Contracts, Provisions & Underwriting
Not publishedof exam
42 Provision Items13 Underwriting ItemsContract RulesApplication Workflow
Life Insurance & Annuities
Not publishedof exam
30 Life Items2 Replacement ItemsPolicy SelectionAnnuity Choices
Health, Medicare & LTC
Not publishedof exam
15 Health Items5 Medicare Items5 LTC ItemsCost Sharing
Oklahoma Law & Licensing
Not publishedof exam
9 Licensing Items29 State Law ItemsProducer ConductSpecial Sales Rules
Quick Facts
- Exam
- Life, Accident + Health
- Provider
- PSI
- Next outline
- Effective August 1, 2026
- Scored
- 150 items
- Time
- 150 minutes
- Pass
- 70% correct
- Fee
- $38
- Testing
- Center or remote
Contract Core
COAL plus competent parties
C: considerationO: offerA: acceptanceL: legal purposeParties: competent
Official Outline Allocation
- Licensing
- 9 scored items
- State law
- 29 scored items
- Provisions and rights
- 42 scored items
- Life products
- 30 scored items
- Underwriting
- 13 scored items
- Replacement
- 2 scored items
- Health products
- 15 scored items
- Medicare
- 5 scored items
- Long-term care
- 5 scored items
- Passing
- 70% correct
Contracts & Underwriting
- Consideration
- Premium plus truthful statements
- Competent parties
- Legal capacity required
- Legal purpose
- Lawful contract objective
- Adhesion
- Insurer drafts language
- Aleatory
- Unequal value exchange
- Unilateral
- Insurer makes enforceable promise
- Conditional
- Performance requires conditions
- Application
- Primary underwriting source
- Consumer report
- Third-party underwriting data
- Insurable interest
- Required at policy inception
- Conditional receipt
- Coverage depends on conditions
- Policy delivery
- Explain terms and effective date
Mandatory Policy Provisions
- Entire contract
- Policy plus attached application
- Time limit defenses
- Limits later claim challenges
- Grace period
- Late premium protection
- Notice of claim
- Starts claim notification
- Claim forms
- Insurer supplies forms
- Proof of loss
- Documents covered loss
- Claims timing
- Sets payment timing
- Payment of claims
- Names proper recipient
- Legal actions
- Sets lawsuit window
- Change beneficiary
- Preserves owner choice
- Continuation
- Benefits survive termination
- Preexisting conditions
- Prior-condition coverage limits
Policy Spectrum
Term rents; whole owns; universal flexes; variable fluctuates
Term: temporaryWhole: guaranteedUniversal: flexibleVariable: market risk
Term vs Whole
Term
- Temporary protection
- No cash value
- Lower initial premium
Whole
- Permanent protection
- Guaranteed cash value
- Fixed premium
Temporary vs permanent
Life Policy Picker
- Temporary death need→Term life(No cash value)
- Permanent fixed guarantees→Whole life
- Flexible premium need→Universal life
- Market-linked separate accounts→Variable life(Owner bears risk)
- Two lives; first death→Joint life
- Two lives; second death→Survivorship life
- Future coverage option→Guaranteed insurability
- Terminal illness liquidity→Accelerated benefit
Life Product Map
- Term life
- Temporary death protection
- Whole life
- Permanent fixed guarantees
- Universal life
- Flexible premium policy
- Joint life
- Pays first death
- Survivorship life
- Pays second death
- Variable life
- Separate-account market risk
- Group life
- Master contract; certificates
- Viatical settlement
- Owner sells existing policy
- MEC
- Seven-pay tax classification
- Waiver rider
- Disability may waive premiums
- Guaranteed insurability
- Buy more without evidence
- Accelerated benefit
- Early death-benefit access
Fixed vs Variable Annuity
Fixed
- General account
- Insurer bears risk
- Contract guarantees
Variable
- Separate accounts
- Owner bears risk
- Values fluctuate
Guarantee vs market risk
Life Value Picker
- Need policy cash→Policy loan(Coverage continues)
- End policy for value→Cash surrender
- Keep full benefit temporarily→Extended term
- Keep smaller permanent benefit→Reduced paid-up
- Protect late premium→Automatic premium loan
- Change beneficiary freely→Revocable designation
Life Rights & Values
- Policyowner
- Controls contract rights
- Insured
- Supplies mortality risk
- Beneficiary
- Receives policy proceeds
- Primary beneficiary
- First proceeds recipient
- Contingent beneficiary
- Backup proceeds recipient
- Revocable beneficiary
- Owner may change
- Irrevocable beneficiary
- Consent protects rights
- Assignment
- Transfers policy rights
- Policy loan
- Borrowing reduces proceeds
- Cash surrender
- Ends coverage for value
- Extended term
- Full benefit temporarily
- Reduced paid-up
- Smaller permanent benefit
- Automatic premium loan
- Cash value pays premium
- Life income
- Lifetime settlement stream
Revocable vs Irrevocable
Revocable
- Owner may change
- No beneficiary consent
Irrevocable
- Rights are vested
- Consent generally required
Flexible vs protected
Annuity Map
- Owner
- Controls annuity contract
- Annuitant
- Measuring life
- Beneficiary
- Receives remaining benefit
- Accumulation
- Value-building phase
- Annuitization
- Converts value into income
- Fixed annuity
- Insurer guarantees values
- Indexed annuity
- Index-linked interest crediting
- Variable annuity
- Separate-account market risk
- Immediate annuity
- Income begins soon
- Deferred annuity
- Income begins later
- Surrender charge
- Early-exit contract charge
Medicare Parts
A hospital, B medical, C Advantage, D drugs
A: hospitalB: medicalC: AdvantageD: drugs
HMO vs PPO
HMO
- Coordinated care
- Tighter network
- Referral model
PPO
- Broader choice
- Outside-network benefits
- More flexibility
Coordination vs flexibility
Health Coverage Picker
- Broad medical expenses→Major medical
- Coordinated network care→HMO
- Provider flexibility→PPO
- Named illness cash→Specified disease
- Fixed hospital cash→Hospital indemnity
- Lost earned income→Disability income
- Original Medicare gaps→Medigap
- Extended daily-living support→Long-term care
Health Product Map
- Major medical
- Broad medical expense coverage
- Limited benefit
- Narrow specified coverage
- Specified disease
- Named-condition benefit
- Hospital indemnity
- Fixed hospital cash
- HMO
- Coordinated network care
- PPO
- Preferred network flexibility
- MEWA
- Employers pool welfare benefits
- Group health
- Master contract coverage
- Credit disability
- Covers debt payments
- Disability income
- Replaces earned income
- Dental
- Oral-care benefits
- AD&D
- Accidental loss benefit
Deductible vs Elimination
Deductible
- Measured in money
- Cost-sharing threshold
Elimination
- Measured in time
- Benefit waiting period
Dollars vs days
Cost Sharing & Renewability
- Deductible
- Insured pays first
- Coinsurance
- Shared percentage
- Copay
- Fixed service amount
- Out-of-pocket maximum
- Annual covered-cost ceiling
- Waiting period
- Coverage-start delay
- Elimination period
- Benefit-payment delay
- Benefit period
- Maximum payment duration
- Own occupation
- Cannot perform own work
- Any occupation
- Cannot perform suitable work
- Cancellable
- Insurer may terminate
- Guaranteed renewable
- Must renew; class rates change
- Noncancelable
- Must renew; premium locked
Advantage vs Medigap
Medicare Advantage
- Private Medicare route
- Provides Parts A-B
- May include drugs
Medigap
- Supplements Original Medicare
- Fills selected gaps
- Separate policy
Alternative vs supplement
Medicare & Long-Term Care
- Medicare Part A
- Inpatient hospital coverage
- Medicare Part B
- Medical and outpatient coverage
- Medicare Part C
- Private Medicare alternative
- Medicare Part D
- Prescription drug coverage
- Original Medicare
- Parts A and B
- Medigap
- Fills Original Medicare gaps
- Medicare Advantage
- Replaces Original delivery route
- Long-term care
- Extended services and supports
- Custodial care
- Daily-living assistance
- ADLs
- Measures functional limitations
- LTC renewability
- Review continuation rights
- LTC suitability
- Match needs and resources
Replacement Pack
Notice, statement, sales material, twenty-day return
Notice: before signatureStatement: notification choiceMaterials: forward copiesReturn: 20 days
Twisting vs Rebating
Twisting
- Misleading comparison
- Induces replacement
Rebating
- Unstated inducement
- May return commission
Mislead vs reward
Oklahoma Compliance Path
- Pass PSI exam→Wait three business days
- Waiting period ends→Apply through NIPR
- Representing an insurer→Confirm appointment
- Name or address changes→Report within 30 days
- Administrative action ends→Report within 30 days
- Criminal pretrial hearing→Report within 30 days
- Annuity sale planned→Complete approved training
- Replacing life coverage→Deliver required notice
- Applicant requests notification→Notify existing insurer
- License renewal approaches→Verify CE compliant
Oklahoma Licensing
- Regulator
- Oklahoma Insurance Department
- Minimum age
- 18 years
- Exam eligibility
- Open until passed
- Work authority
- Active license required
- After passing
- Wait three business days
- Application system
- NIPR
- Appointment
- Required before carrier agency
- Appointment filing
- Within 15 days
- Name or address
- Report within 30 days
- Administrative action
- Report within 30 days
- Criminal prosecution
- 30 days from hearing
- Transaction records
- Keep three years
Oklahoma Thirties
Changes thirty; actions thirty; prosecutions thirty
Changes: 30 daysActions: 30 daysCriminal: 30 days
License vs Appointment
License
- State grants authority
- Line-specific qualification
Appointment
- Carrier grants agency
- Carrier-specific relationship
State authority vs carrier
Oklahoma Producer Conduct
- Misrepresentation
- False policy statement
- Twisting
- Misleading replacement inducement
- Rebating
- Unstated sales inducement
- Returned commission
- Rebate when securing business
- Defamation
- False malicious competitor statement
- Boycott
- Restrictive concerted action
- Coercion
- Pressure distorts choice
- Unfair discrimination
- Unequal same-class treatment
- Unlicensed commissions
- Payment and acceptance prohibited
- Guaranty Association
- Never a sales inducement
Oklahoma Replacement Rules
- Replacement trigger
- New policy displaces existing
- Application question
- Ask about existing replacement
- Applicant notice
- Deliver before application signature
- Signed statement
- Applicant chooses insurer notice
- Sales material
- Forward copies with application
- Insurer review
- Within five days
- Existing insurer notice
- Five days when requested
- Replacement records
- Keep three years
- Return right
- At least 20 days
- New policy clocks
- Suicide and contestability restart
Oklahoma Special Rules
- Standard producer CE
- 24 hours biennially
- Ethics CE
- Three hours
- Legislative update CE
- Two hours
- General CE
- Nineteen hours
- CE carryover
- Six excess hours
- Initial LTC training
- Eight hours before sales
- LTC renewal training
- Four hours each cycle
- New annuity producer
- Four-hour training before sales
- Annuity recommendation
- Best interest applies
- Annuity paperwork
- Disclose and document
- Medigap birthday rule
- 60 days from birthday
- Birthday rule choice
- Equal-or-lesser benefits
- Birthday underwriting
- Waived for eligible switch
- Life or annuity free look
- Ten days
- Medigap or LTC
- Thirty-day free look
Common Traps
Counts vs weights
PSI publishes item counts ≠ Domain percentages not published
License vs appointment
License grants state authority ≠ Appointment grants carrier agency
Owner vs insured
Owner controls rights ≠ Insured supplies mortality risk
Deductible vs elimination
Deductible is money ≠ Elimination is time
Advantage vs Medigap
Advantage delivers Medicare ≠ Medigap supplements Original Medicare
Replacement vs twisting
Replacement may be suitable ≠ Misleading replacement is twisting
Guaranty vs guarantee
Coverage has statutory limits ≠ Never use as inducement
Universal flexibility
Premiums may be flexible ≠ Coverage can still lapse
Birthday rule scope
Medigap policies only ≠ Equal-or-lesser benefits protected
Last Minute
- 1.Use your test-date PSI outline
- 2.150 scored; 150 minutes; 70%
- 3.OID regulates; PSI tests
- 4.License first; appointment carrier-specific
- 5.Changes and actions: 30 days
- 6.Transaction records: three years
- 7.CE: 24 biennially; ethics three
- 8.Annuity training: four hours first
- 9.Replacement return: at least 20 days
- 10.Term temporary; whole permanent
- 11.Owner controls; beneficiary receives
- 12.Deductible dollars; elimination time
- 13.Medigap supplements Original Medicare
- 14.Birthday rule: equal-or-lesser only
- 15.Never sell on guaranty protection
- 16.Rebates include returned commissions
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