OPCI - Oklahoma Property and Casualty Insurance Exam

Question 1: An Oklahoma City homeowner insures the house she owns and lives in, standing to suffer real financial loss if it burns. This required financial stake in the property, which must exist at the time of a property loss, is known as which of the following?

Proximate cause

Subrogation

Insurable interest

Contribution

Question 2: After a covered kitchen fire, an Oklahoma insurer pays the homeowner enough to restore her financial position to what it was just before the loss, but no more, so she does not profit from the claim. Which principle does this describe?

Indemnity

Coinsurance

Appraisal

Salvage

Question 3: An adjuster tells a Tulsa homeowner that her ten-year-old asphalt roof will be settled at its replacement cost minus depreciation for age and normal wear. Which of the following property valuation methods is the adjuster applying to the damaged roof in reaching that figure?

Replacement cost

Agreed value

Actual cash value

Functional value

Question 4: An Oklahoma homeowner buys coverage that will pay to rebuild her damaged dwelling with new materials of like kind and quality, without any deduction for depreciation, provided she meets the policy's conditions. Which valuation basis does this describe?

Actual cash value

Market value

Salvage value

Replacement cost

Question 5: An Oklahoma commercial building owner insures to only sixty percent of replacement cost, while her policy's coinsurance clause requires at least eighty percent. After a partial loss, which effect does failing to meet the coinsurance requirement generally have on her claim?

The loss payment is reduced proportionally

The claim is denied entirely

The premium is refunded in full

The policy limit automatically increases

Question 6: An Oklahoma instructor explains that a tornado is the actual cause of loss, while an unrepaired, weakened roof is a condition that increases the chance or severity of loss. Which term correctly names that condition increasing the chance of loss?

A peril

A loss

A hazard

An exposure

Question 7: A covered fire forces an Oklahoma retailer to close for several weeks of repairs, and the owner loses the business income she would have earned during the shutdown. Compared with the physical fire damage to the building, how is this loss of income properly classified?

A direct loss

A proximate loss

A salvage loss

An indirect loss

Question 8: An Oklahoma windstorm tears open a roof, and rain then pours through the opening and ruins the interior. In deciding coverage, the insurer identifies the windstorm as the unbroken initiating event that set the chain of damage in motion. Which concept is the insurer applying?

Proximate cause

Coinsurance

Subrogation

Contribution

Question 9: An Oklahoma homeowner's policy states that she pays the first five hundred dollars of any covered loss before the insurer contributes. This portion of a loss the insured agrees to bear, which also helps reduce small claims, is called which of the following?

The coinsurance penalty

The policy limit

The deductible

The premium

Question 10: A burglar takes one earring from an Oklahoma insured's matched pair, leaving the other behind. The insurer chooses to pay the difference between the pair's value before and after the loss rather than replace the whole set. Which policy clause permits this?

The coinsurance clause

The salvage clause

The appraisal clause

The pair and set clause

Question 11: An Oklahoma dwelling stands empty of both people and their belongings for an extended period, and the policy reduces or suspends certain coverage as a result. Which condition of the property does this describe, as distinct from a home merely empty of people?

Vacancy

Occupancy

Abandonment

Foreclosure

Question 12: After an Oklahoma insurer pays a total loss on a fire-damaged inventory, it takes possession of the damaged goods and sells them for whatever value remains. Which right allows the insurer to take and dispose of the property it has paid for?

Subrogation

The right of salvage

Appraisal

Abandonment

Question 13: An Oklahoma business owner opens her commercial property policy and finds the page that lists her name, the insured location, the policy period, the coverages provided, and the limits and premium. Which part of the policy contains these specific facts about her coverage?

The insuring agreement

The conditions

The declarations

The exclusions

Question 14: In an Oklahoma property policy, one section contains the insurer's central promise, stating what perils or property are covered and what the insurer will do in the event of a covered loss. Which part of the policy is this?

The declarations

The conditions

The endorsements

The insuring agreement

Question 15: An Oklahoma property policy contains a section setting out the rules both parties must follow, including the insured's duties after a loss and the steps for settling claims. Failing to comply can jeopardize a claim. Which part of the policy is this?

The conditions

The insuring agreement

The declarations

The definitions

Question 16: An Oklahoma producer explains that one section of every property policy tells the insured which causes of loss, types of property, or situations the policy will not cover, narrowing the broad grant of coverage. Which part of the policy does this?

The insuring agreement

The exclusions

The declarations

The conditions

Question 17: After a covered hailstorm damages her Norman home, an Oklahoma insured is expected to give prompt notice, protect the property from further damage, and cooperate with the insurer's investigation. These required actions after a loss are best described as which of the following?

The insurer's obligations

The coinsurance requirement

The insured's duties after a loss

The salvage rights

Question 18: An Oklahoma lender financing a Tulsa home is named on the dwelling policy, and even when the insured owner does something that would void her own coverage, the lender may still collect for its interest. Which policy provision protects the lender this way?

The subrogation clause

The coinsurance clause

The appraisal clause

The standard mortgage clause

Question 19: Following a covered loss, an Oklahoma insurer asks the insured to submit a signed, sworn statement detailing the property involved, the amount claimed, and the circumstances of the loss. Which document is the insurer requesting from the insured?

A proof of loss

A binder

A certificate of insurance

A declarations page

Question 20: An Oklahoma homeowner and her insurer agree that a hail loss is covered but cannot agree on the dollar amount of the damage. The policy provides a process in which each side names an appraiser and the appraisers select an umpire. Which provision is this?

Subrogation

Appraisal

Arbitration of coverage

Salvage

OPCI Oklahoma Property and Casualty Insurance Exam - Set 4 - Part 1

Question 1: An Oklahoma City homeowner insures the house she owns and lives in, standing to suffer real financial loss if it burns. This required financial stake in the property, which must exist at the time of a property loss, is known as which of the following?

Question 2: After a covered kitchen fire, an Oklahoma insurer pays the homeowner enough to restore her financial position to what it was just before the loss, but no more, so she does not profit from the claim. Which principle does this describe?

Question 3: An adjuster tells a Tulsa homeowner that her ten-year-old asphalt roof will be settled at its replacement cost minus depreciation for age and normal wear. Which of the following property valuation methods is the adjuster applying to the damaged roof in reaching that figure?

Question 4: An Oklahoma homeowner buys coverage that will pay to rebuild her damaged dwelling with new materials of like kind and quality, without any deduction for depreciation, provided she meets the policy's conditions. Which valuation basis does this describe?

Question 5: An Oklahoma commercial building owner insures to only sixty percent of replacement cost, while her policy's coinsurance clause requires at least eighty percent. After a partial loss, which effect does failing to meet the coinsurance requirement generally have on her claim?

Question 6: An Oklahoma instructor explains that a tornado is the actual cause of loss, while an unrepaired, weakened roof is a condition that increases the chance or severity of loss. Which term correctly names that condition increasing the chance of loss?

Question 7: A covered fire forces an Oklahoma retailer to close for several weeks of repairs, and the owner loses the business income she would have earned during the shutdown. Compared with the physical fire damage to the building, how is this loss of income properly classified?

Question 8: An Oklahoma windstorm tears open a roof, and rain then pours through the opening and ruins the interior. In deciding coverage, the insurer identifies the windstorm as the unbroken initiating event that set the chain of damage in motion. Which concept is the insurer applying?

Question 9: An Oklahoma homeowner's policy states that she pays the first five hundred dollars of any covered loss before the insurer contributes. This portion of a loss the insured agrees to bear, which also helps reduce small claims, is called which of the following?

Question 10: A burglar takes one earring from an Oklahoma insured's matched pair, leaving the other behind. The insurer chooses to pay the difference between the pair's value before and after the loss rather than replace the whole set. Which policy clause permits this?

Question 11: An Oklahoma dwelling stands empty of both people and their belongings for an extended period, and the policy reduces or suspends certain coverage as a result. Which condition of the property does this describe, as distinct from a home merely empty of people?

Question 12: After an Oklahoma insurer pays a total loss on a fire-damaged inventory, it takes possession of the damaged goods and sells them for whatever value remains. Which right allows the insurer to take and dispose of the property it has paid for?

Question 13: An Oklahoma business owner opens her commercial property policy and finds the page that lists her name, the insured location, the policy period, the coverages provided, and the limits and premium. Which part of the policy contains these specific facts about her coverage?

Question 14: In an Oklahoma property policy, one section contains the insurer's central promise, stating what perils or property are covered and what the insurer will do in the event of a covered loss. Which part of the policy is this?

Question 15: An Oklahoma property policy contains a section setting out the rules both parties must follow, including the insured's duties after a loss and the steps for settling claims. Failing to comply can jeopardize a claim. Which part of the policy is this?

Question 16: An Oklahoma producer explains that one section of every property policy tells the insured which causes of loss, types of property, or situations the policy will not cover, narrowing the broad grant of coverage. Which part of the policy does this?

Question 17: After a covered hailstorm damages her Norman home, an Oklahoma insured is expected to give prompt notice, protect the property from further damage, and cooperate with the insurer's investigation. These required actions after a loss are best described as which of the following?

Question 18: An Oklahoma lender financing a Tulsa home is named on the dwelling policy, and even when the insured owner does something that would void her own coverage, the lender may still collect for its interest. Which policy provision protects the lender this way?

Question 19: Following a covered loss, an Oklahoma insurer asks the insured to submit a signed, sworn statement detailing the property involved, the amount claimed, and the circumstances of the loss. Which document is the insurer requesting from the insured?

Question 20: An Oklahoma homeowner and her insurer agree that a hail loss is covered but cannot agree on the dollar amount of the damage. The policy provides a process in which each side names an appraiser and the appraisers select an umpire. Which provision is this?

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