OKLAHOMA PROPERTY AND
CASUALTY INSURANCE EXAM 2026
FINAL PAPER PRACTICE
QUESTIONS ANSWERS A+
◉ Which of the following terms refers to such disabilities the loss of a
limb, hearing , or eye sight? Answer: Permanent partial disability
◉ Who is NOT considered an employee in an commercial general
liability (CGL) policy? Answer: Temporary worker
◉ The major portion of the premium of an equipment breakdown policy
pays? Answer: For inspections and examinations
◉ An insured owns a building valued at $400,000. To comply with the
80% coinsurance provision of his insurance policy, how , much should
he insure the property for? Answer: 80% of the property's replacement
cost or more
◉ Under the Fair Credit Reporting Act, if the consumer challenges the
accuracy of the information contained in his or her report, the reporting
agency must Answer: Respond to the consumer's complaint.
◉ All of the following are found in the declarations section of a policy
EXCEPT the Answer: Exclusions.
,◉ The cost of restoring farm records is an additional coverage offered
under a farm policy. How much will the policy pay to restore the
records? Answer: Up to $2,000
◉ All of the following could be considered rebates if offered to an
insured in the sale of insurance EXCEPT Answer: Dividends from a
mutual insurer.
◉ Which of the following may be covered by electronic data processing
coverage form under an inland marine policy? Answer: a) Computer
hardware that is specifically scheduled.
b) Extra expense the insured incurs to continue the business following a
loss.
c) Data processing media, including magnetic tapes or paper tapes,
punch cards and discs
◉ The party to a surety or fidelity bond who promises to fulfill the
obligation is the Answer: Principal
◉ The transfer of money from inside a banking premises to a person
other than a messenger outside those premises or to a place outside those
premises is covered under which commercial crime coverage? Answer:
Computer fraud
,◉ Which of the following would NOT be covered under the liability
section of a personal auto policy? Answer: Bodily injury is caused by
the insured's negligence while driving a three-wheel all-terrain vehicle.
◉ When a producer holding a certificate or a broker's license has a
change in his/her residence or business address, he/she must notify the
Department of Insurance and any company for which the producer holds
an appointment within Answer: 30 days.
◉ What will happen if a house covered by a standard mortgage clause is
a total loss? Answer: The insurer pays the mortgagee according to the
mortgagee's interest in the property.
◉ What is the civil penalty for violating a cease and desist order of the
Commissioner? Answer: $10,000
◉ The Business Pursuits endorsement under Section II of a homeowners
policy will cover all of the following EXCEPT Answer: Business
liability.
◉ If a property is covered by Company A for $20,000 and Company B
covers the same property for $40,000, how much will Company A pay
on a $24,000 loss? Answer: $8,000
◉ The risk management technique that is used to prevent a specific loss
by not exposing oneself to that activity is called Answer: Avoidance.
, ◉ In a farm policy, any cost incurred by the insurer for the investigation
or defense of a claim will be paid by Answer: The insurer.
◉ Which of the following entities must approve all continuing education
courses in this state? Answer: The Commissioner
◉ An applicant knowingly fails to communicate information that would
help an underwriter make a sound decision regarding coverage. This is
an example of Answer: Concealment
◉ A common exclusion found under physical damage to your auto
includes Answer: Mechanical breakdown.
◉ Which of the following is true regarding a risk retention group?
Answer: It is a liability insurance company owned by its members.
◉ Which of the following best describes a misrepresentation? Answer:
Issuing sales material with exaggerated statements about policy benefits
◉ A builder's risk form is most often written as which of the following?
Answer: Completed value form
◉ An insured has a liability policy that sets the amount for all claims
that arise from a single incident at $50,000. Which type of limit of
liability does this insured's policy have? Answer: Per occurrence
CASUALTY INSURANCE EXAM 2026
FINAL PAPER PRACTICE
QUESTIONS ANSWERS A+
◉ Which of the following terms refers to such disabilities the loss of a
limb, hearing , or eye sight? Answer: Permanent partial disability
◉ Who is NOT considered an employee in an commercial general
liability (CGL) policy? Answer: Temporary worker
◉ The major portion of the premium of an equipment breakdown policy
pays? Answer: For inspections and examinations
◉ An insured owns a building valued at $400,000. To comply with the
80% coinsurance provision of his insurance policy, how , much should
he insure the property for? Answer: 80% of the property's replacement
cost or more
◉ Under the Fair Credit Reporting Act, if the consumer challenges the
accuracy of the information contained in his or her report, the reporting
agency must Answer: Respond to the consumer's complaint.
◉ All of the following are found in the declarations section of a policy
EXCEPT the Answer: Exclusions.
,◉ The cost of restoring farm records is an additional coverage offered
under a farm policy. How much will the policy pay to restore the
records? Answer: Up to $2,000
◉ All of the following could be considered rebates if offered to an
insured in the sale of insurance EXCEPT Answer: Dividends from a
mutual insurer.
◉ Which of the following may be covered by electronic data processing
coverage form under an inland marine policy? Answer: a) Computer
hardware that is specifically scheduled.
b) Extra expense the insured incurs to continue the business following a
loss.
c) Data processing media, including magnetic tapes or paper tapes,
punch cards and discs
◉ The party to a surety or fidelity bond who promises to fulfill the
obligation is the Answer: Principal
◉ The transfer of money from inside a banking premises to a person
other than a messenger outside those premises or to a place outside those
premises is covered under which commercial crime coverage? Answer:
Computer fraud
,◉ Which of the following would NOT be covered under the liability
section of a personal auto policy? Answer: Bodily injury is caused by
the insured's negligence while driving a three-wheel all-terrain vehicle.
◉ When a producer holding a certificate or a broker's license has a
change in his/her residence or business address, he/she must notify the
Department of Insurance and any company for which the producer holds
an appointment within Answer: 30 days.
◉ What will happen if a house covered by a standard mortgage clause is
a total loss? Answer: The insurer pays the mortgagee according to the
mortgagee's interest in the property.
◉ What is the civil penalty for violating a cease and desist order of the
Commissioner? Answer: $10,000
◉ The Business Pursuits endorsement under Section II of a homeowners
policy will cover all of the following EXCEPT Answer: Business
liability.
◉ If a property is covered by Company A for $20,000 and Company B
covers the same property for $40,000, how much will Company A pay
on a $24,000 loss? Answer: $8,000
◉ The risk management technique that is used to prevent a specific loss
by not exposing oneself to that activity is called Answer: Avoidance.
, ◉ In a farm policy, any cost incurred by the insurer for the investigation
or defense of a claim will be paid by Answer: The insurer.
◉ Which of the following entities must approve all continuing education
courses in this state? Answer: The Commissioner
◉ An applicant knowingly fails to communicate information that would
help an underwriter make a sound decision regarding coverage. This is
an example of Answer: Concealment
◉ A common exclusion found under physical damage to your auto
includes Answer: Mechanical breakdown.
◉ Which of the following is true regarding a risk retention group?
Answer: It is a liability insurance company owned by its members.
◉ Which of the following best describes a misrepresentation? Answer:
Issuing sales material with exaggerated statements about policy benefits
◉ A builder's risk form is most often written as which of the following?
Answer: Completed value form
◉ An insured has a liability policy that sets the amount for all claims
that arise from a single incident at $50,000. Which type of limit of
liability does this insured's policy have? Answer: Per occurrence
