OK Prop/Cas INS
What is the minimum civil penalty the Commissioner may impose on a producer who violates a cease and desist order?
$100
what is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act?
$2,500
Tom's Truck Service's vehicle is stolen. The policyholder may obtain coverage for transportation expenses subject to which of the following limits?
$25 per day ; 450 maximum
Any licensed insurance agents in the state of OK are required to notify the commissioner of any change of address within how many days?
30 days
If licensees have administrative action taken against them, they must report this to the commissioner within how many days?
30 days
How many days from the issuance of an emergency cease and desist would the order be considered final?
31 days
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?
80% of the property's replacement cost or more
With respect to auto insurance, the term owned autos includes all of the following EXCEPT
A pickup or van titled to and used in the named insured's business
what is a foreign insurer?
An insurer with a home office in another state
An employee is injured while visiting the employer's out-of-state site. How will the workers compensation benefits be determined?
Benefits will be provided if the state was listed on the policy information page
All of the following are supplemental payments found in liability policies EXCEPT
Costs the insured incurred in hiring an attorney
the part of the policy that shows the amount of insurance, premium, and policy terms is the....
Declarations (who what when where and how much)
Replacement cost is defined as
Full replacement of property at its current cost, new and without reduction for depreciation.
The policy conditions define
How parties to the contract must act following a loss.
Coverage territory of the businessowners policy (BOP) includes everywhere EXCEPT
Mexico
Which of the following was organized to provide auto insurance to people who cannot obtain it through the standard market but are still eligible for coverage?
Oklahoma Automobile Insurance Plan
What is it called when an agent offers compensation to an applicant in exchange for business?
REBATING
The Federal Fair Credit Reporting Act
Regulates consumer reports
An insured's accounts receivable records have been damaged. The loss may be covered with
The accounts receivable coverage form
What is an example of a situation that would NOT be covered by professional liability policy?
The failure of an attorney to properly defend a client due to a personal dislike of the client
what would be an example of a loss that would be covered under the property damage liability coverage of a personal auto policy?
The insured damages a rented garage when he failed to stop in time
What circumstance would be EXCLUDED under medical payments coverage of a personal auto policy?
The insured is injured while driving his motorcycle on his resident premises
With respect to commercial auto policies, the Garage Coverage Form provides liability protection for all of the following EXCEPT
The insured's business income losses due to personal injury
In forming an insurance contract, when does acceptance usually occur?
When the underwriter approves the coverage
What type of liability would a person who owns wild animals have?
absolute
what would qualify as a competent party in an insurance contract?
applicant has prior felony conviction
Who will transport the property of anyone who hires them?
common carriers
If a driver wants to continue paying discounted premiums on his auto policy, how often must the driver complete a motor vehicle accident prevention course?
every 3 years
The Physicians and Surgeons Equipment Floater in NOT intended for which of the following?
medical supplies located in the hospital
What would not be covered under the medical expense coverage of a businessowners policy?
mental health counseling
What term describes an individual domiciled and licensed as a resident agent in a state other than Oklahoma?
nonresident agent
What are the four essential elements of all legal contracts?
offer and acceptance consideration competent parties legal purpose
The limited fungi, wet or dry rot, or bacteria coverage endorsement applies to which type of losses?
property and liability
what type of information WOULD be found in a policy's insuring agreement?
renewal dates
in case of a loss, the indemnity provision in insurance policies...
restores insured to same financial position before the loss
a non-admitted insured who provides unique insurance coverage that is not available from an admitted insurer is called a....
surplus lines insurer
In an errors and omissions policy, what event would NOT provide protection?
the agency loses commission income from policies that were not issued by the insurer
what is the primary objective of workers comp?
the payment of benefits to employees that get injured arising from employment
What is the maximum amount an insurer will pay under the equipment dealers pollution cleanup and removal extension of a inland marine policy?
$10,000 for all expenses incurred during a 12-month period
Following the Christmas season, an insured decides to store his decorations in the attic for the summer. He drops a box through the ceiling causing $1,000 of damage. His HO-3 will pay...
$1000 less the deductible
An insured has $5,000 of medical coverage on a personal auto policy at the time of a covered accident. The insured and two passengers are injured. Medical treatment costs $7,000 for the insured, $4,000 for the first passenger, and $8,000 for the second passenger. How much will the policy pay under medical payments coverage?
$14,000
Tom's Truck Service's vehicle is stolen. The policyholder may obtain coverage for transportation expenses subject to which of the following limits?
$20 per day; $600 maximum
What are the minimum required limits of liability for bodily injuries for uninsured motorist coverage?
$25,000 and $50,000
A $100,000 house insured on a policy with an 80% coinsurance requirement has a fire that caused $40,000 of damage; the owner has a policy with $60,000 coverage. How much can the owner collect for his loss?
$30,000
Under the commercial crime coverage inside the premises - robbery or safe burglary of other property, what is the special per occurrence limit that applies to loss or damage to precious metals, precious and semiprecious stones, pearls, furs, manuscripts, drawings, or records?
$5,000
How much coverage is provided under a homeowners policy for theft or unauthorized use of a credit card?
$500
When a producer ceases to maintain residency in this state, within how many days must the producer return the license to the commisioner?
10 days
Coverage for medical payments under a personal auto policy applies to expenses following a covered accident that are incurred and services rendered within what maximum time period?
3 years
Under the conditions of a film coverage form, how long must the insured maintain records of each production?
3 years after the policy expires
How long is a waiting period upon purchase of flood coverage through NFIP?
30 days
How many days does an insurer have to respond to a written communication from a claimant?
30 days
The Commissioner has just issued an order regarding a recent hearing. How many days does the producer who was subject to the hearing to appeal to Commissioner's action?
30 days
When the insurer receives proof of loss, it must repsond with either a written to settle or a rejection of the claim within how many days?
90 days
Which of the following is covered under the Camera and Musical Instruments Dealers floater?
A customer's camera left at a camera shop for repair
In which of the following situations would the jewelers block extension cover a loss?
A jeweler fixes a necklace and sends it by registered mail to the owner. When the necklace arrives, it has been damaged
The inspections and surveys condition in a businessowners policy
Allows the insurer the right to inspect the insured's premises
In insurance, an offer is usually made when...
An applicant submits an application to the insurer
Which of the following is NOT covered under accounts receivable coverage form?
Any loans required to offset uncollectible amounts
In return for premium, an insurance company must
Be fair in underwriting and pay covered losses.
Under which type of coverage does the insurer agree to pay for bodily injury or property damage liability which the insured has agreed to assume under a written contractual agreement?
Contractual liability policy
What is the purpose of the coinsurance clause found in property insurance policies?
Encourage the insured to insure the property closer to its full value
Individuals in the business of selling construction equipment and mobile equipment should insure with a/an
Equipment dealers coverage form
A valid certificate of authority is required by the Commissioner in order for an insurer to transact business in Oklahoma. Some exceptions apply to insurance transactions for which a Certificate of Authority is not required. Which of the following are permitted without a Certificate of Authority?
Investigation of claims by an insurer which has relocated in another state
What is true regarding workers comp coverage for sole proprietors?
It is elective
Auto policies issued in Oklahoma are required to provide Uninsured and Underinsured Motorists coverage. Does the insured have to accept this coverage?
No, the named insured may reject coverage in writing
In property insurance, actual cash value is defined as which of the following?
Replacement cost at the time of the loss, less depreciation
What is the deductible of a commercial umbrella liability policy called?
SIR (self insured retention)
Peril is most easily defined as
The cause of loss insured against
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?
The lesser of the actual cash value or the cost to repair or replace a covered auto
Victoria keeps a set of china figurines on top of the piano. One afternoon, Victoria's two-year-old daughter climbs up on top of the piano to play with the figurines. As she is reaching for one of them, it slips out of her hands and breaks. According to the pair and set clause, how much will Victoria's insurance policy pay?
The loss settlement would be based on the reasonable and fair proportion that the damaged part bears to the total value of the set
Which of the following best expresses the purpose of a stated value contract?
To pre-establish the amount of coverage available for property items that are difficult to value
What is the business auto coverage territory for?
United States and its territories, Canada, or worldwide for private passenger hired autos
All of the following are supplemental payments included in the liability section of a personal auto policy EXCEPT
Up to $100 for the cost to secure the release of a vehicle from an impoundment lot following a covered accident
A small restaurant was forced to close for 10 days in August when the power company's transformer was destroyed by lightning, and the restaurant was without electricity. Which of the following endorsements could be added to the businessowners policy that would provide protection against loss of income from such events?
Utility services - time element endorsement
Professional photographers and musicians may insure their equipment with...
a commercial articles floater
Which of the following policies will help an auto dealership cover most of it's liability exposures?
a garage liability coverage
What is an example of someone that would be exempt from the Worker's Compensation Act?
a salesperson
When other insurance is written on the same basis as a commercial property policy, the obligation of the insurer is to cover
a share of the loss
The commercial general liability coverage form excludes bodily injury or property damage that the insured has assumed under any contract or agreement. However, the exclusion does not apply to certain types of contracts, as long as the injury or damage occurs
after the execution of the contract
What is defined as the maximum limit of coverage available under the liability policy during a policy year, regardless of the number of claims or number of accidents
aggregate limit of liability
In which of the property valuations will the policy pay the full value as specified on the policy schedule regardless of appreciation or depreciation?
agreed value
If an insurance company makes a statement that its policies are guaranteed by the existence of the Insurance Guaranty Association, that would be considered
an unfair trade practice
Under a personal auto policy, in which of the following locations would a vehicle primarily garaged in California be covered?
any other state
Which of the following clauses establishes the procedure for determining the amount of a loss when the insurer and the insured cannot agree on the value of property or amount of loss?
appraisal clause
insurable interest in a property policy must be proven...
at the time of loss
An insured was involved in an automobile accident for which the insured was at fault. Which of the following coverages would pay for damage to the insured's automobile?
collision
An insured is driving her car through a residential area when she loses control and crashes into a neighbor's front porch. The neighbor, who was sitting on the porch, is injured. The insured's liability policy has a limit of $500,000. This amount applies to the total of damages for any bodily injury and property damage resulting from one accident. Which type of limit of liability does the insured have?
combined single
When an insured makes truthful statements on the application for insurance and pays the required premium, it is known as which of the following?
consideration
A unique feature of the bailee form is that it covers
customers property whether or not the insured has been negligent
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 exposure she plans to insure. Which condition is part of the insured's policy?
deposit premium audit
Which of the following would NOT be covered under the Film Coverage Form?
deteroriation, exposure to light, electrical problems
What term includes damage where the insured peril was the proximate cause of loss?
direct loss
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?
each policy will pay $25,000 of the loss
what is loss valuation?
establishing a monetary value to property loss
How often must producers in this state complete continuing education requirement?
every two years
A basic dwelling policy automatically provides coverage against what?
fire, lightning, and internal explosion
Which of the following would be named on the declarations page of a property or liability policy?
first named insured
An insurance company assures its new policyholders that their premium costs will not increase for a period of at least five years. However, due to increasing financial strain, they plan to raise premium costs for all insureds by 10% over the next two years. What term best describes this act?
fraud
Events or conditions that increase the chances of an insured loss occurring are referred to as
hazards
When would a misrepresentation on an insurance application be considered fraud?
if it is intentional and material
The pro rata liability clause is designed to protect the principle
indemnity
to purchase insurance, the policyowner must have a financial interest in the property being insured. This is known as....
insurable interest
Persons covered under an insurance policy, whether named or not, are known as the
insureds
The part of the insurance contract that describes the covered perils and the nature of the coverage is called the ...
insuring agreement
Which of the following additional perils IS covered under both basic and broad form dwelling policies?
internal explosion
Which of the following additional perils is covered both basic form and broad form dwelling policies?
internal explosion
What best describes misrepresentation?
issuing sales material with exaggerated statements about policy benefits
Coverage A - Bodily Injury and Property Damage in the commercial general liability policy will cover
losses due to the insured's negligence
Which of the following is a common exclusion found in Part D: Coverage for Damage to Your Auto of a PAP?
mechanical breakdown
Most insurance policies exclude losses by
mysterious disappearance
On a participating insurance policy issued by a mutual insurance company, dividends paid to the policyholders are...
not taxable since the IRS treats them as a return of the portion of the premium paid
All of the following acts constitute transacting insurance EXCEPT
obtaining an insurance license
All of the following would be considered an insurance transaction EXCEPT
obtaining an insurance license
Losses caused by continuous or repeated exposure to conditions resulting in injury persons or damage to property that is neither intended nor expected is the definition of which of the following terms?
occurence
valuable papers and records form provides reconstruction for all types of records EXCEPT...
pre-packaged software
Which liability exposure is most likely for a small specialty clothing retail boutique?
premises liability exposure
The party to a surety or fidelity bond who promises to fulfill the obligation is the
principal
A sworn written statement that must be furnished by the insured to the insurer before any loss under a policy can be paid is called
proof of loss
Before any insurer will pay any loss under a policy, what is usually required from the insured?
proof of loss
Under the personal auto policy, liability for bodily injury resulting from the insured's use of a nonowned automobile is
provided by the insured's policy on an excess basis
When a direct chain of events resulting from a negligent act causes injury or damage, that act is considered to be...
proximate cause
Which of the following is used in the formula for calculating the ACV of a property?
replacement cost
the definition of theft encompasses both....
robbery and burglary
Under the commercial property coverage program, the basic causes of loss form insures against loss caused by
sprinkler leakage
Which of the symbols is available to an insured with vehicles subject to no-fault coverage
symbol 5
The occurance form trigger is based on what?
the date when the injury or damage occured
In property insurance, who is responsible for completing the proof of loss form?
the insured
According to the standard workers compensation and employer liability policy form a state should be listed in part 3 - other states' insurance of the workers comp and employers liability policy when...
the insured expects to extend operations to that state
A specific coverage part is listed on the commercial package policy declarations page, but there is no premium shown. What does that mean?
there is no coverage
What is NOT TRUE regarding supplementary payments of a commercial general liability policy?
they pay defense costs even after the aggregated limit has been reached
An insured is driving her auto and strikes a large pothole, causing a flat tire. Which coverage of the insured's personal auto policy will pay for the repair?
this loss is not covered
Prior to state-directed workers compensation statutes being enacted, employees had
to sue the employer for the loss and prove that the employer was at fault
the type of insurance used to cover goods for one specific trip is called...
trip transit
In the personal auto policy, owned trailers being towed by an insured auto are automatically covered for
uninsured motorist coverage
What is NOT an essential element of a commercial package policy (CPP)?
valuations and/or settlement provisions
All of the following are categories of a limited insurance license EXCEPT
variable life insurance
Liability imposed on one party as a result of the actions of another person is known as
vicarious liability
Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce
without receiving written consent from an insurance regulatory authority
What is NOT considered an insured contract under the commercial general liability policy?
a written agreement that indemnifies a person for fire damage to the premises rented to the insured
All of the following statements are true regarding employee dishonesty optional coverage under the businessowners policy (BOP) EXCEPT
a) Losses result from dishonest acts of any of the insured's employees. b) Coverage includes all property, including money and securities owned or held by the insured c)It provides coverage for all employees, even those employees who were terminated in the past 90 days d)It provides coverage for direct loss or damage to business personal property. CCCCCCCC is right
An agent who is a resident of another state may obtain an Oklahoma nonresident license without taking a licensing examination provided
a)The agent is currently licensed in the state of domicile b)The agent obtained that license by passing a test suitable to the Oklahoma Department c)The state where the agent lives affords the same privilege to residents of Oklahoma
A man is working on the roof of his house, and his neighbor is watching from the ground. When roof shingles are thrown off the roof, they hit the neighbor in the face, injuring his eye. Which best classifies the homeowner's legal liability?
bodily injury
A parking garage owner completed major renovations to a parking garage just prior to selling it to another company. Three months later, overhead concrete fell onto cars in the second floor level. Under the garage coverage policy conditions, what is true?
the damage occurred when the concrete fell
If the commissioner has reason to believe that the person or insurer has violated the Insurance Code, the commissioner may set a hearing, the notice for the hearing is how many days?
10 days
Johanna purchased a National Flood Insurance policy 10 days after her community entered an emergency program. When would her coverage be effective?
12:01 am the day after the application and premium payment are mailed
What is NOT true regarding deposit premium?
it is 50% of the actual preimum
What are common carriers required to issue to every shipper that it transports goods for?
a uniform bill of lading
Representations are written or oral statements made by the applicant that are....
NOT guaranteed to be true ; considered to be true to the best of the applicant's knowledge
if you dog chews up your stuff while you are gone and you have personal property coverage under a special form dwelling policy, what will be covered?
NOTHING b/c damage from domestic animals is excluded under the special forms dwelling policy
Supplementary payments on a CGL provide all of the following EXCEPT
a)The cost of bonds to release attachment b)Up to $500 a day for lost earnings and $2,000 for the cost of bail bonds c)$100 in gasoline costs by the insured driving a witness to and from court d)Pre-judgment and post-judgment interest. BBBBBBB is right
Forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined as
coercion
The transfer of money from inside a banking premises to a person other than a messenger outside those premises or to a place outside those premises is covered under which commercial crime coverage?
computer fraud
An insured's business is damaged because of a fire, and he is forced to close the business temporarily for repairs. As a result, the insured lost income. What type of loss is this?
consequential
An insurer neglects to pay a legitimate claim that is covered under the terms of the policy. Which of the following insurance principles has the insurer violated?
consideration
Circulating deceptive sales material to the public is what type of Unfair Trade Practice?
false advertising
When an insurance agency published an advertising brochure, it emphasized the company's financial stability and sound business practices. In reality, its financial health is terrible, and the company will soon have to file for bankruptcy. Which of the following terms best describes the advertisement?
false financial statement
What do individuals use to transfer their risk of loss to a larger group?
insurance
personal property coverage under a HO's policy would cover...
insured's camera was stolen while insured is on vacation
What does not describe the concept of strict liability?
it is imposed on defendants engaged in hazardous activities
What is NOT true about strict liability?
it is imposed on defendants engaged in hazardous activities
what type of property would NOT be covered under Coverage A - Dwelling?
land on which dwelling is located
According to the Nationwide Marine definitions, risks that may be the subject of inland marine insurance include all of the following EXCEPT
large pleasure boats
for a contract to be enforceable by law, the purpose of the contract must be...
legal and not against public policy
Rental Reimbursement is only available if the policy includes which coverage?
other than collision coverage
A bond is written for a set limit, and the surety will be liable only for this amount of the limit. This limit is known as the
penalty
When the insured's car was totaled in a recent accident, the ownership of the car was transferred to the insurer. The insurer then sold off the wrecked car to recover some of the loss it paid to the insured. What is the term for this action?
salvage
Which of the following is an agreement between an insured and an insurer, where the insurer agrees to indemnify the insured for specific losses in exchange for a premium?
the insurance contract
