 1) the insured may assign the policy to any person without their written consent 2) the policy cannot be cancelled 3) changes adopted by the insurer that broaden coverage automatically apply to the policy at no additional premium 4) the insurer is relieved of its contractual obligation to the insured. - Correct Answer ✅ 3) changes adopted by the insurer that broaden coverage automatically apply to the policy at no additional premium Under the limits of insurance provision found in the Physical Damage Coverage Form in a Commercial Auto policy, how much will an insurer pay to repair or replace a covered auto? 1) the lesser of the replacement cost value of the cost to repair or replace a covered auto 2) the greater of the replacement cost value or the cost to repair or replace a covered auto 3) the lesser of the actual cash value or the cost to repair or replace a covered auto 4) the greater of the actual cash value or the cost to repair or replace a covered auto - Correct Answer ✅ 3) the lesser of the actual cash value or the cost to repair or replace a covered auto Oklahoma Insurance Licensing Exam Questions and Answers (Latest Update 2024) Which of the following would NOT constitute doing the business of insurance in this state? 1) investigating claims 2) holding an insurance license 3) delivering insurance contracts 4) examining insurer records - Correct Answer ✅ 4) examining insurer records In the event of the death, disablement of a licensee, or other specific events, the Commissioner may issue temporary license to another to continue their business of insurance. A temporary license is issued for a period not to exceed 1) 12 months 2) 90 days 3) 6 months 4) 9 months - Correct Answer ✅ 3) 6 months All of the following are considered parts of the policy structure EXCEPT 1) insuring clause 2) conditions 3) provisions 4) exclusions - Correct Answer ✅ 3) provisions The ABC Corporation has $100,000 of coverage on its building through insurance Company A, and $50,000 of identical coverage on the same building through insurance Company B. Assuming coinsurance is not an issue, when a Oklahoma Insurance Licensing Exam Questions and Answers (Latest Update 2024) All of the following situations would be covered under a professional liability policy EXCEPT 1) the failure of an attorney to properly defend a client due to his personal dislike of the client 2) failure of a doctor to render the quality of care that is customary in the medical field 3) an accountant's error that inflated a bid and caused a client to lose a major account 4) negligence of an architect who designed an unsafe building - Correct Answer ✅ 1) the failure of an attorney to properly defend a client due to his personal dislike of the client If an insured is in the process of moving to a new location, his personal property coverage under the dwelling policy will apply on a pro rata basis at both locations for 1) 30 days 2) 60 days 3) 90 days 4) 5 days - Correct Answer ✅ 1) 30 days For a contract to be enforced by law, the purpose of the contract must be 1) for the benefit of the general public 2) of pure intent 3) legal and not against public policy 4) for financial gain - Correct Answer ✅ 3) legal and not against public policy Oklahoma Insurance Licensing Exam Questions and Answers (Latest Update 2024) An insurance application cannot ask about which of the following info about an applicant? 1) gender 2) address 3) sexual orientation 4) age - Correct Answer ✅ 3) sexual orientation What insurance policy provision defines how the policy will respond if there is more than one insurance policy written on the same risk? 1) primary and excess 2) other insurance 3) valid insurance 4) non concurrency - Correct Answer ✅ 2) other insurance What type of policy insures against all risks of loss that are not specifically excluded by the policy? 1) binder 2) named peril 3) open peril 4) specified peril - Correct Answer ✅ 3) open peril All of the following conditions must exist for injury/damage to be included in the products and completed operations hazard of a commercial general liability policy EXCEPT: 1) the injury/damage must occur after the insured has released physical possession of the product to another 2) the Oklahoma Insurance Licensing Exam Questions and Answers (Latest Update 2024) injury/damage must occur within 90 days after the insured's work is completed 3) the injury/damage must occur away from the insured premises 4) the injury/damage must arise out of the insured's product or work - Correct Answer ✅ 2) the injury/damage must occur within 90 days after the insured's work is completed (there is no time limit for an injury/damage) Insurance is a contract by which one seeks to protect another from 1) uncertainty 2) hazards 3) loss 4) exposure - Correct Answer ✅ 3) loss What is the purpose of the Oklahoma Automobile Insurance Plan? 1) to ensure auto insurance rates remain affordable 2) to provide insurance for drivers who are eligible but couldn't obtain it through the normal market 3) to ensure no insurer creates a monopoly of insurance in the state 4) to provide supplemental insurance to Oklahoma drivers who are interested - Correct Answer ✅ 2) to provide insurance for drivers who are eligible but couldn't obtain it through the normal market Oklahoma Insurance Licensing Exam Questions and Answers (Latest Update 2024) Elaborate homes and those with detailed designs or decorative architecture with replacement costs greater than ACV or market value are insured on 1) HO-3 2) HO-3 with HO- 15 endorsement 3) HO-8 4) HO-8 with an inflation guard endorsement - Correct Answer ✅ 4) HO-8 The pro rata liability clause is designed to protect the principle of 1) waiver and estoppel 2) indemnity 3) subrogation 4) insurable interest - Correct Answer ✅ 2) indemnity All of the following are true statements regarding the supplementary payments of a commercial general liability policy EXCEPT 1) they pay defense cost even after the aggregate limit has been reached 2) they pay all expenses incurred by the insurer 3) they pay pre-judgment and post- judgment interest 4) they pay all reasonable costs incurred by the insured in helping to investigate or defend a claim - Correct Answer ✅ 1) they pay defense cost even after the aggregate limit has been reached Oklahoma Insurance Licensing Exam Questions and Answers (Latest Update 2024) Which of the following is a common exclusion found in Part D: Coverage for Damage to Your Auto of a PAP? 1) riot or civil commotion 2) towing and labor 3) mechanical breakdown 4) glass breakage - Correct Answer ✅ 3) mechanical breakdown (damage due to wear and tear, freezing, mechanical or electrical breakdown, and road damage to tires is a common exclusion to the physical damage covered section) Replacement cost is defined as 1) the market value of property of the like kind and quality 2) full replacement of property with like kind and quality, less an allowance for physical deterioration and depreciation 3) payment of the full policy limits in the event of a total loss 4) full replacement of property at its current cost, new and without reduction for depreciation - Correct Answer ✅ 4) full replacement of property at its current cost, new and without reduction for depreciation In return for a premium, an insurance company must Oklahoma Insurance Licensing Exam Questions and Answers (Latest Update 2024) 1) Provide the insured with coverage adequate for all potential losses 2) Use standardized tables of coverage for specific risks to be excluded from coverage 3) Give the insurer valuable consideration 4) Be fair in underwriting and pay covered losses. - Correct Answer ✅ 4) Be fair in underwriting and pay covered losses. An insured purchased an insurance policy 5 years ago. Last year, she received a dividend check from the insurance company that was not taxable. This year, she did not receive a check from the insurer. From what type of insurer did the insured purchase the policy? 1) mutual 2) reciprocal 3) nonprofit service organization 4) stock - Correct Answer ✅ 1) mutual All of the following are true regarding deposit premium EXCEPT 1) it's 50% of the actual premium 2) it could be adjusted by the audit 3) it must be paid in advance 4) it's an estimated premium paid at the policy issue - Correct Answer ✅ 1) it's 50% of the actual premium Oklahoma Insurance Licensing Exam Questions and Answers (Latest Update 2024) Which of the following best defines the term "robbery" 1) property that disappears without the owner's knowledge of how or when it happened 2) breaking into one's home with felonious intent 3) taking another's property with violence or the threat of violence 4) stealing the property of another - Correct Answer ✅ 3) taking another's property with violence or the threat of violence What state official is charged with the responsibility of the administration and enforcement of the Oklahoma insurance regulations? 1) Insurance Commissioner 2) State attorney general 3) governor 4) state legislature - Correct Answer ✅ 1) Insurance Commissioner All of the following are factors in the determination of actual cash value EXCEPT 1) replacement cost 2) insurance premium paid 3) type and quality of property 4) age of the property - Correct Answer ✅ 2) insurance premium paid Oklahoma Insurance Licensing Exam Questions and Answers (Latest Update 2024) Who is NOT considered an employee in a commercial general liability policy? 1) temporary worker 2) leased worker 3) full- time worker 4) part-time worker - Correct Answer ✅ 1) temporary worker 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 - Correct Answer ✅ 2) pay dividends to the policy owner 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 - Correct Answer ✅ 2) the homeowner will need to get written consent from the insurer before the policy can be reassigned Oklahoma Insurance Licensing Exam Questions and Answers (Latest Update 2024) 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 - Correct Answer ✅ 4) completed operations Following a property loss that is covered under a business owners policy, if the insurer and insured cannot agree on the amount of the loss, what method is used to resolve the issue? 1) no-fault procedure 2) appraisal 3) arbitration 4) adjudication - Correct Answer ✅ 2) appraisal Negligence may be defined as 1) the inability to meet the burden of proof 2) the failure to use reasonable and prudent care 3) a situation that creates a probability of loss 4) a latent defect or fault in property - Correct Answer ✅ 2) the failure to use reasonable and prudent care Which of the following definitions best defines the term "accident"? 1) physical damage to tangible property of others Oklahoma Insurance Licensing Exam Questions and Answers (Latest Update 2024) repairs are being made. The largest apartment available in the area has 2 bedrooms, so the insured's sister stays in a motel while the repairs are made. How much will the HO3 pay for their additional living expenses? 1) The cost of renting and apartment, but not the cost of the motel room 2) The cost of renting the apartment, and 50% of the cost of the motel 3) Nothing 4) All of the expense up to the Coverage D limit - Correct Answer ✅ 4) All of the expense up to the Coverage D limit (Coverage D will pay the expenses incurred to maintain the same lifestyle as before the loss) An insured owns a building that is valued at $400,000. To comply with the 80% coinsurance provision of his insurance policy, how much should he insure the property for? 1) 100% of the market value 2) $400,000 3) $32,000 4) 80% of the property's replacement cost or more - Correct Answer ✅ 4) 80% of the property's replacement cost or more An insured is applying for a casualty insurance policy. One of the conditions of the policy allows the insurance company to inspect the insured's books at the end of the policy term to make sure sufficient premium has been collected for the Oklahoma Insurance Licensing Exam Questions and Answers (Latest Update 2024) exposure she plans to insure. Which condition is part of the insured's policy? 1) contract bond 2) errors and omissions insurance 3) deposit premium audit 4) excess liability coverage - Correct Answer ✅ 3) deposit premium audit How many days from the issuance of an emergency cease and desist would the order be considered final? 1) 10 days 2) 14 days 3) 30 days 4) 31 days - Correct Answer ✅ 3) 31 days 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 - Correct Answer ✅ 3) $10,000 What term best describes the act of withholding material information that would be crucial to an underwriting decision? 1) leading 2) breach of warranty 3) concealment 4) withholding - Correct Answer ✅ 3) concealment Oklahoma Insurance Licensing Exam Questions and Answers (Latest Update 2024) Liability imposed on one party as a result of the actions of another person is known as 1) strict liability 2) absolute liability 3) vicarious liability 4) comparative negligence - Correct Answer ✅ 3) vicarious liability How are surety bonds different from insurance? 1) surety bonds are issued by the gov; insurance is issued by private companies 2) surety bonds guarantee specific duties/obligations will be fulfilled; insurance pays for losses 3) insurance guarantees specific duties/obligations will be fulfilled; surety bonds pay for losses 4) surety bonds guarantee that losses will be paid; insurance pays for obligations to be fulfilled - Correct Answer ✅ 2) surety bonds guarantee specific duties/obligations will be fulfilled; insurance pays for losses An insured has four separate but identical policies written by different insurers to cover her $100,000 building. Each policy is written for $100,000, and each has the pro rata liability other insurance clause. In the event of a total loss to the building, what would each insurer pay? 1) each policy will pay Oklahoma Insurance Licensing Exam Questions and Answers (Latest Update 2024) who are eligible for it but cannot procure it through the standard market - Correct Answer ✅ 4) it provides auto insurance to people who are eligible for it but cannot procure it through the standard market A beauty parlor burns to the ground. What type of loss is this to the owner? 1) consecutive 2) direct 3) consequential 4) specific - Correct Answer ✅ 2) direct Which of the following would qualify as a competent party in an insurance contract? 1) the applicant is under the influence of a mind impairing medication at the time of application 2) the applicant has a prior felony conviction 3) the applicant is intoxicated at the time of application 4) the applicant is a 12- year-old student - Correct Answer ✅ 2) the applicant has a prior felony conviction Which of the following statements is true regarding the commercial general liability policies Coverage C - Medical Payments? 1) the coverage is liability insurance because it pays only if the insured is legally liable 2) the coverage Oklahoma Insurance Licensing Exam Questions and Answers (Latest Update 2024) provides high limits for insurance for bodily injury losses 3) the coverage is considered good will because payments are made without regard to fault 4) the coverage applies to bodily injury to the named insured - Correct Answer ✅ 3) the coverage is considered good will because payments are made without regard to fault To become licensed to transact insurance in Oklahoma, an individual must meet all of the following requirements EXCEPT 1) pass a licensing examination 2) pay licensing fees specified by the state 3) become a resident of the county in which the individual wishes to operate 4) meet the specified age limit of 18 years - Correct Answer ✅ 3) become a resident of the county in which the individual wishes to operate An insured has an auto liability policy with limits of 25/50/15. The insured is involved in an accident caused by his negligence and is held legally liable for bodily injuries of 3 persons in the other auto as follows: "A" $15,000, "B" $30,000, "C" $35,000. How much will his insurer pay in total Oklahoma Insurance Licensing Exam Questions and Answers (Latest Update 2024) for all injuries? 1) $30,000 2) $50,000 3) $105,000 4) $25,000 - Correct Answer ✅ 2) $50,000 Symbol 1 - Correct Answer ✅ Any auto, included owned, leased, hired, or borrowed autos (used only for liability coverage) Symbol 2 - Correct Answer ✅ Owned autos only Symbol 3 - Correct Answer ✅ Owned private passenger autos only Symbol 4 - Correct Answer ✅ Owned autos other than private passenger autos only Symbol 5 - Correct Answer ✅ Owned autos subject to no- fault Symbol 6 - Correct Answer ✅ Owned autos subject to compulsory uninsured motorist law Oklahoma Insurance Licensing Exam Questions and Answers (Latest Update 2024) What does a Basic Dwelling Form cover? - Correct Answer ✅ Fire, Lightning, Internal explosion WHARVES Vandalism and malicious mischief Which of the following is NOT covered under accounts receivable coverage form? 1) Any loans required to offset uncollectible amounts 2) Interest on loans required to offset uncollectible amounts pending payment of of the insurance process 3) Sums due the insured that are uncollectible due to a covered loss 4) Expenses to reestablish the records, if possible, and collection expenses that are in excess of normal costs - Correct Answer ✅ ?4) Expenses to reestablish the records, if possible, and collection expenses that are in excess of normal costs The regulation of the insurance industry primarily rests with 1) the NAIC 2) private insurers 3) federal government 4) state government - Correct Answer ✅ 4) state government Oklahoma Insurance Licensing Exam Questions and Answers (Latest Update 2024) The business income coverage form covers consequential loss of business income that occurs when a business must suspend operations because of a direct loss. Which of the following terms best describes the nature of this type of coverage? 1) claims made 2) occurrence 3) direct damage 4) time element - Correct Answer ✅ ?4) time element Which inland marine form would provide the best protection for a dry cleaning company against loss or damage to their customer's property while in the care, custody, and control of the dry cleaners? 1) Bailee's customer policy 2) Furriers block policy 3) Personal property coverage part 4) Vendor's single interest policy - Correct Answer ✅ ?3) Personal property coverage part Tom's Truck Service's vehicle is stolen. The policyholder may obtain coverage for transportation expenses subject to which of the following limits? 1) $15/day; $450 max 2) $25/day; $450 max 3) $20/day; $600 max 4) $15/day; $300 max - Correct Answer ✅ 3) $20/day; $600 max Oklahoma Insurance Licensing Exam Questions and Answers (Latest Update 2024) Which of the following is included under the physical damage coverage of a personal auto policy? 1) Custom furnishings or equipment in a pick up or van 2) Sound reproduction equipment permanently installed in the covered auto 3) a covered auto that is seized and destroyed by a government authority 4) A cellular phone located in a locked vehicle - Correct Answer ✅ ?3) a covered auto that is seized and destroyed by a government authority Who would participate in a Write Your Own (WYO) flood insurance program? 1) Government insurance companies that write and service National Flood Insurance policies 2) Businesses requiring National Flood Insurance policies 3) Private insurers that wish to write and service National Flood Insurance policies on a no-risk bearing basis 4) Lloyd's associations - Correct Answer ✅ 3) Private insurers that wish to write and service National Flood Insurance policies on a no- risk bearing basis Which of the following losses would be covered by an unendorsed homeowner's policy? 1) Fire or lightning 2) Faulty or defecting zoning 3) Theft in a structure under construction Oklahoma Insurance Licensing Exam Questions and Answers (Latest Update 2024) fire protective sprinkler system in a book store leaks, causing damage to the store 3) A motorcycle shop is damaged by the sudden shrinking of land created by the action of water on limestone 4) A waterfront restaurant is damaged when water levels rise and seep into the restaurant - Correct Answer ✅ 4) A waterfront restaurant is damaged when water levels rise and seep into the restaurant (seeping water is not covered) A commercial property special form covers property in transit up to 1) actual cash value 2) $500 3) full replacement cost 4) $5,000 - Correct Answer ✅ 4) $5,000 Personal business property out in the open is covered under commercial property policy only while 1) located on the premises 2) specifically described in the declarations 3) within 150 feet of the described premises 4) within 100 feet of the described premises - Correct Answer ✅ 4) within 100 feet of the described premises Which of the following is an additional coverage that is covered by the broad causes of loss form? 1) settling 2) Oklahoma Insurance Licensing Exam Questions and Answers (Latest Update 2024) collapse 3) lightning 4) ordinance or law - Correct Answer ✅ 2) collapse An insured with a Homeowners policy has removed property from the insured location to protect it from loss that could be caused by a covered peril. The removal coverage applies for how many days? 1) 5 days 2) 30 days 3) 60 days 4) 90 days - Correct Answer ✅ 2) 30 days To be eligible for coverage under the National Flood Insurance Program, an insured must live in which of the following communities? 1) that has met the minimum floodplain management guidelines 2) it's surrounded by water 3) met minimum population requirements 4) that gets flooded at least annually - Correct Answer ✅ 1) that has met the minimum floodplain management guidelines The business owners policy liability coverage will pay for necessary medical expenses of others incurred within what maximum time period? 1) 90 days 2) 120 days 3) 1 year 4) 3 years - Correct Answer ✅ 3) 1 year Oklahoma Insurance Licensing Exam Questions and Answers (Latest Update 2024) 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 - Correct Answer ✅ 2) bill of lading All of the following are additional causes of loss included in the broad form of a commercial property policy EXCEPT 1) falling objects 2) weight of ice, sleet, or snow 3) water damage 4) replacement cost - Correct Answer ✅ 4) replacement cost The regular National Flood Insurance Program would insure an eligible single-family dwelling for up to 1) $150,000 2) $200,000 3) $250,000 4) $100,000 - Correct Answer ✅ 3) $250,000 The broad theft coverage endorsement on the dwelling form specifies all of the following limitations EXCEPT 1) $1,500 on securities 2) $1,500 on jewelry 3) $1,000 on silverware 4) $200 on money - Correct Answer ✅ 3) $1,000 on silverware (the limit on silverware is $2,500) Oklahoma Insurance Licensing Exam Questions and Answers (Latest Update 2024) prohibited coverage in the dwelling form 3) limited to 50% of the amount of insurance that is written as Coverage A 4) Limited to covering a servant's property while at the insured's location - Correct Answer ✅ 4) Limited to covering a servant's property while at the insured's location Which of the following is a statement that is guaranteed to be true, and if untrue, may breach an insurance contract? 1) representation 2) warranty 3) concealment 4) indemnity - Correct Answer ✅ 2) warranty In the event of a loss covered by the policy, if the insurer requests a signed sworn proof of loss, the named insured is required to submit it within 1) 1 year 2) 5 business days 3) 30 days 4) specified time - Correct Answer ✅ 4) specified time According to the common policy conditions for a commercial package policy, if the insured dies, the policy rights and duties 1) transfer to a legal representative after court appointment 2) die with the insured 3) are suspended until Oklahoma Insurance Licensing Exam Questions and Answers (Latest Update 2024) probate is completed 4) automatically transfer to a legal rep - Correct Answer ✅ 4) automatically transfer to a legal rep 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 - Correct Answer ✅ 2) $250 Which of the following is not covered under accounts receivable coverage form? 1) any loans required to offset uncollectible amounts 2) interest on loans required to offset uncollectible amounts pending payment of the insurance proceeds 3) sums due to the insured that are uncollectible due to a covered loss 4) expenses to reestablish the records, if possible, and collection expenses that are in excess of normal costs - Correct Answer ✅ 1) any loans required to offset uncollectible amounts Professional liability coverage protects the insured against legal liability resulting from 1) dishonest acts 2) Oklahoma Insurance Licensing Exam Questions and Answers (Latest Update 2024) unprofessional conduct of employee 3) errors and omissions 4) liability assumed under a contract - Correct Answer ✅ 3) errors and omissions Theft coverage under an HO-8 is restricted to 1) the larger of 10% of the personal property limit or $1,000 2) there is not theft coverage 3) $250 4) actual cash value of what was stolen, with limits for certain classes of property - Correct Answer ✅ 4) actual cash value of what was stolen, with limits for certain classes of property Coverage under a Floor Plan Merchandise form is written on a reporting form basis that requires the insured to file reports with the insurer. What is the time frame for those reports? 1) 20 days after the report is due 2) within 30 days after the end of each month 3) within the first 10 days of each month 4) by the 15th of each month - Correct Answer ✅ 2) within 30 days after the end of each month Which of the following would not be covered under a BOP form? 1) tornado 2) earth movement, power failure, flood 3) Oklahoma Insurance Licensing Exam Questions and Answers (Latest Update 2024) 3) customer's associates, friends, and neighbor's provide the report's data 4) provide additional information from an outside source about a particular risk - Correct Answer ✅ 3) customer's associates, friends, and neighbor's provide the report's data How long is a waiting period upon purchase of flood coverage through NFIP? 1) 10 days 2) 30 days 3) 60 days 4) no waiting period - Correct Answer ✅ 2) 30 days The difference in the contents coverage on an HO-3 and an HO-5 is which of the following? 1) contents are covered for replacement cost on HO-3, and ACV on HO-5 2) Contents are covered open peril on HO-5, and named peril on HO-3 3) contents are covered open peril on HO-3, and named peril on HO-5 4) contents are covered for replacement costs on HO-5, and ACV on HO-3 - Correct Answer ✅ 2) Contents are covered open peril on HO-5, and named peril on HO-3 Oklahoma Insurance Licensing Exam Questions and Answers (Latest Update 2024) What is the deductible of a commercial liability umbrella policy called? 1) SIR 2) PIL 3) CGL 4) CPP - Correct Answer ✅ 1) SIR (self-insured retention) An insurance producer just sold an insurance policy to his sister. What kind of business is this? 1) personal 2) controlled 3) illegal 4) internal - Correct Answer ✅ 2) controlled Employee theft coverage may be written as which type of coverage? 1) blanket 2) name schedule 3) position schedule 4) any of the above - Correct Answer ✅ 4) any of the above Which of the following risks is eligible for coverage under a business owner's policy? 1) banks 2) auto dealers 3) bars or taverns 4) condominiums - Correct Answer ✅ 4) condominiums All of the following are true of coinsurance EXCEPT 1) the coinsurance formula will also be applied to total losses 2) it is used to help adequacy and equity in rates 3) insured agrees to maintain insurance equal to some specified percentage of Oklahoma Insurance Licensing Exam Questions and Answers (Latest Update 2024) the value of the property 4) if the insurance carried is less than required, the insurance may not cover the whole loss - Correct Answer ✅ 1) the coinsurance formula will also be applied to total losses To maintain an active license, an insurance producer must complete how many total hours of continuing education every licensing period? 1) 24 2) 40 3) 10 4) 13 - Correct Answer ✅ 1) 24 What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act? 1) $100 per violation 2) revocation of license 3) $2,500 4) $1,000 - Correct Answer ✅ 3) $2,500 Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT 1) Conditions 2) Consideration 3) Legal purpose 4) Offer and acceptance - Correct Answer ✅ 1) Conditions