Free Oklahoma P&C Exam Flashcards

A license grants authority from the state to act within approved lines of insurance. An appointment records an insurer's authorization for the producer to act as its agent. Oklahoma requires the appointment before a producer acts as an agent of that insurer.

Maintain required continuing education and renewal, report address or other required changes, handle premiums and commissions lawfully, and avoid conduct that supports suspension, revocation, denial, or penalties. Passing the exam is not permanent permission to ignore ongoing duties.

Domestic means formed under Oklahoma law; foreign means formed under another U.S. jurisdiction's law; alien means formed under another country's law. These labels describe domicile, not whether the insurer is authorized to transact insurance in Oklahoma.

Rebating offers an unapproved value or premium inducement to obtain business; twisting uses misleading comparisons to cause a policy change; defamation circulates false, maliciously critical statements about an insurer or insurance professional.

Examples include misrepresenting policy provisions, failing to investigate or communicate reasonably, denying without a reasonable basis, or compelling litigation by offering substantially less than is reasonably due. A producer should never promise a claim result outside policy terms and authorized authority.

A statutory guaranty association may handle certain eligible claims against an insolvent member. Coverage, claimant, and payment restrictions apply, so the mechanism is neither a substitute for insurer solvency nor a guarantee that every obligation will be paid in full.

It can provide coverage for an eligible risk that cannot be procured from the admitted market after required diligence. The placement must use authorized surplus-lines procedures and disclosures; the nonadmitted insurer does not receive the same state guaranty-association protection as an admitted insurer.

$25,000 is the bodily-injury limit for one person, $50,000 is the bodily-injury limit for two or more people in one accident, and $25,000 is the property-damage limit. They are statutory minimums, not a promise that losses cannot exceed them.

Insurers must offer UM/UIM coverage, but the applicant may select available limits or reject it in writing. It principally responds to covered bodily injury caused by an uninsured, underinsured, or hit-and-run motorist; it does not replace collision coverage for damage to the insured vehicle.

It is a residual-market mechanism for eligible drivers who cannot obtain coverage through the voluntary market. It helps provide access to required automobile insurance; it is not a low-price guarantee or automatic coverage without eligibility and premium payment.

Covered employees receive statutory benefits for qualifying work-related injury or disease without proving employer negligence. In exchange, workers' compensation is generally the exclusive remedy against the employer for covered injuries, subject to statutory exceptions.

Part One pays benefits required by the named workers' compensation law. Part Two covers specified employer-liability suits outside those statutory benefits. Other States coverage can extend Part One to listed or qualifying states when operations expand, but it does not automatically solve every monopolistic-state or known-operation issue.

Dwelling forms primarily insure dwelling property and can add personal property, loss-of-use, and liability coverages. Homeowners forms package property and personal liability for eligible owner-occupants or tenants, with coverage varying by the selected HO form.

Standard home coverage may limit or exclude high-value movable property, watercraft, mobile homes, or other specialized exposures. A scheduled floater, inland-marine form, endorsement, or separate policy can tailor valuation, perils, territory, and limits to the exposure.

Standard homeowners and dwelling forms generally exclude flood and earth movement. Coverage usually requires a separate policy or endorsement where available. A producer should identify the exposure and explain the coverage path without implying every water or ground-loss cause is treated alike.

Its main categories are the described building, the insured's business personal property, and personal property of others in the insured's care, custody, or control. Coverage still depends on location, limits, covered cause of loss, valuation, and exclusions.

Basic and Broad forms cover listed causes of loss, with Broad adding specified perils. Special uses an open-perils approach: direct physical loss is covered unless excluded or limited. Open-perils does not mean every loss is covered.

Business income replaces covered net income and continuing normal operating expenses during the restoration period. Extra expense pays necessary added costs to avoid or minimize suspension. Both generally require the triggering direct physical loss specified by the form.

A CPP combines selected commercial coverage parts and common conditions with substantial flexibility. A BOP packages property and liability in a standardized form for eligible smaller or lower-hazard businesses; eligibility and built-in coverages are more restricted.

Equipment breakdown addresses specified accidental mechanical, electrical, or pressure-system breakdown. Inland marine covers many movable or transportation-related property exposures. Commercial crime can address theft or fraud perils, while fidelity bonds commonly protect an employer from covered employee dishonesty.

Risk is uncertainty about loss; a peril is the cause of loss; a hazard increases the chance or severity of loss; and loss is the unintended reduction in value. Physical, moral, and morale hazards affect risk in different ways.

Direct loss is immediate physical damage from a covered cause. Indirect or consequential loss follows from that damage, such as lost income. Proximate cause is the dominant unbroken cause used to connect an event with the resulting loss when several events contribute.

Indemnity aims to restore the insured financially without allowing profit from loss. Insurable interest is a lawful financial stake in preserving the property and generally must exist when the property loss occurs.

Replacement cost begins with the expense of substituting new property of comparable kind and quality. Actual cash value commonly reduces that amount for depreciation. Payment under either method remains constrained by applicable conditions, deductibles, and limits.

It encourages insurance close to a stated percentage of property value. If insurance carried is below insurance required, the covered loss is multiplied by carried divided by required, then the deductible and policy limits apply according to the form.

The deductible is the portion of a covered loss borne by the insured before the policy responds as specified. The limit is the maximum the insurer will pay for the applicable coverage, occurrence, item, or location, subject to all policy terms.

Burglary involves unlawful entry or exit with visible evidence as defined by the form; robbery involves taking by force or threat; theft is the broader unlawful taking; mysterious disappearance is unexplained absence without proof of what happened. Coverage depends on the policy's definitions.

Declarations identify the parties, property, limits, premium, and policy period. The insuring agreement states the coverage promise. Exclusions remove or restrict coverage, and conditions establish duties and rules that govern performance and recovery.

Give prompt notice, protect property from further damage, separate and inventory damaged property, preserve evidence, cooperate with investigation, and submit a signed proof of loss when required. Duties do not authorize unsafe action or destruction of evidence.

A standard mortgage clause creates separate protection for the named mortgagee, subject to its own duties such as notifying the insurer of known risk changes and paying premium when required. The insurer can acquire the mortgagee's recovery rights after payment.

Appraisal generally decides the amount of loss when the insurer and insured disagree on value or damage. It does not ordinarily decide whether the policy affords coverage. Arbitration is a broader contractual dispute process when the applicable agreement provides for it.

A binder supplies temporary coverage pending the policy; an endorsement adds, removes, or modifies terms; assignment transfers rights only as policy and law permit; subrogation lets the insurer pursue a responsible third party after paying a covered loss.

Liability pays covered damages the insured is legally responsible for causing to others and provides a defense subject to the policy. Medical payments covers reasonable covered medical expenses for insured persons without requiring proof of fault, subject to its definitions and limits.

Collision covers upset or impact with another vehicle or object. Other-than-collision addresses specified noncollision causes such as theft, fire, hail, flood, glass breakage, or contact with an animal, subject to policy language and deductibles.

An owned auto is listed or qualifies under the policy; a temporary substitute replaces a covered auto withdrawn from normal use for a stated reason; a non-owned auto is used but not owned or regularly available to the insured. Coverage varies by person, vehicle, use, and coverage part.

Coverage A addresses covered bodily injury and property damage liability; Coverage B addresses defined personal and advertising injury offenses; Coverage C provides limited medical payments without requiring legal liability. Each has distinct triggers and exclusions.

Premises-and-operations losses arise from the location or ongoing work. Products-completed-operations losses arise after a product leaves the insured's control or work is completed away from the premises, subject to policy definitions and exclusions.

Owned autos belong to the business; hired autos are leased, rented, hired, or borrowed as defined; non-owned autos are used in the business but owned by others, often employees. Coverage symbols determine which categories apply to each coverage.

Garagekeepers addresses covered physical loss to customers' autos left in the insured's care, custody, or control. Garage liability addresses covered liability arising from garage operations. One does not automatically replace the other.

Professional liability responds to covered claims arising from professional errors, omissions, or wrongful acts rather than ordinary bodily injury or property damage hazards. E&O and D&O forms use specialized definitions, exclusions, limits, and often claims-made triggers.

The principal promises performance, the obligee requires and receives the bond's protection, and the surety guarantees the principal's obligation. If the surety pays a valid loss, it generally expects reimbursement from the principal under indemnity rights.

Both provide limits above scheduled underlying coverage after the applicable retention is satisfied. An umbrella may provide broader coverage for some claims subject to a self-insured retention; a pure excess form generally follows the underlying coverage more closely.

The claimant must establish a duty owed, breach of that duty, causation connecting the breach to harm, and legally recognized damages. The absence of any required element defeats the negligence claim.

An accident is generally an unintended event; occurrence commonly includes an accident and may include repeated exposure to substantially the same harmful conditions. The policy definition controls how related injuries are grouped and which limit applies.

Bodily injury concerns physical injury, sickness, disease, or resulting death as defined. Property damage concerns physical injury to tangible property or covered loss of use. Personal and advertising injury arises from enumerated offenses rather than bodily impact.

A per-person limit caps recovery for one injured person, a per-occurrence limit caps all covered damages from one occurrence, and an aggregate caps specified payments during the policy period. A combined single limit does not split bodily injury and property damage into separate sublimits.

It is evidence summarizing coverage in force on the issue date. It does not amend the policy, create coverage, guarantee future continuation, or automatically make the certificate holder an additional insured; an endorsement or policy term must grant such status.

Give prompt notice, send legal papers, cooperate with investigation and defense, authorize access to relevant information, and avoid voluntary payments or obligations outside permitted first aid. Compliance protects the insurer's ability to investigate and defend.

The wrongful act must fall on or after any retroactive date, the claim must first be made during the policy or applicable extended reporting period, and reporting must satisfy the form. Occurrence policies instead focus chiefly on when injury or damage occurred.

Other-insurance provisions coordinate primary, excess, or shared obligations when policies cover the same loss. Subrogation transfers the insured's recovery rights to the paying insurer to pursue a responsible party. Together they support indemnity rather than profit from loss.