17 Free Oklahoma Life & Health Practice Questions: Underwriting and Replacement (2026)

Question 1 (Chapter 5)

An Oklahoma producer is completing an application with a client but realizes the client forgot to sign one of the medical authorization forms. The producer is in a hurry and signs the client's name to save time. This action is:

• A) Permissible if the client gave verbal permission over the phone.
• B) A minor administrative error that can be corrected by the insurer's home office.
• C) A violation of the Oklahoma Insurance Code and may lead to license revocation.
• D) Acceptable as long as the agent's signature is also present on the form.

Question 2 (Chapter 5)

A producer is helping a client replace an existing annuity. According to 36 O.S. §4034(G), the client must be given a 'right to return' period of at least how many days for a full refund of all premiums paid?

• A) 10 days
• B) 30 days
• C) 45 days
• D) 20 days

Question 3 (Chapter 5)

An Oklahoma producer is filling out an application and the client makes a mistake while answering a question about their tobacco use. How should the error be corrected?

• A) The producer should use white-out to cover the error and write the correct answer over it.
• B) The producer should throw the application away and start a new one, as corrections are never allowed.
• C) The producer should leave the error as is and attach a separate note explaining the mistake.
• D) The producer should cross out the error, have the applicant initial the change, and write the correct answer.

Question 4 (Chapter 5)

An Oklahoma producer is delivering a policy to a client. The producer should do all of the following EXCEPT:

• A) Advise the client that the free-look period is optional and can be waived for a discount.
• B) Explain the policy's provisions and riders.
• C) Collect any due premium.
• D) Obtain a signed delivery receipt.

Question 5 (Chapter 5)

An investigative consumer report is different from a standard credit report because it:

• A) Includes interviews with friends, neighbors, and associates of the applicant.
• B) Is only used for disability income insurance.
• C) Does not require the applicant's consent.
• D) Is performed by the Insurance Department instead of a private agency.

Question 6 (Chapter 5)

An applicant for a life policy pays the initial premium and receives an 'approval' type conditional receipt. The applicant dies in a car accident one week later. The insurer is still reviewing the medical background and has not yet issued an approval. How will the insurer handle the claim?

• A) The claim will be paid because the premium was accepted.
• B) The claim will be paid only if the applicant was in perfect health at the time of the accident.
• C) The insurer will refund the premium plus 10% interest but deny the death benefit.
• D) The claim will be denied because the policy was never approved by the underwriter.

Question 7 (Chapter 5)

An agent leaves a policy in the mailbox of an applicant because the applicant was not home. The agent then calls the applicant to confirm it was delivered. This is an example of:

• A) Physical delivery.
• B) Illegal delivery.
• C) Constructive delivery.
• D) Conditional delivery.

Question 8 (Chapter 5)

An applicant wants to replace a 2-year non-renewable term policy with a new whole life policy. The producer tells the applicant that the standard replacement procedures do not apply. Is the producer correct?

• A) No, all term policies are subject to replacement rules.
• B) No, because whole life is a permanent form of insurance.
• C) Yes, but only if the term policy has a face amount under $10,000.
• D) Yes, non-renewable term policies that expire in 5 years or less are exempt.

Question 9 (Chapter 5)

An existing life insurance policy is being re-issued with a reduction in cash value to fund a new policy. This is an example of:

• A) Replacement.
• B) Reinstatement.
• C) Novation.
• D) Conversion.

Question 10 (Chapter 5)

A producer is assisting a client in Oklahoma with a life insurance replacement. The client decides to return the new policy 18 days after it was delivered. According to 36 O.S. §4034(G), what is the insurer's obligation?

• A) The insurer must refund the premium minus a surrender charge.
• B) The insurer is not obligated to refund anything because the 10-day free look has passed.
• C) The insurer must refund the premium but may retain the policy fee.
• D) The insurer must provide a full refund of all premiums paid.

Question 11 (Chapter 5)

Under Oklahoma Administrative Code (OAC) 365:10-5-4, if an insurer requires an applicant to undergo an HIV test during underwriting, what must the insurer obtain?

• A) A written informed consent form signed by the applicant.
• B) A verbal confirmation of consent.
• C) A court order from an Oklahoma district judge.
• D) A referral from the applicant's primary care physician.

Question 12 (Chapter 5)

An applicant for a Life policy in Norman, OK, pays the initial premium and is issued an 'Approval' type conditional receipt. The applicant dies before the insurer has reviewed the application. What is the status of the coverage?

• A) Coverage is in effect from the date of the receipt.
• B) Coverage is in effect only if the applicant was insurable.
• C) No coverage is in effect because the insurer had not yet approved the application.
• D) Coverage is in effect for 30 days regardless of approval.

Question 13 (Chapter 5)

Under Oklahoma law, 'Insurable Interest' in a life insurance policy must exist at what time?

• A) At the time of the insured's death.
• B) At the time of policy application.
• C) Continuously from application until death.
• D) Only when a claim is filed.

Question 14 (Chapter 5)

During an application for a life insurance policy in Tulsa, the producer fails to collect the initial premium. The insurer approves the application and issues the policy. When the producer arrives to deliver the policy, the applicant is in the hospital following a minor stroke. What action must the producer take?

• A) Refuse to deliver the policy and notify the insurer of the change in the applicant's health.
• B) Deliver the policy and collect the premium, as the insurer already approved the risk.
• C) Leave the policy with a family member and collect the premium later.
• D) Collect the premium and a signed Statement of Good Health, then deliver the policy.

Question 15 (Chapter 5)

A producer in Edmond is reviewing a client's existing $200,000 life policy. The producer suggests the client take a maximum loan against the cash value of the old policy to pay the premiums for a new $500,000 policy. Under Oklahoma law, this is defined as:

• A) Twisting
• B) Churning
• C) Replacement
• D) Conservation

Question 16 (Chapter 5)

An Oklahoma insurer requires an applicant to take an HIV test as part of the underwriting for a large life policy. According to OAC 365:10-5-4, the insurer must do all of the following EXCEPT:

• A) Obtain written informed consent from the applicant.
• B) Explain that the test is for the presence of HIV antibodies.
• C) Provide the name of the specific laboratory performing the test.
• D) Inform the applicant that they may name a physician to receive positive test results.

Question 17 (Chapter 5)

A producer is delivering a policy to a client in Stillwater. The policy was issued with a 'rating' due to the client's high blood pressure. What must the producer do at the time of delivery?

• A) Nothing, the policy is already in force.
• B) Explain the reason for the rating and collect any additional premium required.
• C) Collect a new application with the correct premium amount.
• D) Notify the Medical Information Bureau (MIB) that the policy was issued as rated.