State Law Practice Questions

Which of the following is a penalty for engaging in an unfair method of competition? A. cease a desist order B. imprisonment up to 15 years C. $10,000 fine D. $500 fine and 180 days probation

A. cease and desist order

The Commissioner must examine the affairs of all domestic insurance companies every A. year B. 3 years C. 5 years D. time there is a question regarding a company's financial condition

B. 3 years

A licensed resident producer must inform the Commissioner of a change of address within how many days of the change? A. 15 B. 30 C. 60 D. 90

B. 30

Any producer who fails to comply with the continuing education requirements may be subject to a fine up to A. $1,000 B. $750 C. $500 D. $100

C. $500

Circulating a maliciously critical statement about an insurer's financial condition in order to injure the insurer is called A. conservation B. unfair discrimination C. defamation D. coercion

C. defamation

Marine and transportation policies may provide coverage for all of the following EXCEPT A. imported property B. exported property C. merchandise in storage D. domestic shipments on consignment

C. merchandise in storage

Spouses of deceased employees are entitles to what percentage of the employee's average weekly wages? A. 20% B. 25% C. 50% D. 70%

D. 70

Which of the following jobs does NOT require a certificate of authority or license? A. delivering insurance contracts B. collecting insurance premiums C. providing insurance to nonprofit educational institutions. D. writing advertisements for insurance companies

D. writing advertisements for insurance companies

Every surplus line broke must file with the Commissioner an annual statement of all surplus line insurance that the transacted by what date? A. January 1 B. April 1 C. July 1 D. December 31

B. April 1

Payments for temporary partial disability may NOT exceed how many weeks in the aggregate? A. 42 B. 52 C. 156 D. 300

C. 156...

Which type of insurer is incorporated or organized under the laws of a country other than the United States? A. foreign B. domestic C. alien D. international

C. alien

Which of the following is NOT a duty of the Insurance Commissioner? A. maintaining records B. issuing certificates of authority to transact insurance business in Oklahoma C. writing Oklahoma insurance laws D. conducting hearings

C. writing Oklahoma insurance laws

Providers of continuing education courses are responsible for maintaining records of completed courses for how long? A. 6 months B. 1 year C. 3 years D. 4 years

D. 4 years

Who is responsible for providing the proof of loss form? A. insurer B. insured C. commissioner D. Guaranty Association

A. insurer

Which of the following statements about the appointment of producers is CORRECT? A. insurers may pay commissions to a producer before a producer's appointment has been approved B. insurers must give producers 60 days' advance written notice of any termination C. A producer's appointment remains in effect for 2 years D. a producer must be appointed to transact insurance business for at least one insurer

D. a producer must be appointed to transact insurance business for at least one insurer

Limited lines producers may be licensed to transact all of the following insurance business EXCEPT A. casualty B. limited travel accident C. multiperil crop hail D. prepaid dental

A. casualty

An insurer must respond to the insured after receiving the proof of loss form within how many days? A. 15 B. 30 C. 60 D. 90

D. 90

which of the following provides motor vehicle liability insurance to those applicants who would otherwise be uninsureable? A. Auto Assigned Risk Plan B. Auto Insurance Guaranty Association C. Property and Casualty Insurance Guaranty Association D. State Board for Property and Casualty Rates

A. Auto Assigned Risk Plan

What are the minimum limits of coverage for a motor vehicle liability policy issued in Oklahoma? A. 5/10/5 B. 25/50/25 C. 15/30/15 D. 20/50/10

B. 25/50/25

Employees who are temporarily totally disabled for less than 21 days do NOT receive any benefits under workers' compensation for how many calendar days after the disability occurs? A. 1 B. 3 C. 7 D. 14

C. 7

The Commissioner may suspend the license of a producer for any of the following EXCEPT A. providing incorrect or materially untrue information in a license application B. violating an order of the Commissioner C. failing to notify the Commissioner of a change of address D. misappropriating funds held in trust for an insurer

C. failing to notify the Commissioner of a change of address

Which of the following statements about insurance consultants is NOT correct? A. their licenses are valid for 1 year B. applicants for consultant's license must take a written examination C. they must sign written agreement with their clients specifying the fee to be paid D. nonresidents can be licensed as insurance consultants

A. their licenses are valid for 1 year

Whom does an insurance producer represent when negotiating an insurance contract? A. policyholder B. insurer C. State of Oklahoma D. Broker

B. insurer

A producer is offering $500 gift certificates as an incentive to buy a homeowners insurance policy. The producer is guilt of A. defamation B. rebating C. coercion D. boycotting

B. rebating

An insurer must appoint a producer withing how many days after accepting business from that producer? A. 5 B. 7 C. 15 D. 30

C. 15

Usually, a proof of loss form must be completed and returned within how many days of receipt? A. 15 B. 30 C. 60 D. 90

C. 60

Which of the following situations would be covered under the uninsured/underinsured motorist provision in a motor vehicle liability policy? A. a hit-and-run motorist collides with the insure downer of a vehicle. B. a motorist insured with less than the minimum liability limits collides with the insured vehicle owner, causing damages that are higher than these limits C. an uninsured motorist collides with the operator of a vehicle who does not own it D. all of the above situations would be covered

D. all of the above situations would be covered

Which of the following individuals needs to be licensed as a consultant? A. licensed attorney acting in a professional capacity B. licensed insurance producer or surplus lines insurance broker C. trust officer of a bank acting in the normal course of employment D. financial professional who, for a fee, advises a client on the benefits or disadvantages of purchasing insurance

D. financial professional who, for a fee, advises a client on the benefits or disadvantages of purchasing insurance

Using misrepresentations to persuade an insured to surrender an insurance policy is called A. rebating B. replacement C. unfair discrimination D. twisting

D. twisting

Within how many days of being informed of an employee workplace injury must the employer provide reasonable and necessary medical care? A. immediately B. within 3 days C. within 7 days D. within 14 days

C. within 7 days

Which of the following is NOT a consideration of the Commissioner while examining an insurer A. actuarial opinions B. analysis of financial statements C. changes in management D. internal revenue returns

D. internal revenue returns

A producer who continues to transact insurance after the Commissioner has suspended his license may be fined a maximum of: A. $100 and jailed for up to 1 year B. $5,000 and jailed for up to 5 years C. $10,000 and jailed for up to 10 years D. $15,000 and jailed for up to 15 years

B. $5,000 and jailed for up to 5 years

A new homeowner is being forced to buy insurance from a particular insurer as a condition of receiving a mortgage. The lender is guilty of A. rebating B. misrepresentation C. coercion of borrowers D. intimidation

C. coercion of borrowers

Before selling insurance to the public, an unauthorized insurer must A. have a waiver from the National Association of Insurance Commissioners B. have a producer license from the Commissioner C. receive any new business directly through an eligible surplus lines licensee or broker D. have an invitation from the governor's office

C. receive any new business directly through an eligible surplus lines licensee or broker

Which of the following is NOT an unfair trade practice? A. rebating premiums B. making derogatory statements regarding an insurer's financial condition C. issuing company stock to induce people to purchase insurance D. replacing life insurance policies

D. replacing life insurance policies

All of the following benefits may be paid according to a schedule of compensation EXCEPT A. permanent total disability B. temporary total disability C. permanent partial disability D. total partial disability

D. total partial disability

all motor vehicle liability policies expire at A. 12:00 midnight standard time on the expiration date noted in the policy B. 12:01 am standard time on the expiration date noted in the policy C. 12:00 midnight standard time 1 year to the day from the policy's effective date D. 12:01 am standard time 1 year to the day from the policy's effective date

B. 12:01 am standard time on the expiration date noted in the policy

A person who is awarded compensation for permanent partial disability, permanent total disability, or death benefits may obtain payment in a lump sum which may NOT exceed A. 10% of total award B. 25% of total award C. 50% of total award D. 75% of the total award

B. 25% of total award

insured motorists who successfully complete a motor vehicle accident prevention course are entitled to a reduced premium for how long? A. 6 months B. 1 year C. 3 years D/ 5 years

C. 3 years

To be licensed, a producer must meet which of the following qualifications? A. 21 years old B. have been an Oklahoma resident for 1 year C. pass an examination D. have financial college degree

C. pass an examination

Which of the following licensing fees is CORRECT? A. $40 annually of a temporary license B. $50 annually for a producer's license C. $55 for a duplicate license D. $60 biennially for a producer's license

D. $60 biennially for a producer's license

All of the following constitute unfair trade practices EXCEPT A. making misleading statements about a producer's business in a direct mail letter B. offering an applicant an expensive briefcase as an inducement to purchase a policy C. calling a term insurance policy a savings plan D. paying bonuses to policy owners out of surplus accumulated from nonparticipating insurance

D. paying bonuses to policy owners out of surplus accumulated from nonparticipating insurance

Which of the following is NOT a required provision in a motor vehicle policy issued in Oklahoma? A. Social Security number of the insured B. Premium charged C. coverage provided D. limits of liability

A. Social Security number of the insured

Which of the following courses would NOT be approved for continuing education credit? A. closing the sale B. introduction to property underwriting C. Inland Marine--Needs in Insurance D. Property and Casualty Principles and Practices

A. closing the sale

what is the purpose of the Property and Casualty Insurance Guaranty Association? A. to ensure that consumers have access to the lowest possible insurance rates B. to protect policyholders, insureds, and claimants from insurers who become insolvent C. to increase competition among insurers in Oklahoma D. to guarantee that all applicants for insurance are able to obtain it from an authorized insurer

B. to protect policyholders, insureds, and claimants from insurers who become insolvent

Which of the following is NOT an unfair claims settlement practice? A. Failing to fully disclose benefits, coverage, or other policy provisions that pertain to a claim B. Asking a claimant to sign a release that extends beyond the subject matter of the claim payment. C. issuing a check in partial settlement of a claim, with language that releases the insurer or its insured from its total liability D. requesting a partial refund of a payment on a claim, when such payment was in excess of the claim

D. requesting a partial refund of a payment on a claim, when such payment was in excess of the claim

Acme Imports has purchased a large number of wooden salt and pepper shakers from Poland and will import them to the United States. The shipment will be covered by an inland marine insurance policy while in all of the following places EXCEPT A. on a trans-Atlantic ship B. in a truck traveling to the designated retail store C. while traveling on a bridge over the Mississippi river D. while stocked on shelves at the retail store.

D. while stocked on shelves at the retail store.

A producer who does not comply with Oklahoma's continuing education requirements may be subject to all of the following EXCEPT A. non renewal of license B. a fine of not more than $5,000 C. license suspension D. censure

B. a fine of not more than $5,000

An insurance company's license to do business in Oklahoma is called A. notice of risk assignment B. certificate of authority C. mutual benefit card D. license to solicit registration

B. certificate of authority

Which of the following does NOT need to be appointed by at least one insurer to transact insurance business? A. Producer B. consultant C. managing general agent D. limited insurance representative

B. consultant