Practice Life & Health Test Questions
In the event of a licensed producer's death or disability, a temporary license may be issued to another individual for a period of:
180 days
If Audrey is licensed to sell both life/health and property/casualty insurance, how many hours of continuing education are required every two years?
24
Upon completion of an examination of an insurer, the Oklahoma insurance department must send a written report no later than:
30 days of examination completion
Notice of a hearing involving a producer's misconduct must be made:
5 days in advance of hearing
Which of the following is NOT advertising?
A letter to an existing insured when it does not urge them to increase coverage
Which of the following is NOT true regarding the responsibilities of a producer to insurer under agency law?
A producer receives unlimited authority from the insurer
All of the following activities would be considered misrepresentation, EXCEPT?
A producer states that dividends paid for the past five years were 5%
Which of the following would NOT have an insurable interest in the life that is being insured?
A voter insuring the life of the president
A producer's license can be revoked for any of the following EXCEPT?
Accused of a felony
A unique feature of an insurance contract where one party can benefit more than the other based on the occurrence of an uncertain event is referred to you as
Aleatory contract
An insurer formed under the laws of Switzerland, authorized to do business in the state of Oklahoma, and holding an Oklahoma certificate of authority would be referred to as:
Alien insurer
The life & Health Guaranty Association would cover policies issued by which of the following types of insurers?
Alien insurer
Which of the following policies would be subject to the policy replacement law?
Allowing a whole life policy to lapse to purchase another whole life policy
Which of the following is NOT a risk management technique?
Ascertain the risk
The practice of the Oklahoma life & health guaranty association charging members in order to pay contractual obligations for an insolvent insurer is called?
Assessment
In life insurance the "insurable interest" must exist:
At the time of application only
When must an "Insurable interest" exist in life insurance?
At the time the application is completed
John Madden, the famous football announcer, refuses to fly for fear of being injured in an aircraft accident. Which risk management technique is John using for refusing to fly?
Avoidance
In order for an insurer to transact business in Oklahoma, it must have which of the following?
Certificate of authority
An applicant for insurance who intentionally fails to disclose a material fact is called
Concealment
When one party constructs the contract any other party has no input, it is known as
Contract of adhesion
The Oklahoma Insurance Code places a restriction on the amount of business a producer can write on an annual basis. This type of business restriction is called:
Controlled business
Life insurance is based on attained age at the time of application. Attained age is
Current age
An insurance company incorporated under the laws of the state of Oklahoma would be considered an
Domestic insurer
If an applicant for life insurance lies on the application regarding a material fact, it is called?
Fraud
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
Who selects risk for the insurer?
Home office underwriter
Which of the following is a producer's primary responsibility under agency law?
Identify types of risk exposures the prospects face from a financial needs approach
Speculative risk involves all of the following except?
Insurance
The telephone consumer protection act (aka do not call registry) applies to which of the following entities calling consumers at home?
Insurance company representatives
Who is the Oklahoma Insurance Commissioner?
John Doak
Which of the following penalties can the Oklahoma Insurance Department impose?
License revocation
All of the following are elements of an insurable risk EXCEPT?
Loss must be intentional
Disadvantages of replacing an older life insurance policy would include all of he following EXCEPT?
Lower premium due to premiums being based on attained age
Which of the following is true regarding mortality tables?
Mortality tables predict the probability of losses based on the number of deaths in a given year
Which of the following statements is correct regarding Amanda, a licensed producer, who lives in Oklahoma and wants to sell a life insurance policy in Kansas?
Must have an Oklahoma resident license and a Kansas non-resident license
Kent, a licensed producer, is moving to New York with no intention of returning to Oklahoma. What is Kent's responsibility under the Oklahoma Insurance Code?
Notify the Oklahoma Insurance Department of address change within 30 days.
Which of the following is required to become a licensed Oklahoma resident producer?
Pass a licensing exam with a score of 70% or better
The Oklahoma insurance department OID has all of the following authority EXCEPT?
Pass laws relating to insurance
Which of the following would be considered competent to enter into a contract?
Person can find to hospital due to a heart attack.
The portion of the rate which is projected to be paid out in insurance benefits is called
Perspective lost cost
Which of the following is false about a stock insurance company?
Policy owners have voting rights
Which of the following is NOT considered an illegal act for a life producer?
Premium savings offered by the insurer because the premium is bank drafted.
Policy replacement regulations would govern which of the following?
Replacing a whole life policy with a different company
Regarding a replacement transaction, all of the following are duties of the insurance company, EXCEPT?
Report the replacement situation to the life & health guarantee association
Statements made on an application of insurance are considered
Representations
The Oklahoma Life & Health Insurance Guaranty Association:
Requires all authorized insurers in the state be members of the association
If William is a producer and lives in Kansas but travels to Oklahoma to solicit a policy of insurance, William must have a
Resident license for Kansas and a non-resident license for Oklahoma
If an individual decides to accept the risk associated with a loss and not purchase insurance, they are using what risk managing method?
Retaining
John Johnson is in the hospital because of a heart attack. The $1000 deductible John must pay is an example of which risk management technique?
Retention
Which of the following situations is subject to replacement regulations?
Sale of an individual life policy that causes an existing individual life policy to be lapsed
If the Oklahoma Insurance Department suspects a producer is using unfair trade practices the first action taken is to:
Send notice of a hearing
All of the following are essential elements of a legal binding contract, except?
Signatures
Allof the following are E sensual elements of a legal binding contract except
Signatures
All of the following are elements necessary to the formation of a binding legal contract EXCEPT?
Signatures of both parties
All of the following information would be included in a notice of a hearing by the Oklahoma Insurance Department EXCEPT?
State any precedence established by previous such orders
All of the following are true regarding the national association of insurance commissioners (NAIC) EXCEPT?
State mandated organization
An insurer may be examined as often as necessary. Who decides when an exam is necessary?
The insurance commissioner
A life insurance policy is a contract of adhesion. Therefore any ambiguity aka confusion any contract would be in favor of who?
The insured
The law of large numbers states that:
The larger the number of units considered, the more predictable are the losses
Certain elements are necessary for a particular risk to be insurable. Which of the following would make a risk uninsurable?
The risk is of a catastrophic war nuclear nature
Which of the following is the primary source of regulation of the insurance industry?
The state government
All of the following statements are true regarding an actuary except?
They select risk
Which of the following statements is true regarding a producer selling insurance for a fraternal insurer?
To receive a commission, the producer must be licensed and have an insurer appointment
Which type of risk management technique is being used when the insured buys an insurance policy?
Transfer
A person, who gathers information, analyzes exposures, and selects risk for the insurer is called an
Underwriter
Which of the following are sources of regulation of the insurance business EXCEPT?
Unilateral Practice
The Oklahoma life & health guaranty association would protect all of the following policies except?
Variable Annuities
When can a producer share commission with another producer?
When they are both licensed in the same line of business
Which of the following individuals would NOT be considered incompetent?
a convicted felon currently serving time in prison
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 have an insurance producer license
After a hearing, the Oklahoma insurance department can suspend a producer's license for all of the following reasons, EXCEPT?
accused of a felony
Which of the following policies would be subject to the policy replacement law
allowing a whole life policy to lapse to purchase another whole life policy
An insurer licensed to sell insurance in Oklahoma is referred to as:
an admitted insurer
An individual licensed as a life producer would be authorized to perform all of the following except?
bind life insurance coverage
Several producers agree to control the market share of Zbest Mutual Insurance Company, What type of unfair trade practices is this?
boycott
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
A producer's responsibilities include all of the following EXCEPT?
changing provisions in the policy
A legally binding contract requires that each party give something of value to the other; this essential element is called
consideration
The insurance company writes the insurance policy and the insured must comply with the contract terms without negotiation. The courts will interpret any ambiguity in favor of the insured. What is the name of this unique contractual feature?
contract of adhesion
a producer has responsibility to act in the best interest of the insured. This responsibility is known as:
fiduciary obligation
Which of the following would be considered rebating?
giving a new policy owner a portion of your commission
Which of the following statements is NOT true concerning a controlled business under the Oklahoma Insurance Code?
if a producer has obtained a license for the purpose of writing controlled business, the insurance department will invalidate all controlled business
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 revoked, the Oklahoma insurance department may do all of the following except?
impose a mandatory 6-month jail term
Which of the following is NOT true regarding insurance?
insurance is a device for handling speculative risk
A mutual insurer
is a participating company owned by policy owners
BlueCross/BlueShield is considered what type of insurer?
medical service organization
A shareholder is to stock insurer as a policy owner is to a
mutual insurer
an insurance company that is owned by the policy owner who receive the company's profits in the form of dividends is an
mutual insurer
A producer who lives in another state is called
non-resident agent
Giving something of value as an illegal inducement for someone to purchase insurance is known as:
rebating
An insurance policy is a contract of adhesion, written by the insurer. If the language is unclear, courts will interpret any ambiguity in favor of:
the insured
The definition of risk is
the potential for loss
If a licensed insurance producer dies, which of the following would be able to receive a temporary producer license?
the surviving spouse
Which of the following is NOT a responsibility the producer has to his/her insured?
to invest insurer's premium
Insurance is considered which type of risk management technique
transfer
Consideration is a trade of value between parties and is a requirement to have a legally binding contract. The insured's consideration in a life insurance contract is:
truthful statements on the application and payment of premium
A producer must notify the oklahoma insurance department within what length of time after changing his/her address?
within 30 days
