Oklahoma Life Insurance Practice Exam Free - 2026

• A. Oklahoma requires applicants to hold a college degree
• B. The applicant is not at least 18 years of age
• C. Oklahoma requires applicants to be at least 21
• D. The applicant has not completed 40 hours of prelicensing education

Correct answer: B. The applicant is not at least 18 years of age

Explanation: Before approving a resident producer application, the Commissioner must find the individual is at least eighteen (18) years of age, has no grounds for denial under § 1435.13, has paid the fees, and has passed the examination for each line applied for. A college degree is not required, 21 is not the statutory age, and the statute itself does not impose a prelicensing hour requirement. See 36 O.S. § 1435.7(A).

• A. 16 hours, including 2 hours of ethics
• B. 20 hours, including 2 hours of ethics
• C. 24 hours total: 21 hours of continuing insurance education plus 3 hours of ethics
• D. 30 hours, including 4 hours of ethics

Correct answer: C. 24 hours total: 21 hours of continuing insurance education plus 3 hours of ethics

Explanation: Each producer (except title and aircraft title producers or others exempt by rule) must biennially complete not less than 21 clock hours of continuing insurance education plus, in the same period, 3 clock hours of ethics course work, for a 24-hour total. The 16-hour/2-hour ethics figure applies only to title and aircraft title producers. Twenty and thirty hours are not Oklahoma requirements. See 36 O.S. § 1435.29(A).

• A. Within 15 days from the date the agent contract is executed or the first application is submitted
• B. Within 30 days after the first policy is issued
• C. Within 60 days after the contract is executed
• D. Before the end of the calendar quarter

Correct answer: A. Within 15 days from the date the agent contract is executed or the first application is submitted

Explanation: To appoint a producer as its agent, the insurer (or its authorized representative) must file a notice of appointment within fifteen (15) days from the date the agent contract is executed or the first insurance application is submitted. The Commissioner then has up to 30 days to verify eligibility, which is why 30 days is a common wrong answer. Sixty days and end-of-quarter have no basis in the statute. See 36 O.S. § 1435.15(B)-(C).

• A. None, because licensees have 90 days to report an address change
• B. Automatic suspension of the license
• C. A civil fine of $1,000 per day of delay
• D. A $50 administrative fee, because a change of legal name, address, or e-mail must be reported within 30 days

Correct answer: D. A $50 administrative fee, because a change of legal name, address, or e-mail must be reported within 30 days

Explanation: Licensees must inform the Commissioner of a change of legal name, address, or e-mail address within thirty (30) days of the change. A change submitted more than 30 days late must include a $50 administrative fee, and failure to provide notice within 45 days after the fee is assessed triggers § 1435.13 penalties. There is no 90-day window, no automatic suspension, and no $1,000-per-day fine. See 36 O.S. § 1435.8(F).

• A. only if the beneficiary passes an exam
• B. over a selected period of time
• C. until the insurer changes its logo
• D. only as a single lump sum

Correct answer: B. over a selected period of time

Explanation: The fixed-period option pays proceeds over a stated number of years. Payment size depends on the amount, interest, and selected period.

• A. equal installments spread over a chosen number of years, regardless of amount
• B. a guaranteed income for life that ends at the beneficiary's death
• C. a selected dollar amount at regular intervals until funds are exhausted
• D. interest on the retained proceeds while the principal stays with the insurer

Correct answer: C. a selected dollar amount at regular intervals until funds are exhausted

Explanation: Under a fixed-amount option, the beneficiary receives a chosen dollar amount periodically until the proceeds and interest are exhausted.

• A. Lump-sum option only
• B. Interest-only option
• C. Fixed-period option
• D. Life income option

Correct answer: D. Life income option

Explanation: A life income option provides payments based on the lifetime of the payee, with variations that may include period-certain or refund features.

• A. the policyowner's equity in a permanent life policy if premiums stop
• B. the beneficiary's right to choose how the death benefit is paid out
• C. the insurer from paying a claim when the policy lapses during the grace period
• D. the policyowner's dividends in a participating term policy after it expires

Correct answer: A. the policyowner's equity in a permanent life policy if premiums stop

Explanation: Nonforfeiture options help the policyowner use accumulated cash value if a permanent life policy lapses or is surrendered.

• A. use the cash value to buy paid-up coverage for a reduced face amount
• B. receive the policy's available cash value and end the policy
• C. borrow against the cash value while keeping the full death benefit
• D. receive the cash value in installments while the coverage continues

Correct answer: B. receive the policy's available cash value and end the policy

Explanation: Cash surrender allows the policyowner to receive the available cash value, less any charges or loans, and terminate the policy.

• A. a health insurance deductible
• B. a larger policy requiring higher future premiums
• C. a smaller amount of fully paid-up life insurance
• D. a producer's license renewal

Correct answer: C. a smaller amount of fully paid-up life insurance

Explanation: Reduced paid-up insurance uses available cash value as a single premium to purchase a smaller permanent policy with no further premium payments required.

• A. an annuity that starts immediately for all beneficiaries
• B. a permanent policy with a larger face amount forever
• C. property liability coverage
• D. term insurance for the original face amount for a limited period

Correct answer: D. term insurance for the original face amount for a limited period

Explanation: Extended term insurance uses cash value to buy term coverage, usually for the original face amount, for as long as the cash value will support.

• A. Cash surrender
• B. Reduced paid-up insurance
• C. Automatic premium loan
• D. Extended term insurance

Correct answer: A. Cash surrender

Explanation: Cash surrender ends the policy and pays the available cash value. Reduced paid-up and extended term continue some form of coverage.