Oklahoma Property and Casualty Adjuster Practice Test

Correct answer: A. The staff adjuster is a salaried insurer employee; the independent adjuster works for a fee

Section 6202(3) defines an insurance adjuster as one who acts for an insurer, and it includes independent adjusters, who hold themselves out as adjusting for a fee, and company or staff adjusters, who adjust as salaried employees of an insurer. Both are insurance adjusters who need a license. Someone who represents the insured for a fee is a public adjuster under 6202(4), and license classes, not adjuster type, set the lines handled.

Reference: 36 O.S. 6202(3) and (4)

Correct answer: B. She is not required to hold an adjuster license for this claim

Section 6203(1) says a licensed agent or general agent who processes undisputed or uncontested losses solely under policies issued by the agent or agency is not an adjuster and needs no adjuster license, provided the agent receives no extra compensation. If the loss were disputed, or if Marisol were paid extra for adjusting it, the exemption would not apply. No consent form or apprentice license is involved.

Reference: 36 O.S. 6203(1)

Correct answer: C. He may adjust the loss without an Oklahoma adjuster license

Section 6203(8) exempts a nonresident adjuster who is actively licensed in another state and is in Oklahoma no more than once a year to adjust a single loss, or who acts as a temporary substitute for a licensed adjuster. Emergency licenses under 6218 are available only after the Commissioner declares an emergency following a catastrophe, and the apprentice license in 6204.1 is limited to Oklahoma residents.

Reference: 36 O.S. 6203(8); 36 O.S. 6204.1; 36 O.S. 6218

Correct answer: B. Two years

Section 6206(A)(6) requires an applicant to have passed the required examination within two years before the date of application, unless exempted under 6208. The same section requires the applicant to be at least 18, trustworthy, and to have enough experience, education or training in handling loss claims to be competent. PSI's bulletin adds that you should wait three business days after passing before applying.

Reference: 36 O.S. 6206(A)(1), (4), (5) and (6)

Correct answer: D. Apply within 90 days after establishing Oklahoma residence

Section 6208(B)(4) exempts a resident applicant who passed an examination in the former home state and is licensed and in good standing there when applying, as long as the application is made within 90 days after establishing legal residence in Oklahoma. Oklahoma has no prelicensing course requirement for adjusters, and PSI offers no separate state-law-only adjuster exam.

Reference: 36 O.S. 6208(B)(4); PSI Oklahoma Candidate Information Bulletin

Correct answer: A. He may declare Texas his home state and apply on that basis

Section 6205(C), mirrored in the home state definition in 6202(6), lets an adjuster whose home state does not license adjusters or require an exam declare another state that has an exam requirement, and in which the adjuster is licensed, as the home state. Only an applicant who holds no active license in the home state or declared home state must pass the Oklahoma exam first.

Reference: 36 O.S. 6205(B) and (C); 36 O.S. 6202(6)

Correct answer: C. It lasts up to 6 months, is nonrenewable and covers Oklahoma only

Under 6204.1(C), the optional apprentice license runs no longer than six months, cannot be renewed, authorizes adjusting only in Oklahoma, and allows pay on a salaried or hourly basis only. No exam is required, and an apprentice who passes the adjuster exam automatically receives a full license. Subsection B limits it to Oklahoma residents who designate Oklahoma as their home state.

Reference: 36 O.S. 6204.1(B) and (C)

Correct answer: D. He may not supervise a sixth active apprentice at once

Section 6204.1(D) limits a supervising adjuster to no more than five active apprentice licensees at any given time. The attestation in 6204.1(C)(1) makes the supervisor responsible for the apprentice's actions. Salaried or hourly pay is required of every apprentice but does not raise the limit, and someone who has passed the adjuster exam receives a full adjuster license instead of an apprentice license.

Reference: 36 O.S. 6204.1(C) and (D)

Correct answer: B. Her license lasts up to 90 days from the order, for that event only

Section 6218(A) lets the Commissioner license any resident or nonresident as an emergency adjuster after declaring an emergency, and the applicant need not be licensed. A licensed Oklahoma adjuster or an insurer with an Oklahoma office must certify the applicant and is responsible for the applicant's losses and improper claim practices. The license lasts no more than 90 days from the order (extendable another 90) and covers only that catastrophe.

Reference: 36 O.S. 6218(A); 36 O.S. 6212(B)(4)

Correct answer: D. $100

Section 6212(B)(2) sets the biennial fee for a license in two or more classes at $50, and 6212(D) requires a late renewal application to pay double the original license fee, so Renee owes $100. The $60 figure would be double the $30 fee for a single class. Under 6217(H), a renewal filed after expiration may instead be treated as an application for a new license.

Reference: 36 O.S. 6212(B) and (D); 36 O.S. 6217(H)

Correct answer: C. 6 hours

Section 6217(B) requires 24 clock hours every 24 months, including 3 hours of ethics, and OAC 365:25-3-14 requires at least 2 of those hours in state or federal legislative updates. The rule lets 6 hours above the minimum carry forward to the next period as general hours. Hiroshi has 9 excess hours, but only 6 may carry forward.

Reference: 36 O.S. 6217(B); OAC 365:25-3-14(d)

Correct answer: C. A $50 administrative fee, since over 30 days have passed

Section 6212(F) requires licensees to report a change of legal name, address or e-mail within 30 days. A change submitted more than 30 days after it occurs must include a $50 administrative fee, and failing to give acceptable notice within 45 days after that fee is assessed leads to penalties under 6220(B). Late reporting is also a listed ground for discipline in 6220(A)(15).

Reference: 36 O.S. 6212(F); 36 O.S. 6206(C); 36 O.S. 6220(A)(15)

Correct answer: D. It is prohibited, and the small-town exception does not apply

Section 6220.1(A) bars an adjuster from owning or having a financial interest in a business that provides construction or reconstruction services to an insured or claimant whose claim the adjuster is handling. Subsection C exempts only claims in municipalities with fewer than 6,000 people, and even then requires written disclosure to both the insured and the insurer. Oklahoma City is far larger, and violations bring discipline or fines under 6220.

Reference: 36 O.S. 6220.1

Correct answer: A. Not answering a Department inquiry within 30 calendar days

Section 6220(A)(10) lists failing to respond to any Department inquiry, including electronic ones, within 30 calendar days. Other listed grounds include misrepresentation, fraud, a felony conviction, forging a name, unlicensed adjusting and acting as a public adjuster and a company or independent adjuster on the same claim. Under 6220(B) the Commissioner may also impose a civil fine of up to $1,000 per violation.

Reference: 36 O.S. 6220(A) and (B)

Correct answer: B. After 30 days have passed since his last attempt

Section 6210(C) says an applicant who fails the first two examinations for a license may not take another until 30 days after the last examination, and fees for later attempts are not waived. After a first failure, PSI only bars booking a new appointment on the day of the failed attempt. Oklahoma has no prelicensing course requirement for adjusters, and no Commissioner waiver is needed.

Reference: 36 O.S. 6210(C); PSI Oklahoma Candidate Information Bulletin

Correct answer: B. A $25,000 surety bond in favor of the state

Section 6214(A) requires a $25,000 surety bond in favor of the people of Oklahoma, written by an authorized surety and conditioned on the adjuster accounting to insureds for money received on their claims. The surety may cancel the bond on 30 days' written notice filed with the Commissioner. Public adjusters also pay a $30 license fee every two years under 6212(B)(3).

Reference: 36 O.S. 6214; 36 O.S. 6212(B)(3)

Correct answer: D. She may cancel by written notice until midnight on Thursday

Section 6216.2(A) and (B) let the insured cancel a public adjuster agreement until midnight of the third business day after the day the signed agreement was provided, by written notice that is effective when mailed. She owes nothing except reasonable expenses to preserve the damaged premises, and anything of value must be returned within 15 business days. Every contract must state this right in bold type.

Reference: 36 O.S. 6216.2(A), (B) and (C)

Correct answer: C. Reasonable pay based on time spent and expenses

If the insurer pays or commits in writing to pay a policy limit within 72 hours after the loss is reported, 6216.2(E) bars a percentage commission on that coverage. The public adjuster must tell the insured the recovery might not increase and is entitled only to reasonable compensation based on time spent and expenses incurred. The contract is not void, so some payment remains due.

Reference: 36 O.S. 6216.2(E)

Correct answer: B. $6,400

Section 6218(C) bars a public adjuster from charging or accepting any fee, commission, reimbursement or other thing of value worth more than 10% of the settlement paid on a claim from a catastrophe the Commissioner has declared an emergency: 10% of $64,000 is $6,400. The cap does not apply when the client is a for-profit commercial entity. A separate 10% cap in 6224 applies to governmental entities.

Reference: 36 O.S. 6218(C); 36 O.S. 6224

Correct answer: C. Keeping complete records of each transaction for at least five years

Section 6223(F) requires a public adjuster to keep a complete record of each transaction for at least five years after it ends, open to Department examination. The same section bars soliciting during a loss-producing occurrence (H), sharing fees with anyone not licensed as a public adjuster (B), and taking a contract or power of attorney giving the adjuster authority to choose who performs repairs (M).

Reference: 36 O.S. 6223(B), (F), (H) and (M)

Correct answer: D. 30 days

Section 1250.6(A) gives a property and casualty insurer 30 days after notification of a claim to acknowledge it unless payment is made within that time. An acknowledgment not made in writing must be noted and dated in the claim file, and notice to the insurer's agent counts as notice to the insurer. Providing claim forms, instructions and reasonable assistance within 30 days also satisfies the rule.

Reference: 36 O.S. 1250.6(A) and (B)

Correct answer: B. 80 days

Section 1250.7(A) normally requires the insurer to advise the first-party claimant within 60 days after receiving properly executed proofs of loss. For a weather-related catastrophe or major natural disaster declared by the Governor, the Commissioner may extend that deadline by an additional 20 days, for 80 in total. Any denial must be in writing and must cite the specific policy provision relied on.

Reference: 36 O.S. 1250.7(A)

Correct answer: A. Within 120 days after it received the proof of loss

Section 1250.7(C) expects investigations to finish within 60 days after proof of loss, and if more time is needed the insurer must notify the claimant in writing with reasons. Except for fraud or arson investigations supported by specific information, the investigation may not exceed 120 days after receipt of the proof of loss. Only a Governor-declared catastrophe allows a 20-day extension.

Reference: 36 O.S. 1250.7(C)

Correct answer: A. One year after the date of the loss

Section 1250.7(E) bars an insurer from dragging out negotiations with a claimant who is neither an attorney nor represented by one until a statute of limitations or policy time limit affects the claimant's rights, unless it gives written notice. That notice must go to first-party and third-party claimants one year after the date of the loss. Under 1250.7(G), these time limits stop applying once a lawsuit is filed.

Reference: 36 O.S. 1250.7(E) and (G)

Correct answer: C. It must allow filing up to 24 months after the date of loss

Section 1250.5(7) says a policy that sets a time limit for wind or hail roof damage must allow claims to be filed after the first anniversary of the loss, but no later than 24 months after it, when the damage is not evident without an inspection. Eli is at month 14, so he may still file. Neither a 12-month cutoff nor a 60-day window from the inspection is permitted.

Reference: 36 O.S. 1250.5(7)