Free Oregon Life Accident Health Practice Test Online

Correct answer: A. Variable life insurance

Correct. Variable life insurance ties cash value performance to a separate investment account, exposing the policyowner to investment risk, and is subject to both insurance regulation and federal securities regulation (SEC/FINRA), as reflected in ORS 733.220.

• B: Term life insurance provides no cash value at all; it is pure, temporary death benefit protection.
• C: Whole life insurance provides a guaranteed, fixed cash value growth rate set by the insurer, not investment performance tied to a separate account.
• D: Group term life insurance is a group-issued, no-cash-value death benefit product, not a variable, investment-linked contract.

Correct answer: A. Two distinct lines of authority that a producer may hold individually or together, commonly marketed as a combined "Life, Accident & Health" license

Correct. Life and accident and health/sickness are distinct lines of authority under Oregon's producer licensing statutes; because most producers apply for both together, the marketplace commonly refers to a combined "Life, Accident & Health" license, tested together on the Series 12-03 exam.

• B: The statute lists life and accident/health as separate, individually identifiable lines; a producer could technically hold one without the other.
• C: Both lines are licensed by the same Oregon Division of Financial Regulation, not a separate agency.
• D: The life and accident/health lines cover both individual and group products, not solely group employer coverage.

Correct answer: B. 150 questions, covering both life and health topics in a single combined 2-hour, 40-minute exam

Correct. Per PSI's official content outline, the Oregon Producer's Examination for Life and Health Insurance (Series 12-03) consists of 150 questions administered in a 2-hour, 40-minute time limit, covering both life and health topics.

• A: Oregon's combined life and health exam is not split into fully separate administrations under Series 12-03; it is a single combined exam.
• C: Oregon producer exams are administered via computer at PSI testing centers or online remote proctoring, not orally by a state examiner.
• D: Oregon exams are timed, closed-book, and require a minimum passing score (generally 70%) to pass.

Correct answer: C. Offer, acceptance, and consideration exchanged between competent parties for a legal purpose

Correct. Every valid contract, including an insurance contract, requires offer, acceptance, consideration, competent parties, and a legal purpose.

• A: A medical exam may be part of underwriting for certain policies but is not one of the universal legal elements required to form any contract.
• B: A physician's countersignature is not a required legal element of contract formation for a life insurance policy.
• D: An in-person meeting with a home office underwriter is not a legal requirement for contract formation; many policies are issued without such a meeting.

Correct answer: D. At the time the policy is applied for and issued; it need not continue to exist at the time of death for an individual life policy already validly issued

Correct. For individual life insurance, insurable interest must exist at the inception of the contract; once validly issued, the policy generally remains valid even if insurable interest later ceases (for example, a former business partner relationship ending).

• A: Insurable interest is assessed at policy application/issuance, not merely retroactively at the time of a claim.
• B: Insurable interest is a fundamental requirement for life insurance in Oregon, addressed directly in ORS 743.040, .038, and .044, and its absence at application can render a policy void as a wagering contract.
• C: Life insurance does not require insurable interest to persist continuously after a validly issued policy is in force; this is a key distinction from property insurance.