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Oklahoma Adjuster License Practice Exam
Questions and Correct Answers (Verified
Answers) Plus Rationales 2025
1. Which type of adjuster works directly for an insurance company? A. Public adjuster B. Independent adjuster C. Staff adjuster D. Contract adjuster
Staff adjusters are salaried employees of insurance companies who
adjust claims on behalf of their employer.
2. How often must an Oklahoma adjuster license be renewed? A. Every year B. Every two years C. Every three years D. Every four years
Oklahoma adjuster licenses must be renewed biennially (every two
years).
3. Which entity regulates insurance adjusters in Oklahoma? A. Department of Labor B. Office of Management and Budget
C. Oklahoma Insurance Department D. Department of Commerce
The Oklahoma Insurance Department is responsible for regulating
adjusters within the state.
4. What is the continuing education (CE) requirement for licensed adjusters in Oklahoma? A. 12 hours every 3 years B. 20 hours every 5 years C. 24 hours every 2 years D. 10 hours every year
Oklahoma adjusters must complete 24 CE hours every 2 years, including
3 hours of ethics.
5. What type of bond must a public adjuster in Oklahoma maintain? A. $1, B. $2, C. $25, D. $50,
Oklahoma requires public adjusters to maintain a $25,000 surety bond.
6. What is the primary role of an adjuster? A. Sell insurance B. Investigate and settle claims C. Underwrite insurance policies D. Draft contracts
10. What is the penalty for acting as an adjuster without a license in Oklahoma? A. Warning B. Verbal reprimand C. Community service D. Fines and legal action
Unlicensed adjusting is illegal and can result in fines and legal penalties.
11. What is the purpose of the Fair Claims Settlement Practices Act in Oklahoma? A. To sell more policies B. To increase insurer profits C. To ensure fair and prompt claim handling D. To delay payouts
This act sets standards for the ethical and timely handling of insurance
claims.
12. Which of the following is not a type of property covered under a homeowner’s policy? A. Dwelling B. Commercial warehouse C. Other structures D. Personal property
A homeowner’s policy covers personal residences, not commercial
properties.
13. Which coverage helps pay for a lawsuit filed against the insured? A. Personal property B. Liability
C. Medical payments D. Loss of use
Liability coverage protects the insured against claims of bodily injury or
property damage.
14. An adjuster must keep records for a minimum of: A. 1 year B. 3 years C. 5 years D. 7 years
Oklahoma adjusters must retain records of transactions and contracts
for at least 3 years.
15. The term "subrogation" means: A. Canceling a policy B. Transferring the right to recover damages to the insurer C. Denying claims D. Adjusting premium
Subrogation allows the insurer to seek reimbursement from a third
party after paying a claim.
16. The deductible in a policy is the: A. Premium B. Amount the insured pays before insurance kicks in C. Replacement cost D. Market value
20. Which of the following is NOT grounds for license denial or revocation in Oklahoma? A. Fraud B. Misrepresentation C. Felony conviction D. Being over 50 years old
Age is not a valid reason to deny or revoke a license.
21. “Insurable interest” must exist: A. At the time of claim B. At the time of loss C. At the time of purchase only D. At any time
Insurable interest must exist at the time of loss to prevent moral hazard.
22. When a policy covers depreciation, it pays: A. More than the damage B. Actual cash value C. Replacement cost D. Guaranteed cost
Actual cash value accounts for depreciation in claims settlements.
23. Replacement cost is defined as: A. Market value B. Cost to replace with like kind and quality without depreciation C. Loan value
D. Salvage value
Replacement cost does not subtract for depreciation.
24. What does “bad faith” mean in adjusting? A. Adjusting quickly B. Denying claims without reason C. Offering fair settlements D. Following state laws
Bad faith refers to unethical or dishonest claim handling.
25. What is a “catastrophe adjuster”? A. Staff adjuster B. Temporary adjuster for disaster claims C. Public adjuster D. Underwriter
These adjusters are deployed during major disasters to handle large
volumes of claims.
26. A claim file must be made available to the Oklahoma Insurance Department within: A. 60 days B. 30 days C. 10 days D. 90 days
State regulators may request claim files to be provided within 10 days.
Oklahoma requires insurers to begin investigating claims within 30
days.
31. Which of the following would typically be covered under a standard homeowner’s policy? A. Flood damage B. Earthquake C. Fire damage D. War-related loss
Fire is a covered peril in standard homeowner’s policies; flood and war
are excluded.
32. What does “no-fault” insurance mean? A. The insurer never pays B. Each party's insurer pays their own insured’s damages regardless of fault C. Fault is determined by a judge D. Only police reports are accepted
No-fault insurance means your insurer pays for your damages,
regardless of who caused the accident.
33. An adjuster’s duty includes all except : A. Investigating claims B. Determining premium rates C. Evaluating damages D. Negotiating settlements
Premium rates are determined by underwriters or actuaries, not
adjusters.
34. Which of the following must be included in every public adjuster’s contract in Oklahoma? A. Premium notice B. Depreciation chart C. Fee structure and services to be provided D. Vehicle inspection sheet
Oklahoma requires public adjuster contracts to include fee terms and
service details.
35. What is a “proof of loss”? A. Fire report B. Policy endorsement C. Signed sworn statement outlining the amount of loss D. Adjuster’s license
A proof of loss is a formal claim statement from the insured declaring
the extent of damages.
36. Who can suspend or revoke an adjuster’s license in Oklahoma? A. The adjuster’s employer B. The policyholder C. The Oklahoma Insurance Commissioner D. An attorney
Adjusters must include 3 hours of ethics as part of their 24-hour CE
requirement.
40. If an insurer fails to act in good faith, it may be liable for: A. Premium rebates B. Claim dismissal C. Bad faith damages D. Policy reinstatement
An insurer acting in bad faith may be sued and held liable for additional
punitive damages.
41. Which of the following best defines “risk”? A. The price of coverage B. The chance of a loss occurring C. The deductible amount D. The value of salvage
Risk is the uncertainty or chance that a covered event will result in a
loss.
42. What is considered an unfair claims practice? A. Delaying claim payment without valid reason B. Investigating a loss C. Offering a fair settlement D. Explaining policy exclusions
Unwarranted delays in claim payments violate fair claims practices.
43. A “total loss” means: A. Claim has been denied B. The cost of repair exceeds the value of the item C. The deductible was too high D. The item is replaceable
A total loss occurs when repairs cost more than the item is worth.
44. Which law gives Oklahoma regulators authority to examine insurers and licensees? A. Fair Credit Act B. Consumer Protection Act C. Oklahoma Insurance Code D. Claims Settlement Act
The Oklahoma Insurance Code outlines regulatory powers, including
licensing and examinations.
45. Which of the following is not typically a reason for claim denial? A. Non-covered peril B. Policy lapse C. Misrepresentation D. Timely notice of loss
Providing timely notice helps preserve a valid claim; it is not a denial
reason.
46. What is a binder in insurance? A. Temporary insurance coverage B. A denial letter
50. A claim settlement must be paid within how many days of proof of loss? A. 90 days B. 60 days C. 30 days D. 120 days
Oklahoma requires payment of claims within 60 days after receiving
valid proof of loss.
51. What is the purpose of an insurance deductible? A. Increase policy limits B. Prevent small or frequent claims C. Add more coverage D. Raise premiums
Deductibles discourage unnecessary claims and reduce insurer exposure
to minor losses.
52. Which part of a property policy lists the specific coverage amounts and premium? A. Insuring agreement B. Declarations page C. Conditions D. Endorsements
The declarations page contains important facts like policyholder name,
limits, and premium.
53. Which document officially starts the claims process? A. Notice of loss B. Inspection form C. Premium receipt D. Repair estimate
The notice of loss alerts the insurer to begin investigating a claim.
54. Which of the following could result in a claim being denied? A. Covered peril B. Material misrepresentation by the insured C. Prompt filing D. Timely premium payment
False information on an application or during a claim can void coverage.
55. What is the first step in the adjusting process? A. Verify coverage B. Settle the claim C. Write a check D. Negotiate repair estimates
Coverage must be verified before any other claims work proceeds.
56. Which of the following best describes "insurable interest"? A. Love for the insured item B. Financial stake in the insured property C. Ability to make repairs D. Knowledge of the item
B. Direct loss C. Consequential loss D. Scheduled loss
Consequential losses are secondary impacts, like lost income after a fire.
61. What is the standard of proof in civil insurance claims? A. Beyond reasonable doubt B. Preponderance of the evidence C. Probable cause D. Clear and convincing
Civil claims require a “more likely than not” standard.
62. What is a fiduciary duty? A. Volunteer service B. Legal responsibility to act in someone else’s best interest C. Paying premiums D. Policy renewal
Adjusters hold fiduciary duties to both the insurer and sometimes to the
insured.
63. An example of moral hazard is: A. Earthquake B. Windstorm C. Intentionally setting fire to claim insurance D. Unlocked door
Moral hazard involves dishonest behavior to gain insurance benefits.
64. What is the maximum fee a public adjuster can charge in Oklahoma? A. 50% of the claim B. 25% of replacement cost C. Reasonable fee, often not exceeding 10%–15% D. Unlimited
While the state doesn’t cap it, fees must be reasonable and clearly
disclosed.
65. If a policy has an 80% coinsurance clause, the insured must carry: A. At least 80% of the property's replacement cost B. Full market value C. Only the deductible D. Total loss value
Failing to meet coinsurance requirements may reduce claim payments.
66. When an insurer pays a claim and then seeks reimbursement from the at-fault party, it’s called: A. Subrogation B. Arbitration C. Waiver D. Endorsement
Subrogation allows insurers to recover damages paid from the
responsible third party.
67. What kind of insurance covers businesses against claims of negligence or poor service? A. Property
