17 Free Oklahoma Life Insurance Exam Practice Questions (2026)
How to Use This Life Insurance Question Set
Oklahoma's life questions draw on two sections of the combined exam outline: Life Products at 30 items and the life half of Provisions, Options, Exclusions, Riders, Clauses, and Rights, a 42-item section that the combined exam shares with health. Candidates who take Life as its own standalone exam face 100 scored questions plus 5 unscored in 120 minutes for $38, and the passing score is the same 70 percent correct, a raw percent, not a scaled score. Oklahoma requires no pre-licensing course and no fingerprinting for Life.
These 17 questions come from Chapters 2, 3 and 4 of LanePrep's Oklahoma Life & Health quiz bank, none of them repeated from the free 25-question sample across the whole exam: 7 on life products (Chapter 2), 5 on policy provisions and clauses (Chapter 3), and 5 on riders, options, beneficiaries and policyowner rights (Chapter 4). Chapters 3 and 4 together are PSI's single 42-item provisions section, which LanePrep teaches in two parts. Three of the five Chapter 3 questions are claim-handling provisions that come from the health side of that shared section, and the intro to questions 7-12 points them out. Each question shows its chapter, so a miss tells you exactly which audio lesson to replay.
For context, the NAIC's first-time pass rate on the standalone Life exam was 52.7 percent in 2024 and 51.3 percent in 2025, with in-person and remote candidates combined in both years.
Work them before you read the answer. Every question has the explanation folded underneath it. Guessing and then reading is worth more than reading and then agreeing.
Practice Questions 1-6: Variable Annuity Licensing, Level Term, Accumulation Units, Whole Life Guarantees and Group Participation
Chapter 2 opens with the line of authority a producer needs to sell variable annuities, then works through product design: the term policy that fits a fixed period of need, what accumulation units represent in a variable annuity, and the guarantee that makes whole life cash value grow at a predictable rate. The block closes with what share of eligible employees must join a contributory group life plan and the whole life features that suit a buyer who wants permanence over investment risk.
Question 1 (Chapter 2)
A client in Oklahoma is interested in purchasing a variable annuity, seeking potential for higher returns by investing in sub-accounts, understanding the associated market risk. An Oklahoma-licensed producer holds a standard Life line of authority. What specific additional licensing requirement must this producer meet to legally sell variable annuities in Oklahoma?
- A) No additional license is required, as variable annuities are covered under the standard Life line of authority.
- B) The producer must obtain an Accident and Health or Sickness line of authority.
- C) The producer must obtain a Property and Casualty line of authority.
- D) The producer must obtain a Variable Life and Variable Annuity Products line of authority, as per 36 O.S. §1435.8(A)(5).
Show answer & explanation
Answer: D
While a standard Life line of authority generally covers annuities, variable annuities (and variable life insurance) involve investment risk and are regulated as securities. Therefore, in Oklahoma, a producer must hold a specific 'Variable life and variable annuity products' line of authority, as outlined in 36 O.S. §1435.8(A)(5), in addition to being properly securities licensed. Options A, B, and C are incorrect as they do not reflect the specific licensing requirement for variable products.
Question 2 (Chapter 2)
Sarah, a 35-year-old Oklahoman, wants to purchase life insurance that will provide a consistent death benefit for her family for the next 20 years, during which her children will be growing up and financially dependent. She wants the simplest and most affordable coverage for this specific period. Which type of term life insurance would best suit Sarah's needs?
- A) Increasing Term Life
- B) Decreasing Term Life
- C) Convertible Term Life with a decreasing death benefit
- D) Level Term Life
Show answer & explanation
Answer: D
Level Term Life insurance provides a death benefit that remains constant throughout the policy's term, making it ideal for covering specific periods when a consistent amount of coverage is needed, such as during child-rearing years. Increasing Term Life would have a rising death benefit, and Decreasing Term Life would have a diminishing death benefit, neither of which matches Sarah's need for a consistent amount. Convertible Term Life is a feature, not a type, and combining it with a decreasing death benefit would not meet her need for a consistent benefit.
Question 3 (Chapter 2)
An Oklahoma client is investing in a variable annuity and is learning about how their contributions are allocated. Their producer explains the concept of 'accumulation units.' What do accumulation units primarily represent in a variable annuity during the accumulation phase?
- A) The fixed number of units that determine the guaranteed income payout during annuitization.
- B) The portion of the premium allocated to cover administrative fees and charges.
- C) A guaranteed minimum interest rate applied to the annuity's cash value.
- D) Shares of ownership in the separate account's investment portfolio, whose value fluctuates with market performance.
Show answer & explanation
Answer: D
During the accumulation phase of a variable annuity, premiums are used to purchase accumulation units. These units represent shares in the separate account's underlying investment portfolio. Their value fluctuates daily based on the performance of the chosen investments, reflecting the market risk borne by the owner. Option A describes annuity units, which are determined during the annuitization phase. Option B is incorrect as fees are deducted, not represented by units. Option C describes a feature of fixed annuities, not variable annuities.
Question 4 (Chapter 2)
Mr. and Mrs. Green, an Oklahoman couple, purchased a whole life insurance policy for their newborn child. They are primarily interested in a policy that will build cash value over time at a predictable rate, providing a financial resource for their child's future. Which aspect of whole life insurance guarantees this predictable cash value growth?
- A) The policy's participation in insurer dividends.
- B) The variable investment options within the policy.
- C) The flexible premium payment schedule.
- D) The guaranteed interest rate applied to the cash value.
Show answer & explanation
Answer: D
Whole life insurance policies offer a guaranteed interest rate that is applied to the policy's cash value. This guarantee ensures that the cash value will grow at a predictable, specified rate over the life of the policy, providing stability and certainty for policyowners. Participation in dividends (A) is not guaranteed and depends on insurer performance. Variable investment options (B) are characteristic of variable life, not whole life. Whole life policies have level, not flexible, premium schedules (C).
Question 5 (Chapter 2)
A small business in Oklahoma decides to offer a contributory group life insurance plan to its employees. The employees will contribute a portion of the premium. What is a key characteristic of employee participation in a contributory group life insurance plan?
- A) All eligible employees must participate for the plan to be effective.
- B) Only highly compensated employees are permitted to contribute to the premium.
- C) A minimum percentage of eligible employees (e.g., 75%) must elect to participate.
- D) Employees are required to undergo a medical examination to prove insurability.
Show answer & explanation
Answer: C
In a contributory group life insurance plan, where employees pay a portion of the premium, a certain minimum percentage of eligible employees (often 75% in many states, though specific percentage can vary by state regulation or insurer) must elect to participate for the plan to be effective. This helps prevent adverse selection. Option A is characteristic of non-contributory plans. Options B and D are incorrect for typical group life eligibility.
Question 6 (Chapter 2)
An Oklahoman, Mrs. Davies, wants to purchase life insurance that will provide coverage for her entire life, build cash value predictably, and offer a guaranteed death benefit to her beneficiaries. She prioritizes stability and permanence over high-risk investment potential. Which primary benefit does a whole life insurance policy offer that aligns with Mrs. Davies' priorities?
- A) Flexible premium payments that can be adjusted based on her financial situation.
- B) Permanent coverage with guaranteed cash value growth and a level death benefit.
- C) The lowest initial premium for a substantial death benefit over a specific period.
- D) Investment in separate accounts with the potential for higher market-linked returns.
Show answer & explanation
Answer: B
Whole life insurance is a type of permanent life insurance characterized by a level premium, guaranteed cash value accumulation, and a guaranteed death benefit that lasts for the insured's entire life. This aligns perfectly with Mrs. Davies' desire for stability and permanence. Option A describes Universal Life, Option C describes Term Life, and Option D describes Variable Life or Variable Annuities.
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Practice Questions 7-12: First-to-Die Coverage, Claim Provisions, the Contestable Period and the Grace Period
Chapter 2 ends with the policy that pays on the first of two deaths, which suits a couple with a joint mortgage. Chapter 3 then moves to provisions. Questions 8, 10 and 11 are claim-handling provisions that come from the health side of the shared provisions section: the time limit for giving notice of claim, how often disability income benefits are paid, and how long the insurer has to supply claim forms. Questions 9 and 12 stay with the life contract: what an insurer can do about a material misstatement when the insured dies soon after issue, and how a death during the grace period is paid.
Question 7 (Chapter 2)
Mr. and Mrs. Williams, an Oklahoma couple, recently purchased a home with a substantial joint mortgage. They want a life insurance policy that will ensure the mortgage is paid off if either one of them passes away, providing immediate financial relief to the surviving spouse. They are looking for a cost-effective policy that pays out upon the first death. Which type of life insurance policy is most suitable for their specific need?
- A) Survivorship Life (Second-to-Die) policy
- B) Joint Life (First-to-Die) policy
- C) Individual Universal Life policies for each spouse
- D) Individual Whole Life policies for each spouse
Show answer & explanation
Answer: B
A Joint Life (First-to-Die) policy is specifically designed to cover two or more individuals and pays out the death benefit upon the first death among the insureds. This makes it ideal for situations like covering a joint mortgage or other shared liabilities where the financial need arises immediately upon the first person's passing. Option A, Survivorship Life, pays out only upon the second death, which would not address the immediate mortgage burden. Options C and D, while providing coverage, would involve two separate policies and potentially higher combined premiums for the same first-death coverage objective.
Question 8 (Chapter 3)
After suffering an accidental injury, an Oklahoma insured, Kevin, needs to file a claim under his health insurance policy. According to the mandatory provisions of his policy, what is the typical timeframe within which Kevin must provide written notice of his claim to the insurer?
- A) Within 20 days of the loss or as soon thereafter as reasonably possible.
- B) Within 10 days of the loss or as soon thereafter as reasonably possible.
- C) Within 30 days of the loss or as soon thereafter as reasonably possible.
- D) Within 90 days of the loss or as soon thereafter as reasonably possible.
Show answer & explanation
Answer: A
A mandatory health policy provision, 'Notice of Claim,' typically requires the insured to give written notice of claim to the insurer within 20 days after the occurrence or commencement of any loss covered by the policy, or as soon thereafter as is reasonably possible. This ensures prompt notification for claim processing.
Question 9 (Chapter 3)
A life insurance policy was issued to Michael in Oklahoma on January 1, 2024. On December 1, 2025, Michael dies. During the claims investigation, the insurer discovers that Michael made a material misrepresentation on his application regarding his smoking habits. What action can the insurer take in this situation?
- A) The insurer must pay the full death benefit, as the incontestability period has passed.
- B) The insurer must adjust the death benefit to reflect the higher premium Michael would have paid.
- C) The insurer can only deny the claim if the misrepresentation was fraudulent.
- D) The insurer can contest the policy and deny the claim due to the misrepresentation.
Show answer & explanation
Answer: D
According to 36 O.S. §4004, a life insurance policy becomes incontestable after it has been in force during the lifetime of the insured for two years from its date of issue. In this scenario, Michael died on December 1, 2025, which is less than two years from the issue date of January 1, 2024. Since the insured died within the two-year contestable period, the insurer can contest the policy and deny the claim based on a material misrepresentation, even if it wasn't outright fraud. The incontestability period had not fully passed during Michael's lifetime.
Question 10 (Chapter 3)
Under the 'Time of Payment of Claims' provision in an Oklahoma health policy, how frequently must disability income benefits be paid?
- A) In a single lump sum at the end of the disability period.
- B) At least monthly.
- C) Every 15 days.
- D) Annually, on the anniversary of the disability.
Show answer & explanation
Answer: B
For claims involving periodic payment (like disability income), the 'Time of Payment of Claims' provision requires that benefits be paid at least monthly, subject to due written proof of loss.
Question 11 (Chapter 3)
An Oklahoma health insurer receives a 'Notice of Claim' from a policyholder on Monday. According to the mandatory 'Claim Forms' provision, what is the maximum number of days the insurer has to provide the necessary forms for filing proof of loss?
- A) 5 days
- B) 10 days
- C) 15 days
- D) 20 days
Show answer & explanation
Answer: C
The 'Claim Forms' mandatory provision requires the insurer to furnish the claimant with forms for filing proof of loss within 15 days after receiving notice of the claim.
Question 12 (Chapter 3)
An Oklahoma life insurance policyholder, John, dies during the 30-day grace period provided by 36 O.S. §4003. How will the insurer handle the death benefit?
- A) The claim will be denied because the premium was not paid.
- B) The death benefit will be paid, but the overdue premium will be deducted from the proceeds.
- C) The full death benefit will be paid, and the insurer waives the unpaid premium.
- D) The insurer will refund all premiums paid but will not pay the death benefit.
Show answer & explanation
Answer: B
If an insured dies during the grace period, the policy is still in force. The insurer will pay the death benefit but will subtract the amount of the overdue premium from the payout to the beneficiary.
Practice Questions 13-17: The Guaranteed Insurability Rider, Settlement Options, Beneficiary Order and Dividends
Chapter 4 closes the Life set with a rider that lets the insured buy more coverage without a medical exam, then the settlement options and beneficiary rules: the option that pays until the second of two people dies, what a period certain does when the payee dies early, and who receives the death benefit when the primary and contingent beneficiaries are both gone. The last question is the federal income tax treatment of dividends taken in cash from a participating policy.
Question 13 (Chapter 4)
Under the Guaranteed Insurability Rider, an insured can purchase additional coverage at specified ages or milestones (like marriage or the birth of a child). Which of the following is a key feature of this rider?
- A) The additional coverage is provided at the insured's original issue age rate.
- B) The insured must provide evidence of insurability for each increase.
- C) The rider is automatically included in all Oklahoma life policies at no extra cost.
- D) The additional coverage is purchased at the insured's attained age without a medical exam.
Show answer & explanation
Answer: D
The Guaranteed Insurability Rider allows the insured to buy more insurance at specific intervals without proving they are still healthy (no medical exam). However, the premium for the new coverage is based on their 'attained age' (their age at the time of the increase).
Question 14 (Chapter 4)
A retired couple in Tulsa, Henry and Martha, want to ensure that their life insurance death benefit provides an income for as long as either of them is alive. They choose a settlement option where payments continue until the second spouse dies. This is known as:
- A) Joint Life
- B) Fixed Period
- C) Life Income Joint and Survivor
- D) Life Income with Period Certain
Show answer & explanation
Answer: C
The Joint and Survivor option pays until the last survivor of the two named individuals dies. A 'Joint Life' option would stop payments after the first person dies.
Question 15 (Chapter 4)
A beneficiary selects a 'Life Income with 10-Year Period Certain' settlement option. If the beneficiary dies 4 years after payments begin, what happens?
- A) Payments stop immediately.
- B) The remaining 6 years of payments are forfeited to the insurer.
- C) Payments continue to a contingent payee for 6 more years.
- D) The insurer pays the remaining principal in a lump sum to the estate.
Show answer & explanation
Answer: C
Life Income with Period Certain guarantees payments for the life of the beneficiary, but if they die before the 'certain' period (10 years) ends, payments continue to a survivor for the balance of that period.
Question 16 (Chapter 4)
An insured names his wife as primary beneficiary, his daughter as contingent beneficiary, and his favorite charity as tertiary beneficiary. If the wife and daughter both die in a common accident before the insured, who receives the death benefit?
- A) The insured's estate
- B) The daughter's estate
- C) The charity
- D) The Oklahoma Life and Health Insurance Guaranty Association
Show answer & explanation
Answer: C
The tertiary beneficiary is third in line. If both the primary and contingent beneficiaries predecease the insured, the proceeds go to the tertiary beneficiary.
Question 17 (Chapter 4)
A policyowner has a participating policy and chooses the 'Cash' dividend option. How are these dividends treated for federal income tax purposes?
- A) They are fully taxable as capital gains.
- B) They are generally not taxable because they are considered a return of overpaid premium.
- C) They are taxable as ordinary income only if they exceed $500.
- D) They are 100% tax-deductible if used to buy more insurance.
Show answer & explanation
Answer: B
Dividends from a mutual (participating) insurer are viewed by the IRS as a return of part of the premium paid. Therefore, they are not considered income and are not taxable unless the total dividends received exceed the total premiums paid into the policy.
The Mistakes That Cost Marks
Assuming the Life line covers variable annuities. The Life line of authority covers ordinary annuities, but variable annuities and variable life involve investment risk and need the separate Variable Life and Variable Annuity Products line (36 O.S. §1435.8(A)(5)). The question offers no additional license, the Accident and Health or Sickness line and the Property and Casualty line as distractors.
Giving one product another product's guarantee. Level term keeps the death benefit constant for the chosen period, which is why it fits the years when a family needs a steady amount. Whole life carries a guaranteed interest rate on its cash value and a level death benefit for the insured's whole life, and questions 4 and 6 both rest on those guarantees. A variable annuity's accumulation units are shares in a separate account whose value moves with the market, so their value is not guaranteed.
Matching the policy or plan to the wrong need. A joint life (first-to-die) policy pays when the first of the insureds dies, which is what a couple needs to clear a joint mortgage for the survivor. A survivorship (second-to-die) policy pays only after the last insured dies. In a contributory group life plan, where employees pay part of the premium, a minimum percentage of the eligible employees must elect to participate. It is not every eligible employee, and employees are not required to prove insurability with a medical exam.
Mixing up whose clock is running on a claim. Notice of claim is the insured's clock, supplying claim forms is the insurer's clock, and disability income benefits must be paid at least monthly. The three questions look alike because each turns on a time limit, so read which party the limit binds before you pick an answer.
Misreading the contestable period and the grace period. The incontestable clause counts its period from the date of issue, during the insured's lifetime. Compare the issue date with the date of death before you decide whether the window had closed; in question 9 it had not, so the insurer may contest the policy and deny the claim over a material misrepresentation. A death during the grace period is different: the policy is still in force, so the death benefit is paid, less the overdue premium.
Confusing settlement options and beneficiary order. A life income joint and survivor option pays until the second of the two people dies, while a joint life option would stop at the first death. A life income option with a period certain keeps paying a contingent payee for the rest of the certain period if the beneficiary dies early. The tertiary beneficiary is third in line and receives the death benefit only when the primary and the contingent beneficiary have both died before the insured.
Getting the rider and dividend rules backwards. The guaranteed insurability rider lets the insured buy more coverage at specified ages or life events without a medical exam, but at the attained age, not at the original issue age. Dividends taken in cash on a participating policy are generally not taxable, because they are treated as a return of overpaid premium, not as capital gains.
Your Next Step
How did you score?
13 or more correct: You're clearing most of the life sections. Move to the Health insurance exam set next, then read how to pass the Oklahoma Life & Health exam on the first try for the full study plan.
9-12 correct: You're in reasonable shape but not comfortable. Note which chapter your misses fell in and replay that chapter's audio lesson before retesting.
Under 9 correct: Start with Chapter 2 of the LanePrep Oklahoma Life & Health course and work forward through Chapters 3 and 4 rather than testing yourself again right away. A free preview is available at /ok/l-and-h/preview, no signup required.
For a 25-question sample across the whole exam, see the free practice set.
Exam format, 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 outlines for the Life and combined exams (effective 8/1/2026); pass rates from the NAIC compiled pass-rate workbooks for 2024 and 2025. Read October 2026.
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