©THEBRIGHT EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
Oklahoma Insurance Licensing Exam
Questions With Verified Answers
All of the following are categories of a limited insurance license EXCEPT 1) crop insurance 2)
variable life insurance 3) credit life insurance 4) travel insurance - Answers✔2) variable life
insurance
What term best describes the act of withholding material information that would be crucial to an
underwriting decision? 1) concealment 2) withholding 3) leading 4) breach of warranty -
Answers✔1) concealment
Johanna purchased a National Flood Insurance policy 10 days after her community entered an
emergency program. When would her coverage be effective? 1) 30 days after the application has
been accepted 2) 12:01 pm on the 5th day after the endorsement request has been mailed 3) 5
days after the application and premium payment are mailed 4) 12:01 am the day after the
application and premium payment are mailed - Answers✔4) 12:01 am the day after the
application and premium payment are mailed
A tornado that destroys property would be an example of which of the following? 1) peril 2) pure
risk 3) loss 4) physical hazard - Answers✔1) peril
What term includes damage where the insured peril was the proximate cause of loss? 1) indirect
loss 2) consequential loss 3) negligent loss 4) direct loss - Answers✔4) direct loss
An insured's roof cost $4,000 when installed 5 years ago. It has been damaged by hail and must
be replaced. The new roof will cost $6,000 at today's prices. If the roof has been depreciating at
$200 per year and his policy is ACV, how much will it pay toward the insured's new roof? 1)
$1,000 2) $4,000 3) $5,000 4) $6,000 - Answers✔3) $5,000
While an insurance was towing a utility trailer with his auto, the trailer cam loose and ran into a
store front. What part of the insured's auto policy would pay for the damage to the store? 1)
property damage liability 2) collision coverage 3) comprehensive coverage 4) this loss would not
be covered - Answers✔1) property damage liability
1
, ©THEBRIGHT EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
The Mail Coverage Form is always written on a reporting form basis; after the end of each
reporting period shown in the declarations, reports are due within 1) 30 days 2) 31 days 3) 45
days 4) 15 days - Answers✔3) 45 days
A startup used car dealership buys cars at auto auctions in 30 states. It wants to be certain that
damage coverage is provided when the cars are driven or transported from the auctions to the
dealership. In regard to the business auto physical damage coverage, which is true? 1) coverage
is provided if dealership employees are in possession of the subject automobile 2) coverage is
provided at additional premium 3) coverage is provided for the wholesale amount only 4)
coverage is not provided under the form - Answers✔1) coverage is provided if dealership
employees are in possession of the subject automobile
What is NOT an insured liability on a BAP? 1) the owner of a car the insured borrows 2) anyone
using a covered auto with permission 3) anyone liable for the conduct of the insured 4) the
named insured in any covered auto - Answers✔1) the owner of a car the insured borrows
When applying for an individual life insurance policy, an applicant states that he went to the
doctor for nausea, but fails to mention that he was also having severe chest pains. This is an
example of 1) misrepresentation 2) fraud 3) warranty 4) concealment - Answers✔4) concealment
Which of the following statements is true regarding workers compensation coverage for sole
proprietors? 1) it's elective 2) it's not allowed 3) it's only allowed for sole proprietors involved in
high risk occupations 4) it's mandatory - Answers✔1) it's elective
Which of the following commercial crime coverages would cover a loss resulting from theft of
the company's money and securities from the armored vehicle making a delivery? 1) outside the
premises 2) forgery/alteration 3) robbery and safe burglary 4) inside the premises - Answers✔1)
outside the premises
Which of the following is NOT a necessary qualification in order for a person to serve as a
Commissioner of Insurance in Oklahoma? 1) state residency for at least 5 years 2) minimum age
of 25 3) a minimum of 5 years of experience as a director of an insurance company 4) minimum
of 5 years of experience in the insurance industry - Answers✔3) a minimum of 5 years of
experience as a director of an insurance company
A dealership loans a car to its customer to use while the dealership is repairing the customer's
car. If the dealership has business auto physical damage coverage and a customer's automobile
insurance does not cover damages to loaner cars, which of the following is true? 1) the loaner
vehicle is covered by the business auto policy 2) no coverage is provided 3) only coverage for
damage to a third party's vehicle is provided 4) the customer is personally liable - Answers✔1)
the loaner vehicle is covered by the business auto policy
In a personal auto policy, the medical payments coverage is similar to 1) accident insurance,
because it has the same limits 2) bodily injury coverage, because it pays the insured's doctor bills
2
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ALL RIGHTS RESERVED.
3) bodily injury coverage, because it provides legal protection if the insured causes injuries to
others 4) accident insurance, because it pays medical expenses regardless of fault. - Answers✔4)
accident insurance, because it pays medical expenses regardless of fault.
Negligence may be defined as 1) the failure to use reasonable and prudent care 2) a situation that
creates a probability of loss 3) a latent defect or fault in property 4) the inability to meet the
burden of proof - Answers✔1) the failure to use reasonable and prudent care
Liability imposed on one party as a result of the actions of another person is known as 1)
vicarious liability 2) comparative negligence 3) strict liability 4) absolute liability - Answers✔1)
vicarious liability
When a producer was reviewing a potential customer's coverage written by another company, the
producer made several remarks that were maliciously critical of that other insurer. The producer
could be found guilty of 1) discrimination 2) nothing, unless the remarks were in writing 3)
defamation 4) misrepresentation - Answers✔3) defamation
Which of the following is covered under the Camera and Musical Instruments Dealers floater? 1)
a musical instrument sold and delivered to a customer 2) furniture, fixtures and office supplies in
a music store 3) money kept on premises of a camera shop 4) a customer's camera left at a
camera shop for repair - Answers✔4) a customer's camera left at a camera shop for repair
An insured is driving her car through a residential area when she loses control and crashes into a
neighbor's front porch. The neighbor, who was sitting on the porch, is injured. The insured's
liability policy has a limit of $500,000. This amount applies to the total of damages for any
bodily injury and property damage resulting from one accident. Which type of limit of liability
does the insured have? 1) aggregate 2) per occurrence 3) combined single 4) split - Answers✔3)
combined single
The proof of loss statement must be 1) an oral statement 2) in writing 3) both oral and in writing
4) in a videotape format - Answers✔2) in writing
The garage coverage form is used to insure 1) owner-operators who use their own trucks to haul
property for the motor carriers that hire them 2) auto businesses, such as auto dealers, service
stations, and auto repair shops 3) businesses that use autos to transport property of others to their
own property - Answers✔2) auto businesses, such as auto dealers, service stations, and auto
repair shops
Workers compensation coverage for sole proprietors is 1) not allowed, except for sole proprietors
in high-risk occupations 2) elective 3) not allowed 4) mandatory - Answers✔2) elective
How long is waiting period upon purchase of flood coverage through NFIP? 1) 10 days 2) 30
days 3) 60 days 4) none - Answers✔2) 30 days
3
ALL RIGHTS RESERVED.
Oklahoma Insurance Licensing Exam
Questions With Verified Answers
All of the following are categories of a limited insurance license EXCEPT 1) crop insurance 2)
variable life insurance 3) credit life insurance 4) travel insurance - Answers✔2) variable life
insurance
What term best describes the act of withholding material information that would be crucial to an
underwriting decision? 1) concealment 2) withholding 3) leading 4) breach of warranty -
Answers✔1) concealment
Johanna purchased a National Flood Insurance policy 10 days after her community entered an
emergency program. When would her coverage be effective? 1) 30 days after the application has
been accepted 2) 12:01 pm on the 5th day after the endorsement request has been mailed 3) 5
days after the application and premium payment are mailed 4) 12:01 am the day after the
application and premium payment are mailed - Answers✔4) 12:01 am the day after the
application and premium payment are mailed
A tornado that destroys property would be an example of which of the following? 1) peril 2) pure
risk 3) loss 4) physical hazard - Answers✔1) peril
What term includes damage where the insured peril was the proximate cause of loss? 1) indirect
loss 2) consequential loss 3) negligent loss 4) direct loss - Answers✔4) direct loss
An insured's roof cost $4,000 when installed 5 years ago. It has been damaged by hail and must
be replaced. The new roof will cost $6,000 at today's prices. If the roof has been depreciating at
$200 per year and his policy is ACV, how much will it pay toward the insured's new roof? 1)
$1,000 2) $4,000 3) $5,000 4) $6,000 - Answers✔3) $5,000
While an insurance was towing a utility trailer with his auto, the trailer cam loose and ran into a
store front. What part of the insured's auto policy would pay for the damage to the store? 1)
property damage liability 2) collision coverage 3) comprehensive coverage 4) this loss would not
be covered - Answers✔1) property damage liability
1
, ©THEBRIGHT EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
The Mail Coverage Form is always written on a reporting form basis; after the end of each
reporting period shown in the declarations, reports are due within 1) 30 days 2) 31 days 3) 45
days 4) 15 days - Answers✔3) 45 days
A startup used car dealership buys cars at auto auctions in 30 states. It wants to be certain that
damage coverage is provided when the cars are driven or transported from the auctions to the
dealership. In regard to the business auto physical damage coverage, which is true? 1) coverage
is provided if dealership employees are in possession of the subject automobile 2) coverage is
provided at additional premium 3) coverage is provided for the wholesale amount only 4)
coverage is not provided under the form - Answers✔1) coverage is provided if dealership
employees are in possession of the subject automobile
What is NOT an insured liability on a BAP? 1) the owner of a car the insured borrows 2) anyone
using a covered auto with permission 3) anyone liable for the conduct of the insured 4) the
named insured in any covered auto - Answers✔1) the owner of a car the insured borrows
When applying for an individual life insurance policy, an applicant states that he went to the
doctor for nausea, but fails to mention that he was also having severe chest pains. This is an
example of 1) misrepresentation 2) fraud 3) warranty 4) concealment - Answers✔4) concealment
Which of the following statements is true regarding workers compensation coverage for sole
proprietors? 1) it's elective 2) it's not allowed 3) it's only allowed for sole proprietors involved in
high risk occupations 4) it's mandatory - Answers✔1) it's elective
Which of the following commercial crime coverages would cover a loss resulting from theft of
the company's money and securities from the armored vehicle making a delivery? 1) outside the
premises 2) forgery/alteration 3) robbery and safe burglary 4) inside the premises - Answers✔1)
outside the premises
Which of the following is NOT a necessary qualification in order for a person to serve as a
Commissioner of Insurance in Oklahoma? 1) state residency for at least 5 years 2) minimum age
of 25 3) a minimum of 5 years of experience as a director of an insurance company 4) minimum
of 5 years of experience in the insurance industry - Answers✔3) a minimum of 5 years of
experience as a director of an insurance company
A dealership loans a car to its customer to use while the dealership is repairing the customer's
car. If the dealership has business auto physical damage coverage and a customer's automobile
insurance does not cover damages to loaner cars, which of the following is true? 1) the loaner
vehicle is covered by the business auto policy 2) no coverage is provided 3) only coverage for
damage to a third party's vehicle is provided 4) the customer is personally liable - Answers✔1)
the loaner vehicle is covered by the business auto policy
In a personal auto policy, the medical payments coverage is similar to 1) accident insurance,
because it has the same limits 2) bodily injury coverage, because it pays the insured's doctor bills
2
, ©THEBRIGHT EXAM SOLUTIONS 2024/2025
ALL RIGHTS RESERVED.
3) bodily injury coverage, because it provides legal protection if the insured causes injuries to
others 4) accident insurance, because it pays medical expenses regardless of fault. - Answers✔4)
accident insurance, because it pays medical expenses regardless of fault.
Negligence may be defined as 1) the failure to use reasonable and prudent care 2) a situation that
creates a probability of loss 3) a latent defect or fault in property 4) the inability to meet the
burden of proof - Answers✔1) the failure to use reasonable and prudent care
Liability imposed on one party as a result of the actions of another person is known as 1)
vicarious liability 2) comparative negligence 3) strict liability 4) absolute liability - Answers✔1)
vicarious liability
When a producer was reviewing a potential customer's coverage written by another company, the
producer made several remarks that were maliciously critical of that other insurer. The producer
could be found guilty of 1) discrimination 2) nothing, unless the remarks were in writing 3)
defamation 4) misrepresentation - Answers✔3) defamation
Which of the following is covered under the Camera and Musical Instruments Dealers floater? 1)
a musical instrument sold and delivered to a customer 2) furniture, fixtures and office supplies in
a music store 3) money kept on premises of a camera shop 4) a customer's camera left at a
camera shop for repair - Answers✔4) a customer's camera left at a camera shop for repair
An insured is driving her car through a residential area when she loses control and crashes into a
neighbor's front porch. The neighbor, who was sitting on the porch, is injured. The insured's
liability policy has a limit of $500,000. This amount applies to the total of damages for any
bodily injury and property damage resulting from one accident. Which type of limit of liability
does the insured have? 1) aggregate 2) per occurrence 3) combined single 4) split - Answers✔3)
combined single
The proof of loss statement must be 1) an oral statement 2) in writing 3) both oral and in writing
4) in a videotape format - Answers✔2) in writing
The garage coverage form is used to insure 1) owner-operators who use their own trucks to haul
property for the motor carriers that hire them 2) auto businesses, such as auto dealers, service
stations, and auto repair shops 3) businesses that use autos to transport property of others to their
own property - Answers✔2) auto businesses, such as auto dealers, service stations, and auto
repair shops
Workers compensation coverage for sole proprietors is 1) not allowed, except for sole proprietors
in high-risk occupations 2) elective 3) not allowed 4) mandatory - Answers✔2) elective
How long is waiting period upon purchase of flood coverage through NFIP? 1) 10 days 2) 30
days 3) 60 days 4) none - Answers✔2) 30 days
3
