Oklahoma Life Health & Accident-Law Practice Exam #2

Under the Oklahoma Insurance Code, a licensed insurance producer is prohibited from which of the following?
a. soliciting applications for insurance on behalf of the insurer
b. giving a gift of mare that $100 value to a client as an inducement to purchase insurance
c. collect premiums on renewal policies
d. recommend coverage to clients

Which of the following statement is NOT true concerning a controlled business under the Oklahoma Insurance Code?
a. controlled business is permissible as long the total commission doesn't exceed 25% in a 12-month period
b. if a producer has obtained a license for the purpose of writing controlled business, the Insurance Department will invalidate all controlled business
c. insurance written on a producer's employer is controlled business
d. insurance written on a producer's own life is controlled business

Which of the following would be considered rebating?
a. giving a new policy owner a portion of your commission
b. defaming the character of a competing producer
c. sending a thank you card to a new policy owner
d. misrepresenting a competitor's policy to a client

Under the Oklahoma Insurance Code, which of the following statement is NOT correct?
a. life insurance producer is required to have an insurance company appointment
b. high school diploma is required to have an insurance producer license
c. limited licensee is not required to have continuing education
d. license can be issued to corporation

A producer must notify the Oklahoma Insurance Department within what length of time after changing his/her address?
a. upon next license anniversary date
b. within 30 days
c. within 20 days
d. within 10 days

Which of the following is NOT a disciplinary action that may be taken by the Department of Insurance against a producer found guilty of an unfair trade practice?
a. impose a jail sentence of no more than 6 months
b. suspension of license
c. cease and desist orders
d. conduct a hearing 

Under the Oklahoma Insurance Code, a temporary producer license:
a. is issued for a period of 60 days and may not be renewed
b. can be issued to the representative of a deceased or disabled producer for a period of 180 days
c. may be issued if a person fails the insurance examination on the first try
d. is issued for 180 days to an individual applying for a producer license

If a producer's license is suspended or revoked, the Oklahoma Insurance Department may do all of the following EXCEPT?
a. notify the National Association of Insurance Commissioners (NAIC)
b. impose a mandatory 6-month jail term
c. require that all licenses be delivered to the Insurance Department
d. notify the Insurance Department in states where the producer holds non-resident licenses

Giving something of value as an illegal inducement for someone to purchase insurance is known as:
a. rebating
b. conservation
c. twisting
d. good business practice

All of the following are true regarding the Insurance Code EXCEPT?
a. Insurance Department shall give notice of the time and place of a hearing at least 5 days in advance of the hearing
b. hearing is held within 30 days after the Insurance Department receives the demand for a hearing
c. person has a right to appeal the Insurance Department's action within 30 days
d. within 30 days after the conclusion of a hearing, the Insurance Department shall issue an order of the hearing

A limited lines insurance license will be issued in all of the following categories EXCEPT?
a. sale of group life
b. sale of credit life
c. sale of limited travel accident insurance
d. ticket selling agent of a common carrier

The illegal act of replacing an insurance policy through misrepresentation of the benefits and disadvantages of an insurance policy is called?
a. twisting
b. defamation
c. rebating
d. coercion

In the case of death of disability of a licensed insurance producer, a temporary license may be issued to another person for an intitial period of up to:
a. 30 days
b. 90 days
c. 180 days
d. 365 days

Which of the following is NOT a penalty for acting as a licensee after losing a license?
a. 5 years of community service
b. imprisonment for 1 to 5 years
c. fines of up to $5000
d. guilty of a felony

A notice of a hearing involving a producer's misconduct must be given at least:
a. 30 days in advance
b. 20 days in advance
c. 15 days in advance
d. 5 days in advance

All of the following are true regarding the Oklahoma Life and Health Insurance Guaranty Association EXCEPT?
a. insures up to $300,000 total life insurance death benefits
b. insures up to $100,000 total cash value benefits
c. is an association of only domestic insurers that promote the insurance industry
d. requires that all authorized insurers in the state be members of the association

Which of the following is NOT an unfair trade practice?
a. defamation
b. misrepresentation
c. coercion
d. replacement

If the Insurance Department suspends a producer's license, all of the following would be notified EXCEPT?
a. producer's clients
b. producer's employer
c. other states where the producer is licensed
d. producer

After taking the STONE Insurance Education Exam Prep Course and passing your insurance licensing exam, your continuing education requirement is: 
a. 24 CE hours including 2 of ethics, to be completed annually
b. 24 CE hours including 3 of ethics, to be completed biennially
c. 36 CE hours including 2 of ethics, to be completed annually
d. 36 CE hours including 3 of ethics, to be completed biennially

In order to avoid losing a license for writing an excessive amount of controlled business, during a 12-month period, a producer's commissions earned on controlled business must not exceed:
a. 10% of the total commissions earned on all business written
b. 25% of the total commissions earned on all business written
c. 35% of the total commissions earned on all business written
d. 25% of the total policy count written by the producer

The Oklahoma Insurance Guaranty Association was created to protect:
a. policy owners and claimants when an admitted insurer becomes insolvent
b. resident producers from competition by non-resident producers
c. the privacy rights of insurance buyers
d. the general public from unfair trade practices

The illegal practice of a producer making derogatory statements or distributing maliciously critical information against anyone in the insurance business is called:
a. defamation
b. rebating
c. coercion
d. twisting

To become an Insurance Commissioner of the State of Oklahoma, a person must be all of the following EXCEPT?
a. appointed by the governor
b. been a state resident for at least 5 years
c. have 5 years prior experience in the insurance industry
d. be at least 25 years of age

An Oklahoma insurance producer has restrictions on the amount of commissions from policies cover his/her own property, interests, and immediate family members.  These types of policies are:
a. unauthorized business
b. controlled business
c. restricted business
d. assessment policies

All of the following are contained in orders issued by the Oklahoma Insurance Department EXCEPT?
a. the ground on which the order is based
b. precedents in which similar action was taken
c. effective date of order
d. intent or purpose of the order

An Oklahoma insurance producer is required to keep business records and client file information for a minimum period of:
a. one year
b. three years
c. five years
d. seven years

The Oklahoma Insurance Department must examine each domestic insurer at least once every:
a. two years
b. three years
c. four years
d. five years

The Oklahoma Insurance Commissioner is:
a. elected to a two (2) year term
b. elected to a four (4) year term
c. appointed by the governor and approved by the state of Oklahoma
d. appointed by the National Association of Insurance Commissioners

All of the following are true concerning Continuing Education requirements in Oklahoma EXCEPT?
a. Stone Insurance Education is an approved provider of Oklahoma CE
b. included in the CE requirement is 3 hours of insurance ethics
c. limited lines licensees need to complete 8 hours of CE per year
d. licensees must complete 24 hours of CE during each 24-month period

A producer who wishes to appeal an order of the Oklahoma Insurance Department may file a petition with the state judicial system within:
a. 20 days
b. 30 days
c. 60 days
d. 90 days

The maximum obligation of the Oklahoma Life and Health Insurance Guaranty Association for all life insurance death benefits applicable to any one life is:
a. $100,000
b. $200,000
c. $300,000
d. $500,000

Misrepresenting a life insurance policy for the purpose of inducing a policy owner to lapse, forfeit, or surrender an existing life insurance policy and replace it is called:
a. twisting
b. false advertising
c. boycott
d. coercion

After conducting an examination of an insurer, the Oklahoma Insurance Department will provide a written examination report to the insurer within:
a. immediately upon completion
b. 10 days
c. 20 days
d. 30 days

Which of the following would be a responsibility of the Oklahoma Insurance Department?
a. recruit new producers for insurers
b. approve rates
c. develop rates
d. maintain all all insurer records

Which of the following is NOT true concerning the Oklahoma Insurance Commissioner?
a. must be a resident of Oklahoma for the past 5 years
b. is appointed by the governor and confirmed by state senate
c. cannot have a financial interest in any insurance company
d. must be at least 25 years old with 5 years experience

The funds provided by the Oklahoma Life & Health Guaranty Association:
a. are assessed to the member insurers
b. are provided from State Treasury funds
c. are assessed against all policy owners in the state
d. are provided by the FDIC

The illegal practice of making maliciously critical or derogatory statements about an insurer with the intent of causing injury is known as:
a. twisting
b. unfair discrimination
c. misrepresentation
d. defamation

The illegal practice of a producer making incomplete comparisons or misrepresenting the terms of an insurance policy for the purpose of inducing someone to change or replace an existing policy is called:
a. rebating
b. coercion
c. twisting
d. defamation

The illegal practice of a producer returning premiums or providing special favors to a prospective insurance buyer as an inducement to purchase insurance is called:
a. defamation
b. rebating
c. coercion
d. twisting

In which of the following categories may limited insurance representative licenses not be issued?
a. sales of credit life, accident and disability insurance
b. travel accident insurance sales
c. sales of Medicare supplement insurance
d. baggage insurance sold by a travel agent in connection with airline tickets

The replacing insurer would require all of the following EXCEPT?
a. guarantee a 10 day free look
b. notify the replaced insurer
c. maintain policy records for three years
d. inform producers about the law

All of the following are considered to be illegal rebates or prohibited inducements EXCEPT?
a. sharing a producer's commission with the insurance applicant
b. allowing employees of a life insurance company to receive a commission on the premiums paid by them on policies of their own lives
c. offering advisory board contracts in connection with insurance sales
d. offering stocks and bonds in exchange for prospect's insurance business

Under the Oklahoma Insurance Code, a producer is a representative of which of the following?
a. insurer
b. policy owner
c. Insurance Department
d. Insured

The maximum obligation of the Oklahoma Life and Health Insurance Guaranty Association for all cash surrender values under life insurance policies covering any one life is:
a. $50,000
b. $100,000
c. $200,000
d. $300,000

Under O.S. Title 36 the Oklahoma Insurance Commissioner has the authority to do all of the following EXCEPT?
a. hire independent actuaries, actuaries and examiners to assist in the enforcement of the insurance code
b. charge the cost of an insurer examination to the insurer
c. charge the court costs of a hearing to the State of Oklahoma
d. educate consumers and make recommendations to the State of Oklahoma concerning insurance matters

A legally acceptable attempt by the existing insurance company to retain the business after a replacement form has been received is called?
a. conservation
b. corrosion
c. conversion
d. coercion

An illegal replacement of an existing policy is called?
a. defamation
b. rebating
c. twisting
d. boycott

Regarding the Oklahoma Life & Health Insurance Guaranty Association which of the following is true?
a. only domestic insurers are covered
b. variable life insurance policies are covered
c. it protects policy beneficiaries from financial loss due to an insolvent insurer
d. two accounts, Life and Health are maintained for financial tracking

An agent who lives in another state is called a:
a. foreign agent
b. unauthorized agent
c. non-resident agent
d. secret agent

Under O.S. Title 36, the Oklahoma Insurance Commissioner's general responsibilities would include all of the following EXCEPT?
a. administer and enforce the provisions of the Oklahoma Insurance Code
b. authority to conduct hearings, examinations, and initiate civil actions
c. report to the governor annually concerning the status of the insurance industry
d. develop insurance rates