OPCI Oklahoma Property and Casualty Insurance Exam - Set 1 - Part 3

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 41: An Oklahoma insurer prepares the privacy notice it must give customers describing its information practices. Regarding the security measures it uses to protect nonpublic personal information, what does the Oklahoma privacy rule require the notice to say about those specific safeguards?

List the exact encryption methods used

Name every employee with data access

Detail nothing about technical safeguards

Disclose the vendors storing the data

Question 42: An underwriter orders a report on an applicant that gathers information about the applicant's character, reputation, and mode of living by talking directly with neighbors, friends, and associates. Under the federal Fair Credit Reporting Act, which type of report is this?

A consumer credit score

A motor vehicle record

A loss history report

An investigative consumer report

Question 43: An individual previously convicted of a felony involving dishonesty wants to work in the business of insurance affecting interstate commerce. Under the federal law that governs this situation, what must the person obtain before lawfully engaging in the business of insurance despite that prior conviction?

Written consent of an insurance regulator

A pardon from the state governor

A waiting period of seven years

A bond posted with the federal court

Question 44: The federal government pursues a civil penalty against a person who engaged in prohibited conduct in the business of insurance affecting interstate commerce. Under the federal civil penalty provision, how is the maximum civil penalty for each such violation actually measured?

A flat amount with no alternative

Fifty thousand dollars or compensation, greater

A fixed triple of the premium

An amount set only by the jury

Question 45: An admitted property and casualty insurer doing business in Oklahoma becomes insolvent, leaving covered claims unpaid. Which mechanism exists to pay the covered claims of that insolvent insurer's Oklahoma policyholders within statutory limits, funded by assessments on the other member insurers?

The surplus lines stamping office

The federal flood program

The property and casualty guaranty association

The state rating organization

Question 46: An Oklahoma insured obtains a hard-to-place commercial risk through the surplus lines market from a nonadmitted insurer. Compared with a policy from an admitted insurer, what important protection does this surplus lines coverage lack, as the required policy stamp must plainly disclose?

Any right to a written policy

The ability to pay claims at all

Coverage for the named perils

Protection of the state guaranty association

Question 47: A commercial risk in Tulsa is so unusual that no admitted Oklahoma insurer will write it after a diligent search of the admitted market. Through which market may a specially licensed broker then place the coverage with an eligible insurer that is not licensed in Oklahoma?

The surplus lines market

The residual auto plan

The federal crop program

The assigned risk pool

Question 48: A producer in Lawton arranges immediate coverage for a client whose new commercial building needs protection today, before the insurer can issue the full policy. Which document provides this temporary evidence of coverage pending issuance of the policy, and which Oklahoma allows to be made orally or in writing?

A certificate of authority

A binder

A declarations page

An endorsement

Question 49: An Oklahoma insurer decides to end a commercial policy, and the producer must explain a basic distinction to the insured. Which term describes termination of a policy at a date other than its normal expiration, as opposed to simply letting the policy end when its term expires?

Nonrenewal

Rescission

Cancellation

Reinstatement

Question 50: An Oklahoma agency explains to a client the difference between two categories of insurers it may deal with. One insurer holds a certificate of authority to transact business in the state, while the other does not. Which term correctly labels the insurer that holds that authority?

A nonadmitted insurer

An alien insurer

A surplus lines insurer

An admitted insurer

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