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Oklahoma Property & Casualty (P&C) Insurance
Producer Licensing Examination | Latest Verified
Questions and Detailed Answers
OVERVIEW DESCRIPTION:
This comprehensive set of multiple-choice questions is designed for the Oklahoma
Property & Casualty Insurance Producer licensing examination. The questions
comprehensively cover key topics required by the Oklahoma Insurance Code, including
insurance contract principles (indemnity, insurable interest, utmost good faith), producer
licensing and renewal requirements, continuing education mandates, prohibited unfair
trade practices (rebating, twisting, misrepresentation), policy components (declarations,
insuring agreement, conditions, exclusions), types of insurers (domestic, foreign, alien,
admitted, non-admitted), risk management techniques, the role of the Oklahoma Insurance
Commissioner and Guaranty Association, claims handling, and specific property and
casualty coverages. Each question follows a clear format with a single correct answer and a
short expert rationale, for knowledge reinforcement.
QUESTION 1
An insurer formed and incorporated under the laws of Oklahoma, with its principal place
of business in the state, is legally classified as which of the following?
A) Foreign Insurer
B) Alien Insurer
C) Domestic Insurer
D) Surplus Lines Insurer
CORRECT ANSWER: C
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EXPERT RATIONALE: A domestic insurer is formed under the laws of the state in which it
is incorporated. For Oklahoma, this means an insurer organized under Title 36 of the
Oklahoma Statutes.
QUESTION 2
An insurer that is incorporated under the laws of a country other than the United States
and is authorized to transact business in Oklahoma is known as:
A) Foreign Insurer
B) Alien Insurer
C) Domestic Insurer
D) Reciprocal Insurer
CORRECT ANSWER: B
EXPERT RATIONALE: An alien insurer is chartered or organized under the laws of any
country outside the United States. It must receive a Certificate of Authority from the
Oklahoma Insurance Commissioner to operate legally in the state.
QUESTION 3
What is the minimum passing score required on the Oklahoma Property & Casualty
Insurance Producer Examination?
A) 60%
B) 65%
C) 70%
D) 75%
CORRECT ANSWER: C
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EXPERT RATIONALE: Candidates must achieve a score of 70% or higher to pass the
Oklahoma P&C licensing exam. The computer-based test provides immediate results.
QUESTION 4
How many continuing education (CE) hours must an Oklahoma P&C producer complete
biennially to maintain an active license?
A) 12 hours
B) 16 hours
C) 24 hours
D) 30 hours
CORRECT ANSWER: C
EXPERT RATIONALE: Oklahoma requires 24 hours of continuing education every two
years, including at least 3 hours of ethics training and 2 hours of state legislative
updates.
QUESTION 5
Which of the following best defines a "peril" in insurance terms?
A) The cause of a potential loss
B) A condition that increases the chance of loss
C) The uncertainty concerning financial loss
D) A strategy to minimize risk
CORRECT ANSWER: A
EXPERT RATIONALE: A peril is the actual cause of a loss, such as a fire, windstorm, theft,
or collision. Hazards are conditions that increase the chance of loss from a peril.
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QUESTION 6
Which element of an insurance policy contains the insurer's basic promise to pay
benefits?
A) Declarations
B) Insuring Agreement
C) Conditions
D) Exclusions
CORRECT ANSWER: B
EXPERT RATIONALE: The Insuring Agreement outlines the scope of coverage and the
insurer's promise to indemnify the insured for specified losses. It is the heart of the
insurance contract.
QUESTION 7
Under the Oklahoma Insurance Code, a licensed resident producer must inform the
Insurance Commissioner of a change of address within how many days?
A) 10 days
B) 15 days
C) 30 days
D) 60 days
CORRECT ANSWER: B
EXPERT RATIONALE: A licensed resident producer must notify the Commissioner of a
change of address within 15 days of the change. Failure to do so can result in
administrative penalties.
Oklahoma Property & Casualty (P&C) Insurance
Producer Licensing Examination | Latest Verified
Questions and Detailed Answers
OVERVIEW DESCRIPTION:
This comprehensive set of multiple-choice questions is designed for the Oklahoma
Property & Casualty Insurance Producer licensing examination. The questions
comprehensively cover key topics required by the Oklahoma Insurance Code, including
insurance contract principles (indemnity, insurable interest, utmost good faith), producer
licensing and renewal requirements, continuing education mandates, prohibited unfair
trade practices (rebating, twisting, misrepresentation), policy components (declarations,
insuring agreement, conditions, exclusions), types of insurers (domestic, foreign, alien,
admitted, non-admitted), risk management techniques, the role of the Oklahoma Insurance
Commissioner and Guaranty Association, claims handling, and specific property and
casualty coverages. Each question follows a clear format with a single correct answer and a
short expert rationale, for knowledge reinforcement.
QUESTION 1
An insurer formed and incorporated under the laws of Oklahoma, with its principal place
of business in the state, is legally classified as which of the following?
A) Foreign Insurer
B) Alien Insurer
C) Domestic Insurer
D) Surplus Lines Insurer
CORRECT ANSWER: C
,2|Page
EXPERT RATIONALE: A domestic insurer is formed under the laws of the state in which it
is incorporated. For Oklahoma, this means an insurer organized under Title 36 of the
Oklahoma Statutes.
QUESTION 2
An insurer that is incorporated under the laws of a country other than the United States
and is authorized to transact business in Oklahoma is known as:
A) Foreign Insurer
B) Alien Insurer
C) Domestic Insurer
D) Reciprocal Insurer
CORRECT ANSWER: B
EXPERT RATIONALE: An alien insurer is chartered or organized under the laws of any
country outside the United States. It must receive a Certificate of Authority from the
Oklahoma Insurance Commissioner to operate legally in the state.
QUESTION 3
What is the minimum passing score required on the Oklahoma Property & Casualty
Insurance Producer Examination?
A) 60%
B) 65%
C) 70%
D) 75%
CORRECT ANSWER: C
,3|Page
EXPERT RATIONALE: Candidates must achieve a score of 70% or higher to pass the
Oklahoma P&C licensing exam. The computer-based test provides immediate results.
QUESTION 4
How many continuing education (CE) hours must an Oklahoma P&C producer complete
biennially to maintain an active license?
A) 12 hours
B) 16 hours
C) 24 hours
D) 30 hours
CORRECT ANSWER: C
EXPERT RATIONALE: Oklahoma requires 24 hours of continuing education every two
years, including at least 3 hours of ethics training and 2 hours of state legislative
updates.
QUESTION 5
Which of the following best defines a "peril" in insurance terms?
A) The cause of a potential loss
B) A condition that increases the chance of loss
C) The uncertainty concerning financial loss
D) A strategy to minimize risk
CORRECT ANSWER: A
EXPERT RATIONALE: A peril is the actual cause of a loss, such as a fire, windstorm, theft,
or collision. Hazards are conditions that increase the chance of loss from a peril.
, 4|Page
QUESTION 6
Which element of an insurance policy contains the insurer's basic promise to pay
benefits?
A) Declarations
B) Insuring Agreement
C) Conditions
D) Exclusions
CORRECT ANSWER: B
EXPERT RATIONALE: The Insuring Agreement outlines the scope of coverage and the
insurer's promise to indemnify the insured for specified losses. It is the heart of the
insurance contract.
QUESTION 7
Under the Oklahoma Insurance Code, a licensed resident producer must inform the
Insurance Commissioner of a change of address within how many days?
A) 10 days
B) 15 days
C) 30 days
D) 60 days
CORRECT ANSWER: B
EXPERT RATIONALE: A licensed resident producer must notify the Commissioner of a
change of address within 15 days of the change. Failure to do so can result in
administrative penalties.
