Ok-Life-Accident-and-Health-or-Sickness-Producer Exam Dumps - Oklahoma Life, Accident, and Health or Sickness Producer Exam

Oklahoma insurance regulations require licensees, including insurance producers, to promptly notify the Insurance Commissioner of any change in their address to ensure accurate communication and compliance with licensing requirements. The Oklahoma Insurance Code, specifically Title 36 O.S. § 1435.13, mandates that "a licensee shall inform the Insurance Commissioner in writing of a change of address within thirty (30) days of the change." Failure to notify within this timeframe may result in administrative actions, such as fines or license suspension.

The Oklahoma Life, Accident, and Health or Sickness Producer Study Guide reinforces this requirement, stating, "Producers must notify the Oklahoma Insurance Department of any change in their business or residential address within 30 days to maintain compliance with licensing regulations." This makes option A the correct answer.

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.

Under Oklahoma insurance regulations (Title 36 O.S. § 1204 and O.A.C. 365:10-3-10), insurers are responsible for ensuring that all advertising materials comply with state laws, including maintaining control over thecontent and formto prevent misleading or deceptive practices. This includes ensuring advertisements are truthful, not disparaging, and compliant with regulatory standards.

Option A: Correct. Insurers must control the content and form of advertising to ensure compliance.

Option B: Incorrect. The cost of delivery is not a regulatory responsibility of insurers.

Option C: Incorrect. The cost of production is an internal business matter, not a regulatory requirement.

Option D: Incorrect. Communications between agents are not directly related to advertising content control.

This question is part of the Prometric content outline under “State Insurance Statutes, Rules, and Regulations,” which covers advertising regulations.

Settlement options for life insurance or annuity policies determine how proceeds are paid to beneficiaries or annuitants. Common options includefixed period(payments over a set time),pure life income(payments for the annuitant’s lifetime), andlife income with period certain(payments for life with a guaranteed minimum period), as outlined in Oklahoma’s regulations (Title 36 O.S. § 4001 et seq.).Asset withdrawalis not a standard settlement option; it may refer to accessing funds but not a formal payout method.

Option A: Incorrect. Fixed period is a standard settlement option.

Option B: Incorrect. Pure life income is a standard settlement option.

Option C: Correct. Asset withdrawal is not a recognized settlement option.

Option D: Incorrect. Life income with period certain is a standard settlement option.

Alife annuity(or straight life annuity) pays periodic payments to the annuitant until their death, at which point all payments cease, with no further benefits to beneficiaries. This contrasts with other annuity types, such as refund or joint-life annuities, which may continue payments or provide refunds.

Option A: Incorrect. “Terminal annuity” is not a standard insurance term.

Option B: Incorrect. “Finite annuity” is not a recognized annuity type.

Option C: Incorrect. A refund annuity provides a refund or continued payments to a beneficiary if the annuitant dies early.

Option D: Correct. A life annuity ceases payments upon the annuitant’s death.

This question falls under the Prometric content outline section on “Life Products,” which covers annuities and their features.

In a life insurance policy, theprimary beneficiaryis the first in line to receive the death benefit. If the primary beneficiary predeceases the insured, the benefits are paid to thecontingent (or secondary) beneficiaries, as specified in the policy. If no contingent beneficiaries are named, the benefits typically go to the insured’s estate, but “contingent beneficiaries” is the correct choice here (Title 36 O.S. § 4001 et seq.).

Option A: Incorrect. Benefits are not paid to “no one”; they go to contingent beneficiaries or the estate.

Option B: Incorrect. “Tertiary beneficiaries” is not a standard term in life insurance.

Option C: Correct. Contingent beneficiaries receive benefits if the primary beneficiary dies.

Option D: Incorrect. “Sub-primary beneficiaries” is not a recognized term.

The elimination period in an individual disability insurance policy is the waiting period between the onset of a disability and the time when benefit payments begin. It is essentially a deductible in time, during which the insured must be disabled before receiving benefits. This period can range from 30 days to several months, depending on the policy, and is designed to reduce premiums by excluding short-term disabilities.

Option A: Incorrect. The length of time benefits are paid is determined by the benefit period, not the elimination period.

Option B: Correct. The elimination period is the amount of time the insured must wait after becoming disabled before benefits are paid.

Option C: Incorrect. The point when benefits are exhausted is related to the benefit period or policy limits, not the elimination period.

Option D: Incorrect. The elimination period does not apply after the policy is discontinued; it applies at the start of a disability claim.

This question aligns with the Prometric content outline under “Provisions, Options, Exclusions, Riders, Clauses, and Rights,” which includes knowledge of disability insurance provisions.

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.