Under Oklahoma's Insurance Code (Title 36 O.S. § 1435.2),transacting insuranceincludes activities such as soliciting or selling insurance, engaging in preliminary negotiations for insurance contracts, and delivering insurance contracts or collecting premiums.Gathering prospective buyer information(e.g., lead generation) is not considered transacting insurance unless it involves direct solicitation or negotiation.
* Option A: Incorrect (is transacting). Selling insurance is a core part of transacting insurance.
* Option B: Incorrect (is transacting). Preliminary negotiations are included in transacting insurance.
* Option C: Incorrect (is transacting). Delivering insurance contracts is part of transacting insurance.
* Option D: Correct (is not transacting). Gathering prospective buyer information alone does not constitute transacting insurance.
This question falls under the Prometric content outline section on "State Insurance Statutes, Rules, and Regulations," which covers the definition of transacting insurance.
:
Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section: State- Specific Knowledge - Oklahoma Insurance Statutes).
Oklahoma Insurance Department, Title 36 O.S. § 1435.2 (definition of transacting insurance).
Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing.

A collateral assignment is a provision in a life insurance policy that allows the policyowner to temporarily transfer certain ownership rights (e.g., the right to the death benefit or cash value) to a creditor as security for a loan. The assignee (creditor) has a claim to the policy proceeds up to the loan amount, but the policyowner retains other rights and regains full ownership once the loan is repaid.
* Option A: Incorrect. Reinstatement allows a lapsed policy to be restored under certain conditions, not related to securing a loan.
* Option B: Incorrect. The entire contract provision defines the policy and application as the complete agreement, not related to loans.
* Option C: Correct. Collateral assignment temporarily assigns policy rights to secure a loan, as per standard life insurance provisions.
* Option D: Incorrect. An automatic premium loan uses the policy's cash value to pay overdue premiums, not to secure an external loan.
This question is part of the Prometric content outline under "Provisions, Options, Exclusions, Riders, Clauses, and Rights," which covers ownership and assignment provisions.
:
Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section:
General Knowledge - Life Insurance Provisions).
Oklahoma Insurance Department, Title 36 O.S. § 4001 et seq. (life insurance policy provisions).
Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing.

Thecommon disaster provisionin a life insurance policy addresses situations where the insured and primary beneficiary die in the same accident. It typically includes a survivorship clause, presuming thebeneficiary outlived the insuredfor a specified period (e.g., 14-30 days) unless proven otherwise. This ensures the death benefit passes to the beneficiary's estate or contingent beneficiaries, as outlined in Oklahoma's life insurance provisions (Title 36 O.S. § 4001 et seq.).
* Option A: Incorrect. The provision does not assume the insured outlived the beneficiary.
* Option B: Correct. The insurer proceeds as if the beneficiary outlived the insured.
* Option C: Incorrect. Simultaneous death is addressed differently under the Uniform Simultaneous Death Act, not the common disaster provision.
* Option D: Incorrect. The provision does not treat the beneficiary as unnamed.
:
Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section:
General Knowledge - Life Insurance Provisions).
Oklahoma Insurance Department, Title 36 O.S. § 4001 et seq. (beneficiary provisions).
Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing.

In aterm life insurance policy, premiums are typicallylevelduring the policy term (e.g., 10, 20 years), meaning they remain constant. At renewal, premiums may increase based on the insured's attained age, but during the initial term, they are fixed, as outlined in Oklahoma's life insurance regulations (Title 36 O.S. §
4002).
* Option A: Incorrect. Convertible refers to a policy's ability to convert to permanent insurance, not premium structure.
* Option B: Correct. Premiums are level during the term prior to renewal.
* Option C: Incorrect. Variable premiums apply to certain flexible policies like universal life, not term.
* Option D: Incorrect. Adjustable premiums are not a standard term for level term policies.
:
Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section:
General Knowledge - Life Insurance).
Oklahoma Insurance Department, Title 36 O.S. § 4002 (life insurance products).
Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing.

Under Oklahoma law (Title 36 O.S. § 4107), individuals covered by a group life insurance policy have the right to designate a beneficiary and, upon termination of employment or group membership, the right to convertthe group coverage to an individual life insurance policy without evidence of insurability, typically within 31 days. This conversion right ensures continued coverage.
* Option A: Incorrect. Group life policies typically do not have cash surrender value for individual insureds.
* Option B: Incorrect. Converting premiums to a different policy is not a standard right.
* Option C: Incorrect. Remaining insured after termination requires COBRA (for health) or conversion, not automatic continuation.
* Option D: Correct. The insured has the right to convert to an individual policy upon termination.
This question falls under the Prometric content outline section on "Provisions, Options, Exclusions, Riders, Clauses, and Rights," which covers group life insurance rights.
:
Prometric Oklahoma Life, Accident, and Health or Sickness Producer Exam Content Outline (Section:
General Knowledge - Life Insurance Provisions).
Oklahoma Insurance Department, Title 36 O.S. § 4107 (group life conversion rights).
Standard insurance study guides (e.g., Kaplan, ExamFX) for Oklahoma producer licensing.