Oregon Personal Lines Insurance License Exam — All Questions

What minimum auto liability limits must an Oregon personal auto policy carry?

• a.$15,000 per person / $30,000 per accident bodily injury and $5,000 property damage
• b.$25,000 per person / $50,000 per accident bodily injury and $25,000 property damage
• c.$25,000 per person / $50,000 per accident bodily injury and $20,000 property damage✓
• d.$50,000 per person / $100,000 per accident bodily injury and $50,000 property damage

Oregon requires minimum auto liability limits of 25/50/20 — $25,000 bodily injury per person, $50,000 bodily injury per accident, and $20,000 property damage. These are minimums; producers should offer higher limits. Source: Oregon DMV insurance requirements (https://www.oregon.gov/odot/dmv).

Which coverage does Oregon uniquely require on a personal auto policy in addition to liability and uninsured motorist coverage?

• a.Personal injury protection (PIP) with a minimum of $15,000 per person✓
• b.Collision coverage on every vehicle
• c.Gap coverage for leased vehicles
• d.Mechanical breakdown insurance

Oregon requires personal injury protection (PIP) of at least $15,000 per person on personal auto policies, which pays medical and certain other expenses for the insured and passengers regardless of fault. This is in addition to the 25/50/20 liability and 25/50 uninsured motorist minimums. Source: Oregon DMV (https://www.oregon.gov/odot/dmv).

How does Oregon treat uninsured motorist (UM) coverage on a personal auto policy?

• a.UM is prohibited in Oregon
• b.UM is available only to commercial fleets
• c.UM is mandatory, with minimum limits of $25,000 per person and $50,000 per accident✓
• d.UM automatically replaces liability coverage

Oregon requires uninsured motorist (UM) bodily injury coverage on personal auto policies at minimum limits of $25,000 per person and $50,000 per accident, matching the liability minimums. UM protects the insured when the at-fault driver has no coverage. Source: Oregon DMV insurance requirements (https://www.oregon.gov/odot/dmv).

How are cancellation and nonrenewal of a personal auto or homeowners policy regulated in Oregon?

• a.An insurer may cancel any personal policy at any time for any reason with no notice
• b.Only the policyholder may ever cancel; insurers can never cancel mid-term
• c.There are no notice rules; cancellation is governed solely by the contract
• d.State law limits the reasons an insurer may cancel or nonrenew and requires advance written notice to the insured; confirm the exact notice period with the Division of Financial Regulation✓

Oregon restricts mid-term cancellation of personal auto and homeowners policies to specified reasons (such as nonpayment or material misrepresentation) and requires advance written notice of cancellation or nonrenewal. The exact number of days varies by reason and line — verify current Oregon notice periods with the Division of Financial Regulation.

Which best describes how Oregon handles liability for auto accidents?

• a.It is a traditional at-fault (tort) state, though it also requires no-fault-style PIP benefits on every auto policy✓
• b.It is a pure no-fault state that bars all lawsuits between drivers
• c.It routes all auto claims through a state-run fund
• d.It has no financial-responsibility law

Oregon is an at-fault (tort) state — the driver who causes a crash is liable for the other party's injuries and damage — but it layers required PIP benefits on top, so each insured's own PIP pays first-party medical costs regardless of fault. Confirm current rules with the Oregon Division of Financial Regulation (https://dfr.oregon.gov).