FREE Oregon Property & Casualty Insurance Exam Guide 2026: Pass on Your First Try

Oregon Property & Casualty Insurance License Exam Overview

The Oregon Property & Casualty Insurance License Exam (Series 12-04) is administered by PSI Services LLC on behalf of the Oregon Division of Financial Regulation (DFR), part of the Department of Consumer and Business Services. Oregon's diverse geography, from the Pacific Coast to the Cascade Mountains, creates unique insurance challenges including wildfire risk, Cascadia Subduction Zone earthquake exposure, and coastal flooding.

Passing this exam qualifies you to sell property, auto, liability, surety, marine and transportation, and related casualty lines throughout Oregon, a state with over 4.2 million residents and a tech-driven economy that creates specialized commercial P&C opportunities. The Property & Casualty class is equivalent to Property, Casualty, Marine and Transportation, and Surety combined.

Exam Format at a Glance

Oregon also offers a Property-only exam (Series 12-12, $45, 100 questions, 2 hours) and a Casualty-only exam (Series 12-13, $45, 100 questions, 2 hours). Most candidates who want to sell both property and casualty take the combined 12-04 exam rather than sitting for two separate exams. The Personal Lines exam (Series 12-14, $45, 100 questions, 2 hours) is a narrower alternative for agents who will only sell personal lines, and Personal Lines is included in the Casualty line of authority, so applicants may not hold both.

Why Get P&C Licensed in Oregon?

• Growing population - Portland metro, the Willamette Valley, and Bend-Redmond continue to expand
• Unique catastrophe exposure - Wildfire, Cascadia earthquake, and coastal flood risk drive specialized coverage needs
• Tech and commercial growth - Silicon Forest companies need commercial property, cyber, E&O, and D&O coverage
• Progressive regulation - Strong consumer protection focus under DFR creates consistent demand for licensed, compliant producers
• Solid compensation - BLS OEWS May 2024 reports a median annual wage of about $60,710 for insurance sales agents in Oregon (SOC 41-3021), with the 75th percentile near $111,350

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Official Exam Content Outline (Series 12-04)

The PSI Candidate Information Bulletin publishes the official content outline. The percentages below tell you exactly how the 150 scored questions are distributed, so you can budget study time to the heaviest areas.

The Oregon-specific law bucket lives mostly inside Insurance Regulation and inside the Oregon provisions embedded in Dwelling, Homeowners, Personal Auto, and Workers' Compensation. National P&C concepts (policy structure, valuation, negligence, CGL triggers, commercial property forms) live in the other sections. Use the two-bucket method described later in this guide to keep state and national rules from blurring together on test day.

Key Topics Covered on the Exam

1. Property Insurance (Dwelling and Homeowners)

Dwelling policies (DP forms):

• Basic, Broad, and Special perils insured against
• Coverage A (Dwelling), B (Other structures), C (Personal property), D (Fair rental value), E (Additional living expense)
• Dwelling property exclusions, conditions, and endorsements
• Special Oregon provisions

Homeowners forms:

• HO-2 (Broad), HO-3 (Special), HO-4 (Contents broad), HO-5 (Comprehensive), HO-6 (Unit-owners), HO-8 (Modified coverages)
• Section I property coverages: A, B, C, D plus additional coverages
• Section II liability coverages: E (Personal liability), F (Medical payments to others)
• Section I and II exclusions and conditions
• Oregon-specific endorsements: earthquake, personal property replacement cost, permitted incidental occupancies, home day care, business pursuits, watercraft, personal injury, ordinance or law, scheduled personal property

Oregon-specific property topics:

• Oregon FAIR Plan Association (ORS 735.005, .015, .045) as residual market for hard-to-place property
• Wildfire coverage, defensible space, and Wildland-Urban Interface considerations
• Earthquake coverage (Cascadia Subduction Zone) - separate endorsement, deductible commonly 10-15% of dwelling
• Flood insurance and NFIP one-time 3-hour training requirement for producers selling flood
• Oregon Insurance Guaranty Association protection (ORS 734.510-.710)

2. Casualty and Liability Insurance

Personal liability: Homeowners Coverage E and F, personal umbrella, medical payments

Commercial General Liability (CGL):

• Bodily injury, property damage, personal and advertising injury
• Occurrence versus claims-made triggers and retroactive date
• Premises and operations, products and completed operations, contractual liability
• Exclusions and definitions

Commercial property and BOP:

• Commercial package policy structure, declarations, conditions, interline endorsements
• Building and business personal property, builders risk, business income, extra expense, equipment breakdown, inland marine, ocean marine distinction
• Farm coverage forms A-J
• Businessowners Policy Section I and II characteristics

Other P&C coverages:

• Personal and commercial umbrella, underlying limits, self-insured retention
• Professional liability, E&O, D&O, employment practices, employee benefits, cyber liability
• Surplus lines (ORS 735.410, .415) and the Joint Underwriting Association (ORS 735.200-.260)
• Surety contracts: principal, obligee, surety, and the difference between surety and insurance

3. Personal Automobile and Oregon Auto Requirements

Oregon auto insurance minimums:

Additional auto topics:

• Oregon Motor Vehicle Financial Responsibility Law (ORS 806.070, .075) and other ways to prove responsibility (ORS 806.011, .060, .080)
• PIP definitions, exclusions, and arbitration (ORS 742.518-.544)
• UM/UIM definitions, rejection rules, and bodily injury (ORS 742.500-.510)
• Aftermarket Crash Parts Act (ORS 746.287, .289, .292)
• Credit History rules (ORS 746.661) and Total Loss valuation (ORS 742.554, 801.527, 819.014)
• Personal Auto Policy structure: liability, medical payments, damage to your auto (collision and other-than-collision), deductibles, exclusions, duties after loss, endorsements
• Oregon-specific endorsements: amendment of policy provisions, towing and labor, extended non-owned coverage, miscellaneous type vehicle, joint ownership, rental vehicle
• Commercial auto: covered auto symbols, hired and non-owned, mobile equipment, broad form products, employees as insureds, lessor additional insured and loss payee

4. Workers' Compensation (ORS Chapter 656)

• Exclusive remedy (ORS 656.018) and covered employment (ORS 656.017, .023, .027-.041)
• Covered injuries and notice (ORS 656.005(7), .265)
• Occupational disease (ORS 656.802-.804)
• Benefits provided and the Handicapped Workers Program (ORS 656.628)
• Oregon Workers' Compensation Fund (SAIF Corporation) and the Workers' Compensation Insurance Plan (ORS 656.730; OAR 836-043-0001-.0091)
• Self-insured employers and employer groups (ORS 656.403, .407)
• Rating, job classification, and levels of disability
• Difference between workers' compensation, employer liability, and ordinary negligence

5. Insurance Regulation, Oregon Law, and Ethics

Oregon Insurance Code (ORS Chapters 731-752; OAR Chapter 836):

• Producer licensing purpose, process, and types of licensees (ORS 744.052-.062)
• Consultants (ORS 744.605-.626), adjusters (ORS 744.531), nonresidents (ORS 744.063), temporary licenses (ORS 744.073)
• Maintenance, duration, renewal, nonrenewal, reinstatement (ORS 744.072, .074, .018)
• Continuing education requirements (ORS 744.072; OAR 836-071-0215-.0250)
• Disciplinary actions, cease and desist, civil and criminal penalties
• Producer appointment and termination (ORS 744.078-.081)
• Unfair claim settlement practices (ORS 746.230) and unfair trade practices: misrepresentation, false advertising, rebating (ORS 746.045), unfair discrimination, illegal inducement
• Fiduciary and trust account responsibilities (ORS 744.083)
• Controlled business (ORS 746.065, .160), commissions and fees (ORS 744.076-.077)
• Privacy of Consumer Information (ORS 746.600-.665)
• Federal laws: Fair Credit Reporting Act, 18 USC 1033/1034, NFIP flood training, Federal Terrorism Insurance Program (15 USC 6701)

Ethics and professional conduct:

• Fiduciary duties to insureds and proper premium handling
• Claims reporting obligations and timely communication
• Privacy and confidentiality of consumer information
• Avoiding rebating, twisting, misrepresentation, and unfair claims handling

Study Timeline for Success

Total recommended study time: 50-60 hours, which aligns with the 40-hour pre-licensing course plus 10-20 hours of mixed practice on top.

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Oregon-Specific Exam Tips

1. Know Oregon Auto Minimums Cold

Oregon requires 25/50/20 liability plus $15,000 PIP and 25/50 UM/UIM. The exam frequently tests all four pieces. Do not confuse Oregon with neighboring states that have lower or different PIP or UM/UIM limits.

2. Master Wildfire, FAIR Plan, and Earthquake

Oregon's growing wildfire risk is a recurring exam theme. Know the Oregon FAIR Plan as the residual market for property that admitted carriers will not write, understand defensible space and Wildland-Urban Interface concepts, and know that earthquake is never covered by a standard homeowners policy and requires a separate endorsement, typically with a deductible of 10-15% of the dwelling limit. The Cascadia Subduction Zone is the dominant earthquake risk for coastal and Portland metro areas.

3. Cite the Right ORS Chapter

Oregon-specific questions often reference ORS 744 (producer licensing), ORS 746 (unfair trade practices and privacy), ORS 742 (policy provisions including auto, cancellation, nonrenewal), ORS 656 (workers' compensation), and ORS 735 (FAIR Plan, JUA, surplus lines). If a question describes a producer conduct, cancellation notice, or unfair practice scenario, default to the Oregon rule, not the generic national rule.

4. Key Numbers to Remember

Common Mistakes to Avoid

1. Mixing up auto minimums - Oregon is 25/50/20 plus $15,000 PIP and 25/50 UM/UIM; candidates forget PIP or UM/UIM.
2. Confusing the two time limits - The combined P&C exam (12-04) is 2 hours 40 minutes, not 2 hours. The 2-hour limit applies only to the single-line Property (12-12), Casualty (12-13), and Personal Lines (12-14) exams.
3. Underestimating wildfire and earthquake - Both are heavily tested Oregon-specific topics.
4. Not practicing timed exams - 150 questions in 160 minutes leaves about 64 seconds per question.
5. Cramming last minute - Spread study over 5-7 weeks so the 40-hour pre-licensing material actually consolidates.
6. Ignoring CGL and commercial property weight - Together they are 20% of the exam; skipping them forfeits roughly 30 questions.

Step-by-Step Licensing Path for Oregon Residents

1. Meet eligibility - Be 18+, an Oregon resident (or maintain an Oregon place of business), and have a clean background.
2. Complete 40 hours of state-approved pre-licensing education - 20 hours Property + 20 hours Casualty. The Certificate of Completion is valid for one year and you must bring it to the test center. Holders of the CPCU designation may waive pre-licensing education for P&C.
3. Schedule the exam with PSI - Register at https://test-takers.psiexams.com/orins or call (855) 340-3901. Choose a physical PSI test center in Oregon (Baker City, Bend, Eugene, Independence, Medford, Portland, Wilsonville, and others statewide) or a remote-proctored session. Reschedule at least 2 days before your appointment or forfeit the fee.
4. Pass the Series 12-04 exam - 150 questions, 160 minutes, 70% to pass. Unscored experimental items (5-10) may be included.
5. Get fingerprinted at the PSI test site on exam day - $61.25 covers state processing ($46.25) and PSI processing ($15). Prints are valid for 6 months. If you already hold an active Oregon insurance license and are adding a line, you skip fingerprinting.
6. Apply for the resident license through NIPR - Submit the application at https://nipr.com with the $75 fee. Processing typically takes 1-2 weeks.
7. Get appointed by an insurer - You cannot transact insurance until a carrier appoints you. The carrier files the appointment with DFR.
8. Maintain CE compliance - Complete 24 hours every 2 years, including 3 hours of ethics and 3 hours of Oregon law. Producers who sell flood insurance must complete a one-time 3-hour NFIP course; producers selling annuities must complete a one-time 4-hour annuity course; producers selling LTC must complete an initial 8-hour LTC course. No more than 8 CE hours may be earned in a single day.

Reciprocity and Nonresident Licensing

Nonresidents licensed in good standing in their home state can obtain an Oregon nonresident producer license through NIPR without retaking pre-licensing education or the exam. The nonresident license fee is $75. Oregon does not allow brokering; nonresidents may only conduct insurance as an appointed representative of an Oregon-authorized insurer. If you are relocating to Oregon and held the same line of authority in another state, you can transfer your license without retaking education or the exam if your application is received within 90 days of canceling your prior-state license and you establish Oregon residency.

Cost Breakdown

Budget a retake fee in case you miss the 70% cut: a retake requires another $55 PSI registration. You cannot schedule a retake on the same day; you can call PSI the next day and retest as soon as the day after.

After Passing Your Exam

1. Apply for your license through NIPR with the $75 fee.
2. Wait for fingerprint background processing - typically up to 4 weeks.
3. Affiliate with an insurer - Get appointed by a carrier; appointments are filed with DFR.
4. Begin selling once appointment is active.
5. Track your CE from day one - 24 hours (3 ethics + 3 Oregon law) every 2 years. Initial LTC, annuity, and flood CE may apply if you sell those products.
6. Renew on time - Renewal is every 2 years through NIPR. Late renewal is available for up to one year after expiration; after that, you must reapply as a new licensee.

2026 Oregon Updates

For 2026, be aware of:

• Continued wildfire underwriting changes and FAIR Plan activity in high-risk WUI zones
• Earthquake endorsement uptake following Cascadia awareness campaigns
• Auto insurance rate adjustments and ongoing PIP and UM/UIM litigation trends
• Enhanced consumer data privacy enforcement under ORS 746.600-.665
• PSI continues as the contracted testing vendor under the 2025 Candidate Information Bulletin (revised 8/5/2025); confirm the current bulletin before scheduling

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How to Verify the Rules Before You Schedule

Use this guide for exam strategy, then confirm the current licensing steps with official sources before you pay for an appointment. Property and casualty licensing is state-administered, and administrative details can change even when the insurance concepts stay the same. Check the Oregon Division of Financial Regulation first, then the PSI Candidate Information Bulletin, then the NIPR application path used after passing. The NAIC state insurance department directory is the safest way to find the current regulator site, and NIPR state requirements can help you confirm post-exam application steps where NIPR is used.

For exam content, keep two buckets separate. The national bucket includes property policies, casualty policies, liability principles, negligence, risk management, policy structure, exclusions, conditions, endorsements, and claims concepts. The Oregon bucket includes regulator authority, producer licensing, unfair practices, cancellation and nonrenewal rules, state auto requirements, residual market mechanisms, and local compliance duties. When a question includes a deadline, dollar limit, filing duty, required notice, or licensing step, ask whether it is a general insurance concept or an Oregon rule.

What to Master for Property Questions

Property questions reward careful reading. Know the difference between named-peril and open-peril coverage, replacement cost and actual cash value, direct and indirect loss, vacancy and unoccupancy, and first-party property coverage versus third-party liability. Homeowners forms are a frequent source of points because the forms look similar but solve different problems. Practice identifying who is insured, what property is covered, which location qualifies as the residence premises, and whether the loss is excluded before an endorsement changes the answer.

Do not treat deductibles, limits, and valuation as afterthoughts. A question may describe a covered loss but test whether the settlement is reduced by deductible, limited by a sublimit, valued at actual cash value, or excluded because the cause of loss is not covered. Commercial property questions add business personal property, business income, extra expense, equipment breakdown, inland marine, and builder's risk concepts. For commercial forms, focus on why a business would need the coverage and what exposure remains if it does not have it.

What to Master for Casualty and Liability Questions

Casualty questions often turn on liability logic. Before choosing an answer, identify the claimant, the insured, the alleged injury or damage, and the legal theory. Negligence questions usually require duty, breach, causation, and damages. Liability policy questions ask whether the policy responds to bodily injury, property damage, personal and advertising injury, medical payments, or a specifically excluded exposure.

For auto, separate personal auto policy structure from state financial responsibility requirements. You need to know liability, medical payments or personal injury protection where relevant, uninsured and underinsured motorist concepts, damage to your auto, covered auto definitions, exclusions, and endorsements. For commercial auto, pay attention to covered auto symbols, hired and non-owned autos, business use, and garage exposures. For workers' compensation, separate statutory benefits from employer liability and remember that workers' compensation is not ordinary negligence coverage.

Final Two-Week Study Plan

In the first week, rotate by coverage family: homeowners and dwelling property, commercial property, personal auto, commercial auto, general liability, workers' compensation, and Oregon law. After every practice set in /study-guides/or-property-casualty, write down whether each miss was caused by vocabulary, form structure, state rule, or careless reading. Vocabulary misses need flashcards. Form structure misses need diagrams. State-rule misses need a one-page Oregon checklist. Careless reading needs slower question markup.

In the second week, stop studying by chapter only. The actual exam mixes topics, so your practice should mix them too. Use timed sets and force yourself to decide quickly whether the question is asking about coverage trigger, excluded cause, valuation, limit, condition, producer conduct, or state filing rule. Review explanations immediately. The review is where your score improves; simply taking more questions without fixing the reason for misses mostly measures the same weakness again.

Common P&C Exam Traps

One trap is choosing the coverage that sounds familiar instead of the coverage that fits the loss. A flood loss, an employee injury, a professional advice claim, a business income interruption, and a personal auto collision may all involve money damages, but they do not belong in the same policy part. Another trap is ignoring who owns the property or who is legally liable. Property insurance usually protects the insured's financial interest in property; liability insurance responds to claims made by others against the insured.

Cancellation and nonrenewal questions also deserve attention. The exam may test required notice, permitted reasons, timing, or who has authority to act. If the question is state-specific, do not rely on a generic national rule. Unfair trade practice questions work the same way: rebating, twisting, misrepresentation, false advertising, unfair claims handling, and fiduciary misuse of premiums are tested because they show whether a producer can operate lawfully after the exam.

Exam-Day Workflow

Confirm your appointment, identification, remote-proctoring rules, allowed materials, and reschedule deadline before test day. At check-in, your legal name should match the exam registration exactly. Bring your Certificate of Completion and one valid government-issued photo ID. During the test, take the easy points first. If a scenario is long, identify the policy, the insured, the covered property or claimant, the cause of loss, and the question's command word. If two answers are legally true, choose the one that answers the exact fact pattern.

If you miss the 70% passing score, use the diagnostic score report as a map. Rebuild the two weakest content areas, then retest with mixed questions. Candidates often improve fastest by mastering policy architecture: declarations, insuring agreement, conditions, exclusions, definitions, and endorsements. Once you can locate where a rule lives inside the policy, unfamiliar questions become easier to reason through.

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