25 Free Oklahoma Life & Health Exam Practice Questions (2026)
How to Use This Oklahoma Life & Health Question Set
Oklahoma tests Life and Accident and Health or Sickness together as a combined exam of 150 scored questions in 150 minutes for $38, delivered by PSI Services LLC for the Oklahoma Insurance Department (OID). Passing takes 70 percent correct, a raw percent, not a scaled score. You can sit the exam at one of PSI's 16 test centers in Oklahoma or take it with remote proctoring. Oklahoma also requires no pre-licensing course and no fingerprinting for Life or Accident and Health or Sickness.
Oklahoma's content outline for the combined exam has nine sections, and PSI states each one as an item count rather than a percentage. The largest is Provisions, Options, Exclusions, Riders, Clauses, and Rights at 42 items, followed by Life Products at 30 and State Insurance Statutes, Rules, and Regulations at 29. Health Providers and Products is 15 items, Underwriting is 13, Licensing is 9, Medicare and Long-Term Care are 5 each, and Considerations in Replacing Insurance is 2.
These 25 questions come from LanePrep's Oklahoma Life & Health quiz bank and sample across Chapters 1-8: 2 from Chapter 1, 5 from Chapter 2, 4 from Chapter 3, 3 from Chapter 4, 2 from Chapter 5, 2 from Chapter 6, 2 from Chapter 7, and 5 from Chapter 8. Chapter 2 on life products and Chapter 8 on Oklahoma insurance law, regulation and unfair trade practices are the two heaviest single chapters, worth 30 and 29 of the 150 exam questions. Chapters 3 and 4 together are PSI's single 42-item provisions section, which LanePrep teaches in two parts: policy provisions and clauses in Chapter 3, and riders, options, beneficiaries and policyowner rights in Chapter 4. Each question shows its chapter, so a miss tells you exactly which chapter to go back to.
A few exam-day facts shape how you should practice. The exam includes 5 unscored experimental questions on top of the 150 scored ones. They look like any other question but still use your time, so don't sink a long stretch into one you can't crack. If you fail, there is no limit on retakes and no required waiting period beyond a one-day processing gap, though a retest can't be scheduled for the same day. To keep your fee, cancel or reschedule an appointment at least two days before the exam date.
A passing score stays usable for two years, because the license application must be made within two years of passing. For perspective, the NAIC reports first-time pass rates on the combined exam of 59.9 percent in 2024 and 60.1 percent in 2025, with in-person and remote candidates combined in both years, and the rate held steady at about 60 percent.
Work them before you read the answer. Every question has the explanation folded underneath it. Guessing first and reading second teaches more than reading first and agreeing.
Practice Questions 1-5: Licensing Purpose, Outside Testing, the Life Line, Mutual Insurers and Renewable Term
Chapter 1 opens with the purpose of Oklahoma's producer licensing law and then asks whether the Insurance Commissioner has to run the licensing exams personally. Chapter 2 moves into life products: what the Life line of authority covers when a client wants an annuity and accidental death and dismemberment benefits, how mutual and stock insurers differ, and what happens to the premium when a renewable term policy renews without evidence of insurability.
Question 1 (Chapter 1)
An individual, Sarah, is considering applying for a Life and Accident and Health or Sickness producer license in Oklahoma. She understands that the Oklahoma Producer Licensing Act (36 O.S. §§1435.1-1435.4) is in place to regulate the insurance industry. What is the primary purpose of this Act?
- A) To protect the public interest by ensuring only qualified and ethical individuals sell insurance.
- B) To maximize state revenue through licensing fees and penalties.
- C) To promote competition among insurance companies by setting uniform commission rates.
- D) To establish a state-run insurance company to compete with private insurers.
Show answer & explanation
Answer: A
The primary purpose of the Oklahoma Producer Licensing Act, as outlined in 36 O.S. §§1435.1-1435.4, is to protect the public. This is achieved by ensuring that only individuals who meet specific qualifications, including competence and trustworthiness, are authorized to sell insurance products. Options B, C, and D are not the primary stated purpose of the Act.
Question 2 (Chapter 1)
The Oklahoma Insurance Commissioner has the responsibility to ensure that insurance licensing examinations are properly administered. To fulfill this duty, the Commissioner is authorized by statute to outsource this function. Which of the following best describes the Commissioner's authority regarding the examination process, as per 36 O.S. §1435.6(H)?
- A) The Commissioner may contract with an outside testing service to administer the examinations.
- B) The Commissioner must personally administer all examinations.
- C) The Commissioner may only allow insurance companies to administer examinations to their prospective agents.
- D) The Commissioner is prohibited from delegating any part of the examination process.
Show answer & explanation
Answer: A
Under 36 O.S. §1435.6(B), the Commissioner may make arrangements, including contracting with an outside testing service, to administer examinations and collect the nonrefundable examination fee, and §1435.6(D) adds that the Commissioner may accept examinations administered by a testing service. This is why PSI Services LLC is the current vendor. Options B, C, and D contradict this statutory authority.
Question 3 (Chapter 2)
A client approaches an Oklahoma-licensed producer seeking to purchase an annuity to fund their retirement, and also expresses interest in adding accidental death and dismemberment (AD&D) benefits to their financial plan. The producer holds an Oklahoma Life line of authority. Which of the following statements is TRUE regarding the producer's ability to offer these products under their existing license in Oklahoma?
- A) The producer can only offer the annuity if they also hold a Variable Life and Variable Annuity Products line of authority.
- B) The producer can offer both the annuity and the accidental death and dismemberment benefits under their Life line of authority, as specified in 36 O.S. §1435.8(A)(1).
- C) The producer can offer the annuity, but must obtain an Accident and Health or Sickness line of authority to offer accidental death and dismemberment benefits.
- D) The producer cannot offer either product, as annuities and AD&D benefits require separate, specialized licenses beyond a standard Life line.
Show answer & explanation
Answer: B
Under 36 O.S. §1435.8(A)(1), the Oklahoma statutory Life line of authority explicitly includes benefits of endowment and annuities. It also states that it 'may include benefits for accidental death and dismemberment.' Therefore, a producer with a Life line of authority can offer both products. Option A is incorrect because a Variable Life and Variable Annuity Products license is only required for variable annuities, not all annuities. Option C and D are incorrect because both products can fall under the broad scope of the Life line.
Question 4 (Chapter 2)
An Oklahoma producer is explaining the difference between two types of whole life insurance policies to a client. One policy is issued by a mutual insurer, and the other by a stock insurer. The client asks about the ownership structure and potential for policyholder dividends. Which of the following statements correctly distinguishes between policies from mutual and stock insurers?
- A) Mutual insurers are owned by their policyholders and often issue participating policies that may pay dividends, whereas stock insurers are owned by stockholders and typically issue non-participating policies.
- B) Policies from stock insurers typically pay dividends to policyholders, while policies from mutual insurers do not.
- C) Both mutual and stock insurers are owned by their respective policyholders, but only stock insurers are publicly traded.
- D) Dividends from mutual insurers are guaranteed and taxable, while dividends from stock insurers are not guaranteed and tax-exempt.
Show answer & explanation
Answer: A
Mutual insurers are owned by their policyholders and often issue participating policies, which means policyholders may receive dividends. Stock insurers are owned by stockholders and typically issue non-participating policies, meaning policyholders do not share in the company's profits through dividends. Option B reverses the roles. Option C is incorrect because stock insurers are owned by stockholders, not policyholders. Option D is incorrect as dividends from mutual insurers are not guaranteed and are generally considered a return of premium, thus not taxable as income.
Question 5 (Chapter 2)
An Oklahoma resident, Jessica, purchased a 10-year renewable term life insurance policy. As the 10-year term is nearing its end, she decides to renew the policy for another 10-year term without providing evidence of insurability. What is the most likely outcome regarding her premium payments for the new term?
- A) Her premium payments will decrease due to the longer duration of her original policy.
- B) Her premium payments will remain the same as the original term.
- C) Her policy will automatically convert to a whole life policy with a level premium.
- D) Her premium payments will increase, reflecting her attained age.
Show answer & explanation
Answer: D
While renewable term insurance allows the policyholder to renew coverage without proving insurability, the premiums for the new term are typically based on the insured's attained age at the time of renewal. Since Jessica is older, her risk to the insurer has increased, leading to higher premiums. Premiums do not decrease (A) or remain the same (B) upon renewal of a term policy. Automatic conversion to whole life (C) is not a feature of simple renewability; it requires a convertibility option to be exercised.
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Practice Questions 6-10: Universal Life Rates, Stock Insurer Dividends, the Entire Contract, the Insuring Clause and Claim Forms
Chapter 2 closes with two product questions: why a universal life policy shows two interest rates, and whether a whole life policy from a stock insurer can be expected to pay dividends. Chapter 3 then turns to policy provisions: the provision that decides whether a rider described only in a brochure is part of the contract, the clause that states what the insurer promises to pay, and what an insured may do when the insurer does not send claim forms.
Question 6 (Chapter 2)
An Oklahoman, Mr. Chen, owns a Universal Life insurance policy. He is reviewing his annual statement and notices that the interest rate credited to his policy's cash value is higher than the guaranteed minimum interest rate stated in his policy. He asks his producer why there are two different rates. What is the primary reason for the difference between the guaranteed minimum interest rate and the current interest rate in a Universal Life policy?
- A) The current rate reflects the insurer's current investment performance and market conditions, while the guaranteed rate is the lowest the policy will ever credit.
- B) The guaranteed rate applies only if the policy becomes a Modified Endowment Contract (MEC).
- C) The guaranteed rate is for policy loans, and the current rate is for cash value growth.
- D) The current rate is only applicable during the policy's surrender period.
Show answer & explanation
Answer: A
Universal Life policies typically have a guaranteed minimum interest rate, which is the lowest rate the insurer promises to credit to the cash value. The current interest rate, however, is often higher and reflects the insurer's actual investment earnings and prevailing market interest rates. This current rate can fluctuate but will never fall below the guaranteed minimum. Option B, C, and D are incorrect descriptions of these rates.
Question 7 (Chapter 2)
Mr. Chen, an Oklahoman, holds a whole life insurance policy issued by a stock insurer. He has heard that some policyholders receive dividends and asks his producer if he can expect to receive them from his policy. What should the producer explain regarding dividends from a whole life policy issued by a stock insurer?
- A) Stock insurers typically issue participating policies, so Mr. Chen can expect to receive dividends annually.
- B) Stock insurers typically issue non-participating policies, meaning Mr. Chen's policy will not pay dividends.
- C) Dividends from stock insurers are guaranteed but are taxable as ordinary income.
- D) Dividends are only paid by mutual insurers; stock insurers only offer cash value growth.
Show answer & explanation
Answer: B
Stock insurers are owned by stockholders and typically issue non-participating policies, which do not pay dividends to policyholders. Mutual insurers, owned by their policyholders, are the ones that typically issue participating policies and may pay dividends. Therefore, Mr. Chen's policy from a stock insurer will not pay dividends. Option A is incorrect because stock insurers issue non-participating policies. Option C is incorrect as dividends from participating policies are generally considered a return of premium and are not taxable until they exceed the premiums paid. Option D is partially correct that mutual insurers pay dividends, but stock insurers also offer cash value growth, not just that.
Question 8 (Chapter 3)
An Oklahoman policyowner, Sarah, believes her life insurance policy includes a specific rider based on a conversation she had with her agent and a brochure she received. However, the rider is not mentioned in the policy document itself nor in her application. When she files a claim, the insurer denies coverage for that specific benefit. Which policy provision supports the insurer's position?
- A) The Entire Contract Provision
- B) The Consideration Clause
- C) The Insuring Clause
- D) The Legal Actions Clause
Show answer & explanation
Answer: A
The Entire Contract Provision states that the policy document and the application constitute the complete agreement between the policyowner and the insurer. No external documents, such as brochures, or verbal agreements are considered part of the contract. Therefore, if the rider is not in the policy or application, it is not part of the contract. The Insuring Clause is the insurer's promise to pay, the Consideration Clause outlines what each party gives, and the Legal Actions Clause sets time limits for lawsuits.
Question 9 (Chapter 3)
Sarah, an Oklahoman, is reviewing her new life insurance policy. She finds a section prominently labeled 'Insuring Clause.' Which of the following statements best describes the primary function of this clause?
- A) It specifies the conditions under which the insurer promises to pay the death benefit.
- B) It details the policy's cash surrender values and loan provisions.
- C) It outlines the policyowner's rights to change beneficiaries and assign the policy.
- D) It lists all the exclusions from coverage, such as suicide or war.
Show answer & explanation
Answer: A
The insuring clause is the insurer's fundamental promise to pay the death benefit to the named beneficiary upon the insured's death, provided certain conditions (like premium payments and policy being in force) are met. It is the core commitment of the insurance company. Cash values, loan provisions, and policyowner rights are typically found in other sections of the policy, and exclusions are separate limitations on the insuring clause's promise.
Question 10 (Chapter 3)
An Oklahoma insured provides a timely notice of claim to their health insurer. The insurer fails to send claim forms within 15 days. What is the insured's next step under the mandatory policy provisions?
- A) The insured must wait another 15 days before taking action.
- B) The insured may submit proof of loss on any plain paper, which the insurer must accept as valid proof.
- C) The insured must file a complaint with the Oklahoma Insurance Department before proceeding.
- D) The claim is automatically deemed approved because the insurer missed the deadline.
Show answer & explanation
Answer: B
Under the 'Claim Forms' provision, if the insurer fails to provide the forms within 15 days of receiving notice, the insured is deemed to have complied with the proof of loss requirement by submitting written proof describing the occurrence, character, and extent of the loss (even on plain paper).
Practice Questions 11-15: Reinstatement, Irrevocable Beneficiaries, Extended Term and Insurable Interest
Chapter 3 ends with the reinstatement of a lapsed health policy and what the insurer's silence means. Chapter 4 covers policyowner rights: what a policy loan requires when the beneficiary is irrevocable, which nonforfeiture option keeps the full face amount in force for as long as the cash value allows, and what an outstanding loan does to that option. Chapter 5 then opens with the moment at which insurable interest must exist in a life policy.
Question 11 (Chapter 3)
An Oklahoman, Lisa, applies to reinstate her health insurance policy after it lapsed 60 days ago. She submits the application and the required premium to the insurer. If the insurer does not notify Lisa of a rejection, after how many days is the policy automatically considered reinstated?
- A) 10 days
- B) 30 days
- C) 45 days
- D) 60 days
Show answer & explanation
Answer: C
Under the mandatory 'Reinstatement' provision for health insurance, if an insurer requires an application for reinstatement and does not notify the applicant of disapproval within 45 days, the policy is automatically reinstated.
Question 12 (Chapter 4)
An Oklahoma policyowner, Sarah, has a whole life policy with a $50,000 cash value. She named her husband, Mark, as the irrevocable beneficiary. Sarah now wishes to take out a policy loan to pay for their daughter's tuition. Which of the following is TRUE?
- A) Sarah can take the loan at any time because she is the policyowner.
- B) Sarah can only take the loan if she first changes the beneficiary to 'revocable'.
- C) Sarah must obtain Mark's written consent before she can take the policy loan.
- D) Mark, as the irrevocable beneficiary, is the only one who can initiate the loan request.
Show answer & explanation
Answer: C
Under an irrevocable beneficiary designation, the beneficiary has a vested interest in the policy. The policyowner cannot exercise rights that affect that interest—such as taking a loan or surrendering the policy—without the irrevocable beneficiary's written consent.
Question 13 (Chapter 4)
A policyowner wants to stop paying premiums on his $200,000 whole life policy. He wants to keep the full $200,000 of coverage for as long as his current cash value will allow. Which nonforfeiture option should he select?
- A) Reduced Paid-up
- B) Cash Surrender
- C) Extended Term
- D) Paid-up Additions
Show answer & explanation
Answer: C
The Extended Term option uses the cash value to buy a term policy with the same face amount as the original policy. It provides the maximum death benefit but for a limited period of time.
Question 14 (Chapter 4)
An insured has a $100,000 whole life policy with a $10,000 outstanding loan. He stops paying premiums and the policy goes into 'Extended Term' nonforfeiture. How does the loan affect this?
- A) The loan is forgiven, and the insured gets $100,000 of term insurance.
- B) The face amount of the term insurance is reduced to $90,000, and the cash value used to buy the term is also reduced by the loan amount.
- C) The policyowner must pay the loan back before the Extended Term option can be used.
- D) The Extended Term option is unavailable if there is an outstanding loan.
Show answer & explanation
Answer: B
When a policy with a loan enters a nonforfeiture option, the loan amount is deducted from both the face amount (death benefit) and the cash value. In this case, the insured would receive $90,000 of term insurance for as long a period as the remaining net cash value can buy.
Question 15 (Chapter 5)
A business owner, Sarah, applies for a life insurance policy on her key executive, Mark. Three years later, Mark leaves the company to start a competing firm. If Mark dies shortly after leaving, which of the following is true regarding the policy's validity in Oklahoma?
- A) The policy is void because Sarah no longer has an insurable interest in Mark's life.
- B) The policy is only valid if Mark provides written consent to continue the coverage after his resignation.
- C) The policy remains valid because insurable interest is only required at the time of application in life insurance.
- D) The death benefit must be split between Sarah and Mark's estate because the insurable interest was partial.
Show answer & explanation
Answer: C
In Oklahoma, for life insurance, insurable interest must exist at the inception of the policy (the time of application). It does not need to continue through the duration of the policy or exist at the time of the claim. This is a fundamental principle of life insurance underwriting.
Practice Questions 16-20: Suitability Records, Specified Disease Policies, HMO Service Areas, Medicare Advantage and Long-Term Care
Chapter 5 continues with the records a producer must keep from an annuity sale and who can discipline a producer who doesn't. Chapter 6 turns to health products: what a specified disease policy pays when a different illness strikes, and how an HMO defines its service area. Chapter 7 starts with a Medicare Advantage question about the Part B premium and then asks about a condition that no Oklahoma long-term care policy may exclude.
Question 16 (Chapter 5)
An Oklahoma producer fails to keep a record of the suitability information gathered for an annuity sale. What is the potential consequence?
- A) There is no consequence as long as the client is happy.
- B) The producer must pay a $10 fine to the client.
- C) The producer may be subject to disciplinary action by the Insurance Commissioner.
- D) The client's annuity is automatically cancelled.
Show answer & explanation
Answer: C
Producers are required to maintain records of suitability information. Failure to do so is a violation of state insurance regulations and can lead to fines, license suspension, or revocation by the Commissioner.
Question 17 (Chapter 6)
An Oklahoman consumer, Sarah, purchases a 'Specified Disease' policy specifically for cancer. Two months later, she is hospitalized for a severe heart attack. How will her Specified Disease policy respond to the medical claims from the heart attack?
- A) It will pay the claims in full because a heart attack is a major medical emergency.
- B) It will pay a pro-rata share of the expenses alongside her major medical plan.
- C) It will pay the hospital room and board charges but not the surgical fees.
- D) It will pay nothing, as the policy only covers the disease specifically named in the contract.
Show answer & explanation
Answer: D
Specified Disease policies are limited-benefit plans that only provide coverage for the specific illness(es) named in the policy (e.g., cancer). They do not cover other illnesses or accidents, even if they are life-threatening.
Question 18 (Chapter 6)
An HMO member lives in Broken Arrow but works in Tulsa. The HMO's 'Service Area' is defined as:
- A) The specific geographic region where the HMO is licensed and has a provider network.
- B) The entire state of Oklahoma.
- C) Anywhere within 500 miles of the member's primary residence.
- D) Only the city limits of the member's place of employment.
Show answer & explanation
Answer: A
HMOs are geographically restricted. Members must generally live or work within the designated 'Service Area' to be eligible for coverage, except for emergency care.
Question 19 (Chapter 7)
An Oklahoma resident, Sarah, is currently enrolled in Medicare Parts A and B. She is interested in purchasing a Medicare Advantage (Part C) plan. Which of the following is a correct statement regarding her transition?
- A) Sarah will no longer be required to pay her Medicare Part B premium once she joins Part C.
- B) Sarah's Medicare Part A and B coverage will be terminated and replaced by a private policy that is not overseen by Medicare.
- C) Sarah can keep her Medicare Supplement (Medigap) policy to pay for the out-of-pocket costs of her Medicare Advantage plan.
- D) Sarah must continue to pay her Medicare Part B premium to the federal government in addition to any Part C plan premium.
Show answer & explanation
Answer: D
To enroll in a Medicare Advantage (Part C) plan, an individual must be enrolled in both Medicare Parts A and B and must continue to pay the Part B premium. Distractor A is wrong because Part C does not waive the Part B premium. Distractor B is wrong because Part C plans are private but must be approved by Medicare. Distractor C is wrong because it is illegal to sell a Medigap policy to someone enrolled in a Medicare Advantage plan.
Question 20 (Chapter 7)
In Oklahoma, a Long-Term Care policy cannot exclude coverage for which of the following conditions?
- A) Self-inflicted injuries.
- B) Injury arising out of a felony.
- C) Treatment provided in a government facility (unless required by law).
- D) Alzheimer’s Disease or other organic brain disorders.
Show answer & explanation
Answer: D
Oklahoma minimum standards for LTC policies prohibit the exclusion of coverage for Alzheimer’s Disease, senile dementia, or other organic brain disorders.
Practice Questions 21-25: Minors, Mutual Insurers, Illegal Inducements, Newborn Coverage and Fraternal Societies
Chapter 8 ends the set with Oklahoma insurance law and unfair trade practices: whether a minor can rescind a life policy because of age, which type of insurer is owned by its policyholders, a paid role offered to a client who buys a disability income policy, the point at which a health policy must cover a newborn, and what sets a fraternal benefit society apart.
Question 21 (Chapter 8)
Sarah, age 17, applies for a life insurance policy on her own life in Oklahoma. Her father signs the application as the consenting parent. After six months, Sarah decides she no longer wants the policy and attempts to rescind the contract solely on the basis that she was a minor when she signed it. Which of the following is true under 36 O.S. §3606(B)?
- A) Sarah may rescind the contract because she is under 18 and lacks full legal capacity.
- B) Sarah cannot rescind the contract based on her minority because she was at least 16 and had parental consent.
- C) The contract is void from the beginning because minors cannot legally own life insurance in Oklahoma.
- D) Sarah can rescind the contract, but only if she returns all death benefit protection costs to the insurer.
Show answer & explanation
Answer: B
Under 36 O.S. §3606(B), a minor not less than sixteen (16) years of age may, with signed parental or guardian consent, contract for life or accident and health insurance on his or her own life, and the minor cannot later rescind, avoid, or repudiate the contract by reason of minority. Sarah was 17 and her father consented, so she cannot rescind solely because she was a minor. The only exception is that a minor who is not otherwise emancipated is not bound by an unperformed agreement to pay a premium.
Question 22 (Chapter 8)
An insurer that is owned by its policyholders and may pay dividends to those policyholders is known as a:
- A) Stock Insurer
- B) Mutual Insurer
- C) Fraternal Benefit Society
- D) Reciprocal Insurer
Show answer & explanation
Answer: B
Mutual insurers are owned by their policyholders, whereas stock insurers are owned by stockholders.
Question 23 (Chapter 8)
An insurance producer offers a prospective client a position as a 'consultant' for the agency, which includes a small monthly stipend, provided the client purchases a large disability income policy. This is known as:
- A) Twisting
- B) A referral fee
- C) An illegal inducement
- D) Replacement
Show answer & explanation
Answer: C
Offering anything of value (including employment or stipends) that is not specified in the insurance contract as an incentive to buy insurance is an illegal inducement (a form of rebating).
Question 24 (Chapter 8)
An Oklahoma health insurance policy that provides coverage for dependents must provide coverage for a newborn child from:
- A) 30 days after birth
- B) The date the child is discharged from the hospital
- C) The moment of birth
- D) The first day of the following month
Show answer & explanation
Answer: C
Oklahoma mandated benefits require that health policies covering dependents provide coverage for newborns from the moment of birth, including injury or sickness and necessary care for congenital defects.
Question 25 (Chapter 8)
A fraternal benefit society is operating in Oklahoma. Which of the following is a distinguishing characteristic of this type of organization?
- A) It is owned by stockholders who receive dividends.
- B) It provides insurance only to the general public and is prohibited from having members.
- C) It has a lodge system and a representative form of government, providing insurance only to its members.
- D) It is exempt from all oversight by the Oklahoma Insurance Department.
Show answer & explanation
Answer: C
Fraternal benefit societies are nonprofit organizations that operate under a lodge system with a representative form of government. They provide insurance benefits specifically to their members and their members' beneficiaries.
The Mistakes That Cost Marks
Assuming an annuity needs its own license. Oklahoma's statutory Life line of authority includes annuities and may include accidental death and dismemberment benefits, so a Life producer can offer both under the existing license (36 O.S. §1435.8(A)(1)). The question offers the Accident and Health or Sickness line and a separate specialized license as distractors. For annuities, the separate Variable Life and Variable Annuity Products line applies only to variable products.
Mixing up mutual and stock insurers. A mutual insurer is owned by its policyholders and often issues participating policies that may pay dividends. A stock insurer is owned by stockholders and typically issues non-participating policies, so a whole life policy from a stock insurer does not pay dividends. Questions 4, 7 and 22 come at this distinction from three directions, and the wrong answers either swap the two or call dividends guaranteed.
Forgetting how rates and premiums move. A renewable term policy renews without evidence of insurability, but the new premium reflects the insured's attained age, so it goes up rather than staying level or falling. A universal life policy has a guaranteed minimum interest rate, which is the lowest rate it will ever credit, and a current rate that follows the insurer's investment performance and can be higher.
Choosing the wrong policy provision. The Entire Contract provision makes the policy and the application the complete agreement, so a rider described only in a brochure or a conversation is not part of the contract. The Insuring Clause is a different thing: it states the conditions under which the insurer promises to pay the death benefit. Two health provisions put the consequence of delay on the insurer. If it doesn't send claim forms in time, the insured may submit proof of loss on plain paper and the insurer must accept it. If it says nothing about a reinstatement application, the policy is treated as reinstated once the stated period runs out.
Overlooking what an irrevocable beneficiary and a loan do. When the beneficiary is irrevocable, the policyowner needs that beneficiary's written consent before taking a policy loan, because the loan affects the beneficiary's vested interest. Extended term uses the cash value to buy term insurance for the full original face amount, but only for a limited time. With a loan outstanding, the loan is deducted from both the face amount and the cash value, so the term coverage ends up smaller than the original.
Requiring insurable interest at the wrong time. For life insurance, insurable interest has to exist when the policy is applied for. It doesn't have to last for the life of the policy, so a policy a business owner took out on a key executive stays valid after the executive leaves. Separately, a producer who doesn't keep the suitability records from an annuity sale risks disciplinary action by the Insurance Commissioner, which can mean fines, suspension or revocation, not a payment to the client and not an automatic cancellation of the annuity.
Expecting every health product to pay for every illness. A specified disease policy is a limited-benefit plan that pays only for the illness named in the contract, so a cancer policy pays nothing after a heart attack. An HMO's service area is the geographic region where it is licensed and has a provider network, not the whole state and not the city where the member works. A member of a Medicare Advantage plan keeps paying the Part B premium, and in Oklahoma a long-term care policy may not exclude Alzheimer's disease or other organic brain disorders.
Misjudging the Chapter 8 rules. A minor who applied with the required parental consent can't rescind a life insurance contract just because of age. Offering a prospect a paid consultant role in exchange for buying a policy is an illegal inducement, a form of rebating, because it is something of value that the contract does not state. A health policy that covers dependents must cover a newborn from the moment of birth, not from hospital discharge and not after a waiting period. And a fraternal benefit society works through a lodge system and a representative form of government and insures only its members.
Your Next Step
How did you score?
20 or more correct: You're clearing most of the outline across all eight chapters. Work the two deeper sets next: the Life insurance exam set and the Health insurance exam set, then read how to pass the Oklahoma Life & Health exam on the first try for the full study plan.
12-19 correct: You're getting a good share of it, but these 25 questions stand in for a combined exam of 150 scored questions. Note the chapter of every question you missed and replay that chapter's audio lesson before moving to the deeper sets above.
Under 12 correct: You need the material, not more questions yet. Start with the free preview at /ok/l-and-h/preview and work through the audio chapters in order before testing yourself again.
For the full cost picture beyond the exam fee, including the $60 biennial resident license, see how much an Oklahoma Life & Health license costs. The LanePrep Oklahoma Life & Health course preview is a click away whenever you're ready to go deeper.
Exam structure, fees and content outline item counts from PSI Services LLC's Oklahoma Insurance Department Candidate Information Bulletin (dated 7/1/2026) and the PSI content outline for the combined exam (effective 8/1/2026); license fee from 36 O.S. §1435.23(A)(4)(a) and the two-year application window from 36 O.S. §1435.6(I); pass rates from the NAIC compiled pass-rate workbooks for 2024 and 2025. Read October 2026.
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