Big Exam 1P&C
All of the following are true regarding the Oklahoma Property & Casualty Guaranty Association EXCEPT: A) under the direct jurisdiction of the Oklahoma Insurance Department B) maximum obligation for property claims is $150,000 C) maximum obligation for workers compensation is unlimited D) does not provide coverage for non-admitted insurers
A) under the direct jurisdiction of the Oklahoma Insurance Department
After taking the STONE Insurance Education exam prep course and passing your producer or adjuster insurance licensing exam your continuing education requirement is: A) 24 total clock hours including 3 hrs of ethics to be completed before Dec 31st B) 24 total clock hours including 3 hrs of ethics to be completed before the biennial renewal date C) 12 clock hrs every year to be completed before Dec 31st of each year D) 8 clock hrs every year to be completed before the agent's license renewal date
B) 24 total clock hours including 3 hrs of ethics to be completed before the biennial renewal date
An Oklahoma insurance producer or adjuster is required to keep business records and client file information for a minimum period of : A) 1 year B) 3 years C) 5 years D) 7 years
B) 3 years
Any person who wishes to appeal an order of the Oklahoma Insurance Department (OID) may file a petition with the District Court of Oklahoma County within: A) 20 days B) 30 days C) 60 days D) 90 days
B) 30 days
Which of the following is true regarding continuing education requirements for insurance licensees? A) 60 minutes of class time equals 1 hour of continuing education credit B) 6 hours of excess continuing education can be carried forward to the next license renewal period C) continuing education would be given for writing a published article in an insurance magazine D) 12 hours of continuing education is required for adjusters and producers
B) 6 hours of excess continuing education can be carried forward to the next license renewal period
A proof of loss must be completed by the insured within how many days of receiving the blank proof of loss forms from the insurance company? A) 30 B) 60 C) 90 D) 120
B) 60
What is the name of the law that gives the consumer the right to privacy regarding information gathered by the insurance company during the underwriting process? A) Health Insurance Portability and Accountability Act B) Fair Credit Report Act C) Consumer Right of Privacy Act D) Comprehensive Loss Underwriting Exchange
B) Fair Credit Report Act
All of the following statements are true regarding a hearing involving a violation of The Insurance Code conducted by the Oklahoma Insurance Department EXCEPT: A) the OID shall give a notice of the time and place of a hearing at least 5 days in advance of the hearing B) a licensee has the right to appeal to the Governor any OID's actions C) a hearing is used to determine if a licensee violated the insurance code D) a hearing is open to the public and the OID can take depositions and subpeona witnesses
B) a licensee has the right to appeal to the Governor any OID's actions
Under the Oklahoma Insurance Code, all of the following statements are true regarding a producer or adjusters license EXCEPT: A) a licensee cannot have been convicted of a felony B) a licensee is required to have a high school diploma or GED equivalent C) a licensee could have filed personal bankruptcy and still be eligible D) a licensee is required to pass the licensing exam with 70% or better
B) a licensee is required to have a high school diploma or GED equivalent
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
In order for an insurer to transact business in Oklahoma as an authorized insurer, it must have a(n) A) company license B) certificate of authority C) appointment D) express authority
B) certificate of authority
The license of a producer or adjuster could be censured, suspended, or revoked for all of the following EXCEPT: A) providing incorrect, incomplete information on the license application B) declaring personal bankruptcy C) pleading guilty to a felony D) failing to pay Oklahoma State income tax
B) declaring personal bankruptcy
Under the Unfair Claim Settlement Practices Act all of the following are NOT lawful, EXCEPT: A) failing to fully disclose to first party claimants all benefits under the policy B) failing to investigate a claim within 48 hours of the occurrence C) knowingly misrepresenting to the insured pertinent facts D) request a refund of a claim payment made to a claimant after twenty four months
B) failing to investigate a claim within 48 hours of the occurrence
Something that may increase the seriousness of a loss, if a loss occurs, or that increases the likelihood that a loss will occur, is called a: A) peril B) hazard C) risk D) catastrophe
B) hazard
Restoring the policyowner to his/her original financial condition before the loss and not allowing a gain is a concept called: A) subrogation B) indemnity C) adhesion D) insurance
B) indemnity
In a unilateral contract, who has the duty to perform? A) insured B) insurer C) producer D) adjuster
B) insurer
A shareholder to a stock insurer, as a policyowner is to a____? A) fraternal insurer B) mutual insurer C) government insurer D) taxpayer
B) mutual insurer
All of the following are true regarding the Oklahoma Property and Casualty Guaranty Association EXCEPT: A) surplus lines insurance is not covered B) only Oklahoma domestic insurers are covered C) the maximum coverage for a property loss is $150,000 per claimant D) the association is funded by assessments of its member insurance companies
B) only Oklahoma domestic insurers are covered
All of the following are contained in orders issued by the Oklahoma Insurance Department EXCEPT: A) the legal regulation on which the order is based B) precedents in which similar action was taken C) effective date of order D) intent or purpose of the order
B) precedents in which similar action was taken
The Oklahoma Insurance Commissioner is: A) publicly elected to a 2 year term B) publicly elected to a 4 year term C) appointed by the Governor and approved by the Oklahoma Senate D) appointed by the National Association of Insurance Commissioners
B) publicly elected to a 4 year term
If an individual decides to accept the risk associated with a loss and not purchase insurance, they are using what risk managing method? A) avoiding B) retaining C) transferring D) Sharing
B) retaining
Which of the following statements is NOT true regarding insurance regulation? A) insurance laws are enacted by the OK State Legislature B) rules and regulation are issued once per year C) rules and regulations are made by the Oklahoma Insurance Department D) the state is the primary source of insurance regulation
B) rules and regulations are issued once per year
All of the following are true concerning continuing education requirements in Oklahoma EXCEPT: A) STONE insurance education is an approved provider of Oklahoma Continuing Education B) Adjusters and Producers must complete 24 hours of CE before biennial license renewal date C) Adjusters and Producers must complete 24 hours of CE before December 31st each year D) Adjuster CE providers, instructors, and courses must be approved by the Oklahoma Insurance Department
C) Adjusters and Producers must complete 24 hrs if CE before December 31st each year
Which of the following continuing education course titles would NOT be approved by the Oklahoma Insurance Department for continuing education credit for producers or adjusters? A) Insuring the Home-based Biz B) Understanding the Commercial General Liability Policy C) Closing the Sale D) Business Continuation- How Much Coverage is Enough?
C) Closing the Sale
A licensee who does not comply with the continuing education requirements outlined in O.S. 36 1435.29 is subject to the all of the following EXCEPT: A) suspended license B) double license fees C) a fine of $1000 D) non-renewed license
C) a fine of $1000
Regarding the Producers and Adjuster Licensing Act, which of the following is true? A) the license exam requires a 85% to pass B) a high school diploma is a requirement for an Oklahoma insurance license C) a temporary license can be issued for 180 days without passing an exam D) the minimum age a license can be issued is 21
C) a temporary license can be issued for 180 days without passing an exam
A licensee's license could be revoked for all of the following, EXCEPT: A) concealment on the license application B) cheating on the license exam C) accused of a felony D) misrepresenting terms of the insurance contract to an insured
C) accused of a felony
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
An insurer incorporated under the laws of the State of Oklahoma is considered a(n) A) interstate insurer B) alien insurer C) domestic insurer D) foreign insurer
C) domestic insurer
All of the following are examples of hazards, EXCEPT: A) faulty wiring in a rental unit B) driving while drinking C) fire D) wet floors in a grocery store
C) fire
When the Oklahoma Insurance Department receives notification of a potential violation of The Insurance Code, which of the following would be done first? A) issue a cease and desist order B) institute a civil penalty C) give written notice of a hearing D) report the violation to the proper authority
C) give written notice of a hearing
A producer or adjuster practicing insurance after their license have been revoked by the Oklahoma Insurance Department is subject to all of the following criminal penalties EXCEPT: A) fine up of $5000 and 5 years in jail B) fine up to $5000 and no jail time C) guilty of a misdemeanor D) guitly of a felony
C) guilty of a misdemeanor
An individual aspiring to become the Oklahoma Insurance Commissioner must have the following requirements EXCEPT: A) reside in the State of Oklahoma for 5 years B) experience in insurance for a minimum of 5 years C) hold a high school degree or GED equivalent D) be at least 25 years old
C) hold a high school degree or GED equivalent
Speculative risk involves all of the following EXCEPT: A) uncertainty of loss B) gambling C) insurance D) chance of gain
C) insurance
Which of the following is true regarding binders under The Insurance Code- Title 36 O.S. 3622? A) can be issued for no longer than 120 days B) must be delivered within 10 days of being issued C) is a temporary insurance contract D) must be in writing
C) is a temporary insurance contract
All of the following are true regarding The Oklahoma Property & Casualty Guaranty Association, EXCEPT: A) protects up to $150,000 total for property coverage B) protects up to $150,000 total for liability coverage C) is an association of domestic insurers that promotes the insurance industry D) requires that all authorized insurers in the state be members of the association
C) is an association of domestic insurers that promotes the insurance industry
All of the following are true regarding the Oklahoma Insurance Commissioner EXCEPT: A) must be at least 25 years of age B) elected to public office for four years C) minimum of 5 years experience in the insurance business with 24 hours of continuing education required each year while in office D) must have no financial interest in any insurance company
C) minimum of 5 years experience in the insurance business with 24 hrs of continuing education required each year while in office
All of the following are true regarding the Fair Credit Reporting Act, Except? A) the purpose is to give the consumer the right to privacy and have the right to challenge incorrect information found in the report B) example of a regular report include motor vehicle report (MVR), credit report, and Comprehensive Underwriting Loss Exchange report C) post notification of negative information is not required D) a producer or adjuster who obtains information via a credit report is subject to criminal penalties
C) post notification of negative information is not required
If an insurance producer or adjuster buys an expensive lamp for the insured as an inducement to transact insurance what is this called? A) good business B) coercion C) rebating D) libel
C) rebating
The reason non-resident licensees are not required to take the licensing exam is best described as: A) bribery B) reality C) reciprocity D) warranty
C) reciprocity
A person that transacts insurance on behalf of a non-admitted insurer is referred to as: A) commercial lines property & casualty insurance producer B) limited insurance representative C) surplus lines broker D) non-admitted consultant broker
C) surplus lines broker
All of the following are sources of regulation of the insurance business EXCEPT: A) State regulation B) Federal regulation C) unilateral regulation D) self-regualtion
C) unilateral regulation
All of the following statements regard continuing education (CE) are true, EXCEPT: A) CE providers must maintain records for a period of 4 years B) the penalty for not complying is a suspended license and a $500 fine C) 50 minutes of class time equals 1 hour of CE credit D) 12 hours of CE can be carried forward from one license renewal period to another
D) 12 hours of CE can be carried forward from one license renewal period to another
Tom purchases a new auto from Best auto dealer. Tom finance the auto with First National Bank. All of the following have an insurable interest in the auto, EXCEPT: A) First National Bank B) Tom C) Tom's spouse D) Best Auto
D) Best Auto
When examining an insurance company all of the following are considerations, EXCEPT: A) actuarial opinions B) changes in ownership and or management C) financial statements D) IRS tax returns
D) IRS tax returns
If the Oklahoma Insurance Department issues a certificate of authority to an insurer, that insurer is considered: A) accepted B) adopted C) allowed D) admitted
D) admitted
An insurer formed under the laws of Switzerland and authorized to do business in the State of Oklahoma would be referred to as: A) unauthorized insurer B) non-admitted insurer C) foreign insurer D) alien insurer
D) alien insurer
When does the Oklahoma Insurance Department promulgate rules and regulation to carry out the provisions of the Oklahoma Insurance Code? A) once per year between January 1 and March 31st B) once per year while the Legislature is in session C) when the Governor of OK requests D) as often as necessary
D) as often as necessary
In property & casualty insurance, the "insurable interest" must exist: A) at the time of application and at the time of loss B) at the time of application or at the time of loss C) at the time of application only D) at the time of loss only
D) at the time of loss only
Under 36 O.S. Section 3622 of the Oklahoma Insurance Code which of the following statements is true regarding a binder? A) can be issued for a maximum of 60 days B) must be signed by the producer C) the name of the insurer is not required D) can be written or verbal
D) can be written or verbal
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? A) conditional contract B) unilateral contract C) conditional contract D) contract of indemnity
D) contract of indemnity
An insured telling the truth regarding material facts expects the insurance company to pay covered losses. This would describe what feature of an insurance contract? A) conditional contract B) aleatory contract C) contract of adhesion D) contract of utmost good faith
D) contract of utmost good faith
All of the following would be responsibilities of the Oklahoma Insurance Department, EXCEPT: A) keep insurance records required by law B) examine insurance companies C) handle complaints regarding licensees D) develop new insurance rates
D) develop new insurance rates
Regarding the National Associatio of Insurance Commissioners (NAIC) which is true? A) it is an insurance company B) is a for-profit organization C) it enacts insurance laws D) insurance commissioners can accept or reject recommendations made by the NAIC
D) insurance commissioners can accept or reject recommendations made by the NAIC
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) 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
A mutual insurance company: A) is managed by a board of directors elected by the shareholders B) pays dividends to shareholders C) operates as a non-profit organization for the benefit of policyholders D) is owned by insureds who receive profits in the form of dividends
D) is owned by insureds who receive profits in the form of dividends
Representations are statements made on an application for insurance regarding what? A) any fact B) facts of law C) warranties D) material facts
D) material facts
A producer or adjuster must notify the Oklahoma Insurance Department within what length of time after changing his/her email address? A) upon next license anniversary date B) within 30 days C) within 10 days D) no notification required for a change of email address
D) no notification required for a change of email address
Under the Unfair Claims Settlement Practices Act which of the following statements is TRUE? A) the insurer is responsible for acknowledging receipt of a claim within 45 days B) the Proof of Loss must be notarized C) the penalty for a violation is a fine between $1000 and $10,000 D) notification of a claim to a producer would be considered notification to the insurer
D) notification of a claim to a producer would be considered notification to the insurer
The Insurance Department has all of the following authority EXCEPT: A) administer laws as designated by the Oklahoma legislature B) discipline producers and adjusters C) examine insurance companies D) pass laws relating to insurance
D) pass laws relating to insurance
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 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
Which of the following is the primary source of regulation of the Property & Casualty Insurance Industry in the State of Oklahoma? A) the Federal Government B) the State Government C) the National Association of Insurance Commissioners D) the Oklahoma Property & Casualty Guaranty Association
D) the State Government
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
Notice of a hearing involving adjuster or producer's misconduct must be made at least: A) 5 days in advance of hearing B) 20 days in advance of hearing C) 30 days in advance of hearing D) 45 days in advance of hearing
A) 5 days in advance of hearing
Jerry uses his personal auto on business for his employer, Widgets Inc. The car is financed by the First National Bank. All of the following have an insurable interest in Jerry's car except: A) Widgets B) First National C) Jerry D) Jerry's spouse
A) Widgets
The OID could revoke a producer or adjuster's license for all of the following EXCEPT: A) failing to notify the OID of an address or emil change within 30 days B) being convicted of a felony C) failing to pay court mandated child support D) violating an order of the OID
A) failing to notify the OID of an address or emil change within 30 days
If an applicant for insurance lies on an insurance application with the intent to deceive the insurer to obtain something of value is called: A) fraud B) concealment C) felony D) consideration
A) fraud
Which of the following is not a disciplinary action that may be taken by the Department of Insurance against an adjuster found guilty of an unfair trade practice? A) impose a jail sentence of no more than 6 months B) suspension of license C) issue a cease and desist order D) impose a civil fine
A) impose a jail sentence of no more than 6 months
Zeke a licensed Oklahoma Insurance adjuster moves to New Zealand with no intention of returning to OK. What is Zeke's responsibility under the Oklahoma Insurance Code? A) notify the Insurance Department within 30 days B) notify the Insurance Department within 20 days C) notify the Insurance Department at time of license renewal D) no notification is required since moving out of theUSA
A) notify the Insurance Department within 30 days
To be licensed as a producer or adjuster, an individual must meet which of the following? A) pass an exam with 70% or better B) have a college degree with a major in finance, insurance, or business C) be at least 21 years of age D) have been a resident of Oklahoma for a minimum of 5 years
A) pass an exam with 70% or better
A mutual insurer is owned by? A) policyowners B) shareholders C) a syndicate of individuals D) the Board of Directors
A) policyowners
Gathering information, analyzing risk, and selecting risk for an insurer best describes the job functions of? A) underwriter B) producer C) actuary D) insurance commissioner
A) underwriter
The continuing education requirement of an Ok resident adjuster or producer is: A) 17 hrs CE including 3 CE of ethics to be completed every 2 yrs B) 24 CE hrs including 3 CE of ethics to be completed every 2 yrs C) 24 CE hrs including 3 CE hours of ethics to be completed annually D) 12 CE hrs including 3 CE hrs of ethics to be completed annually
B) 24 CE hrs including 3 CE of ethics to be completed every 2 yrs
Which of the following would be a moral hazard? A) wet pavement on the highway B) arson C) leaving building unlocked D) a banana peel on the floor
B) arson
Under the Ok Insurance Code, an apprentice adjuster license A) can be issued to a trainee adjuster for 90 days B) can be issued to a trainee adjuster for 180 days C) may be issued if a person fails the insurance exam on the first try D) is not available to adjusters
B) can be issued to a trainee adjuster for 180 days
Under a Homeowner's policy an insured that continuously leaves the garage door open is creating what type of hazard? A) moral B) morale C) legal D) physical
B) morale
Which of the following would have to meet the OK continuing education requirements? A) Insurance Commissioner B) personal lines property & casualty producer C) non-resident producer D) surplus-lines broker
B) personal lines property & casualty producer
A type of loss that is insurable would be: A) possible B) predictable C) unpredictable D) probable
B) predictable
Which of the following is not an unfair trade practice? A) defamation B) boycott C) unfair descrimination D) representation
B) representation
Statements made by the applicant on an insurance application are considered: A) warranties B) representations C) guarantees D) misrepresentations
B) representations
Who selects risk for an insurance company? A) producer B) underwriter C) customer service representative D) actuary
B) underwriter
Which statement made by the insured automatically voids the insurance coverage if not true? A) fraud B) warranty C) representation D) misrepresentation
B) warranty
What is the maximum penalty if a producer or adjuster does not fulfill his/her continuing education requirements? A) $500 fine B) suspended license and double license renewal fee C) $500 fine, suspended license and double license renewal fee D) $500 fine, suspended license and 16 hrs of community service
C) $500 fine, suspended license and double license renewal fee
Under the Unfair Claims Settlement Practice Act, the insurer must acknowledge receipt of a Homeowners claim to the claimant within: A) 10 days B) 20 days C) 30 days D) 45 days
C) 30 days
Mary has a loss on her Homeowners Insurance Policy with Best Insurance Company. Upon receiving the Proof of Loss forms, Best must respond within how many days? A) 15 B) 30 C) 45 D) 60
C) 45
How many minutes of classroom instruction is considered a "continuing education" hour? A) 60 B)55 C) 50 D) 45
C) 50
Which of the following would be covered by the OK Property & Casualty Guaranty Association? A) surplus lines broker B) surety insurance C) admitted insurer D) non-admitted insurer
C) admitted insurer
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) aleatory contract
After a hearing regarding a violation of the Producer or Adjuster licensing Act, the OID can impose on a licensee which of the following penalties? A) imprisonment up to 5 years B) $1000 fine and 6 months probation C) censure a licensee's license D) 30 days community service
C) censure a licensee's license
"Transacting Insurance" as defined by O.S. Title 36 includes all of the following, EXCEPT: A) selling B) soliciting C) development of rates D) negotiating
C) development of rates
An insurance company which is an incorporated society formed without capital stock and operating on a non-profit basis for the sole benefit of members is what type of insurer? A) bureau B) mutual C) fraternal D) federal government
C) fraternal
All of the following are true concerning continuing education requirements in Oklahoma EXCEPT: A) Stone Insurance education is an approved provider of Ok CE B) included in the CE requirement for producer and adjusters is 3 hrs of ethics C) limited lines licensees need only complete 6 hrs of CE per year D) producer & adjuster licensees must complete 24 hrs of CE during license renewal period
C) limited lines licensees need only complete 6 hrs of CE per year
If the OID suspects a licensee of using "unfair settlement practice" the first action taken is A) issue a cease and desist order B) immediately revoke the licensee's license C) send notice of a hearing D) non-renew the licensee's license
C) send notice of a hearing
The Oklahoma Insurance Department (OID) must examine each domestic insurer at least once every: A) 2 years B) 3 years C) 4 years D) 5 years
D) 5 years
Which of the following is not an unfair claim settlement practice? A) defamation B) misrepresentation C) coercion D) denying a claim
D) denying a claim
Permitting unfair discrimination between individuals with the same class and expectation of loss is prohibited by law. Which of the following could not be used in the underwriting process? A) gender B) marital status C) age D) race
D) race
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
The maximum obligation of the Oklahoma Property & Casualty Insurance Guaranty Association for property & casualty losses, other than workers compensation, is: A) $100,000 B) $150,000 C) $300,000 D) $500,000
B) 150,000
If a licensee's license suspended or revoked, the Oklahoma Insurance Department will notify all of the following, EXCEPT A) National Association of Insurance Commissioners (NAIC) B) licensee C) insureds and claimants of the licensee D) Insurance departments in states where the licensee holds non-resident licenses
C) insureds and claimants of the licensee
Which of the following is NOT true regarding the Oklahoma Insurance Rating Act? A) defines a rate as the cost of insurance per unit of exposure B) regulates rates tp assure rates are not excessive, inadequate, or unfairly discriminatory C) penalties for violating ratemaking standards subjects the insurer to a fine of $100 to $5,000 D) develops rates for the insurance industry
D) develops rates for the insurance industry
Under the Oklahoma Property & Casualty Rating Act which of the following statements are TRUE? A) rates are developed by the underwriter B) Oklahoma is a prior approval state C) rates are developed by the OID D) insurance rates cannot be unfairly discriminatory
D) insurance rates cannot be unfairly discriminatory
What is the minimum age a person can become licensed as a producer or adjuster? A) 18 B) 21 C) 25 D) no age requirement
A) 18
Notice of a hearing involving a producer's or adjuster's misconduct must be made at least: A) 5 days in advance of hearing in writing B) 5 days in advance of hearing by phone C) 20 days in advance of hearing D) 30 days in advance of hearing
A) 5 days in advance of hearing in writing
Funds necessary to pay claims of an insolvent insurer provided by the Oklahoma Property and Casualty Guaranty Association: A) are assessed against member insurers B) are provided from State Treasury funds C) are assessed against all policyholders in the state D) are provided by the FDIC
A) are assessed against member insurers
All of the following are types of insurers EXCEPT: A) bureau insurer B) mutual insurer C) stock insurer D) fraternal insurer
A) bureau insurer
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? A) contract of adhesion B) unilateral contract C) contract of indemnity D) conditional contract
A) contract of adhesion
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
Susie Sewer Mouth is making derogatory statements or distributing maliciously critical information against a competing insurance company. Under the Oklahoma Insurance Code, this illegal practice is: A) defamation B) rebating C) libel D) trash talk
A) defamation
When the Oklahoma Insurance Department revokes a licensee's license for a violation of the Insurance Code, the civil penalty is what amount? A) fine of $100-$1000 B) fine of $100-$5000 C) fine of $100-$1000 plus up to 5 years in jail D) fine of $100-$5000 plus up to 5 years in jail
A) fine of $100-$1000
Which of the following would be considered an illegal inducement? A) giving a new policy owner a portion of producer's commission B) defaming the character of a competing producer C) sending a thank-you card to a new policyholder D) misrepresenting a competitor's policy to the client
A) giving a new policy owner a portion of producer's commission
A banana peel on the floor of a grocery store on which a person could slip and fall is a: A) hazard B) peril C) cause of loss D) pure risk
A) hazard
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? A) impose a mandatory jail sentence of six months B) suspend license of the licensee C) revoke license of the licensee D) fine the licensee an amount of $100 to $1000
A) impose a mandatory jail sentence of six months
The Oklahoma Insurance Guaranty Association was created to protect: A) insureds and claimants when an admitted insurer becomes insolvent B) resident producers from competition by non-resident producers C) the privacy rights of insurance buyers D) the general public from unfair trade practices
A) insureds and claimants when an admitted insurer becomes insolvent
Under the Oklahoma Insurance Rating Act what is the defintion of a rate? A) the price of insurance per unit of exposure B) the price of insurance established by the Oklahoma Insurance Department C) a quantity measured D) the amount charged for insurance
A) the price of insurance per unit of exposure
Which of the following is not a requirement to become a resident producer or adjuster in Oklahoma? A) live in Oklahoma for a period of six months or more B) pass a licensing exam with a 70% or better C) be 18 years of age D) have a good business reputation
A) live in Oklahoma for a period of six months
After a hearing regarding a violation of the Insurance Code, the Oklahoma Insurance Commissioner could do all of the following to a licensee EXCEPT: A) make licensee pay restitution B) revoke license C) fine a civil penalty from $100-$1000 D) issue a cease and desist order
A) make a licensee pay restitution
Under the Oklahoma Insurance Code a producer or adjuster is required to notify teh Oklahoma Insurance Department within 30 days for all of the following EXCEPT: A) marriage B) email address change C) address change D) moving out of state
A) marriage
Zink, a licensed Oklahoma Insurance producer moves out of state with no intention of returning. What is Zink's responsibility under the Oklahoma Insurance Code? A) notify the Insurance Department within 30 days B) notify the Insurance Department within 20 days C) notify the Insurance Department at license renewal D) no notification required
A) notify the Insurance Department within 30 days
Giving a person season tickets to the University of Oklahoma football games as an inducement to enter into an insurance contract is: A) rebating B) coercion C) defamation D) not recommended if they are an OSU fan
A) rebating
Giving something of value as an inducement to purchase insurance is known as: A) rebating B) conservation C) twisting D) good business practice
A) rebating
