Oklahoma Property & Casualty Insurance Practice Exam Free - 2026

• A. At least 20 days
• B. At least 60 days' notice prior to the date of cancellation or nonrenewal
• C. At least 10 days
• D. At least 45 days

Correct answer: B. At least 60 days' notice prior to the date of cancellation or nonrenewal

Explanation: The Department's 2026 amendment to OAC 365:15-1-14 (approved by HJR 1091 and effective July 25, 2026) expanded the notice period for homeowners and other personal residential coverage to at least sixty (60) days before cancellation or nonrenewal, while cancellations or nonrenewals based on the specific statutory reasons in 36 O.S. § 3639.1(A) require ten days for cancellation and thirty days for nonrenewal. Ten and twenty days are the general (non-residential) periods under subsection (a), and 45 days is the commercial-lines nonrenewal period under 36 O.S. § 3639(D). See OAC 365:15-1-14(b), as amended eff. July 25, 2026 (OID Bulletin No. 2026-02).

• A. The producer may decline because files are confidential business records
• B. Records must be kept only for 1 year after the transaction
• C. Records must be produced only in response to a subpoena
• D. The producer must keep the usual and customary transaction records at the place of business, open to the Commissioner's inspection during business hours, for 3 years after the transaction is completed

Correct answer: D. The producer must keep the usual and customary transaction records at the place of business, open to the Commissioner's inspection during business hours, for 3 years after the transaction is completed

Explanation: Every licensee must keep at the place of business the usual and customary records pertaining to transactions authorized by the license, and all records for any particular transaction must be kept available and open to the Commissioner's inspection at any time during business hours during the three (3) years immediately following completion of the transaction; the Commissioner may also require a financial or market conduct examination during an investigation. No subpoena is needed, files are not exempt as confidential, and one year is too short. See 36 O.S. § 1435.13(E).

• A. 30 days for cancellation and 60 days for nonrenewal
• B. 5 days for cancellation and 15 days for nonrenewal
• C. At least 10 days' notice before cancellation and at least 20 days' notice before nonrenewal
• D. 45 days for both cancellation and nonrenewal

Correct answer: C. At least 10 days' notice before cancellation and at least 20 days' notice before nonrenewal

Explanation: Unless otherwise provided by statute, insurers must give at least ten (10) days' notice prior to the date of cancellation and twenty (20) days' notice prior to the date of nonrenewal of a property or casualty policy; notice by mail is deemed given on the day mailed, and proof of mailing to the address on the policy is sufficient proof of notice. Longer periods apply to homeowners/personal residential coverage (subsection (b)) and to commercial lines under 36 O.S. § 3639, but not to personal auto. The other combinations are not in the rule. See OAC 365:15-1-14(a), (c).

• A. Yes; the one-year policy limit controls
• B. No; a policy time limit for wind or hail roof damage must allow claims to be filed after the first anniversary but no later than 24 months after the date of loss when the damage is not evident without inspection
• C. No; Oklahoma prohibits any time limit on property claims
• D. Yes, unless the insured had the roof inspected within 30 days of the storm

Correct answer: B. No; a policy time limit for wind or hail roof damage must allow claims to be filed after the first anniversary but no later than 24 months after the date of loss when the damage is not evident without inspection

Explanation: The Unfair Claims Settlement Practices Act provides that any policy specifying a time limit covering damage to a roof due to wind or hail must allow the filing of claims after the first anniversary but no later than twenty-four (24) months after the date of the loss, if the damage is not evident without inspection. Enforcing a one-year cutoff in this situation would be an unfair claim settlement practice. Oklahoma does not prohibit all claim time limits, and there is no 30-day inspection requirement. See 36 O.S. § 1250.5(7).

• A. Paying for damage you cause to a rental car while driving it on vacation
• B. Paying the balance owed on a lease when a rented vehicle is declared a total loss
• C. Paying for a rental car while your vehicle is being repaired after a covered loss
• D. Paying for towing and roadside labor when your vehicle breaks down away from home

Correct answer: C. Paying for a rental car while your vehicle is being repaired after a covered loss

Explanation: Rental reimbursement coverage pays for a rental car while your vehicle is being repaired after a covered loss, up to a daily and total limit specified in the policy.

• A. Coverage for mechanical repairs performed at a shop after the vehicle breaks down
• B. Coverage for a rental vehicle while the insured's car is out of service
• C. Liability coverage for a tow truck operator who damages a customer's vehicle
• D. Coverage for towing costs and minor roadside labor like flat tire changes

Correct answer: D. Coverage for towing costs and minor roadside labor like flat tire changes

Explanation: Towing and labor coverage pays for towing services and minor roadside assistance labor (like changing a flat tire or jump-starting a battery) when your vehicle is disabled.

• A. A single coverage amount applying to multiple properties or items
• B. A separate coverage amount stated for each building or item on the schedule
• C. Coverage written on an open-perils basis for all property at one location
• D. A coverage amount that rises automatically each year to keep pace with inflation

Correct answer: A. A single coverage amount applying to multiple properties or items

Explanation: Blanket coverage provides a single sum of insurance that applies across multiple properties or items rather than specifying separate limits for each. It offers flexibility in covering shifting values.

• A. State laws requiring insurers to pay actual cash value regardless of the policy limit
• B. State laws requiring insurers to pay the full policy limit for total losses
• C. State laws requiring insureds to carry coverage equal to a percentage of property value
• D. State laws requiring insurers to reappraise insured property each time a policy renews

Correct answer: B. State laws requiring insurers to pay the full policy limit for total losses

Explanation: Valued policy laws in some states require insurers to pay the full face amount of a property insurance policy in case of total loss, regardless of the actual cash value at the time of loss.

• A. Coverage for the net income a business loses while its premises are being restored
• B. Coverage for costs that exceed the policy limit on a large property loss
• C. Coverage for additional costs to continue operations after a covered loss
• D. Coverage for additional costs of rebuilding to meet current building codes

Correct answer: C. Coverage for additional costs to continue operations after a covered loss

Explanation: Extra expense coverage pays for additional costs incurred to continue business operations after a covered loss, such as renting temporary facilities or equipment while repairs are made.

• A. Garage liability coverage
• B. Commercial property coverage
• C. Garagekeepers coverage
• D. The customers' own collision coverage

Correct answer: C. Garagekeepers coverage

Explanation: Garagekeepers coverage insures damage to customers' autos in the care, custody, and control of a garage business - an exposure that garage liability and standard property forms exclude. Garage liability instead covers the business's own operations and autos. Customers' own policies might respond, but the shop buys garagekeepers so claims can be paid without pushing customers onto their own insurance.

• A. Civil authority coverage
• B. Builders risk insurance
• C. Equipment breakdown coverage
• D. Ordinance or law coverage

Correct answer: A. Civil authority coverage

Explanation: Civil authority coverage extends business income and extra expense protection when a government order - not damage to the insured's own property - bars access to the premises because of covered physical damage nearby. Coverage typically begins after a short waiting period following the order and lasts for a limited number of weeks stated in the form.

• A. General liability coverage for bodily injury occurring on a professional's premises
• B. Professional liability coverage for mistakes or failures in professional services
• C. Coverage for a company's directors and officers against claims of mismanagement
• D. Fidelity coverage for losses caused by the dishonest acts of a professional's employees

Correct answer: B. Professional liability coverage for mistakes or failures in professional services

Explanation: E&O insurance is professional liability coverage protecting against claims of negligence, errors, or omissions in providing professional services. It's commonly carried by insurance agents, lawyers, and consultants.