10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
The OR-PC exam has 150 questions and runs 2 hours 40 minutes.
These 10 free OR-PC questions are organized by exam domain, so you can see how each part of the Oregon Property & Casualty Insurance Producer Exam blueprint is tested. Reveal the answer and explanation under each question.
On May 1, an Oregon producer receives the final order in an administrative action taken by another state. She sends the order and related legal documents to the Oregon Division of Financial Regulation on May 20. No restriction has been placed on her Oregon license. The correct assessment is:
Correct answer: B - The report was timely, and the foreign order does not by itself suspend her Oregon license
A producer deposits a client's premium into the agency operating account and uses the money to pay office rent. The producer replaces the funds and remits the premium before the insurer cancels coverage. The conduct is best characterized as:
Correct answer: D - Conversion of fiduciary premium funds
A homeowners insurer increases an applicant's premium based partly on information in a consumer report. Under the Fair Credit Reporting Act, what must the insurer provide?
Correct answer: A - An adverse-action notice with the reporting agency's name, address, and phone number, a statement that the agency did not make the decision, and the consumer's dispute and 60-day free-report rights
A producer's written contract prohibits binding restaurant risks. The insurer nevertheless supplies the producer with commercial binder forms and publicly identifies the producer as authorized to bind commercial coverage. A restaurant owner reasonably relies on those manifestations. Which type of authority is at issue from the applicant's perspective?
Correct answer: C - Apparent authority
An insurer reports $6.8 million in incurred losses and loss-adjustment expenses on $10 million of earned premium. Its underwriting expenses are $2.9 million on $10 million of written premium. Ignoring investment income, how should the result be interpreted?
Correct answer: C - 97%; an underwriting profit before investment income
At the time of a fire, a commercial building has an $800,000 replacement value and an 80% coinsurance requirement. The insured carries a $480,000 limit. A covered partial loss is $160,000, and the policy has a $2,000 deductible applied after any coinsurance penalty. What amount is payable?
Correct answer: A - $118,000
During a windstorm, part of a warehouse roof is torn away. The owner can safely arrange a temporary tarp, but the adjuster cannot inspect until the next day. Under the insured's duties after loss, the owner should:
Correct answer: D - Take reasonable steps to prevent further damage, retain expense records, and notify the insurer promptly
Under a DP-3 policy, an overnight event leaves a large hole in the insured dwelling's exterior wall and crushes an insured-owned sofa. Investigation cannot identify the cause, and no exclusion applies. The DP-3 cause-of-loss structure produces which result?
Correct answer: B - The wall loss may be covered, but the sofa loss requires proof of a named peril
An HO-3 policy has a $1,500 special limit for theft of jewelry. A covered kitchen fire destroys an unscheduled ring worth $8,000. The Coverage C limit and deductible are otherwise adequate. How does the $1,500 special limit affect this loss?
Correct answer: A - It does not cap the fire loss because the $1,500 limit applies to theft
A visiting neighbor who is neither a household resident nor a residence employee trips at the insured residence and incurs $2,200 in necessary medical expenses. Negligence is disputed and no lawsuit has been filed. The homeowners coverage designed to respond without proof of legal liability is:
Correct answer: C - Coverage F - Medical Payments to Others
The OR-PC exam also covers these domains. Drill them in the full free practice test:
The full bank has 1,020 more OR-PC questions with explanations.
Continue in the free practice test →
View plans