Oklahoma State Personal
Lines Property and Casualty
Lines Insurance Test
questions with verified
solutions(updated)
HO-1 - answer a policy that typically helps cover 10 perils
fire and lightning; windstorms and hail; explosion; riots and civil commotion;
aircraft; vehicles; smoke; vandalism and malicious mischief; theft; glass that is
part of the home; and volcanic eruptions
HO-2 - answer Broad Form; owner occupant
it covers both your dwelling and personal property from damage caused by
events, or perils, specifically named in your policy and nothing else.
HO-3 - answer Special Form; owner occupant
insures the described owner-occupied dwelling, private structures in connection
with the dwelling, unscheduled personal property on and away from the premises,
and loss of use.
HO-4 - answer Tenants or Renters
covers: 1) damages or losses to your stuff 2) legal fees if you're sued 3) other's
medical bills if you're at fault and 4) temp living expenses if your place becomes
uninhabitable.
HO-5 - answer Comprehensive Form; owner occupant
,protects your home's main structure, including its exterior and interior walls,
foundation and roof. Other structures: This type of coverage protects detached
structures on your property, like fences, gazebos, guest houses and swimming
pools.
BROADEST FORM OF ALL
HO-6 - answer Condominium Owners
condo insurance protects your unit and everything it contains, provides liability
coverage, loss of use coverage and more
HO-8 - answer Modified Form for Special Risks
provides basic named perils coverage for direct damage to property, personal
liability coverage, and medical payments to others as respects owner-occupied
dwellings.
What is covered in broad perils form?
a. Theft
b. glass breakage
c. smoke
d. riot - answer b. glass breakage
along with ice and snow weight, freezing pipes collapse, falling objects and
electrical damage.
DP-1 - answer this policy is an "actual cash value" policy, which means
depreciation will be deducted from any damages you are awarded after a claim
after a fire.
vandalism and malicious mischief is an optional coverage under this section.
,Fire, lightning internal, explosion.
DP-2 - answer Designed for rental companies
insures your property for its replacement cost, which offers the full amount to
replace or repair the property with new, similar items after a fire.
DP-3 - answer Covers the structure after a fire, may not include sheds or garages.
Theft is not covered under this. Debris removal is paid in the limit assigned.
Which form is undesirable, pure or speculative? - answer Pure
Special forms coverage is coverage on a DP policy that combines broad form
perils with what other perils? - answer Special forms coverage- combines them
both.
DP-2 and DP-3 deny coverage for a dwelling vacant for more than 30 days. This
restriction was amended in 2002 to how many days? - answer 60
Insured motorists who successfully complete a motor vehicle accident prevention
course are entitled to a reduced premium for how long? - answer 3 years
Homeowners policy renewal notices must be mailed at least how many days prior
to policy expiration? - answer 30 days
Acme Imports has purchased a large number of wooden salt and pepper shakers
from Poland and will import them to the United States. The shipment will be
covered by an inland marine insurance policy while in all of the following places
EXCEPT... - answer stocking shelves
Limited lines producers may be licensed to transact all of the following insurance
business EXCEPT... - answer casualty and prepaid dental
Which of the following is NOT an unfair trade practice? - answer replacing life
insurance policies
, How many days' written notice must be given if an insurer wishes to change the
deductible within a policy? - answer 45
Sole proprietors are exempt from Workers Compensation. - answer true
If an insurer engages in any trade practice that involves unfair competition or
deceptive acts, the Commissioner may investigate possible unfair trade practices
and do witch of the following... - answer -fine the insurer
-suspend the license
-revoke the license
Any person who is employed in agriculture or horticulture who is notengaged in
operation of motorized machines is exempt from Workers Compensation. - answer
true
Before selling insurance to the public, an unauthorized insurer must.. - answer
Receive any new business directly through an eligible surplus lines licensee or
broker
Binders, written or oral, expire when? - answer 90 days after effective date
Payments for temporary partial disability may NOT exceed how many weeks in the
aggregate? - answer 52
An insurance company's license to do business in Oklahoma is called... - answer a
certificate of authority
Statements the applicant believes are true. - answer Representations
Which of the following are elements of an act of fraud? - answer -Someone
deliberately lies.
-The intent of the lie is for someone else to rely on that lie.
-Another person relies on that lie.
-The other person suffers harm as a result of relying on that lie.
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