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Free Oregon Adjuster's Examination — General Lines Insurance Practice Questions

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Sample Practice Questions

Try these 10 sample questions from the Oregon Adjuster's Examination — General Lines Insurance practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

  1. 1An Oregon claims professional is paid to investigate and negotiate a third-party loss arising under a policy that insures an Oregon risk. How does Oregon law classify this work?

    1. A. Insurance consulting
    2. B. Adjusting
    3. C. Producing insurance
    4. D. Reinsurance brokering

    Answer: B

    Explanation: ORS 744.502 defines an adjuster as a compensated person who may "investigate, negotiate or settle first party or third party losses" arising under an insurance contract covering a domestic risk. The described work therefore is adjusting.

    Reference: Oregon Revised Statutes — ORS 744.384

  2. 2A candidate for work in interstate insurance business has a felony conviction involving dishonesty. What must the candidate obtain before participating under 18 USC 1033?

    1. A. Written consent from an authorized insurance regulatory official.
    2. B. Written consent from the federal district court hearing the case.
    3. C. Written consent from the state attorney general's office.
    4. D. Written consent from the insurer's board of directors.

    Answer: A

    Explanation: "written consent of any insurance regulatory official authorized to regulate the insurer" The statutory exception requires written consent from an authorized insurance regulator; judicial, attorney-general, or corporate permission does not satisfy that requirement.

    Reference: U.S. Code, 18 U.S.C. § 1033 — 18 USC 1033(e)(2)

  3. 3What event activates the Oregon Insurance Guaranty Association's role for covered claims?

    1. A. A premium increase
    2. B. A member insurer's insolvency
    3. C. A producer appointment
    4. D. A policy endorsement

    Answer: B

    Explanation: ORS 734.510 defines a covered claim by requiring, among other conditions, that the issuing insurer "becomes an insolvent insurer." Insolvency of a member insurer is therefore the activating event.

    Reference: Oregon Revised Statutes — ORS 734.510 to 734.710

  4. 4A property adjuster receives a new loss report and must decide what the policy can pay. Which review directly determines applicable coverage?

    1. A. Compare the loss with policy coverages, limits, and deductibles.
    2. B. Compare repair estimates with contractor scopes and unit prices.
    3. C. Compare site photographs with the loss inventory and receipts.
    4. D. Compare witness statements with the reported cause and date.

    Answer: A

    Explanation: "An adjuster reviews your insurance policy to determine if the damage is covered and if there are any dollar limits or deductibles that apply." Coverage evaluation matches damage against the policy and its limits and deductibles; the other records answer different questions.

    Reference: NAIC Post-Disaster Claims Guide — NAIC Post-Disaster Claims Guide, adjuster review

  5. 5A dwelling-policy claim arises from a peril that is not specifically named but is not excluded. Which form's treatment of dwelling perils would generally allow consideration of that loss?

    1. A. DP-1 basic form with its specifically named dwelling perils.
    2. B. DP-2 broad form with its expanded named dwelling perils.
    3. C. DP-3 special form with nonexcluded dwelling perils covered.
    4. D. DP-1 basic form with an optional extended named-peril package.

    Answer: C

    Explanation: "DP-3 (Special Form) – Offers “all-risks” coverage for the dwelling and attached structures." "DP-1 (Basic Form) – Covers the dwelling structure and attached structures against specific named perils like fire, lightning, and windstorm." DP-3 uses the special form treatment for the dwelling, subject to exclusions; DP-1 is named-peril. DP-2 is also a named-peril form.

    Reference: NAIC 2025 Homeowners Market Data Definitions — NAIC 2025 Homeowners Definitions, Dwelling Property Forms

  6. 6One person is injured in an Oregon motor vehicle accident. What minimum bodily-injury liability amount applies?

    1. A. $15,000
    2. B. $20,000
    3. C. $25,000
    4. D. $50,000

    Answer: C

    Explanation: ORS 806.070(2)(a) sets "$25,000 because of bodily injury to or death of one person in any one accident." The per-person minimum is $25,000.

    Reference: Oregon Revised Statutes — ORS 806.070

  7. 7An employee drives their personally owned car on a company errand. Which commercial-auto category may bring that vehicle within the employer's policy, if the provision is included?

    1. A. Hired auto.
    2. B. Non-owned auto.
    3. C. Owned auto.
    4. D. Temporary substitute auto.

    Answer: B

    Explanation: "They also may have provisions that cover rented and other non-owned vehicles, including employees’ cars driven for company business." A commercial policy may cover an employee-owned car used for company business as a non-owned auto; the provision must be present.

    Reference: NAIC Small Business Insurance — NAIC Small Business Insurance, Commercial Auto

  8. 8A visitor slips on a wet floor while entering an insured business and sues for injury. Which CGL exposure best describes the claim?

    1. A. Premises and operations exposure.
    2. B. Products and completed operations exposure.
    3. C. Personal and advertising injury exposure.
    4. D. Contractual liability exposure.

    Answer: A

    Explanation: "If someone falls while visiting your business, or if a customer is hurt by a product you sell, you can be held responsible." A visitor's fall at the premises is a business-site injury, distinct from a product injury or advertising claim.

    Reference: NAIC Small Business Insurance — NAIC Small Business Insurance, General Liability

  9. 9For a compensable Oregon workplace injury, what is generally the worker's exclusive remedy against a complying employer?

    1. A. Workers' compensation benefits
    2. B. A common-law negligence action
    3. C. A contractual indemnity action
    4. D. A statutory contribution action

    Answer: A

    Explanation: ORS 656.018(1)(a) states that a complying employer's liability "is exclusive and in place of all other liability" for covered employment injuries, subject to statutory exceptions. Workers' compensation is generally the exclusive remedy.

    Reference: Oregon Revised Statutes — ORS 656.018

  10. 10What market function does Oregon surplus lines insurance serve?

    1. A. Placing coverage unavailable in full from authorized insurers after the required search
    2. B. Replacing admitted coverage that remains readily available on the requested terms
    3. C. Guaranteeing every risk a policy from an authorized insurer without underwriting
    4. D. Converting a nonadmitted insurer into an authorized insurer for each placement

    Answer: A

    Explanation: ORS 735.410 permits surplus lines placement after "A diligent search has first been made" and the full amount or kind cannot be obtained from authorized insurers, subject to exceptions. Surplus lines serves the unavailable-coverage market.

    Reference: Oregon Revised Statutes — ORS 735.410

Topics in this practice bank

These topics describe the available practice for Oregon Adjuster's Examination — General Lines Insurance. Review the examination outline and its sources for scope and allocation details.

  • Insurance Regulation
    • Licensing requirements (ORS 744.505)
    • Licensing exceptions (ORS 744.515)
    • Qualifications (ORS 744.002, .525)
    • Types of licensees
    • General lines adjuster (ORS 744.531)
    • Nonresident adjuster (ORS 744.528, .538)
    • Temporary adjuster permit (ORS 744.555)
    • Maintenance and duration
    • Renewal (ORS 744.008, .009(1))
    • Expiration (ORS 744.007)
    • Nonrenewal (ORS 744.009(2))
    • Notification of change, deletion, or addition of an assumed business name (ORS 744.028(2))
    • Change of address or telephone number (ORS 744.028(1))
    • Disciplinary actions
    • Cease and desist orders (ORS 731.252)
    • License probation, suspension, revocation or refusal to issue or renew (ORS 744.013, .014, .074)
    • Civil penalty (ORS 731.988)
    • Criminal penalty (ORS 731.992)
    • Claim settlement laws and regulations
    • Director's enforcement authority (ORS 731.256)
    • Director's inquiries (ORS 731.296)
    • Unfair claim settlement practices (ORS 746.230; OAR 836‐080‐0205 to 0250)
    • Misrepresentation and other prohibited claim practices (OAR 836‐080‐0220)
    • Required claim communications practices (OAR 836‐080‐0225)
    • Standard for prompt claim investigation (OAR 836‐080‐0230)
    • Standard for prompt and fair settlements General (OAR 836‐080‐0235)
    • Standard for auto total loss (OAR 836‐080‐0240)
    • Adjustment of claims under policy issued by unauthorized insurer (ORS 744.541)
    • Regulation for automobile insurance claims
    • Designation of repair shop prohibited (ORS 746.280, .290)
    • Proof and amount of loss determination (ORS 746.295)
    • Liability for damages; attorney fees (ORS 746.300)
  • Federal Laws and Regulations
    • 18 United States Code (USC) Sections 1033 and 1034 ‐ purpose
    • Privacy (Gramm‐Leach‐Bliley)
    • National Flood Insurance Program (NFIP)
    • Terrorism Risk Insurance Act
    • Motor Carrier Act (MCS‐90 and Others)
  • General Insurance Concepts
    • Risk
    • Methods of handling risk (e.g., avoidance, retention, sharing, reduction, transfer)
    • Elements of insurable risks
    • Definitions (e.g., risk, hazard, peril, loss)
    • Classifications of insurers
    • Mutual, stock
    • Admitted, non‐admitted
    • Foreign, domestic, alien
    • Elements of a contract
    • Offer
    • Acceptance
    • Consideration
    • Competent parties
    • Legal purpose
    • Authority and powers of producers
    • Express
    • Implied
    • Apparent
    • The Law of Agency
    • Legal interpretations affecting contracts
    • Reasonable expectations
    • Indemnity
    • Good faith
    • Warranties, representations, misrepresentations, and concealment
    • Fraud
  • Property and Casualty Insurance Basics
    • Insurable interest
    • Types of hazards
    • Negligence
    • Torts
    • Elements of a negligent act
    • Defenses against negligence
    • Liability
    • Absolute
    • Strict
    • Vicarious
    • Underwriting
    • Purpose
    • Process
    • Results
    • Rate development
    • Types
    • Components
    • Basis
    • Types of perils
    • Types of loss
    • Direct
    • Indirect
    • Specific, scheduled, and blanket insurance
    • Basic types of construction
    • Loss valuation
    • Actual cash value
    • Replacement cost
    • Functional replacement cost
    • Market value
    • Agreed value
    • Valued policy
    • Accident versus occurrence
    • Policy structure
    • Declarations
    • Definitions
    • Insuring agreement
    • Additional/supplementary coverage
    • Conditions
    • Exclusions
    • Endorsements
    • Policy clauses
    • Insureds
    • Policy period
    • Policy territory
    • Cancellation and non‐renewal
    • Deductibles
    • Other insurance
    • Nonconcurrency
    • Primary and excess
    • Pro rata
    • Contribution by equal shares
    • Limits of liability
    • Per accident
    • Per occurrence
    • Per person
    • Aggregate
    • Split limits
    • Combined single limit
    • Coinsurance
    • Purpose
    • Definition
    • Calculation
    • Penalties
    • Total versus partial Loss
    • Vacant versus unoccupied
    • Named insured provisions
    • First named insured versus other insureds
    • Duties after loss
    • Assignment
    • Waiver of rights
    • Insurer provisions
    • Liberalization
    • Subrogation
    • Claim settlement options
    • Duty to defend
    • Third‐party provisions
    • Standard mortgage clause
    • Loss payable clause
    • No benefit to the bailee
    • Oregon laws, regulations and required provisions
    • Oregon Insurance Guaranty Association (ORS 734.510 to .710)
    • Cancellation and nonrenewal
    • Commercial liability (ORS 742.700 to .710)
    • Property (ORS 742.224, 746.686‐687)
    • Automobile (742.560‐.572)
    • Suit against insurer (ORS 742.240)
    • Concealment, misrepresentation or fraud (ORS 742.013, .208, .562(1)(b), .702(1)(b); 746.075, .100, .110)
  • Adjustment Process
    • Claim notification process
    • Date of loss
    • Location
    • Parties involved
    • Type of loss (e.g., liability, property)
    • Investigation and evaluation of loss/claim information
    • Determination of applicable coverage
    • Inquiry into relevant information
    • Purpose of loss reserves
    • Remedies for disputes
    • Appraisal
    • Arbitration (binding and unbinding)
    • Mediation (binding and unbinding)
    • Litigation
    • Finalization of claim
    • Denial
    • Settlement
    • Closing claim
  • Dwelling Policy Concepts
    • Purpose and eligibility
    • Perils insured against
    • Basic
    • Broad
    • Special
    • Property coverages
    • Coverage A — Dwelling
    • Coverage B — Other structures
    • Coverage C — Personal property
    • Coverage D — Fair rental value
    • Coverage E — Additional living expense
    • Other coverages
    • Dwelling property exclusions
    • Dwelling property conditions
    • Dwelling property endorsements
    • Personal liability supplement
    • Coverage L ‐ Personal Liability
    • Coverage M ‐ Medical Payments to Others
  • Homeowners Policy Concepts
    • Eligibility and Purpose
    • Homeowners policy coverage forms
    • Broad (HO‐2)
    • Special (HO‐3)
    • Contents broad (HO‐4)
    • Comprehensive (HO‐5)
    • Unit‐owners (HO‐6)
    • Modified coverages (HO‐8)
    • Definitions
    • Section I — Property coverages
    • Coverage A — Dwelling
    • Coverage B — Other structures
    • Coverage C — Personal property
    • Coverage D — Loss of use
    • Additional coverages
    • Section II — Liability coverages
    • Coverage E — Personal liability
    • Coverage F — Medical payments to others
    • Additional coverages
    • Homeowners policy exclusions
    • Section I‐Property covered exclusions
    • Section II ‐ Liability covered exclusions
    • Homeowners policy conditions
    • Homeowners policy endorsements
    • Special provisions
    • Earthquake
    • Personal property replacement cost
    • Home day care — Oregon
    • Business pursuits
    • Watercraft
    • Personal injury
    • Ordinance or law
    • Scheduled personal property/personal articles floater
  • Personal Automobile Policy
    • Laws
    • Oregon Motor Vehicle Financial Responsibility Law
    • Required motor vehicle limits of liability (ORS 806.070, .075)
    • Other ways to prove responsibility (ORS 806.011, .060, .080)
    • Personal injury protection definitions (ORS 742.518–.544)
    • Medical
    • Loss of income
    • Funeral
    • Essential services
    • Exclusions from coverage
    • Arbitration
    • Day Care
    • Uninsured and underinsured motorist coverage (ORS 742.500–.510)
    • Definitions
    • Bodily injury
    • UM and UIM rejection
    • Aftermarket Crash Parts Act (ORS 746.287, .289, .292)
    • Total Loss (ORS 742.554, 801.527, 819.014), (OAR 836.080.0240)
    • Definitions
    • Liability coverage
    • Bodily injury and property damage
    • Supplementary payments
    • Exclusions
    • Medical payments coverage
    • Coverage for damage to your auto
    • Collision
    • Other than collision (comprehensive)
    • Deductibles
    • Exclusions
    • Duties after an accident or loss
    • General provisions
    • Endorsements
    • Amendment of policy provisions
    • Towing and labor costs
    • Extended non‐owned coverage — vehicles furnished or available for regular use
    • Joint ownership coverage
    • Rental vehicle coverage
  • Commercial Automobile Policy
    • Commercial auto coverage forms
    • Covered automobiles
    • Hired automobiles
    • Non‐owned automobiles
    • Liability
    • Physical damage
    • Exclusions
    • Conditions
    • Definitions
    • Selected endorsements
    • Lessor — additional insured and loss payee
    • Mobile equipment
    • Broad form products
    • Employees as insureds
    • Property protection coverage
  • Commercial General Liability
    • Commercial policy components
    • Declarations
    • Conditions
    • Interline endorsements
    • Commercial general liability coverage
    • Bodily injury and property damage
    • Personal and advertising injury
    • Medical payments
    • Conditions
    • Definitions
    • Exclusions
    • Occurrence versus claims‐made
    • Commercial general liability exposures
    • Premises and operations
    • Products and completed operations
    • Contractual liability
  • Commercial Property Policies
    • Commercial package policy
    • Purpose
    • Definition
    • Coverages
    • Coverage extensions
    • Commercial policy components
    • Declarations
    • Conditions
    • Insuring agreements
    • Exclusions
    • Commercial property forms
    • Coverage forms for building and business personal property
    • Builders risk
    • Business income
    • Legal liability
    • Extra expense
    • Causes of loss forms
    • Commercial crime
    • Commercial property endorsements
    • Ordinance or law
    • Spoilage
    • Peak season limit of insurance
    • Value reporting form
    • Earthquake
    • Equipment breakdown coverages
    • Commercial inland marine ‐ purpose
    • Ocean marine (distinction between inland and ocean)
    • Farm property
    • Definitions
    • Conditions and exclusions
    • Coverages
  • Workers' Compensation Insurance
    • Oregon Workers' Compensation Law (ORS Chapter 656)
    • Exclusive remedy (ORS 656.018)
    • Other sources of coverage
    • Oregon Workers' Compensation Fund Insurance Plan (ORS 656.730; OAR 836‐043‐0001–0091)
    • Self‐insured employers and employer groups (ORS 656.403, .407)
  • Other Types of Insurance Policies
    • Personal umbrella, commercial umbrella, and excess policies
    • Underlying limits
    • Self‐insured retention
    • Surplus lines (ORS Sec. 735.410, .415)
    • Definitions and markets
    • Licensing requirements
    • Residual markets
    • Joint Underwriting Association (ORS 735.200‐.260; 737.390)
    • Oregon FAIR Plan Association (ORS 735.005, .015, .045)
    • Mobile home policy (insuring agreement)
    • Earthquake insurance (insuring agreement)
    • Deductible

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