Quickly and Easily Pass Insurance Licensing Exam with Ok-Life-Accident-and-Health-or-Sickness-Producer real Dumps Updated on Mar-2026
Realistic Ok-Life-Accident-and-Health-or-Sickness-Producer Dumps Questions To Gain Brilliant Result
NEW QUESTION # 68
The change of beneficiary provision states that the insured has the right to change the beneficiary unless the beneficiary is
- A. irrevocable.
- B. uninsurable.
- C. power of attorney.
- D. deceased.
Answer: A
Explanation:
Thechange of beneficiary provisionallows the policyowner (often the insured) to change the beneficiary at any time unless the beneficiary is designated asirrevocable. An irrevocable beneficiary cannot be changed without their consent, as specified in Oklahoma's life insurance regulations (Title 36 O.S. § 4001 et seq.).
* Option A: Incorrect. Insurability of the beneficiary does not affect the right to change them.
* Option B: Correct. An irrevocable beneficiary cannot be changed without their consent.
* Option C: Incorrect. Power of attorney affects legal authority, not beneficiary changes.
* Option D: Incorrect. A deceased beneficiary can be replaced without restriction.
:
Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section:
General Knowledge - Life Insurance Provisions).
Oklahoma Insurance Department, Title 36 O.S. § 4001 et seq. (beneficiary provisions).
Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing.
NEW QUESTION # 69
Which of the following is NOT an example of inducement?
- A. A gift having a value less than $100.
- B. A special favor in the payment of premiums.
- C. A promise of employment.
- D. Giving merchandise to a client with a value of $250.
Answer: A
Explanation:
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.
:
Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section: State- Specific Knowledge - Oklahoma Insurance Statutes).
Oklahoma Insurance Department, Title 36 O.S. § 1204 (unfair trade practices, rebating).
Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing.
NEW QUESTION # 70
A deliberate lie by an insured to the insurer to obtain a lower premium is an example of
- A. fraud.
- B. concealment.
- C. aleatory.
- D. omission.
Answer: A
Explanation:
A deliberate lie by an insured to obtain a lower premium constitutesfraud, defined in Oklahoma's Insurance Code (Title 36 O.S. § 1204) as an intentional misrepresentation of material facts to deceive the insurer. Fraud can lead to policy rescission or legal penalties.
* Option A: Incorrect. Omission is failing to disclose information, not actively lying.
* Option B: Correct. A deliberate lie to lower premiums is fraud.
* Option C: Incorrect. Concealment is withholding material information, not providing false information.
* Option D: Incorrect. Aleatory refers to the uncertain nature of insurance contracts, not misrepresentation.
:
Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section: State- Specific Knowledge - Oklahoma Insurance Statutes).
Oklahoma Insurance Department, Title 36 O.S. § 1204 (unfair trade practices).
Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing.
NEW QUESTION # 71
Which of the following is an ADVANTAGE to the policyowner of the recurrent periods of disability provision in the disability income policy?
- A. It reduces the annual premium amount.
- B. It reduces the actual period of disability.
- C. It protects the insured from multiple elimination periods.
- D. It improves the insurability of the applicant.
Answer: C
Explanation:
Therecurrent periods of disability provisionin a disability income policy allows related or recurring disabilities within a specified timeframe (e.g., 6 months) to be treated as a single disability period. This protects the insured from serving multipleelimination periods(the waiting period before benefits begin), ensuring faster benefit payments for recurrent conditions, as per standard disability policy provisions in Oklahoma (Title 36 O.S. § 4405).
* Option A: Incorrect. The provision does not reduce premiums; it affects benefit timing.
* Option B: Correct. It protects the insured from multiple elimination periods for recurrent disabilities.
* Option C: Incorrect. The provision does not impact insurability; it's a policy feature.
* Option D: Incorrect. It does not reduce the disability period; it simplifies benefit access.
:
Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section:
General Knowledge - Accident and Health Insurance).
Oklahoma Insurance Department, Title 36 O.S. § 4405 (health insurance provisions).
Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing.
NEW QUESTION # 72
An insurance producer whose license has been revoked continues to provide insurance services. Which of the following is TRUE?
- A. This violation is a misdemeanor and can result in a fine of up to $500.
- B. This individual could be committed to the custody of the Department of Corrections for up to 10 years.
- C. This violation can result in a fine of up to $10,000.
- D. This violation is a felony and can result in a fine of up to $5,000.
Answer: D
Explanation:
Under Oklahoma's Insurance Code (Title 36 O.S. § 1435.13), transacting insurance without a valid license, such as after revocation, is afelonypunishable by a fine of up to $5,000, imprisonment for up to 7 years, or both, depending on the severity and intent. This reflects the serious nature of unlicensed insurance activity.
* Option A: Incorrect. The fine limit is $5,000 for a felony, not $10,000.
* Option B: Correct. The violation is a felony with a fine up to $5,000.
* Option C: Incorrect. The violation is a felony, not a misdemeanor, with higher penalties.
* Option D: Incorrect. Imprisonment is up to 7 years, not 10 years.
:
Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section: State- Specific Knowledge - Oklahoma Insurance Statutes).
Oklahoma Insurance Department, Title 36 O.S. § 1435.13 (penalties for unlicensed activity).
Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing.
NEW QUESTION # 73
Returning part of the commission or giving anything of value to the insured as an inducement to buy a policy is
- A. controlled business.
- B. defamation.
- C. rebating.
- D. coercion.
Answer: C
Explanation:
Rebatingis the practice of offering or returning part of a commission, premium, or anything of value to an insured as an inducement to purchase an insurance policy. It is prohibited in Oklahoma under the Unfair Trade Practices Act (Title 36 O.S. § 1204) to ensure fair competition and prevent undue influence.
* Option A: Incorrect. Coercion involves forcing someone to buy insurance, not offering inducements.
* Option B: Incorrect. Defamation is making false statements harming reputation, not related to inducements.
* Option C: Correct. Rebating involves giving value to induce a policy purchase.
* Option D: Incorrect. Controlled business refers to writing insurance primarily for oneself or close associates, not inducements.
This question falls under the Prometric content outline section on "State Insurance Statutes, Rules, and Regulations," which covers unfair trade practices.
:
Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section: State- Specific Knowledge - Oklahoma Insurance Statutes).
Oklahoma Insurance Department, Title 36 O.S. § 1204 (unfair trade practices).
Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing.
NEW QUESTION # 74
An insured receives a notice from the insurer that the policy has been cancelled in the middle of the term.
Which of the following policies did the insured MOST likely have?
- A. Term.
- B. Conditionally renewable.
- C. Optionally renewable.
- D. Cancelable.
Answer: D
Explanation:
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.
:
Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section:
General Knowledge - Accident and Health Insurance).
Oklahoma Insurance Department, Title 36 O.S. § 4405 (health insurance provisions).
Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing.
NEW QUESTION # 75
What type of policy pays an amount per day for hospitalization directly to the insured regardless of the insured's other health insurance?
- A. Limited-amount per diem
- B. Medigap
- C. Blanket
- D. Hospital indemnity
Answer: D
Explanation:
Ahospital indemnity policypays a fixed daily, weekly, or monthly benefit directly to the insured for hospitalization, regardless of other insurance coverage or actual expenses incurred. This is a supplemental policy common in Oklahoma (Title 36 O.S. § 4405).
* Option A: Incorrect. "Limited-amount per diem" is not a standard insurance term.
* Option B: Incorrect. Blanket policies cover groups for specific risks, not individual hospitalization benefits.
* Option C: Incorrect. Medigap covers Medicare gaps, not fixed hospitalization payments.
* Option D: Correct. Hospital indemnity policies pay a fixed amount per day for hospitalization.
:
Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section:
General Knowledge - Accident and Health Insurance).
Oklahoma Insurance Department, Title 36 O.S. § 4405 (health insurance provisions).
Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing.
NEW QUESTION # 76
As a form of level premium permanent insurance, ordinary life insurance accumulates a reserve that eventually
- A. results in a dividend payment to the policyowner.
- B. equals the face amount of the policy.
- C. ceases to earn interest or grow in a positive earnings direction.
- D. requires mandatory cash value distributions.
Answer: B
Explanation:
Ordinary life insurance, synonymous with whole life insurance, is a level premium permanent insurance product that accumulates a cash value (or reserve) over time. By design, the cash value grows and, at the policy's maturity (typically age 100 or 121, depending on the policy), equals the face amount of the policy, at which point the policy endows (pays out the face amount to the policyowner if the insured is still alive).
* Option A: Correct. The cash value (reserve) in a whole life policy eventually equals the face amount at maturity.
* Option B: Incorrect. Dividends are paid only in participating policies, not all whole life policies, and are not guaranteed.
* Option C: Incorrect. The cash value continues to earn interest or grow, typically at a guaranteed rate, until maturity.
* Option D: Incorrect. There are no mandatory cash value distributions; policyowners can choose to access the cash value.
This question aligns with the Prometric content outline under "Life Products," which covers the cash value accumulation in whole life insurance.
:
Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section:
General Knowledge - Life Insurance).
Oklahoma Insurance Department, Title 36 O.S. § 4029 (nonforfeiture benefits and cash value).
Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing.
NEW QUESTION # 77
Which life insurance rider is designed to permit young individuals to be able to purchase additional insurance as they grow older, regardless of insurability?
- A. Impairment rider.
- B. Multiple indemnity rider.
- C. Guaranteed insurability rider.
- D. Cost of living rider.
Answer: C
Explanation:
Theguaranteed insurability riderallows the insured, typically younger individuals, to purchase additional life insurance at specified future dates or life events (e.g., marriage, childbirth) without proving insurability, ensuring coverage despite health changes. This is a common rider in life insurance policies (Title 36 O.S. §
4001 et seq.).
* Option A: Incorrect. A cost of living rider adjusts the death benefit for inflation, not additional coverage.
* Option B: Correct. The guaranteed insurability rider allows additional insurance without insurability proof.
* Option C: Incorrect. An impairment rider excludes specific conditions, not related to additional coverage.
* Option D: Incorrect. A multiple indemnity rider increases benefits for accidental death, not additional coverage.
:
Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section:
General Knowledge - Life Insurance Riders).
Oklahoma Insurance Department, Title 36 O.S. § 4001 et seq. (life insurance provisions).
Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing.
NEW QUESTION # 78
Which of the following is a potential DISADVANTAGE of a fixed annuity?
- A. Payments continue only for a maximum of 2 years after the annuitant's death.
- B. There is no guaranteed specific benefit amount to the annuitant.
- C. Annuitants could experience a decrease in the purchasing power of their payments over a period of years due to inflation.
- D. The insured invests payments in variable securities, and the return fluctuates with an uncertain economic market.
Answer: C
Explanation:
Afixed annuityprovides guaranteed, stable payments to the annuitant, but a key disadvantage is that the fixed payments may losepurchasing powerover time due to inflation, reducing their real value. This is a concern for long-term annuitants, as noted in Oklahoma's annuity regulations (Title 36 O.S. § 4002).
* Option A: Incorrect. Variable securities apply to variable annuities, not fixed annuities.
* Option B: Incorrect. Fixed annuities guarantee a specific benefit amount.
* Option C: Correct. Inflation can decrease the purchasing power of fixed payments.
* Option D: Incorrect. Payment duration depends on the annuity type (e.g., life annuity), not a 2-year limit.
:
Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section:
General Knowledge - Life Insurance).
Oklahoma Insurance Department, Title 36 O.S. § 4002 (annuity products).
Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing.
NEW QUESTION # 79
A form of an accelerated death benefit is a
- A. terminal illness settlement benefit.
- B. home care benefit.
- C. cost of living benefit.
- D. nonforfeiture extended term benefit.
Answer: A
Explanation:
Anaccelerated death benefit (ADB)provision allows an insured to receive a portion of the life insurance death benefit before death under specific conditions, such as aterminal illness. Theterminal illness settlement benefitis a form of ADB, providing funds for medical or personal needs, as regulated in Oklahoma (Title 36 O.S. § 4051).
* Option A: Incorrect. A home care benefit relates to long-term care, not ADB.
* Option B: Incorrect. A nonforfeiture extended term benefit is a policy lapse option, not an ADB.
* Option C: Correct. A terminal illness settlement benefit is a type of accelerated death benefit.
* Option D: Incorrect. A cost of living benefit adjusts benefits for inflation, not an ADB.
:
Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section:
General Knowledge - Life Insurance Provisions).
Oklahoma Insurance Department, Title 36 O.S. § 4051 (accelerated benefits).
Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing.
NEW QUESTION # 80
Which rider would allow additional insurance to be purchased at specified dates or events, without additional underwriting?
- A. Disability income
- B. Guaranteed insurability
- C. Guaranteed renewability
- D. Cost of living
Answer: B
Explanation:
Theguaranteed insurability riderallows the insured to purchase additional life insurance at specified dates or life events (e.g., marriage, childbirth) without proving insurability, ensuring coverage despite health changes. This is a standard rider in Oklahoma (Title 36 O.S. § 4001 et seq.).
* Option A: Incorrect. Guaranteed renewability applies to policy renewals, not additional coverage.
* Option B: Correct. The guaranteed insurability rider allows additional insurance without underwriting.
* Option C: Incorrect. A cost of living rider adjusts benefits for inflation, not additional coverage.
* Option D: Incorrect. A disability income rider provides income replacement, not additional insurance.
:
Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section:
General Knowledge - Life Insurance Riders).
Oklahoma Insurance Department, Title 36 O.S. § 4001 et seq. (life insurance provisions).
Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing.
NEW QUESTION # 81
When you purchase an annuity, you are purchasing a
- A. disability insurance policy.
- B. whole life policy.
- C. universal life policy.
- D. guaranteed income.
Answer: D
Explanation:
Anannuityis a financial product purchased from an insurer that provides a stream of income, typically for retirement, in exchange for a lump sum or periodic payments. The primary purpose is to guarantee income, often for the annuitant's lifetime or a specified period, as outlined in Oklahoma's regulations for life insurance products (Title 36 O.S. § 4002).
* Option A: Correct. An annuity provides guaranteed income, either fixed or variable, based on the contract terms.
* Option B: Incorrect. A whole life policy is a type of life insurance, not an annuity.
* Option C: Incorrect. Disability insurance covers income loss due to disability, not guaranteed income.
* Option D: Incorrect. A universal life policy is a flexible life insurance product, not an annuity.
This question falls under the Prometric content outline section on "Life Products," which covers annuities and their features.
:
Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section:
General Knowledge - Life Insurance).
Oklahoma Insurance Department, Title 36 O.S. § 4002 (definitions of life insurance products, including annuities).
Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing.
NEW QUESTION # 82
Under a Long-Term Care policy, all of the following are Activities of Daily Living EXCEPT
- A. dressing.
- B. toileting.
- C. talking.
- D. eating.
Answer: C
Explanation:
Long-Term Care (LTC) policies cover services for individuals who need assistance withActivities of Daily Living (ADLs), which are basic self-care tasks. Oklahoma regulations (O.A.C. 365:10-5-44) and federal standards define ADLs as including dressing, eating, toileting, bathing, transferring, and continence.Talkingis not considered an ADL, as it is not a fundamental self-care activity.
* Option A: Incorrect. Dressing is an ADL.
* Option B: Correct. Talking is not an ADL.
* Option C: Incorrect. Eating is an ADL.
* Option D: Incorrect. Toileting is an ADL.
:
Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section:
General Knowledge - Long-Term Care Policies).
Oklahoma Insurance Department, O.A.C. 365:10-5-44 (LTC policy standards).
Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing.
NEW QUESTION # 83
Loans may generally be obtained against the proceeds of a personal life insurance policy, and policy loan proceeds
- A. are subject to Federal estate tax.
- B. accelerate the benefits under the policy.
- C. are not treated as taxable income.
- D. generate nontaxable interest income.
Answer: C
Explanation:
Permanent life insurance policies with a cash value (e.g., whole life, universal life) allow policyholders to take loans against the cash value. According to IRS guidelines and standard insurance principles, policy loans are not considered taxable income because they are treated as a debt against the policy's cash value, not as income. However, if the policy lapses or is surrendered with an outstanding loan, the loan amount exceeding the policy's basis may become taxable.
* Option A: Incorrect. Policy loans do not accelerate benefits (e.g., death benefits or living benefits); they reduce the cash value and death benefit until repaid.
* Option B: Correct. Policy loan proceeds are not treated as taxable income, as they are a loan against the policy's cash value.
* Option C: Incorrect. Policy loans are not subject to Federal estate tax unless the policy's death benefit is included in the estate, which is unrelated to the loan itself.
* Option D: Incorrect. Interest on policy loans is not nontaxable; it is charged by the insurer and does not generate income for the policyholder.
This question falls under the Prometric content outline section on "Provisions, Options, Exclusions, Riders, Clauses, and Rights," which includes knowledge of policy loans and their tax implications.
:
Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section:
General Knowledge - Life Insurance Provisions).
Oklahoma Insurance Department, Title 36 O.S. § 4029 (nonforfeiture benefits and cash value provisions).
IRS Publication 525 (Taxable and Nontaxable Income, section on life insurance policy loans).
NEW QUESTION # 84
Jim purchased a $200,000 level term-to-age-65 life insurance policy when he was 35 years old. If Jim dies at age 50, what death benefit would be paid by this policy?
- A. $100,000
- B. $200,000
- C. $50,000
- D. $150,000
Answer: B
Explanation:
Alevel term-to-age-65 life insurance policyprovides a fixed death benefit until the insured reaches age 65, as long as premiums are paid. Since Jim purchased a $200,000 policy at age 35 and dies at age 50 (before age
65), the full death benefit of $200,000 is payable, assuming the policy is in force.
* Option A: Incorrect. $50,000 is not the policy's face amount.
* Option B: Incorrect. $100,000 is not the policy's face amount.
* Option C: Incorrect. $150,000 is not the policy's face amount.
* Option D: Correct. The $200,000 death benefit is paid, as it is a level term policy.
This question falls under the Prometric content outline section on "Life Products," which covers term life insurance benefits.
:
Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section:
General Knowledge - Life Insurance).
Oklahoma Insurance Department, Title 36 O.S. § 4002 (life insurance products).
Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing.
NEW QUESTION # 85
A policyowner purchased a whole life policy. How long after purchase can the policyowner borrow against the cash value of the policy?
- A. never
- B. 1 year
- C. 3 years
- D. 2 years
Answer: B
Explanation:
Whole life insurance policies accumulate cash value over time, which policyowners can borrow against.
Typically, cash value begins to accrue immediately, but sufficient value for a loan is often available after1 year, depending on the policy's terms and premium payments. Oklahoma law (Title 36 O.S. § 4029) requires nonforfeiture benefits, including access to cash value, but does not specify a minimum time; insurer practices generally allow loans after 1 year when cash value is meaningful.
* Option A: Incorrect. Policyowners can borrow against cash value once it accumulates.
* Option B: Correct. Loans are typically available after 1 year, as cash value is sufficient.
* Option C: Incorrect. 2 years is not a standard requirement; loans are often available sooner.
* Option D: Incorrect. 3 years is excessive; most policies allow loans earlier.
This question falls under the Prometric content outline section on "Provisions, Options, Exclusions, Riders, Clauses, and Rights," which covers cash value loans.
:
Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section:
General Knowledge - Life Insurance Provisions).
Oklahoma Insurance Department, Title 36 O.S. § 4029 (nonforfeiture benefits).
Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing.
NEW QUESTION # 86
Disability policies MOST often pay benefits in the form of
- A. periodic income.
- B. a lump sum payment based on projected income.
- C. an annuity.
- D. a lump sum reimbursement for wages lost.
Answer: A
Explanation:
Disability income insurance policies are designed to replace a portion of the insured's income if they become disabled and unable to work. These policiesmost often pay benefits in the form of periodic income, typically monthly, to provide ongoing financial support during the disability period, as outlined in Oklahoma' s health insurance regulations (Title 36 O.S. § 4405). Lump sum payments or annuities are less common and usually associated with other types of coverage.
* Option A: Incorrect. Annuities provide retirement income, not disability benefits.
* Option B: Correct. Disability policies typically pay periodic (e.g., monthly) income.
* Option C: Incorrect. Lump sum reimbursements are rare in disability policies; periodic payments are standard.
* Option D: Incorrect. Lump sum payments based on projected income are not typical for disability insurance.
:
Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section:
General Knowledge - Accident and Health Insurance).
Oklahoma Insurance Department, Title 36 O.S. § 4405 (health insurance provisions).
Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing.
NEW QUESTION # 87
Under a group life policy, the policyowner is entitled to a grace period of 31 days for the payment of any premium due EXCEPT the first. During the grace period, the death benefit coverage shall
- A. be 75%.
- B. be 50%.
- C. continue in force.
- D. be discontinued.
Answer: C
Explanation:
Under Oklahoma insurance law and standard group life insurance provisions, a group life policy includes a mandatory grace period of 31 days for the payment of premiums (except the first premium, which must be paid to initiate coverage). During this grace period, the policy remains in force, and the full death benefit is payable if the insured dies, provided the premium is eventually paid or the policy has not lapsed.
* Option A: Incorrect. Coverage is not discontinued during the grace period; it continues to protect the insured.
* Option B: Incorrect. The death benefit is not reduced to 50% during the grace period; it remains at
100% of the policy's face amount.
* Option C: Correct. The death benefit coverage continues in force during the 31-day grace period, as mandated by Oklahoma law.
* Option D: Incorrect. The death benefit is not reduced to 75%; it remains fully in effect.
This provision is outlined in Oklahoma statutes and aligns with the Prometric exam content outline under
"Provisions, Options, Exclusions, Riders, Clauses, and Rights," which includes knowledge of grace periods in group life policies.
:
Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section:
General Knowledge - Life Insurance Provisions).
Oklahoma Insurance Department, Title 36 O.S. § 4105 (grace period requirements for group life insurance).
Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing.
NEW QUESTION # 88
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