Oklahoma Property & Casualty Insurance License Exam — All Questions
3 questions
Which official regulates insurance and licenses resident property and casualty producers in Oklahoma?
- a.The Oklahoma Secretary of State
- b.The Oklahoma Department of Public Safety
- c.The Oklahoma Insurance Commissioner (Oklahoma Insurance Department)✓
- d.The Oklahoma Corporation Commission
Oklahoma regulates insurance through the Oklahoma Insurance Department (OID), led by the elected Insurance Commissioner. The office has overseen the insurance industry since voters created the elected Commissioner in 1907. On the exam, remember that the Insurance Commissioner, not the Secretary of State or Department of Public Safety, licenses property and casualty producers.
An Oklahoma producer offers to rebate part of the commission to a client as an inducement to buy a policy. Under Oklahoma law this is:
- a.Permitted if the insurer approves
- b.Permitted for commercial clients only
- c.Prohibited rebating✓
- d.Required to be reported but otherwise lawful
Giving any part of the premium or commission, or other valuable consideration not stated in the policy, as an inducement to buy is prohibited rebating under Oklahoma's unfair trade practices law and can bring fines and license action by the Oklahoma Insurance Commissioner.
After an Oklahoma personal auto or homeowners policy is past its initial underwriting period, an insurer's mid-term cancellation is generally allowed only:
- a.For specific statutory grounds such as nonpayment of premium or fraud, with required advance written notice✓
- b.For any reason, with no notice
- c.Only during the first 24 hours of the policy
- d.Never, once the policy is issued
Oklahoma limits mid-term cancellation of seasoned personal-lines policies to defined grounds such as nonpayment or fraud and requires advance written notice so the insured can replace coverage. The exact notice day-counts are set by statute and can change; verify current figures with the Oklahoma Insurance Department.