Oklahoma Adjuster Exam – Casualty Policies, Bonds &
Related Terms 181 Verified Q&A | Latest Update 2026 |
100% Pass Guarantee
1. Describe the significance of Labor and Materials Bonds in the context of
construction projects.
Labor and Materials Bonds are used to guarantee insurance coverage
for accidents on site.
Labor and Materials Bonds are only necessary for public projects, not
private ones.
Labor and Materials Bonds are important as they protect project
owners from potential liens and ensure that contractors fulfill their
obligations regarding work and materials.
Labor and Materials Bonds primarily cover the costs of labor only, not
materials.
2. If a business discovers a theft that occurred six weeks after their Commercial
Crime insurance policy expired, what would be the outcome regarding the
Discovery Form coverage?
The theft would only be partially covered under a different policy.
The theft would be covered if reported within 30 days.
The theft would be covered since it was discovered within 60 days
after expiration.
The theft would not be covered as it occurred after the policy
expired.
3. A cashier at Food World Supermarket accepted a phony $100 bill. Which ISO
commercial crime coverage is designed to cover such a loss?
Inside the Premises—Robbery or Safe Burglary of Other Property
, Money Orders and Counterfeit Currency
Inside the Premises—Theft of Money and Securities
Forgery or Alteration
4. The basic distinguishing feature between umbrella liability insurance and
excess liability insurance is that
Umbrella liability features drop down coverage while excess liability
does not
Excess liability insurance is a form of reinsurance while umbrella
liability insurance is primary insurance
Excess liability carries a larger deductible than umbrella liability
Excess liability policies include defense costs while umbrella liability
policies do not
5. What is the purpose of a bid bond?
It essentially guarantees a performance bond and other bonds
required for a project.
It guarantees that the general contractor will submit a bid to a project.
It guarantees the owner that the low bidder will go into contract for
their bid price or be paid the difference between the low bid and next
lowest bid.
Both A and C
6. If a business is sued for a slip and fall incident on its premises, which type of
insurance would be most relevant for covering the associated costs?
Workers' compensation insurance
Property insurance
, Professional liability insurance
Commercial General Liability (CGL) insurance
7. Which of the following coverage forms covers those that sell liquor by the
drink?
Host Liquor Liability
Contractual Liability
Dram Shop Liability Coverage
Products Liability
8. The products-completed operations hazard, as defined in the Commercial
General Liability (CGL) Coverage Form, includes bodily injury and property
damage under which one of the following circumstances?
It occurs on premises owned or rented by the named insured and
arises out of the named insured's product or work.
It occurs away from premises owned or rented by the named insured
and does not arise out of the named insured's product or work.
It occurs on premises owned or rented by the named insured and
does not arise out of the named insured's product or work.
It occurs away from premises owned or rented by the named
insured and arises out of the named insured's product or work.
9. What type of liability does property damage under CGL insurance pertain to?
Legal liability from personal injury.
Legal liability from emotional distress.
Legal liability from breach of contract.
Legal liability from physical damages to tangible property.
, 10. Describe the role of a Bail Bond in the legal system.
A Bail Bond guarantees the payment of damages in a civil lawsuit.
A Bail Bond provides legal representation during a trial.
A Bail Bond allows individuals to be released from jail while
awaiting trial, ensuring they return for their court date.
A Bail Bond is used to pay fines imposed by the court.
11. What is the reason for a performance bond?
To terminate a contractor for convenience.
To pay for extra work created by unforeseen conditions.
To guarantee satisfactory performance by the contractor.
To ensure the owner pays for work completed
12. In a scenario where a contractor fails to complete a project as per the
contract, how would a bond be utilized?
The bond would automatically terminate the contract.
The bond would provide additional funding for the project.
The bond would cover the contractor's legal fees.
The bond would be invoked to ensure that the contractor's
obligations are fulfilled.
13. Which of the following is NOT an 'advertising injury' in a CGL?
Misappropriation of the intellectual property of another.
Copyright infringement.
A written publication in which a libel is made.
Related Terms 181 Verified Q&A | Latest Update 2026 |
100% Pass Guarantee
1. Describe the significance of Labor and Materials Bonds in the context of
construction projects.
Labor and Materials Bonds are used to guarantee insurance coverage
for accidents on site.
Labor and Materials Bonds are only necessary for public projects, not
private ones.
Labor and Materials Bonds are important as they protect project
owners from potential liens and ensure that contractors fulfill their
obligations regarding work and materials.
Labor and Materials Bonds primarily cover the costs of labor only, not
materials.
2. If a business discovers a theft that occurred six weeks after their Commercial
Crime insurance policy expired, what would be the outcome regarding the
Discovery Form coverage?
The theft would only be partially covered under a different policy.
The theft would be covered if reported within 30 days.
The theft would be covered since it was discovered within 60 days
after expiration.
The theft would not be covered as it occurred after the policy
expired.
3. A cashier at Food World Supermarket accepted a phony $100 bill. Which ISO
commercial crime coverage is designed to cover such a loss?
Inside the Premises—Robbery or Safe Burglary of Other Property
, Money Orders and Counterfeit Currency
Inside the Premises—Theft of Money and Securities
Forgery or Alteration
4. The basic distinguishing feature between umbrella liability insurance and
excess liability insurance is that
Umbrella liability features drop down coverage while excess liability
does not
Excess liability insurance is a form of reinsurance while umbrella
liability insurance is primary insurance
Excess liability carries a larger deductible than umbrella liability
Excess liability policies include defense costs while umbrella liability
policies do not
5. What is the purpose of a bid bond?
It essentially guarantees a performance bond and other bonds
required for a project.
It guarantees that the general contractor will submit a bid to a project.
It guarantees the owner that the low bidder will go into contract for
their bid price or be paid the difference between the low bid and next
lowest bid.
Both A and C
6. If a business is sued for a slip and fall incident on its premises, which type of
insurance would be most relevant for covering the associated costs?
Workers' compensation insurance
Property insurance
, Professional liability insurance
Commercial General Liability (CGL) insurance
7. Which of the following coverage forms covers those that sell liquor by the
drink?
Host Liquor Liability
Contractual Liability
Dram Shop Liability Coverage
Products Liability
8. The products-completed operations hazard, as defined in the Commercial
General Liability (CGL) Coverage Form, includes bodily injury and property
damage under which one of the following circumstances?
It occurs on premises owned or rented by the named insured and
arises out of the named insured's product or work.
It occurs away from premises owned or rented by the named insured
and does not arise out of the named insured's product or work.
It occurs on premises owned or rented by the named insured and
does not arise out of the named insured's product or work.
It occurs away from premises owned or rented by the named
insured and arises out of the named insured's product or work.
9. What type of liability does property damage under CGL insurance pertain to?
Legal liability from personal injury.
Legal liability from emotional distress.
Legal liability from breach of contract.
Legal liability from physical damages to tangible property.
, 10. Describe the role of a Bail Bond in the legal system.
A Bail Bond guarantees the payment of damages in a civil lawsuit.
A Bail Bond provides legal representation during a trial.
A Bail Bond allows individuals to be released from jail while
awaiting trial, ensuring they return for their court date.
A Bail Bond is used to pay fines imposed by the court.
11. What is the reason for a performance bond?
To terminate a contractor for convenience.
To pay for extra work created by unforeseen conditions.
To guarantee satisfactory performance by the contractor.
To ensure the owner pays for work completed
12. In a scenario where a contractor fails to complete a project as per the
contract, how would a bond be utilized?
The bond would automatically terminate the contract.
The bond would provide additional funding for the project.
The bond would cover the contractor's legal fees.
The bond would be invoked to ensure that the contractor's
obligations are fulfilled.
13. Which of the following is NOT an 'advertising injury' in a CGL?
Misappropriation of the intellectual property of another.
Copyright infringement.
A written publication in which a libel is made.
