Oregon Property & Casualty Insurance License Exam — All Questions
3 questions
Which agency regulates insurance and licenses resident property and casualty producers in Oregon?
- a.The Oregon Secretary of State
- b.The Oregon Department of Motor Vehicles
- c.The Oregon Division of Financial Regulation (Department of Consumer and Business Services)✓
- d.The Oregon Public Utility Commission
Oregon regulates insurance through the Division of Financial Regulation (DFR), part of the Department of Consumer and Business Services (DCBS). The DFR licenses producers, reviews forms and rates, and enforces the Insurance Code (confirmed at dfr.oregon.gov). On the exam, remember it is the DFR, not the Secretary of State or DMV, that licenses producers.
An Oregon producer offers to rebate part of the commission to a client as an inducement to buy a policy. Under Oregon law this is:
- a.Permitted if the insurer approves
- b.Permitted for commercial clients only
- c.Prohibited rebating✓
- d.Required to be reported but otherwise lawful
Giving any part of the premium or commission, or other valuable consideration not stated in the policy, as an inducement to buy is prohibited rebating under Oregon's unfair trade practices rules and can bring fines and license action by the Oregon Division of Financial Regulation.
After an Oregon personal auto or homeowners policy is past its initial underwriting period, an insurer's mid-term cancellation is generally allowed only:
- a.For specific statutory grounds such as nonpayment of premium or fraud, with required advance written notice✓
- b.For any reason, with no notice
- c.Only during the first 24 hours of the policy
- d.Never, once the policy is issued
Oregon limits mid-term cancellation of seasoned personal-lines policies to defined grounds such as nonpayment, fraud, or a substantial change in the risk, and requires advance written notice so the insured can replace coverage. The exact notice day-counts are set by statute and can change; verify current figures with the Oregon Division of Financial Regulation.