Practice questions
An insurer formed under the laws of Switzerland and authorized to do business in the state of Oklahoma would be referred to as:
Alien insurer
Although general liability insurance excludes liquor liability, it would provide host liquor liability coverage for the exposure of:
An insurance agency that serves beer at an annual company picnic
Which of the following would be a moral hazard
Arson
All of the following are requirements for a contract to be legally binding, except? A. Both parties must give something of value B. both parties must sign the contract C. both parties must, at the time of the contract, be considered legally competent D. both parties must come to an agreement which requires both an offer and acceptance
B. Both parties must sign the contract
Statements made by the applicant on an insurance application are considered: A. warranties B. Representations C. guarantees D. Misrepresentations
B. Representations
Under the Commercial General Liability Policy Form, "personal injury" is all of the following except?
Bodily injury
An insurance contract is all of the following, EXCEPT: A. Contract of utmost good faith B. aleatory contract C. bilateral contract D. contract of adhesion
C. Bilateral contract
IF acting within the scope of the business, each of the following would be "an insured" for Commercial General Liability coverage, Except?
Independent contractors with respect to liability for bodily injuries
Regarding the national association of insurance commissioners (NAIC), which is true?
Is a for-profit organization
Why is "garage liability" broader than business auto liability coverage?
It is not written with deductibles
Which of the following is not a requirement to become a resident producer or adjuster in Oklahoma?
Live in Oklahoma for a period of six months or more
The green grass lawn mower company manufatures lawn mowers. One year after a lawn mower was sold; it malfunctioned and caused bodily injury to the homeowner. This type of accident would be considered a(n):
Products liability exposure
An unendorsed commercial general liability policy includes coverage for all of the following except?
Property damage to insured's property
The Oklahoma insurance commissioner is:
Publicly elected to a four year term
A producer or adjuster must notify the Oklahoma insurance department within what length of time after changing his/her email address?
Within 30 days
Under a commercial general liability policy, medical payments, covers expenses occurring:
Within one year of the accident
after detaining a customer who is suspected of shoplifting, a store is sued for wrongful detention. Will the commercial general liability policy cover court-awarded damages?
Yes, under personal injury liability
Under the business auto policy, all of the following vehicles could be insured except
a bulldozer
All of the following statement are true regarding a hearing involving a violation of the insurance code conducted by the Oklahoma insurance department except:
a licensee has the right to appeal to the governor any OID's action
The business owners policy is all of the following except
a policy designed for auto repairs shops with one mechanic
A license's license could be revoked, the Oklahoma insurance department will notify all of the following except?
accused of a felony
all of the following could be insured on a business auto form except
all-terrin vehicle
under the business auto policy the definition of "hired auto" includes all of the following except
autos the insured rents
Which statement made by the insured automatically voids the insurance coverage if not true? A. fraud B. warranty C. representations D. misreprentations
b. Warranty
regarding flood insurance which of the following is true
coverage is no t effective until 30 days after the application date with annual premium paid
the license of a producer or adjuster could be censured, suspended, or revoked for all of the following except:
declaring personal bankruptcy
Which of the following would be eligible for a business owners package policy
dentist office
under an equipment breakdown policy which of the following would trigger coverage
failure of a safety mechanism
under the building and personal coverage form all of the following are considered business personal property except
fire extinguishers
all of the following could be insured on an inland marine policy except
fishing boat
The Oklahoma Insurance Department must examine each domestic insurer at least once every:
five years
The business auto liability coverage limit may be paid
for each separate occurrence
the name of the bailee coverage that provides legal liability insurance for physical damage to customers' autos that are left with the insured for service, repair, or storage is
garagekeepers coverage
regarding the crime form "robbery and safe burglary of the other property", which of the following losses would be covered
gold coins stolen in a safe burgulary
john, the owner of john's flower shop, rents an auto from hertz rental for business purposes. regarding john's business auto policy this auto would be referred to as:
hired auto
which of the following types of property could be covered under the national flood insurance program
refrigerator in the kitchen
Which of the following is NOT true about umbrella liability policies
required underlying policy limits are written at minimum liability limits
if the principal defaults on a fidelity bond, who is obligated to make payment for the damages?
surety
who pays the penalty on a surety bond
surety
which vehicle would most likely have inland marine motor truck cargo insurance
truck owned by united parcel services
which of the following is not true regarding errors and omissions professional liability coverage?
underlying limits of liability are required
All of the are sources of regulation of the insurance business except
unilateral regulation
all of the following are "time element" coverages, except
valuable papers restoration
An insurer must rely on the truthfulness and integrity of the applicant. This is called: A. conditional contract B. bilateral contract C. Contract of utmost good faith D. Unilateral contract
C. Contract of utmost good faith
James Hayes wants the coverage on his manufacturing company to include premises liability, products liability, and completed operations. Which of the following policies would cover these loss exposures?
Commercial general liability
All of the following are Coverage parts in a commercial package policy except?
Commercial umbrella
After finishing work at a job site the contractor leaves the premise. as a result of the work done, a fire erupts two days later causing severe damage to the customer's building. What type of liability exposure is this?
Completed operations
An insurance contract is a legally binding contract. Which of the following best describes the insured must accept or reject all of the policy provisions?
Contract of adhesion
An insurance contract is a legally binding contract. Which of the following best describes a policy concept which allows the insured to be reimbursed without making a gain?
Contract of indemnity
All of the following statements are true regarding an insurance contract except? A. consideration is something of value which is required of both parties B. the insured must adhere to the terms of the contract without negotiation C. insurance contracts are enforceable by the insured D. insurance contracts are bilateral contracts
D. Insurance contracts are bilateral contracts
Which of the following would be considered competent to enter a contract A. Retired person committed to a mental hospital B. A Girl Scout, age 13, selling Girl Scout cookies C. individual having a difficult time walking after leaving a tavern D. person confined to hospital due to a heart attack
D. Person confined to hospital due to a heart attack
All of the following are characteristics of an insurance contract, except? A. the insured must give consideration B. the insurer must give consideration C. the contract is enforceable by the insured D. the contract is enforceable by the insurer
D. The contract is enforceable by the insurer
Susie Sewer Mouth is making derogatory statements or distributing maliciously cirtical information against a competing insurance company. Under the Oklahoma insurance code this illegal practice is:
Defamation
all of the following would be responsibilities of the Oklahoma insurance department except:
Develop new insurance rates
For which of the following is errors and omissions professional liability insurance not available?
Doctors
An insurer incorporated under the laws of the state of Oklahoma is considered a(n):
Domestic insurer
When the OID receives notification of a potential violation of the insurance code, which of the following would be done first?
Given written notice of a hearing
A banana peel on the floor of a grocery store on which a person could slip and fall is a
Hazard
Which of the following coverages would provide vicarious liability arising from the negligent operation of ta U-Haul truck rented for business use of the named insured?
Hired auto coverage
When examining an insurance company all of the following are considerations except:
IRS tax returns
Which of the following is NOT true under the Commercial General Liability form
Legal liabilities for injuries to employees of the named insured are covered
After a hearing regarding a violation of the insurance code, the Oklahoma insurance commissioner could do all of the following to a licensee except?
Make licensee pay restitution
Which of the following is not included in the coverage territory of the business auto policy?
Mexico
Which of the following is NOT a commercial general liability exposure?
Negligence
Medical payments coverage included in a commercial general liability policy provide medical expenses for accidental injuries if the expenses are incurred and reported to the insurer within:
One year of the accident date
All of the following are contained in orders issued by the OID except
Precedents in which similar action was taken
Which business auto symbol would provide liability coverage arising from employees using their own autos for their employer's business?
Symbol 9
All of the following would be eligible for insurance under a business owners policy except
an auto repair garage
Regarding commercial general liability, all of the following are considered liability exposures except?
bodily injury
Personal injury would include all of the following except
bodily injury including sickness and disease
All of the following are types of insurers except
bureau insurer
A bulldozer that is being hauled on a flatbed trailer accidentally rolls off the trailer and causes a major accident on the interstate highway. Primary liability coverage for the accident would be provided from which policy?
business auto policy
The garagekeepers insurance provides for:
customers' vehicles while in the insured's custody
fidelity bonds are known as
dishonesty bonds
A business auto policy could insure all of the following except?
domestic goods in transport
all are exclusions under a flood policy except
electronics
which of the crime coverage forms covers an employee using their home computer to hack their employer's computer to fraudulently transfer funds
employee theft form
Which of the following is not a disciplinary action that may be taken by the Oklahoma insurance department against a licensee found guilty of the producer and adjuster licensing act?
impose a mandatory jail sentence of six months
If a licensee's license is suspended or revoked, the Oklahoma insurance department will notify all of the following except
insureds and claiments of the licensee
In a unilateral contract, who has the duty to perform
insurer
which of the following is true regarding binders under the insurance code title 36 O.S. 3622
is a temporary insurance contract
each of the following statements concerning the business auto policy is true except?
medical payments coverage is automatically provided
the party who expects the principal to perform on a contract is called:
obligee
the medical payments coverage of a commercial general liability policy applies to expenses incurred within
one year after the accident date
All of the following are true regarding the Oklahoma property & casualty guaranty association except?
only Oklahoma domestic insurers are covered
While painting a customer's commercial building, a painting contractor spills white paint on the customer's autos. What type of exposure is this?
operations
a bond is written for an amount of insurance called the
penalty
the business owners policy is all of the following except
policy designed for small general contractors
which of the following is not true about personal umbrella liability insurance
provides primary coverage in the event of an auto liability claim
Forcible removal of property from a messenger using the threat of violence is
robbery
A commercial insured worried about liability arising from the use of a rented U-Haul to transport excess inventory would need which symbol on the business auto policy
10
Dorothy claims that a doll manufactured last year by pretty doll, inc. was the cause of injury to her daughter. Which of the following coverages would protect pretty doll, inc.?
Commercial general liability
Under the unfair claim settlement practices act all of the following are not lawful.
Failing to investigate a claim within 48 hours of the occurence
All of the following are true concerning continuing education requirements in Oklahoma except?
Adjusters & producers must complete 24 hours of CE before December 31st of each year
What is the minimum age a person can become licensed as a producer or adjuster?
18
Any person who wishes to appeal an order of the Oklahoma insurance department may file a petition with the district court of Oklahoma county within
30 days
Under the unfair claims settlement practice act, the insurer must acknowledge receipt of a homeowners claim to the claimant within:
30 days
A commercial insured worried about liability arising from employees using personal cars on company business would need which symbol on the business auto policy
9
All of the following are requirements of a legally binding contract, except? A. an exchange of equal consideration B. an offer and acceptance C. Competent parties D. legal purpose
A. An exchange of equal consideration
When one party constructs the contract and the other party has no input, it is known as: A. Contract Of adhesion B. Aleatory contract C. Unilateral Contract D. Conditional Contract
A.Contract of adhesion