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