Oklahoma Personal Lines Insurance License Exam — All Questions

What minimum auto liability limits must a Oklahoma personal auto policy carry to meet the state's financial-responsibility law?

• a.$15,000 per person / $30,000 per accident bodily injury and $5,000 property damage
• b.$50,000 per person / $100,000 per accident bodily injury and $50,000 property damage
• c.$25,000 bodily injury per person, $50,000 bodily injury per accident, and $25,000 property damage✓
• d.$20,000 per person / $40,000 per accident bodily injury and $15,000 property damage

Oklahoma sets minimum motor-vehicle liability limits of 25/50/25 — $25,000 bodily injury per person, $50,000 bodily injury per accident, and $25,000 property damage. These are floors; producers should offer higher limits to better protect the insured's assets. Source: 47 O.S. 7-324; verify current figures with the Oklahoma Insurance Department (https://www.oid.ok.gov).

How does Oklahoma generally handle liability for auto accidents?

• a.It is a pure no-fault state; each driver's own insurer pays regardless of fault
• b.It bars all lawsuits between drivers and routes claims through a state fund
• c.It is a traditional at-fault (tort) state; the at-fault driver is responsible for the other party's injuries and property damage✓
• d.It requires mandatory PIP on every policy in place of liability coverage

Oklahoma is a traditional at-fault (tort) state: the driver who causes a crash is responsible for the other party's injuries and property damage, which is why liability and uninsured-motorist limits matter. Oklahoma does not use a no-fault/PIP system. Confirm current rules with the Oklahoma Insurance Department (https://www.oid.ok.gov).

How is uninsured/underinsured motorist (UM/UIM) coverage handled on a personal auto policy in Oklahoma?

• a.It is prohibited
• b.Insurers must offer it; the applicant may accept or reject it in writing✓
• c.It automatically replaces liability coverage
• d.It is available only to commercial fleets

Oklahoma requires insurers to offer uninsured/underinsured motorist coverage; the applicant may accept or reject it (rejection is generally documented in writing). UM/UIM protects the insured when the at-fault driver has no or insufficient coverage. Confirm the current requirement with the Oklahoma Insurance Department (https://www.oid.ok.gov).

How are cancellation and nonrenewal of a personal auto or homeowners policy regulated in Oklahoma?

• a.An insurer may cancel any personal policy at any time for any reason with no notice
• b.Only the policyholder may ever cancel; insurers can never cancel mid-term
• c.There are no notice rules; cancellation is governed solely by the contract
• d.State law limits the reasons an insurer may cancel or nonrenew and requires advance written notice to the insured; confirm the exact notice period with the Oklahoma Insurance Department✓

Oklahoma restricts mid-term cancellation of personal auto and homeowners policies to specified reasons (such as nonpayment or material misrepresentation) and requires advance written notice of cancellation or nonrenewal. The exact number of days varies by reason and line — verify the current Oklahoma notice periods with the Oklahoma Insurance Department.

Which best describes the body that writes and enforces Oklahoma's insurance regulations affecting personal lines policies?

• a.The Oklahoma Insurance Department, a state agency that supervises insurers and licenses producers✓
• b.A private trade association of insurers with no government authority
• c.The federal Department of Insurance in Washington, D.C.
• d.The county clerk's office where the policy is issued

Insurance in Oklahoma is regulated at the state level by the Oklahoma Insurance Department. There is no federal department of insurance; each state supervises its own market, licenses producers, and enforces cancellation, rating, and coverage rules. Source: Oklahoma Insurance Department (https://www.oid.ok.gov).