Ok-Life-Accident-and-Health-or-Sickness-Producer Exam Dumps - Insurance Licensing Life, Accident, and Health Questions and Answers

Under Oklahoma’s Insurance Code (Title 36 O.S. § 1435.13), a producer who knowingly and willfully makes a fraudulent statement on an insurance application faces disciplinary actions, includingsuspension,revocation, orcensureof their license, as well as potential fines or criminal penalties.Discriminationis not a disciplinary action; it refers to unfair treatment and is unrelated to fraud penalties.

Option A: Incorrect (is a penalty). Suspension of the license is a possible consequence.

Option B: Incorrect (is a penalty). Revocation of the license is a possible consequence.

Option C: Correct (is not a penalty). Discrimination is not a disciplinary action for fraud.

Option D: Incorrect (is a penalty). Censure is a formal reprimand and a possible consequence.

Aninducementin insurance involves offering something of value to persuade someone to purchase a policy, which is consideredrebatingand prohibited in Oklahoma unless allowed under specific exceptions (Title 36 O.S. § 1204). Oklahoma allows gifts valued at $100 or less as non-rebating promotional items, so a gift under $100 is not an inducement. Other actions, like promising employment, offering premium payment favors, or giving high-value merchandise, are considered inducements.

Option A: Incorrect (is an inducement). Promising employment to secure a policy sale is rebating.

Option B: Correct (is not an inducement). A gift valued less than $100 is permitted and not considered rebating.

Option C: Incorrect (is an inducement). Special favors in premium payments are rebating.

Option D: Incorrect (is an inducement). Giving merchandise worth $250 exceeds the $100 limit and is rebating.

In group health insurance, the employer or group sponsor receives themaster policy, while employees covered under the plan are issued acertificate of insurance, which summarizes their coverage but is not the policy itself, as per Oklahoma’s regulations (Title 36 O.S. § 6060.3).

Option A: Incorrect. Employees do not receive individual policies; the employer holds the master policy.

Option B: Incorrect. The contract is the master policy, not issued to employees.

Option C: Incorrect. “Covenant” is not an insurance term.

Option D: Correct. Employees receive a certificate of insurance.

Acancelablehealth insurance policy allows the insurer to cancel the policy at any time during the term with proper notice, typically for reasons like non-payment or fraud, as permitted under Oklahoma’s regulations (Title 36 O.S. § 4405). Other policy types, like optionally renewable (insurer can refuse renewal at term end), conditionally renewable (renewal subject to conditions), or term (fixed duration), do not typically allow mid-term cancellation.

Option A: Incorrect. Optionally renewable policies can be non-renewed at term end, not cancelled mid-term.

Option B: Incorrect. Term policies (life or health) run for a fixed period and are not typically cancelled mid-term.

Option C: Incorrect. Conditionally renewable policies restrict renewal, not mid-term cancellation.

Option D: Correct. A cancelable policy allows mid-term cancellation by the insurer.

When applying for a life or health insurance policy in Oklahoma, the insurer’s underwriting process typically involves reviewing the applicant’smedical historyto assess risk, as permitted under Title 36 O.S. § 1204. This may include questions about personal and family health, but not all family illnesses need to be reported unless specifically requested. Physical examinations are not always required, and undiagnosed conditions are not expected to be recorded; the applicant must disclose known conditions truthfully.

Option A: Incorrect. Reporting all family illnesses is not mandatory unless relevant to underwriting questions.

Option B: Incorrect. A physical exam is not always required; it depends on the insurer’s underwriting guidelines.

Option C: Incorrect. Undiagnosed conditions cannot be recorded; only known conditions are reported.

Option D: Correct. The insured’s medical history may be reviewed and reported during underwriting.

Arideris an endorsement or amendment to an insurance policy that modifies its clauses, provisions, or coverage. Riders can add, remove, or alter benefits, such as adding coverage for a specific condition or family members in life or health insurance policies. The term is standard in Oklahoma insurance law and practice.

Option A: Incorrect. An attachment is not a specific insurance term for policy modifications.

Option B: Incorrect. A supplement may refer to additional coverage but is not the standard term for policy endorsements.

Option C: Correct. A rider is an endorsement that modifies policy provisions.

Option D: Incorrect. “Add-on” is not a formal insurance term for policy modifications.

This question aligns with the Prometric content outline under “Provisions, Options, Exclusions, Riders, Clauses, and Rights,” which covers policy endorsements.