OKLAHOMA PROPERTY AND
CASUALTY
Representations - correct answer Statements made by the applicant on an
insurance application.
Contract of Utmost Good Faith - correct answer An insurer must rely o the
truthfulness and integrity of the applicant.
Contract of Adhesion - correct answer When one party constructs the contract
and the other party has no input.
Elements of a Legally Binding Contract - correct answer 1. Legal Purpose
2. Agreement (Offer and Acceptance)
3. Competent Parties
4. Consideration
Special Peril - correct answer Type of policy that insures against open perils of
loss that are not specifically excluded.
Example of Consequential or Indirect Loss - correct answer Loss of income from
a rental unit due to tornado damage to the roof.
Class 1 - Frame - correct answer Exterior walls, floors and roof are constructed
with wood.
Class 2 - Joisted Masonry - correct answer Exterior walls constructed with
masonry such as brick or rock. Floors and roof are constructed with wood.
Class 3 - Noncombustible - correct answer Exterior walls, floors and roof are
constructed with non-combustible materials such as metal or asbestos.
, Class 4 - Masonry Noncombustible - correct answer Exterior walls are
constructed with masonry such as brick or rock. Floors and roof are constructed
with metal or other non-combustible material.
Class 5 - Modified Fire Resistive - correct answer Exterior walls, floor and roof are
constructed with fire resistive materials with a fire resistive rating of less than 2
hours.
Class 6 - Fire Resistive - correct answer Exterior walls, floor and roof are
constructed with fire resistive materials with a fire resistive rating of 2 hours or
more.
Aggregate Limit - correct answer A type of policy limit that does not restore the
limits of liability after each occurrence.
Coinsurance - correct answer A policy provision which requires the insured to
carry an adequate amount of insurance. Penalty applies when property is insured
for an amount under the market value of the dwelling.
Mandatory Parts of a Policy - correct answer 1. Declarations
2. Insuring Agreement
3. Conditions
4. Exclusions
Non-mandatory Parts of a Policy - correct answer 1. Endorsements
2. Definitions
Endorsements - correct answer Add, delete or modify the insurance contract.
Definitions - correct answer Defines terms for a specific contract.
CASUALTY
Representations - correct answer Statements made by the applicant on an
insurance application.
Contract of Utmost Good Faith - correct answer An insurer must rely o the
truthfulness and integrity of the applicant.
Contract of Adhesion - correct answer When one party constructs the contract
and the other party has no input.
Elements of a Legally Binding Contract - correct answer 1. Legal Purpose
2. Agreement (Offer and Acceptance)
3. Competent Parties
4. Consideration
Special Peril - correct answer Type of policy that insures against open perils of
loss that are not specifically excluded.
Example of Consequential or Indirect Loss - correct answer Loss of income from
a rental unit due to tornado damage to the roof.
Class 1 - Frame - correct answer Exterior walls, floors and roof are constructed
with wood.
Class 2 - Joisted Masonry - correct answer Exterior walls constructed with
masonry such as brick or rock. Floors and roof are constructed with wood.
Class 3 - Noncombustible - correct answer Exterior walls, floors and roof are
constructed with non-combustible materials such as metal or asbestos.
, Class 4 - Masonry Noncombustible - correct answer Exterior walls are
constructed with masonry such as brick or rock. Floors and roof are constructed
with metal or other non-combustible material.
Class 5 - Modified Fire Resistive - correct answer Exterior walls, floor and roof are
constructed with fire resistive materials with a fire resistive rating of less than 2
hours.
Class 6 - Fire Resistive - correct answer Exterior walls, floor and roof are
constructed with fire resistive materials with a fire resistive rating of 2 hours or
more.
Aggregate Limit - correct answer A type of policy limit that does not restore the
limits of liability after each occurrence.
Coinsurance - correct answer A policy provision which requires the insured to
carry an adequate amount of insurance. Penalty applies when property is insured
for an amount under the market value of the dwelling.
Mandatory Parts of a Policy - correct answer 1. Declarations
2. Insuring Agreement
3. Conditions
4. Exclusions
Non-mandatory Parts of a Policy - correct answer 1. Endorsements
2. Definitions
Endorsements - correct answer Add, delete or modify the insurance contract.
Definitions - correct answer Defines terms for a specific contract.
