Free OK Life & Health Exam Flashcards

PSI delivers 150 scored questions plus 5 unscored questions in 150 minutes. A score of 70% correct is required. The five unscored items are mixed into the appointment, so manage time across all 155 delivered questions rather than trying to identify them.

The Oklahoma Insurance Department regulates insurance and issues or disciplines licenses; PSI registers candidates, administers the examination, and reports results. Passing a PSI exam is evidence for the application—it is not itself a license to transact insurance.

A license is the state's authority to act within a line of insurance. An appointment records that a particular insurer authorizes the producer to represent it. A licensed producer cannot assume that the license alone permits acting for every insurer.

They identify where the insurer was formed: domestic means organized under Oklahoma law, foreign means organized under another U.S. jurisdiction, and alien means organized under the law of another country. The labels describe domicile, not financial strength.

A stock insurer is owned by shareholders; a mutual insurer is owned by its policyholders. A mutual insurer may issue participating policies eligible for dividends, but dividends are not guaranteed and should never be presented as guaranteed policy benefits.

Twisting uses a misleading statement, comparison, or omission to induce a policyowner to lapse, surrender, forfeit, or replace existing coverage. The violation is the deceptive inducement—not the mere fact that a new policy replaces an old one.

Under 36 O.S. § 1204(8), offering premium, commission, a special favor, or another valuable inducement not specified in the policy can be rebating. OID has clarified that negotiating a commission return to win or retain business remains rebating unless a statutory exception applies.

The Oklahoma Act targets claim-handling conduct such as failing to acknowledge communications promptly, refusing a reasonable investigation, or not attempting a prompt, fair settlement when liability is reasonably clear. A good-faith disagreement over an uncovered loss is not automatically an unfair practice.

It is a statutory safety net for certain covered obligations when a member insurer becomes impaired or insolvent, subject to limits and exclusions. A producer may not use its existence as a sales inducement or imply that it makes product or insurer selection risk-free.

The Fair Credit Reporting Act requires an adverse-action notice identifying the consumer reporting agency and explaining the applicant's rights to obtain and dispute the report. The reporting agency supplied information; it did not make the insurer's underwriting decision.

Under 18 U.S.C. § 1033, a person with a qualifying conviction generally may not willfully participate in the business of insurance without written consent from the appropriate insurance regulatory official. In Oklahoma, the applicant should obtain the required 1033 consent before proceeding with insurance activity.

Electronic delivery can satisfy the delivery requirement when the consumer has consented and the statutory electronic-delivery safeguards are met. A producer should not treat possession of an email address as automatic consent or skip required access and retention disclosures.

The producer must act in the consumer's best interest under the known circumstances, without placing the producer's or insurer's financial interest first. That requires care, disclosure, conflict management, and documentation, including a reasonable inquiry into the consumer's finances, insurance needs, objectives, liquidity, and product fit.

The policy, attached application, and attached riders or endorsements form the entire contract. The provision prevents an insurer or producer from enforcing undisclosed side agreements and makes attachment of application statements important.

The insuring clause states the insurer's basic promise to pay covered benefits. The consideration clause identifies the exchange supporting that promise—typically the applicant's statements and premium in return for the insurer's coverage obligation.

OID describes an extra 30 days or one month to pay an overdue life premium while the policy remains in force. If the insured dies during that interval, the claim is payable subject to the policy, with the unpaid premium deducted from proceeds.

Reinstatement generally requires an application, satisfactory evidence of insurability, and payment of overdue premiums plus interest within the policy's allowed period. Reinstatement revives the original contract; it is not the same as buying a brand-new policy.

Incontestability limits the insurer's ability to void coverage for most application misstatements after the stated contestable period, while nonpayment remains a separate issue. A suicide clause instead defines the early-policy remedy for death by suicide, commonly a premium refund rather than the full death benefit during its stated period.

The insurer adjusts the benefit or premium to the amount the paid premium would have purchased at the correct age or sex. The clause corrects the pricing error rather than automatically voiding the policy.

Unless restricted by an irrevocable beneficiary or assignment, the owner can name beneficiaries, choose options, borrow or withdraw available cash value, assign ownership rights, and surrender the policy. The insured is the life covered; the beneficiary receives proceeds when the contract's conditions are met.

A primary beneficiary has first claim; a contingent beneficiary is next if no primary beneficiary qualifies. A revocable designation can usually be changed by the owner, while an irrevocable beneficiary generally must consent to a change or an owner action that impairs the beneficiary's vested interest.

Cash surrender ends coverage and pays available value; reduced paid-up uses value to buy a smaller permanent death benefit with no further premiums; extended term uses value to keep the original face amount as term insurance for a limited time.

An automatic premium loan borrows available cash value to pay an overdue premium, creating debt and interest. A waiver rider excuses premiums after a covered disability and required waiting period without creating a policy loan.

A policy loan uses cash value as collateral and accrues interest; unpaid debt reduces proceeds and can contribute to lapse. A withdrawal or partial surrender permanently removes value and may reduce the death benefit. Neither should be described as free access to money without consequences.

A lump sum pays immediately; interest-only preserves principal temporarily; fixed-period and fixed-amount options spread proceeds by time or payment size; life-income options can pay for life but shift the risk of early death to the beneficiary unless a period-certain or refund feature is added.

A probationary period begins at policy issue and delays coverage for specified sicknesses or conditions. An elimination period begins after a covered disability starts and delays benefit payments. One limits when a cause becomes covered; the other is a time deductible after loss.

Cancellable coverage may be ended as the contract permits. Guaranteed renewable coverage must be renewed while premiums are paid, although class-wide rate changes may be allowed. Noncancelable coverage adds a contractual premium guarantee, making it the strongest of the three.

Term life supplies death protection for a stated period without guaranteed cash-value accumulation. Level term keeps the face amount level, decreasing term reduces it, renewable term can continue without new insurability evidence at higher age-based premiums, and convertible term can change to permanent coverage under the contract.

Whole life combines permanent death protection, level scheduled premiums, and guaranteed cash-value growth when premiums are paid as required. Term generally starts cheaper for the same face amount but has an expiration date and no guaranteed cash value.

Universal life separates policy charges from cash-value interest and may permit flexible premiums and adjustable death benefits. Flexibility is not a promise that any payment level will sustain coverage: low crediting, withdrawals, loans, or inadequate funding can exhaust value and cause lapse.

The policyowner selects separate-account investments and bears their market risk, so cash value and any variable benefit can rise or fall. Because variable life is both insurance and a security, its seller needs the appropriate insurance authority and securities registration.

Joint life is first-to-die coverage and pays when the first insured dies, often addressing an immediate shared obligation. Survivorship, or second-to-die, pays after the last insured dies, often matching estate-liquidity needs.

During accumulation, premiums and credited earnings build contract value. Annuitization converts value to a stream of payments and is generally irrevocable. An immediate annuity starts income no later than one year after premium; a deferred annuity schedules income for a later date.

A fixed annuity credits interest as the contract specifies; an equity-indexed annuity is a fixed product whose crediting formula references an outside index and may use caps, spreads, or participation rates; a variable annuity uses separate accounts and exposes value to market gains and losses.

The insurer issues a master contract to the group sponsor and covered members receive certificates. A departing member's conversion privilege can preserve coverage by changing eligible group term insurance to an individual policy without new evidence of insurability if exercised within the contract's deadline.

A viatical settlement transfers policy ownership and beneficiary rights to a third-party purchaser for cash, so that purchaser later receives the death benefit. An accelerated benefit is paid by the existing insurer under the policy while the insured is living and reduces the remaining death benefit.

A life policy that fails the federal 7-pay test becomes a MEC. It remains life insurance, but loans and withdrawals are generally taxed gain-first, and a taxable distribution before age 59½ may face a 10% federal penalty. MEC status does not normally reverse later.

The application supplies underwriting facts and becomes part of the insurer's decision. The applicant and producer must provide required signatures and correct incomplete or inaccurate answers; material misrepresentation or concealment can support rescission or claim denial within applicable limits.

No. A conditional receipt makes any early effective date depend on its stated conditions, commonly that the applicant was insurable as applied for on the relevant date. A producer must explain the condition and never promise unconditional coverage before underwriting is satisfied.

It must exist when the policy is initiated. A person has an unlimited interest in their own life; another applicant needs a recognized relationship or economic interest in the insured's continued life. The requirement prevents a life policy from beginning as a wager.

The producer should explain ratings, exclusions, riders, and other changes from the application, collect any required balance, and obtain required acknowledgments or a statement of continued good health. Delivery is the point to confirm what was actually issued—not to restate the original request as if unchanged.

Identify that replacement may occur, give the required notices and comparisons, and accurately disclose disadvantages such as new contestability, surrender charges, lost guarantees, or changed benefits. The client should not terminate existing coverage until the new contract is issued, reviewed, and accepted.

Major medical covers a broad range of covered expenses and limits annual member cost-sharing under its terms. Specified-disease and hospital-indemnity policies pay only for named events or fixed amounts, so their benefit can be far below the actual bill.

The deductible is the amount paid before specified plan benefits begin; a copayment is a fixed charge; coinsurance is a percentage share. For covered in-network services, the out-of-pocket maximum caps applicable member cost-sharing for the plan year, after which the plan pays covered costs under its terms.

An HMO generally emphasizes a defined network, coordinated care, and often a primary-care gatekeeper, with limited nonemergency out-of-network benefits. A PPO usually permits out-of-network care without a referral but applies higher member cost-sharing.

The employer or group holds the master contract while members receive coverage certificates. Coordination of benefits orders payment when multiple plans cover a person so combined benefits do not exceed covered expense. COBRA can continue qualifying employer coverage after certain events, but the former member generally pays the premium.

Own-occupation focuses on whether the insured can perform the material duties of their regular occupation. Any-occupation requires inability to perform work suited to education, training, or experience and is harder to satisfy. The exact definition and when it changes are controlled by the policy.

Part A is hospital insurance; Part B is medical insurance for physicians, outpatient care, and related services; Part C is Medicare Advantage offered through approved private plans as an alternative way to receive A and B benefits; Part D covers outpatient prescription drugs.

Medigap is private supplemental coverage that helps pay certain cost-sharing under Original Medicare and generally requires Parts A and B. Medicare Advantage is Part C—an alternative private-plan method of receiving Medicare benefits. A Medigap policy does not supplement an Advantage plan.

LTC insurance can cover extended custodial and supportive care at home, in the community, assisted living, or a nursing facility. Benefits commonly depend on inability to perform specified activities of daily living or severe cognitive impairment; suitability includes benefit choices, renewability, inflation protection, and the buyer's ability to sustain premiums.