Revise with instant feedback: the moment you pick an answer you see whether it was right, with the written, source-cited explanation. Untimed — ideal before you sit a mock exam. Questions you miss keep coming back until you know them.
Exam-day conditions: no feedback until you submit, each module scored separately so you can see your weak areas, plus an overall score against the pass mark, with a full question-by-question review at the end.
Each module is scored separately here so you know exactly where you stand. To pass the real Oklahoma exam you need 70%.
The free sample is one full practice exam's worth of questions, with at least 5 in every module so you can revise each topic: 176 questions in all. The full bank contains every question — general insurance plus state law — with written, statute-cited explanations. $49, one time, lifetime access on up to 3 devices — every state and line we add later included.
✓ One purchase, use it on up to 3 of your devices · no subscription · no account needed
| Delivered by | PSI |
|---|---|
| Official exam | Property & Casualty |
| Passing score | 70% ('You must get 70% correct to pass') |
| Exam fee | $38 per attempt |
| Pre-licensing or eligibility | Not required (OID/PSI bulletin lists prelicensing education only for bail bondsmen; not confirmed on an OID page) |
| Book your exam | test-takers.psiexams.com/okins |
Checked 11 October 2026 from the official sources below. Rules and fees change, so confirm with PSI before you book.
Evergreen is a $49 practice question bank, not a pre-licensing course. Here is how it stacks up against the courses and other banks candidates usually consider, including where they are the better choice. See the comparison with Kaplan, ExamFX, XCEL and others.
Oklahoma issues a combined Property & Casualty producer licence and PSI administers the exam: 150 scored questions plus 5 unscored pretest items, 150 minutes, 70% to pass. The Oklahoma section is 38 of the 150, in four counted parts - 7 licensing, 16 on insurance statutes, rules and regulations, 10 on Oklahoma automobile insurance law and 5 on Oklahoma workers' compensation. This bank covers the first three plus the national property & casualty content; Oklahoma's five state workers' compensation questions do not yet have a dedicated Oklahoma module, and the national workers' compensation module covers the general principles rather than Oklahoma's own scheme.
You need 70%. Revise each module to that level in Revision Mode, then run the full exam simulation in Exam Mode before your test date.
No vendor publishes the live exam. Every question here is original, written to the official content outline and grounded in public-domain sources — including the Oklahoma Insurance Code, Title 36 of the Oklahoma Statutes for the state-law questions, with the statute section cited in each explanation.
The full Oklahoma bank contains 1104 questions (general insurance plus Oklahoma law), with written, source-cited explanations. The free sample is one full practice exam's worth of questions, with at least 5 in every module so you can revise each topic: 176 questions in all.
$49, one time, for lifetime access — and it includes every state and line we add later, at no extra charge. No subscription.
Yes. One purchase works on up to 3 of your devices, for example your laptop, phone and tablet, so you can practise wherever you are. Your progress is saved on each device.
No. The practice tests run in your browser with no signup. Your score history is saved on your own device.
It is organised into 18 modules that follow the exam's own content areas: P&C — General Insurance Concepts, P&C — Insurance Basics, P&C — Dwelling & Homeowners, P&C — Personal & Commercial Auto, P&C — Commercial Property, BOP & Marine, P&C — Commercial General Liability & Specialty, P&C — Workers' Compensation, P&C — Other Lines, Flood & Federal Regulation, Oklahoma — Insurance Department & Commissioner, Oklahoma — Producer Licensing, Oklahoma — Unfair Methods of Competition & Deceptive Acts, Oklahoma — Unfair Claims Settlement Practices, Oklahoma — Casualty Insurance Contracts & Auto, Oklahoma — Uninsured Motorist Coverage & Written Rejection, Oklahoma — Standard Fire Policy & Property Coverage, Oklahoma — Kinds of Insurance Defined, Oklahoma — Rate Regulation & Surplus Lines and Oklahoma — Property & Casualty Guaranty Association. Each module is drilled and scored separately, so you can see exactly which areas are exam-ready and which still need work.
Last updated 23 September 2026. The bank is revised whenever the source material it cites changes, and every question carries the source its explanation is drawn from.
A selection of free questions with answers and explanations. Use the interactive modules above for timed, scored drills.
The CGL excludes bodily injury 'expected or intended from the standpoint of the insured.' This is the:
Why: The expected or intended injury exclusion removes coverage for intentional harm, preserving the fortuity principle.
Under PAP Part A, punitive or exemplary damages are:
Why: Liability coverage responds to compensatory damages; punitive damages are commonly excluded or unenforceable under the policy and many states' public policy.
In addition to or in lieu of any applicable denial, probation, censure, suspension or revocation of a licence, section 1435.13 allows a person to be subjected, after opportunity for hearing, to a civil fine. That fine is:
Why: 36 O.S. § 1435.13(D) states one thousand dollars PER OCCURRENCE, so a course of conduct is not one fine, and the penalty may be enforced in the same manner in which civil judgments may be enforced. It is an administrative penalty and should be held apart from the criminal fine of the same amount in § 1435.13a(E)(1), which is the maximum on a misdemeanour conviction for misappropriating one hundred fifty dollars or less of fiduciary money. The words 'in addition to or in lieu of' matter: the Commissioner is not required to choose between fining and disciplining, and subsection (A) says the same of the licence sanctions themselves, which may be imposed in 'any combination of actions'.
A 'scheduled' permanent partial disability benefit refers to compensation that is:
Why: Scheduled injuries are specific losses (like loss of an arm, leg, or eye) for which the statute assigns a predetermined number of weeks or amount of benefits.
Under the PAP, intentional bodily injury or property damage caused by an insured is:
Why: Part A excludes injury or damage caused intentionally by or at the direction of an insured.
Under PAP Part B, a family member struck by a car while walking across the street is:
Why: Part B covers the named insured and family members as pedestrians when struck by a motor vehicle, in addition to occupants of the covered auto.
The Homeowners loss settlement (coinsurance) provision generally requires the dwelling to be insured to at least what percentage of replacement cost to receive full replacement-cost settlement on a partial loss?
Why: The replacement-cost loss settlement condition requires the dwelling to be insured to at least 80% of full replacement cost at the time of loss.
Which valuation method pays the cost to repair or replace property with new property of like kind and quality, without deduction for depreciation?
Why: Replacement cost pays to repair or replace with new property of like kind and quality with no deduction for depreciation.
Tenant's improvements and betterments installed by a lessee are usually insured under:
Why: Improvements and betterments made by a tenant (that cannot be legally removed) are covered as the tenant's business personal property under Coverage B.
Section 1204's subparagraph on unfair discrimination as to kinds of insurance other than life and accident and health closes with a proviso that the subparagraph shall not apply to a stated class of rate. That class is:
Why: 36 O.S. § 1204(7)(c) ends by disapplying itself as to any premium rate in effect pursuant to ARTICLE 9, the Code's rate regulation article, and the reason is jurisdictional rather than permissive: a rate that has gone through the Article 9 machinery is policed for unfair discrimination by that article's own standards - rates must not be excessive, inadequate or unfairly discriminatory - and not a second time under the trade practices article. So the subparagraph governs the terms and conditions of the contract and any rate NOT in effect under Article 9. Neither subparagraph (a) nor subparagraph (b) carries an equivalent proviso, which is a real asymmetry between the life and health limbs and the property and casualty one.
The Information Page of the Workers Compensation policy is most analogous to which component of other commercial policies?
Why: The Information Page functions like a declarations page, showing the insured, policy period, listed states, classifications, premium basis, and limits for Part Two.
An SR-22 is best described as:
Why: An SR-22 is a financial responsibility certificate the insurer files to confirm a high-risk driver maintains the state's required liability insurance.
Under the FCRA, an investigative consumer report differs from an ordinary consumer report because it includes:
Why: An investigative consumer report gathers information on a consumer's character, general reputation, and mode of living through personal interviews, triggering additional notice requirements.
A surety bond fundamentally differs from insurance because:
Why: Surety is a three-party credit guarantee; the surety expects no net loss because the principal indemnifies it, unlike insurance which transfers risk.
What is the standard waiting period before Business Income coverage begins?
Why: The standard ISO Business Income form has a 72-hour waiting period from the time of direct physical loss before coverage applies.
Violations of 18 U.S.C. § 1033 can result in:
Why: Section 1033 carries federal criminal penalties, including fines and imprisonment, depending on the offense and resulting harm.
A 'per person' limit in a liability policy applies to:
Why: A per-person limit caps the amount payable for bodily injury sustained by any single individual.
Section 2014 is one sentence long and limits the scope of covered claims by reference to a date. It provides that a covered claim shall not include any claim filed with the Association after:
Why: 36 O.S. § 2014 ties the Association's exposure to the LIQUIDATION BAR DATE rather than to any period of its own, which keeps the two proceedings in step: the Association cannot be presented with a claim the estate itself would no longer entertain, and its ultimate right of recovery against the estate is preserved. The section admits NO good cause exception, which the fourth option offers, and it is expressed as a limit on the definition of covered claim rather than as a procedural bar - so a late claim is not a covered claim at all. Hold the date apart from the two other dates that matter in this Act: the DETERMINATION OF INSOLVENCY, which starts § 2007(A)(1)'s thirty-day window, and the FILING OF THE ORDER OF LIQUIDATION with the court clerk, which fixes the Association's monetary limits.
The condition requiring the insured to promptly notify the insurer, protect property from further damage, and cooperate after a loss describes:
Why: The duties after a loss condition lists the insured's obligations, including prompt notice, protecting property, providing proof of loss, and cooperating.
The 'collapse' coverage is provided under which dwelling/homeowners forms?
Why: Collapse is an additional coverage in the broad and special forms (such as DP-2, DP-3, HO-2, HO-3) but is not provided under the most basic DP-1.
An Oklahoma car dealership advertises that a policy of insurance on the vehicle will be given free to any buyer as an inducement to purchase. Under section 1204 the giving of free insurance in connection with the sale of property is:
Why: 36 O.S. § 1204(2) carries three distinct prohibitions under the heading of false information and advertising. The first is the general one: an advertisement, announcement or statement about the business of insurance that is untrue, deceptive or misleading, in a newspaper, magazine, notice, circular, pamphlet, letter, poster, radio or television broadcast, or in any other way. The second forbids an insurer to issue a policy that is to be furnished to a purchaser or bailee of property as an inducement to buy or bail it, and forbids anyone else to advertise, offer or give free insurance, insurance without cost, or insurance for less than the approved or customary rate in connection with such a sale or bailment - subject to the single exception the paragraph names. The third forbids a person that is not an insurer to use a name deceptively suggesting that it is one. The exception the paragraph names, § 4101, is the group life insurance section, which prescribes the classes of group life policy that may be delivered in this state.
Two unrelated roommates jointly own a car and both want PAP coverage as named insureds. The appropriate endorsement is:
Why: The Joint Ownership Coverage endorsement adapts the PAP for two or more individuals who are not married but jointly own the covered auto.
Theft coverage under the standard Dwelling Policy is:
Why: The Dwelling Policy does not include theft coverage by default; it must be added by a theft coverage endorsement.
An employer headquartered in one state sends a crew temporarily into another state not listed on the policy. Which Part of the policy is designed to provide coverage in states not listed in Part One?
Why: Part Three (Other States Insurance) extends coverage to operations in states listed in the Part Three item, providing benefits if the insured incurs WC obligations in a state not shown in Part One.
An insured who leaves a car unlocked with keys inside because insurance will cover it demonstrates:
Why: A morale hazard arises from carelessness or indifference to loss because insurance exists, increasing the likelihood of loss.
Choosing a high deductible and paying small losses out of pocket is an example of which method of handling risk?
Why: Retention means accepting responsibility for some or all of a loss, such as through deductibles or self-insurance.
An Oklahoma surplus lines broker knowingly places coverage with a nonadmitted insurer in an unsound financial condition. Section 1112 states three consequences. Besides revocation of the broker's licence, they are that the broker:
Why: 36 O.S. § 1112(B) stacks three sanctions and says they are IN ADDITION TO ANY OTHER PENALTY PROVIDED BY LAW: revocation, a two-year bar on re-licensing, and a misdemeanour carrying up to a thousand dollars or ninety days in jail or both, PUNISHED FOR EACH OFFENCE. The revocation is mandatory - the licence SHALL be revoked - which is unusual in the Code. The mental element is KNOWINGLY, so an honest failure of enquiry is not within the section, and the test of soundness is not left at large either: by subsection (A) a surplus lines insurer is financially sound if it MEETS THE REQUIREMENTS OF § 1106, which is the fifteen-million and four-and-a-half-million rule keyed at 0282. The personal liability the fourth option offers is real but comes from § 1101(B) and attaches to unlicensed placement rather than to unsound placement.
An employer with a poor loss history cannot find a private insurer willing to write its workers' compensation voluntarily. Where would this employer most likely obtain coverage?
Why: Employers unable to obtain WC in the voluntary market are placed in the assigned-risk or residual market plan, which guarantees availability of mandatory coverage.
Coverage E in a Homeowners policy provides:
Why: In Section II of the Homeowners policy, Coverage E is Personal Liability, paying for bodily injury and property damage the insured is legally liable for.
Which type of business is typically ELIGIBLE for a Businessowners Policy?
Why: BOPs are designed for eligible smaller risks such as retail stores, offices, apartments, and similar businesses; large manufacturers and certain high-hazard risks are ineligible.
Section 953 forbids an insurer that uses credit information to underwrite or rate risks to use an insurance score calculated using certain characteristics of the consumer as a factor. Those characteristics are:
Why: 36 O.S. § 953(1) closes its list at eight, and the two that surprise readers are ADDRESS and ZIP CODE - a geographic factor may be perfectly proper in a rating plan under § 902(A)(3)(a), which allows classification by the location or dispersion of the risk, but it may not be baked into an INSURANCE SCORE. That is the distinction the second and third options test, and it is the point of the paragraph: the Act regulates the score, not the whole of underwriting. Age is not in the list, which the fourth option adds. The remaining paragraphs of § 953 forbid denying, cancelling or non-renewing personal insurance SOLELY on credit information, basing renewal rates solely on it, taking adverse action solely because the consumer has no credit card account, and using an absence of credit information or an inability to calculate a score except in three permitted ways.
Section 3610 requires policy and application forms to be filed with and approved by the Insurance Commissioner before use, and requires the filing to be made not less than sixty days in advance of delivery. If the Commissioner neither approves nor disapproves the form by order within that period, the form:
Why: 36 O.S. § 3610(B) is a deemer provision with a single, tightly conditioned extension: the Commissioner may add NOT MORE THAN THIRTY DAYS, and only by giving notice of the extension BEFORE the initial sixty-day period expires. At the end of the extended period, absent affirmative action, the form is deemed approved just the same. Affirmative approval waives any unexpired part of the waiting period, so an insurer is not held to sixty days once the Commissioner has acted. Two powers survive the deemer: the Commissioner may at any time, after notice and for cause shown, WITHDRAW an approval, and by subsection (C) any order disapproving a form or withdrawing approval must state its grounds. The other sixty-day period in this module is § 3629(B)'s deadline for a written offer of settlement or rejection of a claim, which is a claims deadline and not a filing one.
An insured carries $80,000 on contents valued at $100,000 with an 80% coinsurance clause. A $10,000 partial loss occurs (no deductible). The insurer pays:
Why: Required = 80% × $100,000 = $80,000. Insurance carried equals the requirement, so the full $10,000 loss is paid.
The 'perils not included' clause of the Oklahoma standard fire policy excludes loss caused directly or indirectly by a list of events beginning with enemy attack by armed forces, invasion, insurrection, rebellion, revolution, civil war and usurped power. The clause then closes with two further exclusions, which are:
Why: The clause in 36 O.S. § 4803(G) ends with two exclusions of quite different character. The NEGLECT exclusion is about the insured's own conduct and is expressed to reach neglect to save and preserve the property at and after a loss OR WHEN THE PROPERTY IS ENDANGERED BY FIRE IN NEIGHBOURING PREMISES - so it bites before the insured's own fire starts. The THEFT exclusion is flat. The other options each borrow from somewhere real: explosion and vacancy belong to the SUSPENDING CONDITIONS rather than to this clause, and the nuclear exclusion is not in the form at all - § 4806 separately AUTHORISES insurers to affix or include a written statement that the policy does not cover loss caused by nuclear reaction, nuclear radiation or radioactive contamination.
A bond that guarantees the contractor will complete the project according to the contract terms is a:
Why: A performance bond guarantees completion of the work per the contract specifications.
The Dwelling Under Construction endorsement is designed to:
Why: The dwelling under construction endorsement tailors coverage to a home being built, where the insurable value grows as construction progresses.
An insured who intentionally sets fire to insured property to collect on the policy demonstrates:
Why: A moral hazard exists when a person's dishonesty or tendency to cause a loss, such as arson for profit, increases the chance of loss.
Where a tentative agreement to settle for liability limits has been reached with an insured tort-feasor, section 3636 requires the insured to give written notice by certified mail to the uninsured motorist coverage insurer. That notice must include written documentation of pecuniary losses incurred, including copies of all medical bills, and:
Why: 36 O.S. § 3636(F)(2) requires the insured to hand over the means of INVESTIGATING the claim, not merely evidence of it - authorisation or a court order to obtain reports from ALL employers and ALL medical providers - because the subsection gives the uninsured motorist insurer only sixty days to decide whether to substitute its own payment for the tentative settlement. The notice must go by CERTIFIED MAIL and it is the insured's obligation, not the tort-feasor insurer's. The purpose of the whole mechanism is to preserve the uninsured motorist insurer's subrogation rights: if the insured simply settled and gave a release, those rights would be gone, so the statute offers the insurer a way to buy them back and the insured a clear path to settle if it declines.
For Homeowners eligibility, a dwelling that the insured does not currently live in but intends to return to with belongings still present is best described as:
Why: Unoccupied means no one is living there temporarily but personal property remains; vacant means both empty of people and substantially empty of contents.
An Oklahoma claimant's damages exceed the tort-feasor's liability limits, and the claimant's own uninsured motorist limits are higher than the tort-feasor's liability limits. Section 3636's second extension of the term 'uninsured motor vehicle' covers an insured vehicle the liability limits of which are less than the amount of the claim. That extension applies:
Why: 36 O.S. § 3636(C)'s closing words are the underinsured motorist provision and they are deliberately unconditional: the comparison is between the tort-feasor's LIABILITY LIMITS and THE AMOUNT OF THE CLAIM, and the subsection then says the extension applies regardless of the amount of coverage of either party IN RELATION TO EACH OTHER. So there is no requirement that the claimant's own limits exceed the tort-feasor's, which is the comparison many other states use and which the second option offers. The measure that matters is the size of the claim, not the size of anyone's policy. Note that the section reaches this result by widening one defined term rather than by creating a separate underinsured motorist coverage, so everything else in the section - the limits, the rejection machinery, the subrogation rules - applies to it unchanged.
A technology consultant gives faulty advice causing a client a large financial loss (no bodily injury or property damage). The proper coverage is:
Why: Pure financial loss from negligent professional advice is covered by professional E&O, not the CGL which requires BI/PD (or a covered offense).
After a fire loss an Oklahoma insured is found to have wilfully misrepresented a material fact concerning the subject of the insurance. Under the concealment and fraud condition of the standard fire policy the consequence is that the entire policy:
Why: The concealment and fraud condition in 36 O.S. § 4803(G) is the harshest clause in the form and its two features are both keyed here: the whole policy is VOID, not merely the tainted part of the claim, and the condition operates WHETHER BEFORE OR AFTER A LOSS - so lying in the proof of loss destroys the coverage as surely as lying in the application. It reaches wilful concealment or misrepresentation of any material fact or circumstance concerning the insurance, its subject, or the insured's interest in it, and separately reaches any FRAUD OR FALSE SWEARING by the insured relating to it. Note that the standard form is stricter than the Code's general rule for applications in § 3609, under which misrepresentations do not prevent recovery unless fraudulent, material, or such that the insurer would not have issued as it did.
To provide both hired and non-owned auto liability for a business that owns no vehicles, an agent would typically assign which symbols?
Why: Symbols 8 (hired autos) and 9 (non-owned autos) together provide hired and non-owned liability for a business without owned vehicles.
An Oklahoma insured holds one policy covering three vehicles, each with uninsured motorist coverage, and seeks to add the three limits together after an accident. The policy was renewed in 2019 and says nothing about stacking. Under section 3636 the position is that the policy:
Why: 36 O.S. § 3636(B) reversed the default in 2014: policies ISSUED, RENEWED OR REINSTATED after 1 November 2014 are not subject to stacking or aggregation of limits UNLESS EXPRESSLY PROVIDED FOR BY AN INSURANCE CARRIER. Two features repay attention. The rule attaches to the policy's issue, renewal or reinstatement rather than to the date of the accident, so an old policy renewed after the date falls under the new default. And the exception runs one way only - a carrier may expressly grant stacking, and silence means none - which is the opposite of the position before the amendment and the reason the second option is a trap for anyone relying on older learning.
In an insurance contract, the consideration given by the insured is:
Why: The insured's consideration is the premium plus the representations made in the application; the insurer's consideration is its promise to pay covered losses.
Besides the hearing machinery, section 904 gives an insured two further rights and imposes two prohibitions. The rights are that all schedules, rates and supporting information filed under the article are open to public inspection after filing, and that an advisory organization or an insurer making its own rates must furnish all pertinent information as to a rate to an insured affected by it. The two prohibitions are that:
Why: 36 O.S. § 904(D) and (E) point in opposite directions - one protects the regulator's information and the other the insured's - and the second is the practically useful one: an insured who has bought cover is entitled to THE POLICY OR COMPARABLE EVIDENCE OF IT, and failing to furnish it is a breach of this article in its own right. Note that the duty to furnish rate information under subsection (B) is qualified in two ways the second option ignores: it arises on WRITTEN REQUEST and UPON PAYMENT OF SUCH REASONABLE CHARGE as the organization or insurer may make, so a charge is expressly permitted. Subsection (A)'s public inspection right attaches only AFTER the filings are made.
Section 123 governs the delivery and storage of electronic documents in insurance transactions. It defines 'delivered by electronic means' to include delivery to an electronic mail address at which a party has consented to receive notices, and also:
Why: 36 O.S. § 123(A)(1)(b) allows posting only WITH separate notice of it, and prescribes how that notice travels: by electronic mail to the address at which the party has consented to receive notice, or by any other delivery method the party has consented to. Consent runs through the whole definition - subparagraph (a)'s email address is one 'at which a party has CONSENTED to receive notices or documents'. The section's other definitions widen its reach considerably: 'party' means any recipient of a notice or document required as part of an insurance transaction, expressly including an applicant, an insured, a policyholder, a covered person or an annuity contract holder.
The principle of utmost good faith (uberrimae fidei) means that:
Why: Utmost good faith requires both parties to deal honestly and disclose all material facts when forming the contract.
An applicant is charged a higher auto premium because of information in a consumer report. The producer fails to send any adverse action notice. This most likely violates:
Why: Failing to provide the required adverse action notice after taking action based on a consumer report violates the FCRA.
A retail employee sues the company for sexual harassment and wrongful termination. Which policy is designed to respond?
Why: Harassment and wrongful termination are employment practices claims handled by EPLI, not the CGL.
An officer of an Oklahoma insurer deliberately leaves a material fact about the insurer's business out of one of its books, intending that an examiner appointed to look into its affairs should not learn of it. Under section 1204's false financial statements paragraph the omission is:
Why: 36 O.S. § 1204(5)'s second limb closes the obvious gap: after prohibiting a false entry made with intent to deceive, it adds 'or, with like intent, willfully omitting to make a true entry of any material fact pertaining to the business of such insurer'. 'Like intent' carries the deceptive intent across from the false-entry limb, and 'wilfully' is the omission's own qualifier. The audiences are named and are wider than 'examiner': an agent OR examiner lawfully appointed to examine into the insurer's condition or any of its affairs, and any public official to whom the insurer is required by law to report or who has authority by law to examine it. The paragraph's FIRST limb - a false statement of financial condition, with no named audience - is a distinct offence and is keyed separately.
Section 2007 describes the Association as payor of last resort and gives it all the rights, duties and obligations of the insolvent insurer as if the insurer had not become insolvent, including the right to pursue and retain salvage and subrogation recoverable on covered claim obligations to the extent it has paid them. The paragraph then adds one thing the Association shall NOT be deemed, namely:
Why: 36 O.S. § 2007(A)(3) gives the Association the insolvent insurer's shoes for every purpose except one - it is NOT DEEMED THE INSOLVENT INSURER FOR THE PURPOSE OF CONFERRING JURISDICTION - so a court that would have had jurisdiction over the failed company does not acquire it over the Association merely by that substitution. The exception is jurisdictional and nothing else, which is what the fourth option tests: the duty to defend passes to the Association and is dealt with by paragraph 2. The phrase PAYOR OF LAST RESORT is the Act's own and it explains § 2012's exhaustion requirement: a claimant must look everywhere else first. Salvage and subrogation are recoverable only TO THE EXTENT PAID by the Association, so it recoups rather than profits.
In a life insurance contract (by contrast with property), insurable interest must exist:
Why: Life insurance requires insurable interest only at policy inception, whereas property/casualty requires it at the time of loss.
Underinsured motorists (UIM) coverage applies when:
Why: UIM applies when the at-fault driver has insurance, but with limits lower than the damages, allowing the insured to recover the difference up to the UIM limit.
A vehicle the named insured becomes the owner of during the policy period that replaces a vehicle shown in the Declarations is referred to as a:
Why: A newly acquired auto is one the insured becomes the owner of during the policy period, either as an additional or replacement vehicle.
An employee files a claim, and the only question is whether to pay statutory benefits set by the state law. Which Part of the policy responds?
Why: Payment of the benefits required by the state WC statute is handled by Part One — Workers Compensation.
A new NFIP flood policy generally does not take effect until how many days after the application and premium are submitted?
Why: The NFIP imposes a standard 30-day waiting period before a new flood policy becomes effective, to discourage buying coverage only when a flood is imminent.
An adjuster for an Oklahoma insurer tells a third party claimant that her rights may be impaired unless she completes and returns a release form promptly. Under section 1250.7 such a statement is:
Why: 36 O.S. § 1250.7(F) separates a warning from a threat by looking at its PURPOSE: telling a claimant that the limitation period is running is permitted and is in fact required a year after the loss by subsection (E); telling her that returning a form or release is what preserves her rights is not, because it links her position to the insurer's paperwork rather than to the law. The subsection is confined to THIRD PARTY claimants, and it is absolute apart from the limitation-notice exception - the accuracy of the statement about the form is beside the point, and so is whether she is represented. Subsection (E)'s protection, by contrast, applies only to the unrepresented.
The 'requirements in case loss occurs' clause of the Oklahoma standard fire policy obliges the insured to give immediate written notice of loss, protect the property from further damage, separate the damaged and undamaged personal property and put it in the best possible order, and furnish a complete inventory showing quantities, costs, actual cash value and amount of loss claimed. It then requires a signed and sworn proof of loss to be rendered within:
Why: The clause in 36 O.S. § 4803(G) runs its sixty days from THE LOSS, not from any request by the company, and allows extension only IN WRITING. The proof must state, to the insured's knowledge and belief, the time and origin of the loss, the interest of the insured and of all others in the property, the actual cash value of each item and the amount of loss to it, all encumbrances, all other contracts of insurance whether valid or not, any changes in title, use, occupation, location, possession or exposures since the policy issued, by whom and for what purpose any building was occupied at the time of loss, and whether it stood on leased ground. § 4805 then makes the sixty days very much harder for an insurer to rely on, and 0243 keys that.
In commercial auto, mobile equipment (e.g., a bulldozer) is generally:
Why: Self-propelled mobile equipment is excluded from the auto definition and is normally addressed under a commercial general liability policy.
Section 704 defines property insurance as insurance on real or personal property of every kind and interest in it, against loss or damage from any or all hazard or cause and against loss consequential upon it, other than noncontractual legal liability for such loss or damage. The section then adds a second sentence, under which property insurance shall also include:
Why: 36 O.S. § 704's second sentence reaches across to § 707(11), the miscellaneous insurance catch-all inside casualty insurance, and pulls it into property insurance too - but it carries the same carve-out as the first sentence, EXCEPT AS TO ANY NONCONTRACTUAL LIABILITY COVERAGE includable in it. So a novel coverage that is essentially first-party is both property and casualty insurance, and one that is essentially third-party liability is casualty insurance only. That is § 701 in action: certain coverages are intended to come within the definitions of two or more kinds, and inclusion within one does not exclude the coverage from another within whose definition it is reasonably includable. The fourth option is § 707(11)'s own condition, which governs whether a coverage is miscellaneous insurance at all rather than what § 704 does with it.
In a surety bond, the company that guarantees the principal's performance is the:
Why: The surety is the entity guaranteeing that the principal will fulfill its obligation to the obligee.
An Oklahoma company under examination refuses to comply with a reasonable written request of the examiners. Under section 309.3 that refusal is grounds for the suspension, refusal or nonrenewal of a licence or authority the company holds. The licences and authorities it reaches are:
Why: 36 O.S. § 309.3(B) reaches ANY licence or authority the company holds for a business subject to the Commissioner's jurisdiction, not merely the certificate of authority for the business being examined - and no revocation is automatic: proceedings for suspension, revocation or refusal must be conducted pursuant to § 619 of this title. The subsection first states the positive duty: the company and all its officers, directors, employees and agents must give the Commissioner and examiners TIMELY, CONVENIENT AND FREE ACCESS at all reasonable hours at its offices to all books, records, accounts, papers, documents and computer or other recordings relating to the property, assets, business and affairs of the company, and must aid the examination so far as it is in their power. The contempt route in the third option is real but belongs to subsection (C).
A binder provides:
Why: A binder is temporary proof of insurance that provides coverage until the formal policy is issued.
In a typical Homeowners policy, Coverage C (Personal Property) is provided as a percentage of Coverage A equal to about:
Why: Coverage C is commonly set at 50% of the Coverage A limit, though this percentage can be adjusted by endorsement.
Intentional injury caused by an insured is treated under Section II how?
Why: Bodily injury or property damage expected or intended by the insured is excluded under Section II liability coverage.
Medical Payments coverage typically pays expenses incurred within what time frame after the accident?
Why: PAP Part B generally pays covered medical and funeral expenses incurred within three years of the date of the accident.
The Automatic Increase in Insurance (inflation guard) endorsement on a dwelling policy does what?
Why: The inflation guard / automatic increase endorsement raises the dwelling limit at set intervals to help the amount of insurance keep up with rising construction costs.
Section 3633 attaches a criminal consequence to the issue or delivery of a policy in violation of the Insurance Code. The persons it reaches, the state of mind it requires and the offence it creates are that any insurer or corporation, or any officer or agent of one, issuing or delivering any policy to any person in this state:
Why: 36 O.S. § 3633 requires the violation to be WILFUL and grades the offence as a misdemeanour, and both halves are commonly misremembered in the direction the distractors offer. The persons reached are wide - the insurer or corporation AND any officer or agent of it - so the section can bite on an individual as well as the entity. Hold it apart from the other criminal provisions a P&C candidate meets in this Code, which differ in grade: § 1435.26 makes acting as a producer without a licence a Class D1 felony offence, § 1435.13a(E) grades misappropriation of fiduciary money as a misdemeanour or a felony according to a one-hundred-fifty-dollar threshold, and § 1204(12) makes a knowing or wilful false statement in or relative to an application a misdemeanour.
A driver with 25/50/15 limits causes an accident injuring three people for $20,000 each ($60,000 total). How much does BI liability pay?
Why: Each person's $20,000 is under the $25,000 per-person limit, but the total $60,000 exceeds the $50,000 per-accident maximum, so BI pays $50,000.
The HO-2 form covers personal property against:
Why: HO-2 insures both the dwelling and personal property on the broad form named-perils basis.
Section 309.2 of the Oklahoma Insurance Code governs the frequency of examinations. The Commissioner must conduct a financial examination of every domestic insurer licensed in this state not less frequently than once every:
Why: 36 O.S. § 309.2(A) sets the same five-year floor for FOREIGN insurers licensed here in the very next sentence, so the interval does not turn on domicile. What domicile changes is whose work counts: the Commissioner may accept examinations conducted by other states on foreign insurers domiciled in those states. The floor is a minimum only - the section opens by letting the Commissioner or an examiner conduct an examination, financial or market conduct, as often as he deems appropriate.
The subrogation clause of the Oklahoma standard fire insurance policy states what the company may require of the insured. Under it the company:
Why: The subrogation clause in 36 O.S. § 4803(G) is permissive and conditional in both directions - the company MAY REQUIRE an assignment, and only TO THE EXTENT THAT PAYMENT IS MADE by it - so there is no automatic subrogation under the form and no assignment before payment. Compare the mortgagee clause in the same form, where subrogation to the mortgagee's rights arises by the clause's own terms once the company pays a mortgagee while claiming that no liability existed as to the mortgagor - that one operates without any assignment, and expressly without impairing the mortgagee's own right to sue. And compare § 3636(F), where an uninsured motorist insurer takes the PROCEEDS of a settlement or judgment rather than a right of action at all.
"Home state" is defined in section 1435.2 for the purposes of the Oklahoma Producer Licensing Act. It means the District of Columbia and any state or territory of the United States in which an insurance producer:
Why: Paragraph 4 of 36 O.S. § 1435.2 is a two-part test joined by "and": the place must be where the producer keeps a principal place of residence OR a principal place of business, AND the producer must be licensed there. Residence alone will not do it, and a licence alone will not do it. The definition also names the District of Columbia expressly, so a producer based there has a home state for reciprocity purposes. The concept drives § 1435.17's waiver of nonresident requirements and § 1435.9's obligations when a producer moves.
'Perils of the sea' in ocean marine refers to:
Why: Perils of the sea are extraordinary, fortuitous events peculiar to the sea, like storms, stranding, collision, and sinking—not the ordinary action of wind and waves.
A non-admitted (unauthorized) insurer is one that:
Why: A non-admitted insurer lacks a certificate of authority in that state, though it may write surplus lines business through licensed surplus lines brokers.
The CGL 'Other Insurance' condition typically makes the CGL coverage:
Why: The CGL is generally primary but becomes excess in specified situations (e.g., certain additional-insured or fire scenarios) per the Other Insurance condition.
Lloyd's of London is best described as:
Why: Lloyd's is not an insurer itself but a marketplace where syndicates of members assume insurance risk.
A property worth $500,000 has a 90% coinsurance requirement. The insured carries $360,000 and has a $50,000 loss. Ignoring deductible, the insurer pays:
Why: Required = 90% x $500,000 = $450,000. Did/should = $360,000/$450,000 = 0.80. Payment = 0.80 x $50,000 = $40,000.
An HR administrator forgets to enroll a new hire in the group health plan, and the employee incurs large medical bills. Which coverage responds?
Why: A clerical error administering benefits is an EBL claim, not a CGL or WC matter.