AU60 INSURANCE EXAM QUESTIONS
WITH VERIFIED ANSWERS
All of the following information would be included in a notice of a hearing by the
Oklahoma Insurance Department EXCEPT:
a. provisions in the insurance code that have been violated
b. state the purpose of the hearing
c. state any precedence established by previous such orders
d. provide the date and time of the hearing - ANSWER-C
If the Oklahoma Insurance Department suspects a producer is using "unfair trade
practices", the first action taken is to:
a. issue a cease and desist order
b. immediately revoke the producers license
c. send notice of a hearing
d. non renew the producers license - ANSWER-C
If Travis is licensed to sell both Life/Health and Property/Casualty insurance, how
many hours of continuing education are required for every two years?
a. 24
b. 36
c. 48
d. 8 - ANSWER-A
The Oklahoma Insurance Department (OID) has all of the following authority
EXCEPT?
a. administer laws as designated by the Oklahoma legislature
b. promulgate rules as often as necessary
c. examine insurance companies
d. pass laws relating to insurance - ANSWER-D
When can a producer share commission with another producer?
a. when they are both appointed by the same insurer
b. when they are both licensed in the same line of business
c. when they both reside in the state of Oklahoma
d. is never a legal act - ANSWER-B
In order for an insurer to transact business in the state of oklahoma, it must have
which of the following?
a. license
b. certificate of authority
c. appointment
,d. express authority from insurance department - ANSWER-B
A mutual insurer:
a. is a participating company owned by policy owners
b. charges assessment to the policy owners if claims are higher than projected
c. is an incorporated society or supreme lodge without capital
d. is a group who sells risk and cannot sell life insurance - ANSWER-A
A producer who lives in another state is called:
a. foreign agent
b. unauthorized agent
c. secret agent
d. non-resident agent - ANSWER-D
An insurer licensed to sell insurance in Oklahoma is referred to as:
a. an approved insurer
b. a non-admitted insurer
c. an admitted insurer
d. a surplus lines insurer - ANSWER-C
Standard Provisions are the policy owners (BLANK) - ANSWER-rights by law
(BLANK) is required in every individual life insurance policy without any additional
premiums - ANSWER-Standard Provisions
The "grace period" policy provision provides all of the following EXCEPT?
a. continues the policy coverage of the premiums are late
b. protects against an unintentional lapse of coverage
c. waives the past due premium if the insured dies during the grace period
d. is for a period of 31 days for whole life policies - ANSWER-C
Under the common disaster act, if the insured and the primary beneficiary are killed
simultaneously in an accident the following is true:
a. the insured is presumed to have died first
b. the primary beneficiary is presumed to have died first
c. the contingent beneficiary will receive nothing
d. the primary beneficiary's estate will receive the death benefits - ANSWER-B
If the insured and the primary beneficiary are both killed in a common accident and
the primary beneficiary clearly outlives the insured, the life insurance proceeds will
be paid to:
a. insureds estate
b. contingent beneficiary
c. primary beneficiary estate
,d. the primary beneficiary estate will receive the death benefits - ANSWER-D
On the life insurance policy application the insured age is stated as 30. In reality the
insured is 32. If the insurance company discovers the mistake while the insured is
alive, what will happen?
a. the premium will be adjusted upward
b. the premium will be adjusted downward
c. the death benefit will be adjusted upward
d. the death benefit will be adjusted downward - ANSWER-A
The accelerated death benefit would be available in which of the following?
a. if the insured needs additional retirment income
b. if the insured is confined to a nursing home
c. if the insured needs cash to pay for medical expenses due to a terminal illness
d. if the insured is a death row inmate - ANSWER-C
The tendency for less favorable risks to purchase insurance is called:
a. misrepresentation
b. underwriting
c. human nature
d. adverse selection - ANSWER-D
Travis, a licensed insurance producer, sells a life insurance policy to Drew. At the
time of the application, Travis gives Drew a conditional receipt. If Drew dies two days
later what will the insurer do?
a. deny the claim and return the premium
b. deny the claim and return none of the premium
c. pay the claim when the underwriter approves the application
d. pay the claim when the insured company receives the premium payment -
ANSWER-C
The benefits payable in a life insurance policy can be modified by: - ANSWER-rider
Regarding a loan on a Whole Life Insurance Policy, how is the interest rate on a
whole life policy loan determined? - ANSWER-rate specified in the policy
Suicide increases adverse selection for the insurance company. - ANSWER-Yes
If the beneficiary designations are not clear, what could occur? - ANSWER-disputes
causing a delay of payment
What will the beneficiary receive if the insured commits suicide within the first 2
years of the policy? - ANSWER-the premiums paid on the policy
The purpose of Insurance Regulation is to protect whose interest? - ANSWER-public
interest
, NAIC stand for? - ANSWER-National Association of Insurance Commissioners
The NAIC is a voluntary (BLANK) organization. - ANSWER-non profit
The purpose of the NAIC is to (BLANK). - ANSWER-promote uniformity among
states by proposing standardized laws
The Oklahoma Insurance Commissioner is a member of? - ANSWER-NAIC
What are the 3 sources of regulation of the insurance business? - ANSWER-State,
Federal, and Self regulation
The Oklahoma Insurance Commissioner is publicly elected by voters to serve a
(BLANK) year term. - ANSWER-4 year term
In regards to the qualifications to become an Oklahoma insurance commissioner,
you must be atleast what age? - ANSWER-25 years old
In regards to the qualifications to become an Oklahoma insurance commissioner,
how long must you be an Oklahoma resident? - ANSWER-5 years
In regards to the qualifications to become an Oklahoma insurance commissioner,
how many years of experience must you have in the insurance industry? -
ANSWER-5 years
The Oklahoma Insurance Commissioner has the authority to: - ANSWER-Conduct
hearings, Issue cease and desist orders, Initiate civil actions, and Censure
The Oklahoma Life & Health Guaranty Association would protect all of the following
policies EXCEPT?
a. fixed annuities
b. whole life
c. variable annuities
d. term life - ANSWER-C
In the event of a licensed producers death or disability, a temporary license may be
issued to another individual for a period of:
a. 30 days
b. 90 days
c. 180 days
d. 365 days - ANSWER-C
Upon completion of examination of an insurer, the Oklahoma Insurance department
must send a written report no later than:
a. 10 days of examination completion
b. 20 days of examination completion
WITH VERIFIED ANSWERS
All of the following information would be included in a notice of a hearing by the
Oklahoma Insurance Department EXCEPT:
a. provisions in the insurance code that have been violated
b. state the purpose of the hearing
c. state any precedence established by previous such orders
d. provide the date and time of the hearing - ANSWER-C
If the Oklahoma Insurance Department suspects a producer is using "unfair trade
practices", the first action taken is to:
a. issue a cease and desist order
b. immediately revoke the producers license
c. send notice of a hearing
d. non renew the producers license - ANSWER-C
If Travis is licensed to sell both Life/Health and Property/Casualty insurance, how
many hours of continuing education are required for every two years?
a. 24
b. 36
c. 48
d. 8 - ANSWER-A
The Oklahoma Insurance Department (OID) has all of the following authority
EXCEPT?
a. administer laws as designated by the Oklahoma legislature
b. promulgate rules as often as necessary
c. examine insurance companies
d. pass laws relating to insurance - ANSWER-D
When can a producer share commission with another producer?
a. when they are both appointed by the same insurer
b. when they are both licensed in the same line of business
c. when they both reside in the state of Oklahoma
d. is never a legal act - ANSWER-B
In order for an insurer to transact business in the state of oklahoma, it must have
which of the following?
a. license
b. certificate of authority
c. appointment
,d. express authority from insurance department - ANSWER-B
A mutual insurer:
a. is a participating company owned by policy owners
b. charges assessment to the policy owners if claims are higher than projected
c. is an incorporated society or supreme lodge without capital
d. is a group who sells risk and cannot sell life insurance - ANSWER-A
A producer who lives in another state is called:
a. foreign agent
b. unauthorized agent
c. secret agent
d. non-resident agent - ANSWER-D
An insurer licensed to sell insurance in Oklahoma is referred to as:
a. an approved insurer
b. a non-admitted insurer
c. an admitted insurer
d. a surplus lines insurer - ANSWER-C
Standard Provisions are the policy owners (BLANK) - ANSWER-rights by law
(BLANK) is required in every individual life insurance policy without any additional
premiums - ANSWER-Standard Provisions
The "grace period" policy provision provides all of the following EXCEPT?
a. continues the policy coverage of the premiums are late
b. protects against an unintentional lapse of coverage
c. waives the past due premium if the insured dies during the grace period
d. is for a period of 31 days for whole life policies - ANSWER-C
Under the common disaster act, if the insured and the primary beneficiary are killed
simultaneously in an accident the following is true:
a. the insured is presumed to have died first
b. the primary beneficiary is presumed to have died first
c. the contingent beneficiary will receive nothing
d. the primary beneficiary's estate will receive the death benefits - ANSWER-B
If the insured and the primary beneficiary are both killed in a common accident and
the primary beneficiary clearly outlives the insured, the life insurance proceeds will
be paid to:
a. insureds estate
b. contingent beneficiary
c. primary beneficiary estate
,d. the primary beneficiary estate will receive the death benefits - ANSWER-D
On the life insurance policy application the insured age is stated as 30. In reality the
insured is 32. If the insurance company discovers the mistake while the insured is
alive, what will happen?
a. the premium will be adjusted upward
b. the premium will be adjusted downward
c. the death benefit will be adjusted upward
d. the death benefit will be adjusted downward - ANSWER-A
The accelerated death benefit would be available in which of the following?
a. if the insured needs additional retirment income
b. if the insured is confined to a nursing home
c. if the insured needs cash to pay for medical expenses due to a terminal illness
d. if the insured is a death row inmate - ANSWER-C
The tendency for less favorable risks to purchase insurance is called:
a. misrepresentation
b. underwriting
c. human nature
d. adverse selection - ANSWER-D
Travis, a licensed insurance producer, sells a life insurance policy to Drew. At the
time of the application, Travis gives Drew a conditional receipt. If Drew dies two days
later what will the insurer do?
a. deny the claim and return the premium
b. deny the claim and return none of the premium
c. pay the claim when the underwriter approves the application
d. pay the claim when the insured company receives the premium payment -
ANSWER-C
The benefits payable in a life insurance policy can be modified by: - ANSWER-rider
Regarding a loan on a Whole Life Insurance Policy, how is the interest rate on a
whole life policy loan determined? - ANSWER-rate specified in the policy
Suicide increases adverse selection for the insurance company. - ANSWER-Yes
If the beneficiary designations are not clear, what could occur? - ANSWER-disputes
causing a delay of payment
What will the beneficiary receive if the insured commits suicide within the first 2
years of the policy? - ANSWER-the premiums paid on the policy
The purpose of Insurance Regulation is to protect whose interest? - ANSWER-public
interest
, NAIC stand for? - ANSWER-National Association of Insurance Commissioners
The NAIC is a voluntary (BLANK) organization. - ANSWER-non profit
The purpose of the NAIC is to (BLANK). - ANSWER-promote uniformity among
states by proposing standardized laws
The Oklahoma Insurance Commissioner is a member of? - ANSWER-NAIC
What are the 3 sources of regulation of the insurance business? - ANSWER-State,
Federal, and Self regulation
The Oklahoma Insurance Commissioner is publicly elected by voters to serve a
(BLANK) year term. - ANSWER-4 year term
In regards to the qualifications to become an Oklahoma insurance commissioner,
you must be atleast what age? - ANSWER-25 years old
In regards to the qualifications to become an Oklahoma insurance commissioner,
how long must you be an Oklahoma resident? - ANSWER-5 years
In regards to the qualifications to become an Oklahoma insurance commissioner,
how many years of experience must you have in the insurance industry? -
ANSWER-5 years
The Oklahoma Insurance Commissioner has the authority to: - ANSWER-Conduct
hearings, Issue cease and desist orders, Initiate civil actions, and Censure
The Oklahoma Life & Health Guaranty Association would protect all of the following
policies EXCEPT?
a. fixed annuities
b. whole life
c. variable annuities
d. term life - ANSWER-C
In the event of a licensed producers death or disability, a temporary license may be
issued to another individual for a period of:
a. 30 days
b. 90 days
c. 180 days
d. 365 days - ANSWER-C
Upon completion of examination of an insurer, the Oklahoma Insurance department
must send a written report no later than:
a. 10 days of examination completion
b. 20 days of examination completion
