Reviewed by the CoveragePrep editorial team · Sources: state insurance departments, statutes, exam candidate handbooks · How we research
OR · PSI · 150 questions
Oregon General Lines Adjuster Practice Test
Oregon requires a license for anyone paid to investigate, negotiate or settle first or third party claims on Oregon risks (ORS 744.502 and 744.505). Licensed resident producers and people an authorized insurer employs and authorizes in writing to adjust its own losses are exempt under ORS 744.515, as are adjusters working under a catastrophe temporary permit obtained within five days of deployment. The Division of Financial Regulation issues general lines (property and casualty, plus marine, transportation and surety), health and crop adjuster classes, and since August 2025 a separate public adjuster license under OAR 836-071-1100 to 836-071-1195; one person cannot hold both an adjuster and a public adjuster license. Residents need no prelicensing course: they pass PSI exam 12-07, are fingerprinted and apply through NIPR. Nonresidents from reciprocal states who passed an exam at home skip it, but Oregon cannot be used as a designated home state. Fees, renewal and continuing education are in our Oregon adjuster license guide.
Series 12-07 has 150 scored questions in two and a half hours, and you need 70% correct. Property and casualty insurance basics (20%) and the adjustment process (17%) are the largest sections, followed by insurance regulation, general insurance concepts and the personal auto policy at 10% each. Oregon law runs through the whole outline: licensing and the claim handling standards in ORS 746.230 and OAR 836-080 in the regulation section, the guaranty association, cancellation statutes and the 24-month suit limit in the basics section, and the financial responsibility law, PIP, UM, crash parts and total loss rules in the auto section. PSI's outline still cites pre-2019 licensing sections, so the Oregon questions below follow current law, and each one cites the ORS section or OAR rule behind its answer.
Exam vendor
PSI
Exam code
Series 12-07
Questions
150 scored (PSI may add 5 to 10 unscored experimental questions)
Time limit
2.5 hours (150 minutes)
Passing score
70%
Exam fee
$45 (each retake is also $45)
You cannot book a retake on the day you test. PSI's example: fail on a Wednesday, call on Thursday and retest as soon as Friday if seats are open. Cancel or reschedule at least 2 days before your appointment to keep the fee.
No prelicensing course is required for adjusters. After passing, you are electronically fingerprinted (at a PSI Oregon site on test day for $61.25, per the bulletin) and apply through NIPR, where the state adjuster license fee is $100.
PSI offers the exam at its test centers and by live online proctoring, in English or Spanish. Breaks are not allowed during an online proctored exam.
Oregon Insurance Law for Adjusters: practice questions (part 1 of 2)
State law is the part of the exam that general study guides skip and the part most candidates miss. These 25 questions are written from the statutes and rules cited in each explanation.
0 of 25 answered
Who must be licensed · Application
Dmitri, an Idaho resident, is paid a fee per file by an independent adjusting firm. A carrier assigns him a hail claim on a house in Bend, Oregon. Under ORS 744.502 and 744.505, which fact makes him an adjuster who needs Oregon authority?
Show answer and explanation
Correct answer: B. He is paid to adjust a claim on a domestic risk
ORS 744.502(1) defines an adjuster as a person that receives a fee, commission or other compensation to investigate, negotiate or settle first or third party losses under an insurance contract that insures a domestic risk. The house in Bend is an Oregon risk and Dmitri is paid, so ORS 744.505 requires a license unless an ORS 744.515 exemption applies. The insurer's domicile and the size of the claim are irrelevant.
Priya is a salaried claims representative of an authorized insurer, which has authorized her in writing to adjust losses under its policies. Sam, an independent agent the insurer does not employ, holds an Oregon nonresident producer license. Under ORS 744.515(2)(a), who may adjust the insurer's Oregon losses without an adjuster license?
Show answer and explanation
Correct answer: A. Priya only
ORS 744.515(2)(a) exempts two groups: licensed resident insurance producers, and people an authorized insurer employs and authorizes in writing to adjust losses under its own policies insuring domestic risks. Priya fits the second group. Sam's producer license is a nonresident license, so the producer exemption does not reach him and he would need an adjuster license to adjust claims for pay.
Keisha has no adjuster license. On a Monday she begins adjusting a single water damage loss in Salem for a fee. Under ORS 744.515(2)(b), what allows this one adjustment before her license is issued?
Show answer and explanation
Correct answer: D. Applying for the license within two days after starting the work
ORS 744.515(2)(b) lets a person adjust one loss before obtaining the license if the person applies within two days after beginning the adjustment and otherwise complies with the adjuster provisions of ORS chapter 744. The five-day window belongs to catastrophe temporary permits under ORS 744.515(2)(c) and 744.555, which require a Governor-declared catastrophe. Co-signing by another adjuster is not an exemption.
After the Governor declares a catastrophe with widespread property loss, an insurer deploys adjusters licensed in other states. Under ORS 744.515(2)(c) and 744.555, when must each obtain a temporary permit, and how long is a permit effective?
Show answer and explanation
Correct answer: A. Within 5 days of deployment; 90 days unless the Director extends it
ORS 744.555(1)(a) lets the Director issue temporary permits to people authorized in another state to adjust for or against an authorized insurer when a catastrophe causes widespread property loss. A permit is effective for 90 days or for any additional time the Director finds necessary. ORS 744.515(2)(c) exempts permit holders from the license requirement only if they obtain the permit within five days after deployment.
Under ORS 744.525 and the PSI Oregon candidate bulletin, which of the following is NOT a requirement for an individual's resident Oregon adjuster license?
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Correct answer: C. Completing an approved prelicensing education course
ORS 744.525(1) requires a resident applicant to establish an Oregon residence or place of business before applying, pass an exam the Director recognizes, be trustworthy and reliable, and be 18 or older when licensed. Oregon requires prelicensing education for producers, but the PSI candidate bulletin lists adjusters among the license types exempt from prelicensing education, so no course certificate is needed for the general lines adjuster exam.
Rafael holds an Oregon nonresident adjuster license and moves from Washington to Portland, establishing Oregon residence on March 1. Under ORS 744.538(2), how long may he keep adjusting Oregon claims under the nonresident license?
Show answer and explanation
Correct answer: D. Until 90 days after he establishes Oregon residence
ORS 744.538(2) says a nonresident adjuster who establishes Oregon residence may not transact business under the nonresident license after the 90th day following the move; after that, he may adjust only as a resident licensee. The 30-day deadline in ORS 744.538(3) applies to a different event: a nonresident who moves to another state or province must notify the Director within 30 days.
Mei is a resident adjuster in a state that grants nonresident adjuster licenses to Oregon residents on the same basis. She earned her home license by passing a property and casualty adjuster exam. Under ORS 744.528, what applies to her Oregon nonresident general lines application?
Show answer and explanation
Correct answer: B. She needs no Oregon exam, having passed one for that class
ORS 744.528(1) lets the Director license a nonresident who is licensed in a state that gives the same privilege to Oregon adjusters. Under ORS 744.528(2)(b), an individual must pass an Oregon-recognized exam only if she has not already passed an exam for the class she intends to transact. Mei's home state is reciprocal and she passed a property and casualty exam, so no Oregon exam is required.
Under ORS 744.521(2), what continuing education must an individual Oregon adjuster complete to renew a license?
Show answer and explanation
Correct answer: C. 24 hours, including 3 of ethics and 3 of Oregon law or home state subjects
ORS 744.521(2)(a)(B) conditions renewal of an individual adjuster license on at least 24 hours of continuing education, which may include courses taken for other Oregon insurance licenses. Three hours must be ethics, and three must be Oregon law or the continuing education subjects the licensee's home state requires. Failing to meet continuing education requirements is also a ground for discipline under ORS 744.584(1)(k).
Amara missed her renewal, and her Oregon adjuster license expired four months ago. It was never suspended or revoked. Under ORS 744.521(2)(b), how can she restore it?
Show answer and explanation
Correct answer: A. Renew now by paying double the renewal fee and meeting renewal rules
ORS 744.521(2)(b) allows renewal of a license that expired within the past year if it was not revoked or refused renewal for misconduct, the Director finds the former licensee knows the applicable Insurance Code provisions, the person pays double the renewal fee and otherwise meets renewal requirements. After one year, ORS 744.521(2)(d) requires a new application under subsection (1), so waiting would only make things harder.
An Oregon adjuster starts doing business under a new assumed business name and moves her office across town. Under ORS 744.581, when must she notify the Director?
Show answer and explanation
Correct answer: D. Not later than 30 days after each change
ORS 744.581(1)(a) requires a licensee to notify the Director within 30 days after opening, closing or relocating a place of business, changing contact information, or starting, stopping or changing an assumed business name. The same deadline applies to final regulatory actions and to felony or fraud-related criminal charges. The December 31 date in ORS 744.581(2) is for business entities reporting changes in officers, directors and owners of more than 10%.
Tomasz, a licensed Oregon adjuster, adjusts a loss under a policy issued by an unauthorized insurer that is not a surplus line insurer. Under ORS 744.541, what must he do?
Show answer and explanation
Correct answer: A. Notify the Director not later than the 20th day after adjusting the loss
ORS 744.541 permits an adjuster to adjust a loss under a policy issued by an unauthorized insurer other than a surplus line insurer, but the adjuster must notify the Director not later than the 20th day after adjusting the loss. The Guaranty Association is not involved: under ORS 734.510(8) and (9) it pays covered claims only for insolvent member insurers, which are authorized insurers.
Under ORS 744.531, an adjuster licensed for the property and casualty class (general lines) may also adjust losses under which other kinds of insurance?
Show answer and explanation
Correct answer: D. Marine and transportation insurance, and surety insurance
ORS 744.531(1) says that under the property and casualty class an adjuster may also adjust marine and transportation and surety losses. Health insurance, including coverage from a health care service contractor, is a separate class under ORS 744.531(2), and crop insurance is a separate adjuster class the Director created by rule in OAR 836-071-0113, with its own exam and an 80% passing score.
Under ORS 744.584(1), which act is specifically listed as grounds for disciplining a licensed Oregon adjuster?
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Correct answer: B. Effecting insurance on the adjuster's own property or liability
ORS 744.584(1)(h) bars an adjuster or applicant from effecting insurance on the person's own property or against the person's own liability. Other listed grounds include incompetence, dishonesty on an application or exam, misappropriating money, felony convictions, misrepresenting policy terms and failing to meet continuing education. Discipline can mean refusal, suspension, revocation, nonrenewal or probation, after notice and an opportunity for a hearing under ORS 744.584(2) and (4).
The Director finds that an individual adjuster committed three separate violations of the Insurance Code and made no profit from them. Under ORS 731.988(1), what is the maximum total civil penalty?
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Correct answer: B. $3,000
ORS 731.988(1) caps civil penalties for individual insurance producers, adjusters and insurance consultants at $1,000 for each offense, and each violation is a separate offense: 3 x $1,000 = $3,000. The $10,000 per offense limit applies to other persons, such as insurers. A separate penalty equal to any profit from the violation is possible under ORS 731.988(2), but the adjuster made no profit here.
The Director mails Gabriel a cease and desist order under ORS 731.252 charging him with adjusting claims without a license. If Gabriel does nothing, when does the order become final?
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Correct answer: C. 20 days after the date of mailing
Under ORS 731.252(1), the order must tell the person he may request a hearing within 20 days of the date of mailing, and it becomes final 20 days after mailing unless a written hearing request is filed in that period. If a hearing is requested, the Director sets it within 30 days after the request. The order is the Director's own administrative order and does not depend on a court.
An insurer receives notice of a theft claim from its insured on June 2. Under OAR 836-080-0225(1), by when must the insurer acknowledge the notification or pay the claim?
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Correct answer: B. Not later than the 30th day after receiving it
OAR 836-080-0225(1) requires an insurer to acknowledge a notification of claim, or pay it, not later than the 30th day after receipt, with a dated notation in the claim file. Sending the needed claim forms and instructions within that 30 days also satisfies the rule under section (4). The 45-day figure is the separate deadline for completing the investigation in OAR 836-080-0230.
The Division of Financial Regulation sends an insurer an inquiry about a consumer's pending auto claim. Under OAR 836-080-0225(2), how long does the insurer have to furnish an adequate response?
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Correct answer: C. 21 days after receipt
OAR 836-080-0225(2) requires an adequate response to an inquiry from the Director about a claim not later than the 21st day after receipt. ORS 731.296 adds that any insurer or licensee the Director questions must reply promptly and truthfully, in the form the Director requests, verified by an officer if required. Thirty days is the deadline for acknowledging claims and replying to claimants' communications, not for answering the regulator.
Under OAR 836-080-0230, an insurer must complete its claim investigation within how many days after receiving notification of a claim, unless the investigation cannot reasonably be completed in that time?
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Correct answer: B. 45 days
OAR 836-080-0230 sets the standard for prompt investigation: complete it not later than the 45th day after receiving notification of the claim, unless it cannot reasonably be completed within that time. The rule implements ORS 746.230(1)(c) and (d), which require reasonable standards for prompt investigation and forbid refusing to pay without a reasonable investigation based on all available information.
An insurer receives a homeowner's properly executed proof of loss on April 1 and needs more time to decide. On April 25 it sends the claimant written notice explaining why. Under OAR 836-080-0235(4), if the investigation is still open, when is the next written notice due?
Show answer and explanation
Correct answer: C. June 9
OAR 836-080-0235(1) and (4) require acceptance or denial within 30 days after proof of loss or, if more time is needed, a notice with the reason within those 30 days; the April 25 notice was timely. Further written notices are due 45 days from that initial notification and every 45 days after. April 25 plus 45 days is June 9. May 16 wrongly counts from the proof of loss.
An insurer denies a first party claim based on a policy exclusion. Under OAR 836-080-0235(1), which statement about the denial is correct?
Show answer and explanation
Correct answer: A. It must be in writing and refer to the specific exclusion relied on
OAR 836-080-0235(1) says an insurer may not deny a claim on the grounds of a specific provision, condition or exclusion unless the denial refers to it, and a claim denial must be in writing with a copy or reproducible text kept in the claim file. This carries out ORS 746.230(1)(m), which requires a prompt explanation of the policy basis for a denial. There is no small-claim exception.
Lucia, a third party claimant with no attorney, is still negotiating her injury claim directly with the at-fault driver's insurer as the statute of limitations approaches. Under OAR 836-080-0235(6), when must the insurer give her written notice that the time limit may expire?
Show answer and explanation
Correct answer: B. At least 60 days before the date it believes the limit expires
When an insurer keeps negotiating directly with a claimant who is not an attorney and not represented by one, OAR 836-080-0235(6) requires written notice that a statute of limitations or policy time limit may be expiring. Third party claimants must get it at least 60 days before the date the insurer believes the limit expires; first party claimants at least 30 days before. The duty does not depend on the claimant asking.
Liability for a crash is reasonably clear. An adjuster withholds payment of the third party claimant's property damage claim to pressure her into accepting a low bodily injury offer under the same policy. Which ORS 746.230(1) practice does this describe?
Show answer and explanation
Correct answer: D. Delaying payment under one coverage to influence another coverage
ORS 746.230(1)(L) prohibits failing to promptly settle claims under one coverage of a policy, where liability has become reasonably clear, in order to influence settlements under other coverages. Holding back the clear property damage payment as leverage on the bodily injury claim is exactly that. The other options are real practices in ORS 746.230(1)(k), (i) and (j), but they do not fit these facts.
Nadia's car had $8,000 of collision damage. Her insurer paid $7,000 after her $1,000 deductible, included the deductible in its subrogation demand at her request, and recovered $4,000 without hiring an outside attorney. Under OAR 836-080-0240(10), what is the least Nadia must receive?
Show answer and explanation
Correct answer: B. $500
OAR 836-080-0240(10) requires an insurer, on request, to include the deductible in its subrogation demand and to share recoveries at least proportionately with the insured. The recovery is half of the $8,000 loss ($4,000 / $8,000 = 50%), so Nadia gets at least 50% of her $1,000 deductible, or $500. No collection expenses may be deducted because no outside attorney was retained. $571 wrongly uses the $7,000 payment as the base.
An adjuster handling Owen's collision claim under his auto policy wants to recommend a particular body shop. Under ORS 746.280 and 746.290, what must the adjuster do before making the recommendation?
Show answer and explanation
Correct answer: C. Tell Owen that Oregon law lets him choose his own repair shop
ORS 746.280(2) and 746.290(1) require the person adjusting the claim to tell the insured, before recommending a shop, that Oregon law prohibits the insurer from requiring a particular shop and that he may choose any shop. If Owen picks another shop, ORS 746.280(3) bars limiting repair costs except as the policy or law allows. If he accepts the recommendation, the insurer sends a written statement within three business days.
A court finds that an insurer committed two violations of ORS 746.280 while handling Grace's claim, and her actual damages total $60. Under ORS 746.300, what is the minimum she recovers, not counting attorney fees?
Show answer and explanation
Correct answer: C. $200
ORS 746.300 lets an insured whose insurer violates ORS 746.280 or 746.290 recover actual damages or $100, whichever is greater, for each violation. Grace's actual damages are less than $100, so she recovers $100 for each of the two violations: 2 x $100 = $200. The court may also award reasonable attorney fees to the prevailing party, but the question excludes them.
The vendor's published outline lists these content areas. See the official candidate handbook for the full topic list.
Content area
Share of exam
Insurance Regulation
10% (15 questions)
Federal Laws and Regulations
5% (8 questions)
General Insurance Concepts
10% (15 questions)
Property and Casualty Insurance Basics
20% (30 questions)
Adjustment Process
17% (26 questions)
Dwelling Policy Concepts
4% (6 questions)
Homeowners Policy Concepts
9% (14 questions)
Personal Automobile Policy
10% (15 questions)
Commercial Automobile Policy
3% (4 questions)
Commercial General Liability
3% (4 questions)
Commercial Property Policies
3% (4 questions)
Workers' Compensation Insurance
2% (3 questions)
Other Types of Insurance Policies
4% (6 questions)
PSI content outline titled "Oregon Adjuster's Examination, General Lines Insurance, Series 12-07" (no effective date printed; the PDF is dated February 2023 and is still posted by PSI in October 2026), with percentages of the 150 scored questions; Oregon law also appears inside the insurance basics, personal auto, workers' compensation and other policies sections, and the outline still cites licensing sections (ORS 744.002 to 744.028) that are no longer in ORS chapter 744, where adjuster licensing now sits in ORS 744.502 to 744.584.
Study by topic
Each topic test is a separate page with its own score breakdown, so you can drill the areas where you are weakest.
Pace for a full 150. You get 150 minutes for 150 scored questions, and PSI may add 5 to 10 unscored experimental items, so plan on a little under a minute each. Mark long scenarios and come back to them.
Study current licensing law, not the outline's citations. The outline cites ORS 744.002 to 744.028, but adjuster licensing now lives in ORS 744.502 to 744.584. Know the one-loss rule (apply within 2 days), catastrophe permits (obtain within 5 days, good for 90), 90 days to convert after moving to Oregon, 30-day change notices, 20 days to report an unauthorized insurer claim, 3-year record keeping and the $1,000 per offense civil penalty.
Memorize the OAR 836-080 claim clock. Acknowledge claims within 30 days, answer the Division within 21, finish the investigation within 45, accept or deny within 30 days of proof of loss with status letters every 45 days, and warn unrepresented claimants 30 days (first party) or 60 days (third party) before a time limit runs.
Know Oregon's auto numbers. Liability minimums are 25/50/20 (50/100/10 after a DUII), UM must match bodily injury limits unless lowered in writing to no less than 25/50, and PIP pays $15,000 medical within two years, 70% of income up to $3,000 a month, $5,000 funeral, $30 a day essential services and $25 a day child care up to $750. Add the repair shop notice, crash part certification and the 35-day total loss reopening rule.
Policy knowledge is still most of the score. Basics, the adjustment process, general concepts, homeowners, dwelling and the personal auto policy add up to about 70% of the questions; commercial auto, CGL and commercial property get only 3% each.
Study the federal and workers' compensation items separately. The 5% federal section covers 18 U.S.C. 1033 and 1034, Gramm-Leach-Bliley privacy, the NFIP, TRIA and the MCS-90 endorsement, and the workers' compensation section asks about Oregon's exclusive remedy rule (ORS 656.018), the plan that places hard-to-insure employers and self-insured employers, which our general banks only partly cover.
Getting licensed in Oregon
Anyone paid to investigate, negotiate or settle first- or third-party claims on Oregon risks needs an Oregon adjuster license (ORS 744.505). Exempt are licensed resident producers and people employed by an authorized insurer and authorized in writing to adjust its losses, so staff adjusters are generally exempt (ORS 744.515). Public adjusters hold a separate Public Adjuster license class.
License fee: $100
License term: 2 years; e.g., a license issued in January 2020 expires January 31, 2022 (last day of the renewal month). Late renewal allowed for 1 year after expiration at double the fee.
Continuing education: 24 hours including 3 hours of ethics every 2 years (each renewal cycle)
How many questions are on the Oregon adjuster exam?
The PSI Oregon General Lines Adjuster exam, Series 12-07, has 150 scored questions and a 2.5-hour time limit. PSI may also include 5 to 10 unscored experimental questions. Property and casualty basics (30 questions) and the adjustment process (26) are the largest sections, and insurance regulation, which is mostly Oregon law, has 15.
What score do you need to pass the Oregon adjuster exam?
You need 70% for the general lines and health adjuster exams; the crop adjuster exam requires 80% (OAR 836-071-0127). Your score appears on screen when you finish and a score report is emailed to you. A failing report includes a diagnostic breakdown of your strengths and weaknesses.
Do I need a prelicensing course for the Oregon adjuster license?
No. The PSI candidate bulletin exempts adjusters from Oregon's prelicensing education requirement, so you can schedule exam 12-07 without a course certificate. You must still be 18, have an Oregon residence or place of business, pass the exam, submit electronic fingerprints and apply through NIPR.
How much does an Oregon adjuster license cost?
Budget $45 for the PSI exam (another $45 for each retake), $61.25 for fingerprinting at a PSI Oregon site per the bulletin, and the $100 state license fee listed by NIPR plus NIPR's transaction fee. Renewal every two years requires 24 hours of continuing education, including 3 of ethics and 3 of Oregon law.
Can I take the Oregon adjuster exam online?
Yes. PSI lists the Oregon General Lines Insurance Adjuster exam at its test centers and as a live online proctored exam, in English and Spanish. Online testing needs a webcam, microphone and a stable connection, and breaks are not allowed.
Do company staff adjusters need an Oregon license?
Not if an authorized insurer employs them and authorizes them in writing to adjust losses under its own policies (ORS 744.515(2)(a)). Licensed resident producers are also exempt. Independent adjusters paid by firms or insurers, and public adjusters working for policyholders, need their own Oregon licenses.