Practice Exam #2

The maximum obligation of the Oklahoma life and health insurance Guaranty association for all cash surrender values under life insurance policies covering any one life is:

$100,000

The maximum obligation of the Oklahoma Life and Health insurance guaranty association for all life insurance death benefits applicable to any one life is:

$300,000

In the case of death or disability of a licensed insurance producer, a temporary license may be issued to another person for an initial period of up to:

180 days

After taking the STONE insurance Education Exam prep course and passing your insurance licensing Exam, your continuing education requirement is:

24 CE hours including three of ethics, to be completed biennially

In order to avoid loosing a license for writing an excessive amount of controlled business, during a 12 month period, a producer's commissions earned on controlled business must not exceed:

25% of the total commissions earned on all business written

A producer who wishes to appeal an order of the Oklahoma insurance department may file a petition with the sate judicial system within:

30 days

After conducting an examination of an insurer, the Oklahoma insurance department will provide a written examination report to the insurer within:

30 days

A notice of a hearing involiving a producer's misconduct must be given at least:

5 days in advance

Which of the following is NOT a penalty for acting as licensee after losing a license?

5 years of community service

Which of the following statements is NOT true concerning a controlled business under the Oklahoma insurance Code?

If a producer has obtains a license for the purpose of writing controlled business, the insurance department will invalidate all controlled business

An agent who lives in another state is called a

non-resident agent

The Oklahoma Insurance Guaranty Association was created to protect:

policy owners and claimants when an admitted insurer becomes insolvent

Giving something of value as an illegal inducement for someone to purchase insurance is known as:

rebating

The illegal practice of a producer returning premiums or providing special favors to a prospective insurance buyer as an inducement to purchase insurance is called:

rebating

Which of the following is NOT an unfair trade practice?

replacement

In which of the following categories may limited insurance representatives licenses not be issued?

sales of Medicare supplement insurance

If the insurance department suspends a producer's license, all of the following would be notified EXCEPT?

the producer's clients

A limited lines insurance license will be issued in all of the following categories EXCEPT?

the sale of group life

An Oklahoma insurance producer is required to keep business records and client file information for a minimum period of:

three years

An illegal replacement of an existing policy is called:

twisting

Misrepresenting a life insurance policy for the purpose of inducing a policy owner to lapse, forfeit, or surrender an existing life insurance policy and replace it is called:

twisting

The illegal practice of a producer making incomplete comparisons or misrepresenting the terms of an insurance policy for the purpose of inducing someone to change or replace an existing policy is called:

twisting

All of the following are contained in orders issued by the Oklahoma insurance Department EXCEPT:

Precedents in which similar action was taken

The illegal act of replacing an insurance policy through misrepresentation of the benefits and disadvantages of an insurance policy is called?

Twisting

Which of the following would be a responsibility of the Oklahoma insurance department?

approve rates

The funds provided by the Oklahoma Life and Health Insurance Guaranty association:

are assessed to the member insurers

To become an insurance commissioner of the state of Oklahoma, a person must be all of the following EXCEPT?

be appointed by the governor

Under the Oklahoma Insurance Code, a temporary producer license:

can be issued to the representative of a deceased or disabled producer for a period of 180 days

Under O.S Title 36 the Oklahoma insurance commissioner has the authority to do all of the following EXCEPT?

charge the court cost of hearing to the State of Oklahoma

A legally acceptable attempt by the existing insurance company to retain the business after a replacement form has been received is called?

conservation

An Oklahoma Insurance producer has restrictions on the amount of commissions from policies covering his/her own property, interests, and immediate family members. These types of policies are:

controlled business

The illegal practice of a producer making derogatory statements or distributing maliciously critical information against anyone in the insurance business is called:

defamation

The illegal practice of making maliciously critical or derogatory statements about an insurer with the intent of causing injury is known as:

defamation

Under O.S title 36, the Oklahoma Insurance Commissioner's general responsibilities would include of the following EXCEPT?

develop insurance rates

The Oklahoma insurance commissioner is:

elected to a four (4) year term

The Oklahoma Insurance Department must examine each domestic insurer at least once every:

five years

Under the Oklahoma Insurance Code, a licensed insurance producer is prohibited from which of the following?

giving a gift of more than $100 value to a client as an inducement to purchase insurance

Which of the following would be considered rebating?

giving a new policy owner a portion of your commission

The replacing insurer would require all of the following EXCEPT?

guarantee a 10 day free look

Which of the following is NOT a disciplinary action that may be taken by the Department of insurance against a producer found guilty of an unfair trade practice?

impose a jail sentence of no more than 6 months

If a producer's license is suspended or revokes. the Oklahoma insurance department may do all of the following EXCEPT?

impose a mandatory 6 month jail term

Under the Oklahoma insurance Code, a producer is a representative of which of the following?

insurer

All of the following are true regarding the Oklahoma life and health insurance Guaranty Association EXCEPT?

is an association of only domestic insurers that promote the insurance industry

Which of the following is NOT true concerning the Oklahoma Insurance Commissioner?

is appointed by the governor and confirmed by the state senate

Regarding the Oklahoma life & heath insurance Guaranty association which of the following is true?

it protects policy beneficiaries from financial loss due to an insolvent insurer

All of the following are true concerning Continuing Education requirements in Oklahoma EXCEPT?

limited lines licensees need to complete 8 hours of CE per year

A producer must notify the Oklahoma insurance department within what length of time after changing his/her address?

within 30 days

All of the following are true regarding the insurance code except?

a hearing is held within 30 days after the insurance department receives the demand for a hearing

Under the Oklahoma Insurance Code, which of the following statements is NOT correct?

a high school diploma is required to obtain an insurance company appointment

All of the following are considered to be illegal rebates or prohibited inducements EXCEPT?

allowing employees of a life insurance company to receive a commission on the premiums paid by them on policies on their own lives