OKLAHOMA PROPERTY CASUALTY COMPREHENSIVE
EXAM QUESTIONS AND ANSWERS MARKED A+
✔✔Declarations - ✔✔Who, what, when, where and how much.
✔✔Insuring Agreement - ✔✔Provides the major coverages (two to four per policy).
✔✔Conditions - ✔✔Policy territory, appraisal cause, arbitration, insured's duties in the
event of a loss, cancellation or non-renewal, other insurance, subrogation, standard
mortgage clause, assignment, right of salvage, abandonment, loss settlement,
liberalization, loss payment and property coinsurance.
✔✔Exclusions - ✔✔Omit risks which are not insurable, eliminate risks duplicated by
another policy, eliminate risks for high risk exposures.
✔✔Limit of Liability - ✔✔The maximum amount the policy will pay in the event of a
covered loss.
✔✔Right of Salvage - ✔✔The insured turns the damaged property over to the insurer
after payment is made for the damaged goods.
✔✔Subrogation - ✔✔After an insurance company has paid a claim, it takes over the
rights to recover from the responsible third party.
✔✔80% - ✔✔Standard co-insurance amount.
✔✔Vacant - ✔✔Property that does not contain sufficient furnishings to support its
intended use.
✔✔Risk Management Techniques - ✔✔1. Retain the Risk.
2. Avoid the Risk.
3. Reduce the Risk.
4. Transfer the Risk.
✔✔Appraisal Clause - ✔✔Found in the conditions section of a policy, used to determine
the amount of property loss.
✔✔Risk - ✔✔A chance of loss.
✔✔Indemnity - ✔✔Restoring the policyholder to his/her original financial condition
before the loss, while not allowing gain.
✔✔Concealment - ✔✔The failure of an applicant for insurance to disclose a known fact
on an application.
, ✔✔Two Types of Risk - ✔✔1. Pure
2. Speculative
✔✔Unilateral Contract - ✔✔A contract that is legally enforceable by only one party.
✔✔Actual Cash Value (ACV) - ✔✔Replacement cost at the time of loss less
depreciation.
✔✔Actuary - ✔✔The person who establishes rates for the insurer.
✔✔Law of Large Numbers - ✔✔The larger the number of units considered, the more
predictable the losses are.
✔✔Assignment - ✔✔The condition that allows the insured to change the ownership of
the policy to another person with only the insurer approval.
✔✔Abandonment - ✔✔The insured leaving the damaged property and demanding full
payment for a total loss.
✔✔Negligence - ✔✔The failure to act as a reasonable and prudent person would do
under the same or similar circumstances.
✔✔Bailee - ✔✔Business people in service occupations who have temporary custody of
the property of others in order perform a service.
✔✔Other Insurance Clause - ✔✔Term used under a property policy when two insurers
pay on the same claim.
✔✔Agreed Value - ✔✔A property insurance valuation method that provides for payment
of the full policy limit determined at the time of application for insurance.
✔✔Conditional Contract - ✔✔Both parties to a legal contract have certain duties and
obligations to fulfill to make the contract enforceable.
✔✔Binder - ✔✔Temporary insurance coverage.
✔✔Proximate Cause - ✔✔An uninterrupted chain of events resulting from a covered
property loss.
✔✔Coverage A - ✔✔Dwelling
✔✔Coverage B - ✔✔Other Structure - 10%
EXAM QUESTIONS AND ANSWERS MARKED A+
✔✔Declarations - ✔✔Who, what, when, where and how much.
✔✔Insuring Agreement - ✔✔Provides the major coverages (two to four per policy).
✔✔Conditions - ✔✔Policy territory, appraisal cause, arbitration, insured's duties in the
event of a loss, cancellation or non-renewal, other insurance, subrogation, standard
mortgage clause, assignment, right of salvage, abandonment, loss settlement,
liberalization, loss payment and property coinsurance.
✔✔Exclusions - ✔✔Omit risks which are not insurable, eliminate risks duplicated by
another policy, eliminate risks for high risk exposures.
✔✔Limit of Liability - ✔✔The maximum amount the policy will pay in the event of a
covered loss.
✔✔Right of Salvage - ✔✔The insured turns the damaged property over to the insurer
after payment is made for the damaged goods.
✔✔Subrogation - ✔✔After an insurance company has paid a claim, it takes over the
rights to recover from the responsible third party.
✔✔80% - ✔✔Standard co-insurance amount.
✔✔Vacant - ✔✔Property that does not contain sufficient furnishings to support its
intended use.
✔✔Risk Management Techniques - ✔✔1. Retain the Risk.
2. Avoid the Risk.
3. Reduce the Risk.
4. Transfer the Risk.
✔✔Appraisal Clause - ✔✔Found in the conditions section of a policy, used to determine
the amount of property loss.
✔✔Risk - ✔✔A chance of loss.
✔✔Indemnity - ✔✔Restoring the policyholder to his/her original financial condition
before the loss, while not allowing gain.
✔✔Concealment - ✔✔The failure of an applicant for insurance to disclose a known fact
on an application.
, ✔✔Two Types of Risk - ✔✔1. Pure
2. Speculative
✔✔Unilateral Contract - ✔✔A contract that is legally enforceable by only one party.
✔✔Actual Cash Value (ACV) - ✔✔Replacement cost at the time of loss less
depreciation.
✔✔Actuary - ✔✔The person who establishes rates for the insurer.
✔✔Law of Large Numbers - ✔✔The larger the number of units considered, the more
predictable the losses are.
✔✔Assignment - ✔✔The condition that allows the insured to change the ownership of
the policy to another person with only the insurer approval.
✔✔Abandonment - ✔✔The insured leaving the damaged property and demanding full
payment for a total loss.
✔✔Negligence - ✔✔The failure to act as a reasonable and prudent person would do
under the same or similar circumstances.
✔✔Bailee - ✔✔Business people in service occupations who have temporary custody of
the property of others in order perform a service.
✔✔Other Insurance Clause - ✔✔Term used under a property policy when two insurers
pay on the same claim.
✔✔Agreed Value - ✔✔A property insurance valuation method that provides for payment
of the full policy limit determined at the time of application for insurance.
✔✔Conditional Contract - ✔✔Both parties to a legal contract have certain duties and
obligations to fulfill to make the contract enforceable.
✔✔Binder - ✔✔Temporary insurance coverage.
✔✔Proximate Cause - ✔✔An uninterrupted chain of events resulting from a covered
property loss.
✔✔Coverage A - ✔✔Dwelling
✔✔Coverage B - ✔✔Other Structure - 10%
