17 Free Oklahoma Life & Health Practice Questions: Insurance Law and Regulation (2026)
How to Use This Oklahoma Insurance Law Set
Oklahoma law is 38 of the 150 scored items on the combined exam: Licensing (9) plus State Insurance Statutes, Rules, and Regulations (29). On the Life exam and on the Accident and Health or Sickness exam the same two sections come to 25 of 100 (6 and 19). That is about a quarter of your score, and it is the part of the exam that has to be learned for Oklahoma specifically.
PSI prints a statute or rule citation beside every sub-topic in these two sections. Oklahoma statutes are cited as 36 O.S. §____ and administrative rules as OAC 365:__-__-__. Examples from the outline: Qualifications (36 O.S. §§401-406 and §1435.7), Disciplinary Actions (36 O.S. §§1435.13 and 1435.26), Appointment Procedures (36 O.S. §1435.15), Change of Address (36 O.S. §1435.8(F)), Maintenance, including continuing education (36 O.S. §§1435.23, 1435.29 and 1435.36 and OAC 365:25-3-1), unfair practices and frauds (36 O.S. §§1201-1207), Capacity to Contract and Minors (36 O.S. §3606(B)) and the Oklahoma Life and Health Insurance Guaranty Association Act (36 O.S. §§2022-2025).
These 17 questions come from LanePrep's Oklahoma L&H quiz bank and follow three areas: guaranty association limits and continuing education numbers, unfair trade practices and the kinds of insurers, and aggregate caps, minors and designation programs.
Numbers are most of the game here. Put the guaranty association tiers and the continuing education hours on one page and test yourself until the digits stop swapping.
Practice Questions 1-6: Guaranty Association Limits, Continuing Education and Insurer Types
The guaranty association's limit for a disability income claim and for health benefit plans, the continuing education carryover, mutual insurers, electronic delivery of documents and a minor's contract.
Question 1 (Chapter 8)
A policyholder in Tulsa has a disability income policy with an insurer that has just been declared insolvent. According to the Oklahoma Life and Health Insurance Guaranty Association Act, what is the maximum limit of coverage the Association will provide for this specific type of health insurance claim?
- A) $100,000
- B) $300,000
- C) $500,000
- D) $1,000,000
Show answer & explanation
Answer: B
Under 36 O.S. §2025(C), the Association's obligation with respect to any one life includes up to $300,000 for disability income insurance and $300,000 for long-term care insurance. This is distinct from the $500,000 limit for health benefit plans and the $100,000 limit for other health coverages.
Question 2 (Chapter 8)
A producer has completed 30 hours of CE during their current 24-month licensing period. How many of the excess hours can they carry forward to the next period as general hours?
- A) 0 hours; Oklahoma does not allow carryover.
- B) 6 hours
- C) 3 hours
- D) 10 hours
Show answer & explanation
Answer: B
According to OAC 365:25-3-1(d)(3), a maximum of six (6) credit hours in excess of the biennial requirement may be carried forward to the next 24-month period as general hours.
Question 3 (Chapter 8)
The Oklahoma Life and Health Insurance Guaranty Association provides coverage for 'health benefit plans.' What is the maximum aggregate limit for this specific category per individual?
- A) $100,000
- B) $300,000
- C) $1,000,000
- D) $500,000
Show answer & explanation
Answer: D
Under 36 O.S. §2025(C), health benefit plans (major medical) carry a $500,000 limit, higher than the $100,000 limit for other health coverages and the $300,000 limits for disability income and long-term care insurance.
Question 4 (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 5 (Chapter 8)
An Oklahoma life insurance policyholder wants to receive their policy documents electronically. Which of the following is true regarding electronic delivery of insurance documents in Oklahoma?
- A) Electronic delivery is prohibited for life insurance policies.
- B) Electronic delivery is the default and requires no consumer consent.
- C) Electronic delivery is only allowed for group policies, not individual policies.
- D) Electronic delivery is permitted only if the policyholder provides affirmative consent.
Show answer & explanation
Answer: D
Oklahoma statutes allow for the electronic delivery of insurance documents provided the consumer has affirmatively consented to that method of delivery and has not withdrawn consent.
Question 6 (Chapter 8)
Marcus, age 16, enters into a contract for a life insurance policy on his own life with his mother's written consent. After three months, Marcus stops paying the premiums. Which of the following is true under 36 O.S. §3606(B)?
- A) Marcus is legally liable for the unpaid premiums because he entered into a valid contract.
- B) The insurer must sue Marcus's mother for the unpaid premiums since she provided consent.
- C) The contract is void from the beginning because Marcus is under 18.
- D) Marcus cannot be held liable for any unperformed promise to pay a premium.
Show answer & explanation
Answer: D
36 O.S. §3606(B) allows a minor not less than sixteen (16) years of age to contract for life or accident and health insurance with signed parental or guardian consent and bars the minor from rescinding the contract by reason of minority. The statute also provides that a minor who is not otherwise emancipated shall not be bound by any unperformed agreement to pay a premium, so Marcus cannot be held liable for premiums he did not pay.
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Practice Questions 7-12: Unfair Practices, Insurers and Mandated Benefits
Coercion by a lender, the definition of a small employer, how the Insurance Commissioner takes office, who receives a stock insurer's dividend and newborn coverage.
Question 7 (Chapter 8)
A bank in Lawton, Oklahoma, informs a loan applicant that their mortgage will only be approved if they purchase life insurance through the bank's affiliated agency. This is an example of which unfair trade practice?
- A) Coercion
- B) Twisting
- C) Rebating
- D) Defamation
Show answer & explanation
Answer: A
Coercion involves using force, threats, or undue pressure (such as conditioning a loan on the purchase of insurance) to restrict a consumer's freedom of choice in the insurance market.
Question 8 (Chapter 8)
A small business owner in Edmond, Oklahoma, is looking for a group health plan for his company, which has 45 full-time employees. Under Oklahoma Small Employer Health Insurance rules, what is the maximum number of employees a business can have to be considered a 'small employer'?
- A) 25
- B) 100
- C) 50
- D) 150
Show answer & explanation
Answer: C
Under 36 O.S. §6512(25), a small employer is a business actively engaged in business that, on at least fifty percent (50%) of its working days during the preceding calendar quarter, employed no more than fifty (50) eligible employees, the majority of whom were employed within Oklahoma. The maximum is therefore 50, so a company with 45 employees qualifies.
Question 9 (Chapter 8)
How is the Oklahoma Insurance Commissioner placed into office?
- A) Elected by the people of Oklahoma for a 4-year term
- B) Appointed by the Governor for a 2-year term
- C) Selected by the NAIC for a 6-year term
- D) Appointed by the State Senate for an indefinite term
Show answer & explanation
Answer: A
The Oklahoma Insurance Commissioner is an elected official who serves a four-year term.
Question 10 (Chapter 8)
A stock insurance company is considering paying a dividend. To whom would this dividend be paid?
- A) The policyholders
- B) The Insurance Commissioner
- C) The stockholders
- D) The Guaranty Association
Show answer & explanation
Answer: C
Stock insurers are owned by stockholders, and dividends from profits are paid to those stockholders. Mutual insurers pay dividends to policyholders.
Question 11 (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 12 (Chapter 8)
A 16-year-old high school student in Tulsa wants to purchase a life insurance policy on her own life using money from her part-time job. Her mother provides written consent for the transaction. Which of the following is true under 36 O.S. §3606(B)?
- A) The contract is void because the student is under the age of 18.
- B) The student may contract for the insurance and cannot later rescind the contract solely because she is a minor.
- C) The student is legally liable for all future premium payments and can be sued for breach of contract if she stops paying.
- D) The student may only purchase insurance on her own life; she cannot purchase insurance on the life of a parent.
Show answer & explanation
Answer: B
Under 36 O.S. §3606(B), a minor at least 16 years of age may contract for life or accident and health insurance with signed parental or guardian consent. The minor cannot rescind, avoid, or repudiate the contract by reason of minority. The statute also specifies that a minor who is not otherwise emancipated is not bound by an unperformed agreement to pay premiums.
Practice Questions 13-17: Aggregate Caps, Minors and Designation Programs
Consent to electronic delivery, the guaranty association's aggregate cap when a health benefit plan is involved, a minor's misrepresentation on an application and the continuing education credit for a professional designation.
Question 13 (Chapter 8)
An insurer wants to deliver policy documents to an Oklahoma policyholder via email rather than through the U.S. Postal Service. Under Oklahoma law, what is required for this to be legal?
- A) Electronic delivery is only permitted for group policies, not individual policies.
- B) The insurer must obtain the consumer's affirmative consent to electronic delivery.
- C) The Commissioner must personally approve each electronic delivery request.
- D) Electronic delivery is the default; the consumer must 'opt out' to receive paper documents.
Show answer & explanation
Answer: B
Oklahoma statutes allow for the electronic delivery of insurance documents, provided the consumer has affirmatively consented to that method of delivery and has not withdrawn that consent.
Question 14 (Chapter 8)
An individual in Moore, Oklahoma, has both a life insurance policy (with $200,000 in death benefits) and a health benefit plan (major medical) with the same insolvent insurer. What is the total aggregate limit the Oklahoma Life and Health Insurance Guaranty Association will pay for this individual?
- A) $300,000
- B) $500,000
- C) $700,000
- D) $1,000,000
Show answer & explanation
Answer: B
The general aggregate limit with respect to any one life is $300,000, but 36 O.S. §2025(C)(2)(c)(1) raises the Association's aggregate liability to $500,000 for any one individual when health benefit plan coverage is involved. The $200,000 life policy plus a major medical (health benefit plan) claim therefore falls under the $500,000 aggregate limit.
Question 15 (Chapter 8)
A 17-year-old in Edmond purchases a health insurance policy with parental consent. After three months, the minor stops paying the premiums. Can the insurer sue the minor to collect the unearned premiums?
- A) Yes, because the minor entered into a binding legal contract.
- B) Yes, but only if the minor's parents also refuse to pay.
- C) No, because a minor is not bound by an unperformed promise to pay premiums under 36 O.S. §3606.
- D) No, because health insurance is considered a 'necessity' and must be provided for free to minors.
Show answer & explanation
Answer: C
36 O.S. §3606(B) lets a minor 16 or older, with signed parental or guardian consent, contract for life or accident and health insurance and bars the minor from rescinding or repudiating the contract by reason of minority. The one exception is that a minor not otherwise emancipated 'shall not be bound by any unperformed agreement to pay, by promissory note or otherwise, any premium,' so the insurer cannot enforce future premium payments against the minor.
Question 16 (Chapter 8)
A 16-year-old Oklahoma resident applies for an accident and health insurance policy on her own life. Her mother provides written consent. The policy is issued. Six months later, the minor is injured and files a claim. The insurer discovers the minor misrepresented her medical history on the application. Under 36 O.S. §3606(B), which of the following is true?
- A) The insurer may void the policy ab initio due to the minor's misrepresentation, as minors lack capacity to contract
- B) The minor cannot rescind the contract based on minority, but the insurer may still contest the claim based on material misrepresentation
- C) The policy is voidable at the minor's option, and the insurer must return all premiums paid
- D) The insurer is estopped from raising misrepresentation as a defense because the minor had parental consent
Show answer & explanation
Answer: B
Under 36 O.S. §3606(B), a minor not less than sixteen years of age (as at nearest birthday) may, with signed parental or guardian consent, contract for life or accident and health insurance on his or her own life or body, and is deemed competent to exercise all rights under the contract as though of full legal age. The minor 'shall not, by reason of his or her minority, be entitled to rescind, avoid or repudiate the contract,' except that a minor who is not otherwise emancipated is not bound by an unperformed agreement to pay a premium by promissory note or otherwise. The statute does not shield the minor from the insurer's ordinary contractual defenses, so the insurer may still contest the claim or seek rescission for a material misrepresentation on the application. Option A is wrong because the minor does have capacity to contract under this statute. Option C is wrong because the minor cannot avoid the contract on the ground of minority. Option D is wrong because parental consent does not estop the insurer from asserting material misrepresentation.
Question 17 (Chapter 8)
An Oklahoma producer completes a CLU (Chartered Life Underwriter) designation program requiring 30 hours of classroom instruction during their current biennial CE period. Under 36 O.S. §1435.29(B)(3), how does this affect the producer's CE requirement?
- A) The producer is deemed to have met the biennial CE requirement, but no hours carry forward
- B) The producer receives 30 hours of CE credit, satisfying the 24-hour requirement and carrying forward 6 hours
- C) The producer receives 24 hours of CE credit and must still complete 3 hours of ethics separately
- D) The producer receives credit only for the ethics portion of the CLU program, and must complete the remaining 21 general hours
Show answer & explanation
Answer: A
36 O.S. §1435.29(B)(3) provides that an insurance producer who, during the period before renewal, participates in a professional designation program approved by the Insurance Commissioner 'shall be deemed to have met the biennial requirement for continuing education,' and that the program's curriculum must total at least 24 hours within a 24-month period. A CLU program that meets those terms therefore satisfies the entire biennial requirement, ethics hours included. The statute deems the requirement met rather than awarding hour-for-hour credit, so there are no excess credit hours to carry forward (the 6-hour carryover in OAC 365:25-3-1(d)(3) applies to credit hours earned beyond the 24-hour minimum). Option B is wrong because the statute does not convert the program into 30 hours of CE credit. Option C is wrong because the deemed-compliance rule covers the whole requirement, so no separate ethics hours are needed. Option D is wrong because the statute does not split the requirement for designation holders.
The Mistakes That Cost Marks
Collapsing the guaranty association tiers. The Oklahoma Life and Health Insurance Guaranty Association covers up to $300,000 in life insurance death benefits (and no more than $100,000 in net cash surrender and withdrawal values), $100,000 for ordinary health coverages, $300,000 for disability income, $300,000 for long-term care and $500,000 for health benefit plans, plus $300,000 of present value for annuity benefits. The aggregate per individual life is $300,000, rising to $500,000 when health benefit plan coverage is involved.
Adding the legislative-update hours on top. Continuing education is 21 general hours plus 3 ethics hours, 24 in all. At least 2 of the 21 must be state or federal legislative updates; they sit inside the 21, so the total is not 26.
Mixing up carryover and deemed compliance. Up to 6 hours earned beyond the minimum carry forward as general hours (OAC 365:25-3-1(d)(3)). Completing an approved professional designation program of at least 24 hours within the 24-month period is different: the producer is deemed to have met the biennial requirement (36 O.S. §1435.29(B)(3)). Service on the continuing education advisory committee, by contrast, counts hour for hour (36 O.S. §1435.29(B)(6)).
Confusing coercion with the other practices. A lender that conditions a loan on buying insurance from its affiliate is practicing coercion. Twisting is misleading a policyowner into replacing a policy, and rebating is offering a rebate or other valuable inducement to buy.
Mixing up mutual and stock insurers. A mutual insurer is owned by its policyholders and can pay them dividends. A stock insurer is owned by its stockholders, who receive its dividends.
Your Next Step
All chapters are audio lessons: chapter 1 is free, no signup. The full bank is in the free Oklahoma Life & Health practice questions hub. If you are weighing prep options, see whether you need a pre-licensing course (you do not), or continue with underwriting and replacement.
Question counts and content weighting come from PSI's Oklahoma content outlines, effective 8/1/2026.
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