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Free Oregon Producer's Examination for Casualty Insurance Practice Questions

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Sample Practice Questions

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

  1. 1An Oregon applicant plans to solicit casualty policies before receiving a producer license. Which rule controls?

    1. A. The applicant must first be licensed for the casualty class
    2. B. The applicant may solicit for 30 days without a license
    3. C. A business registration alone permits solicitation
    4. D. A carrier appointment replaces the producer license

    Answer: A

    Explanation: ORS 744.053 says a person may not sell, solicit, or negotiate insurance unless the person is licensed "for that class or those classes." Casualty solicitation therefore requires the casualty class on the license.

    Reference: Oregon Revised Statutes — ORS 744.053

  2. 2An insurer raises a casualty applicant's rate after considering a consumer report, although driving history was the larger factor. What must the insurer send under the FCRA?

    1. A. An adverse-action notice to the applicant because the report contributed to the higher rate.
    2. B. A routine renewal notice to the applicant because driving history carried more weight.
    3. C. A rate-filing notice to the insurance regulator because the report affected pricing.
    4. D. A correction request to the reporting agency because driving history was also considered.

    Answer: A

    Explanation: "the decision  is based partly or completely on information in a consumer report" The report contributed to an adverse rate decision, so the insurer owes the consumer an adverse-action notice. The competing notices concern different recipients or functions and do not satisfy this FCRA duty.

    Reference: Federal Trade Commission, Consumer Reports: What Insurers Need to Know — Insurer Obligations, Adverse Action Notice

  3. 3A producer is distinguishing pure risk from speculative risk while reviewing a business's exposures. Which exposure is a pure risk?

    1. A. A gain or loss from the business's commodity-futures position.
    2. B. A gain or loss from the business's foreign-currency holdings.
    3. C. A gain or loss from a new product's sales performance.
    4. D. Damage to the business's warehouse from an accidental fire.

    Answer: D

    Explanation: "Pure risk involves no chance of economic gain" Accidental fire can produce a loss or no loss, with no gain from the event. The other exposures can produce economic gains as well as losses.

    Reference: NAIC, A Regulator's Introduction to the Insurance Industry — Important Insurance Concepts, Pure and Speculative Risk, p. 5

  4. 4An Oregon claimant has a net worth exceeding $25 million on the insurer's insolvency date and asserts a first-party claim. Is it a covered guaranty-association claim?

    1. A. Yes, without limit
    2. B. No, it is excluded from the covered-claim definition
    3. C. Yes, but only for $25 million
    4. D. Only if the producer approves

    Answer: B

    Explanation: ORS 734.510 excludes the relevant first-party claim when the insured's net worth exceeds "$25 million" on the insolvency date.

    Reference: Oregon Revised Statutes — ORS 734.510, definition of covered claim

  5. 5What liability limits satisfy Oregon's ordinary statutory minimum for one motor vehicle accident?

    1. A. $15,000/$30,000/$10,000
    2. B. $50,000/$100,000/$10,000
    3. C. $25,000/$50,000/$10,000
    4. D. $25,000 per person, $50,000 per accident for bodily injury, and $20,000 property damage

    Answer: D

    Explanation: ORS 806.070 requires "$25,000 because of bodily injury to or death of one person," $50,000 per accident, and $20,000 for property damage.

    Reference: Oregon Revised Statutes — ORS 806.070

  6. 6A bakery has only a businessowners policy (BOP) and buys a van for deliveries. What coverage should its producer separately evaluate for the van exposure?

    1. A. Commercial auto insurance
    2. B. Workers' compensation insurance
    3. C. Professional liability insurance
    4. D. Commercial property insurance

    Answer: A

    Explanation: "typically does not include commercial auto insurance, workers’ compensation, health or disability insurance or liability insurance for claims of wrongful professional practices." The NAIC notes that a BOP typically excludes commercial auto, so the bakery should evaluate a separate business-auto policy for its delivery van. The other products address different exposures.

    Reference: National Association of Insurance Commissioners, Small Business Insurance — Businessowners Policy, coverages not typically included

  7. 7A contractor finishes and leaves an offsite installation. Two weeks later, the defective installation injures the customer's visitor. Which CGL exposure best describes the injury?

    1. A. Premises liability
    2. B. Ongoing operations liability
    3. C. Completed operations liability
    4. D. Products liability

    Answer: C

    Explanation: "bodily injury or property damage from defective work or operations completed or abandoned by or for the insured, away from the insured's premises." The contractor's installation was complete and the injury occurred later away from its premises, matching completed operations. Premises and ongoing operations describe other contexts; a product-sale exposure differs from this work-based loss.

    Reference: National Association of Insurance Commissioners, Glossary of Insurance Terms — Completed Operations Liability

  8. 8For an Oregon subject worker's compensable injury, what is generally the worker's exclusive remedy against the complying employer?

    1. A. Benefits under the Workers' Compensation Law
    2. B. A negligence suit for unlimited damages
    3. C. A guaranty-association claim
    4. D. A PIP claim against the employer

    Answer: A

    Explanation: ORS 656.018 says the employer's liability under the chapter "is exclusive and in place of all other liability" arising from compensable injuries, subject to statutory exceptions.

    Reference: Oregon Revised Statutes — ORS 656.018

  9. 9Before ordinarily placing Oregon insurance with a nonadmitted insurer, what market-search condition applies?

    1. A. A diligent search must show the full amount or kind cannot be obtained from authorized insurers actually writing it
    2. B. Only one admitted insurer need be contacted
    3. C. No admitted-market inquiry is permitted
    4. D. The insured must first suffer a loss

    Answer: A

    Explanation: ORS 735.410 requires "a diligent search" among authorized insurers actually writing the kind and a determination that the full amount or kind cannot be obtained there.

    Reference: Oregon Revised Statutes — ORS 735.410(1)

  10. 10Which Oregon resident producer applicant is old enough to satisfy the statutory age requirement?

    1. A. A 16-year-old
    2. B. An 18-year-old
    3. C. A 17-year-old with insurer sponsorship
    4. D. A 17-year-old who completed prelicensing

    Answer: B

    Explanation: ORS 744.059 requires that an individual applicant "is at least 18 years of age." Insurer sponsorship or education does not lower that age.

    Reference: Oregon Revised Statutes — ORS 744.059(1)(b)

Topics in this practice bank

These topics describe the available practice for Oregon Producer's Examination for Casualty Insurance. Review the examination outline and its sources for scope and allocation details.

  • Insurance Regulation
    • Licensing
    • Licensing / Purpose
    • Licensing / Process (ORS 744.058, .059, .062)
    • Licensing / Types of licensees
    • Licensing / Types of licensees / Producers (ORS 744.052, .053, 731.104)
    • Licensing / Types of licensees / Consultants (ORS 744.605, .609, .626; OAR 836-071-0150)
    • Licensing / Types of licensees / Adjusters (ORS 744.531)
    • Licensing / Types of licensees / Nonresidents (ORS 744.063)
    • Licensing / Types of licensees / Temporary (ORS 744.073)
    • Licensing / Maintenance and duration
    • Licensing / Maintenance and duration / Renewal and nonrenewal (ORS 744.072, .074) OAR 836-071-0146)
    • Licensing / Maintenance and duration / Continuing education requirements (ORS 744.072; OAR 836-071-0215 to 0250)
    • Licensing / Maintenance and duration / Reinstatement (ORS 744.018, .072(6))
    • Licensing / Maintenance and duration / Assumed business name (ORS 744.028(2),.068)
    • Licensing / Maintenance and duration / Change of address or telephone number (ORS 744.028(1), .068)
    • Licensing / Maintenance and duration / Reporting of actions (ORS 744.089)
    • Licensing / Disciplinary actions
    • Licensing / Disciplinary actions / Cease and desist orders (ORS 731.252)
    • Licensing / Disciplinary actions / License probation, suspension, revocation or refusal to issue or renew (ORS 744.074)
    • Licensing / Disciplinary actions / Civil penalty (ORS 731.988)
    • Licensing / Disciplinary actions / Criminal penalty (ORS 731.992)
    • State regulation
    • State regulation / Director's enforcement authority (ORS 731.256)
    • State regulation / Director's enforcement authority (ORS 731.256) / Director's inquiries (ORS 731.296)
    • State regulation / Company regulation
    • State regulation / Company regulation / Producer appointment (ORS 744.078)
    • State regulation / Company regulation / Termination of appointment (ORS 744.079, .081)
    • State regulation / Company regulation / Unfair claim settlement practices (ORS 746.230; OAR 836-080-0205 to 0250)
    • State regulation / Producer regulation
    • State regulation / Producer regulation / Fiduciary and trust account responsibilities (ORS 744.083; OAR 836-074-0020 to 0050)
    • State regulation / Producer regulation / Place of business/records maintenance (ORS 744.068)
    • State regulation / Producer regulation / Controlled business (ORS 746.065, .160)
    • State regulation / Producer regulation / Controlled business (ORS 746.065, .160) / Commissions (ORS 744.076, .077; OAR 836-071-0269–0277)
    • State regulation / Producer regulation / Fees (ORS 744.076, .077; OAR 836-071-0260 to 0277)
    • State regulation / Unfair trade practices
    • State regulation / Unfair trade practices / Misrepresentation (ORS 746.075, .100)
    • State regulation / Unfair trade practices / False advertising (ORS 746.110; OAR 836-080-0155)
    • State regulation / Unfair trade practices / Rebating (ORS 746.045)
    • State regulation / Unfair trade practices / Unfair discrimination (ORS 746.015; OAR 836-081-0005, 0010, 0020, 0030)
    • State regulation / Unfair trade practices / Illegal inducement (ORS 746.035)
    • State regulation / Examination of records (ORS 744.068(2, 3))
    • State regulation / Privacy of Consumer Information (ORS 746.600, .620, .630, .665; OAR 836-080-0501 to 836-080-0551)
  • Federal Laws and Regulations
    • Fair Credit Reporting Act
    • 18 United States Code (USC) Sections 1033 and 1034 - purpose
  • General Insurance Concepts
    • Risk
    • Risk / Definitions (e.g., risk, hazard, peril, loss)
    • Risk / Methods of handling risk (e.g., avoidance, retention, sharing, reduction, transfer)
    • Risk / Elements of insurable risks
    • Classifications of insurers
    • Classifications of insurers / Mutual, stock
    • Classifications of insurers / Admitted, non-Admitted
    • Classifications of insurers / Foreign, domestic, alien
    • Authority and powers of producers - definitions
    • Authority and powers of producers - definitions / Express
    • Authority and powers of producers - definitions / Implied
    • Authority and powers of producers - definitions / Apparent
    • Authority and powers of producers - definitions / The Law of Agency
    • Elements of a contract
    • Elements of a contract / Offer
    • Elements of a contract / Acceptance
    • Elements of a contract / Consideration
    • Elements of a contract / Competent parties
    • Elements of a contract / Legal purpose
    • Legal interpretations affecting contracts
    • Legal interpretations affecting contracts / Reasonable expectations
    • Legal interpretations affecting contracts / Indemnity
    • Legal interpretations affecting contracts / Good faith
    • Legal interpretations affecting contracts / Warranties, representations, misrepresentations, and concealment
    • Legal interpretations affecting contracts / Fraud
  • Insurance Basics
    • Underwriting (purpose, process, results)
    • Types of hazards
    • Types of hazards / Physical
    • Types of hazards / Moral
    • Types of hazards / Morale
    • Negligence
    • Negligence / Torts
    • Negligence / Elements of a negligent act
    • Negligence / Defenses against negligence
    • Damages
    • Damages / Compensatory versus punitive
    • Damages / General versus special
    • Liability
    • Liability / Absolute
    • Liability / Strict
    • Liability / Vicarious
    • Accident versus occurrence
    • Policy structure
    • Policy structure / Declarations
    • Policy structure / Definitions
    • Policy structure / Insuring agreement
    • Policy structure / Additional/supplementary coverage
    • Policy structure / Conditions
    • Policy structure / Exclusions
    • Policy structure / Endorsements
    • Policy clauses
    • Policy clauses / Insureds
    • Policy clauses / Policy period
    • Policy clauses / Policy territory
    • Policy clauses / Cancellation and non-renewal
    • Policy clauses / Deductibles/self-insured retention
    • Policy clauses / Other insurance
    • Policy clauses / Other insurance / Nonconcurrency
    • Policy clauses / Other insurance / Primary and excess
    • Policy clauses / Other insurance / Pro rata
    • Policy clauses / Other insurance / Contribution by equal shares
    • Limits of liability
    • Limits of liability / Per accident
    • Limits of liability / Per occurrence
    • Limits of liability / Per person
    • Limits of liability / Aggregate
    • Limits of liability / Split limits
    • Limits of liability / Combined single limit
    • Named insured provisions
    • Named insured provisions / First named insured versus other insureds
    • Named insured provisions / Duties after loss
    • Named insured provisions / Assignment
    • Named insured provisions / Waiver of rights
    • Insurer provisions
    • Insurer provisions / Liberalization
    • Insurer provisions / Subrogation
    • Insurer provisions / Claim settlement options
    • Insurer provisions / Duty to defend
    • Insurer provisions / Arbitration
    • Oregon laws, regulations and required provisions
    • Oregon laws, regulations and required provisions / Oregon Insurance Guaranty Association (ORS 734.510–.710)
    • Oregon laws, regulations and required provisions / Cancellation and nonrenewal
    • Oregon laws, regulations and required provisions / Cancellation and nonrenewal / Commercial liability (ORS 742.700–.710)
    • Oregon laws, regulations and required provisions / Cancellation and nonrenewal / Property (ORS 742.224, 746.686-687)
    • Oregon laws, regulations and required provisions / Cancellation and nonrenewal / Automobile (ORS 742.560-.572)
    • Oregon laws, regulations and required provisions / Binders (ORS 742.043)
    • Oregon laws, regulations and required provisions / Rates (ORS 737.025, .310; OAR 836-010-0011)
    • Oregon laws, regulations and required provisions / Policy forms (ORS 742.003, .005)
    • Oregon laws, regulations and required provisions / Suit against insurer (ORS 742.240)
    • Oregon laws, regulations and required provisions / Concealment, misrepresentation or fraud (ORS 742.013, .208, .562(1)(b), .702(1)(b); 746.075, .100, .110)
    • Oregon laws, regulations and required provisions / Unfair discrimination (ORS 746.015,.018, .240)
    • Oregon laws, regulations and required provisions / Federal Terrorism Insurance Program (15 USC 6701; Public Law 109–144, 110–160)
  • Personal Automobile Policy
    • Laws
    • Laws / Oregon Motor Vehicle Financial Responsibility Law
    • Laws / Required motor vehicle limits of liability (ORS 806.070, .075)
    • Laws / 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)
    • Personal injury protection definitions (ORS 742.518–.544) / Medical
    • Personal injury protection definitions (ORS 742.518–.544) / Loss of income
    • Personal injury protection definitions (ORS 742.518–.544) / Funeral
    • Personal injury protection definitions (ORS 742.518–.544) / Essential services
    • Personal injury protection definitions (ORS 742.518–.544) / Exclusions from coverage
    • Personal injury protection definitions (ORS 742.518–.544) / Arbitration
    • Personal injury protection definitions (ORS 742.518–.544) / Day Care
    • Uninsured and underinsured motorist coverage (ORS 742.500–.510)
    • Uninsured and underinsured motorist coverage (ORS 742.500–.510) / Definitions
    • Uninsured and underinsured motorist coverage (ORS 742.500–.510) / Bodily injury
    • Uninsured and underinsured motorist coverage (ORS 742.500–.510) / UM and UIM rejection
    • Uninsured and underinsured motorist coverage (ORS 742.500–.510) / Aftermarket Crash Parts Act (ORS 746.287, .289, .292)
    • Uninsured and underinsured motorist coverage (ORS 742.500–.510) / Credit History (ORS 746.661)
    • Uninsured and underinsured motorist coverage (ORS 742.500–.510) / Total Loss (ORS 742.554, 801.527, 819.014), (OAR 836.080.0240)
    • Definitions
    • Liability coverage
    • Liability coverage / Bodily injury and property damage
    • Liability coverage / Supplementary payments
    • Liability coverage / Exclusions
    • Liability coverage / Liability extension to towed vehicle
    • Medical payments coverage
    • Coverage for damage to your automobile
    • Coverage for damage to your automobile / Collision
    • Coverage for damage to your automobile / Other than collision (comprehensive)
    • Coverage for damage to your automobile / Deductibles
    • Coverage for damage to your automobile / Exclusions
    • Duties after an accident or loss
    • General provisions
    • Endorsements
    • Endorsements / Amendment of policy provisions — Oregon
    • Endorsements / Towing and labor costs
    • Endorsements / Extended non-owned coverage — vehicles furnished or available for regular use
    • Endorsements / Joint ownership coverage
    • Endorsements / Rental vehicle coverage
  • Commercial Automobile Policy
    • Commercial auto coverage forms
    • Covered automobiles
    • Covered automobiles / Hired automobiles
    • Covered automobiles / Non-owned automobiles
    • Liability
    • Physical damage
    • Exclusions
    • Conditions
    • Definitions
    • Selected endorsements
    • Selected endorsements / Lessor — additional insured and loss payee
    • Selected endorsements / Mobile equipment
    • Selected endorsements / Broad form products
    • Selected endorsements / Employees as insureds
  • Commercial General Liability
    • Commercial policy components
    • Commercial policy components / Declarations
    • Commercial policy components / Conditions
    • Commercial policy components / Interline endorsements
    • Commercial general liability coverages
    • Commercial general liability coverages / Bodily injury and property damage
    • Commercial general liability coverages / Personal and advertising injury
    • Commercial general liability coverages / Medical payments
    • Commercial general liability coverages / Conditions
    • Commercial general liability coverages / Definitions
    • Commercial general liability coverages / Exclusions
    • Occurrence versus claims-made
    • Occurrence versus claims-made / Trigger
    • Occurrence versus claims-made / Retroactive date
    • Commercial general liability exposures
    • Commercial general liability exposures / Premises and operations
    • Commercial general liability exposures / Products and completed operations
    • Commercial general liability exposures / Contractual liability
  • Workers' Compensation Laws
    • Oregon Workers' Compensation Law (ORS Chapter 656)
    • Oregon Workers' Compensation Law (ORS Chapter 656) / Exclusive remedy (ORS 656.018)
    • Oregon Workers' Compensation Law (ORS Chapter 656) / Employment covered (required, voluntary, leased) (ORS 656.017, .023, .027–.041)
    • Oregon Workers' Compensation Law (ORS Chapter 656) / Covered injuries and notice (ORS 656.005(7); .265)
    • Oregon Workers' Compensation Law (ORS Chapter 656) / Occupational disease (ORS 656.802–.804)
    • Oregon Workers' Compensation Law (ORS Chapter 656) / Benefits provided (ORS 656.202, .204, .206, .208, .210, .211, .212, .214, .216, .245, .258, .262(4)(a))
    • Oregon Workers' Compensation Law (ORS Chapter 656) / Workers' Compensation Handicapped Workers Program (ORS 656.628)
    • Workers' compensation coverages and benefits
    • Workers' compensation definitions
    • Workers' compensation definitions / Occupational accident versus occupational disease and illness
    • Workers' compensation definitions / Levels of disability
    • Rating and job classification
    • Other sources of coverage
    • Other sources of coverage / Oregon Workers' Compensation Fund Insurance Plan (ORS 656.730; OAR 836-043-0001–0091)
    • Other sources of coverage / Self-insured employers and employer groups (ORS 656.403, .407)
    • Federal laws
  • Other Types of Casualty Insurance
    • Personal umbrella, commercial umbrella, and excess policies
    • Personal umbrella, commercial umbrella, and excess policies / Underlying limits
    • Personal umbrella, commercial umbrella, and excess policies / Self-insured retention
    • Specialty liability insurance
    • Specialty liability insurance / Professional errors and omissions
    • Specialty liability insurance / Directors and officers
    • Specialty liability insurance / Employment practices
    • Specialty liability insurance / Employee benefits
    • Specialty liability insurance / Cyber liability and network protection
    • Surplus lines (ORS Sec. 735.410, .415)
    • Surplus lines (ORS Sec. 735.410, .415) / Definitions and markets
    • Surplus lines (ORS Sec. 735.410, .415) / Licensing requirements
    • Surety Contracts
    • Surety Contracts / Differences between surety and insurance
    • Surety Contracts / Obligation of the surety
    • Surety Contracts / Parties to the surety bond
    • Surety Contracts / Parties to the surety bond / Principal
    • Surety Contracts / Parties to the surety bond / Obligee
    • Surety Contracts / Parties to the surety bond / Surety Contracts

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