Oregon Life Insurance Test: How Tough?

Passing the life insurance test in Oregon requires diligent preparation. The exam is a pivotal step towards becoming a licensed life insurance agent in the state. The test is administered by PSI Services LLC, and you can register and book your exam online or in person. The exam will cover both general and state-specific material. While the general questions will test your federal insurance product and agent knowledge, the state-specific questions will focus on Oregon's insurance regulations and laws. The exam will be multiple-choice and computer-based, with 100 questions to be completed in 120 minutes. To pass, you need a score of 70% or above.

Pre-licensing education

To pass the life insurance test in Oregon, you must complete a pre-licensing education course. This is a legal requirement in the state of Oregon. The Oregon Division of Financial Regulation (DFR) requires you to complete a five-step process to become a life insurance agent in Oregon, and pre-licensing education is the first step.

In Oregon, you must take a 20-hour, pre-license course on life insurance. After completing the course, you’ll need to present a valid photo ID and an original certificate of completion from the approved prelicensing education provider when you arrive to take your exam. Your pre-license course certificate will remain valid for 12 months.

A pre-license education course provides very specific industry knowledge that will be tested during the exam. There is very little information on the test that could be considered “common sense”. Pre-license education courses are self-paced and include study materials like practice exams and flashcards.

The average exam-taker should expect to spend about 35 to 40 hours studying to pass the life and health insurance exam. It is recommended that you do your studying over the course of a few weeks (an insurance certification study package can help with this), rather than trying to cram the week before the exam.

You will need a scaled score of at least 70% to pass the insurance licensing exam. This is a passing score for all exams. Each state considers the difficulty of the test’s questions, accounting for differences in the version by equating and scaling raw scores.

Oregon requires 20 hours of prelicensing education for each line of authority and 40 hours for dual lines of authority.

The Oregon insurance exam

The exam includes both general and Oregon-specific content. The general section covers federal insurance product and agent knowledge, while the state-specific section focuses on Oregon insurance regulations and laws that are essential for operating as an insurance agent in the state.

To pass the Oregon insurance exam, you need a score of 70% or above. This passing score is consistent across all insurance exams in the state. It's important to note that the exam does not test your critical thinking or common sense; instead, it focuses solely on factual knowledge. Therefore, preparation and memorization of the content are crucial for success.

One essential step to increase your chances of passing the Oregon insurance exam is to complete a pre-licensing education course. In Oregon, you must take a 20-hour pre-license course specific to the type of insurance exam you are taking. These courses provide industry-specific knowledge that will be directly tested during the exam. Pre-license education courses are offered by companies like Kaplan Education Company and ExamFX, and they can significantly enhance your understanding of the material and your chances of passing on the first attempt.

When preparing for the Oregon insurance exam, it is recommended to allocate sufficient time for studying, such as one to two weeks, to thoroughly cover the material. Practising with mock exams and creating a consistent pre-test routine can also help familiarise yourself with the exam format and reduce test anxiety.

After passing the exam, there are additional steps to obtain your Oregon insurance license, including a fingerprint-based background check and submitting a license application.

Background checks

To obtain a life insurance license in Oregon, you must complete a five-step process, which includes a fingerprint-based background check. Here is a detailed breakdown of the background check requirement:

After taking the Oregon life insurance exam, you must undergo a fingerprint-based background check administered by PSI, the official testing service for delivering licensure exams in Oregon. Your fingerprints will be taken electronically at one of PSI's Oregon sites during regular testing hours on the day of your exam. PSI will then forward your prints to the relevant agencies for review. The fingerprinting process incurs a fee of $61.25, which must be paid at the test site.

At the fingerprinting appointment, you will receive a receipt, which should be retained for your records. Following the background check, you must submit your license application within a year of passing the licensing exam; otherwise, you will need to retake the exam.

It is important to note that Oregon requires fingerprinting and background checks as part of the insurance agent licensing application process. Therefore, the background check is a crucial step in obtaining your life insurance license in Oregon.

Application process

The application process to become a licensed life insurance agent in Oregon involves five key steps.

Step 1: Complete a pre-licensing course.

The first step is to complete a pre-licensing course, which will provide you with the necessary knowledge to pass the licensing exam. In Oregon, you must take a 20-hour pre-licensing course on life insurance. The course can be completed through the Kaplan Education Company for $149 or more.

Step 2: Take the Oregon Life Insurance Licensing Exam.

After completing the pre-licensing course, you can register for the licensing exam through PSI Services, LLC. The exam can be taken online or in person, and it covers eight sections, including insurance regulation, life insurance basics, life insurance policies, and federal tax considerations. The exam fee is $45, and you will have 120 minutes to answer 100 questions. A passing score is 70% or above.

Step 3: Get a fingerprint-based background check.

After taking the exam, you must undergo a fingerprint-based background check, which can be done electronically at one of PSI's Oregon sites on the day of your exam. The fingerprinting fee is $61.25, payable on the day of testing.

Step 4: Complete the Oregon Life Insurance License Application.

Once you have passed the exam and completed the background check, you can apply for your Oregon life insurance license through the National Insurance Producer Registry (NIPR). The application fee is $75, plus a $5.60 transaction fee.

Step 5: Wait for your application results.

The Oregon Division of Financial Regulation (DFR) will review your application and background check. This process typically takes three to fourteen business days. Once the review is complete, they will notify you of their decision via email or request additional information.

Additional Considerations

It is important to note that the entire process can take a few weeks to complete, so proper planning and preparation are essential. Additionally, the pre-licensing course certificate and background check must be completed within 12 months of passing the licensing exam. To maintain your license, you will need to renew it every two years and complete continuing education requirements.

Maintaining your license

To maintain your insurance license in Oregon, you must complete 24 hours of continuing education (CE) every two years. Three of those hours must focus on ethics, and another three hours must cover Oregon statutes and administration rules. It is recommended that you complete all required CE hours at least 90 days before your license expires to avoid delays in the renewal process. The renewal fee is $45, and the late fee is $90.

In addition to the CE requirements, you must also be aware of any other continuing education requirements specific to your license. Most insurance licenses require the completion of a certain number of credit hours of continuing education during each licensing period. You can find information on your state's education rules and stay up-to-date on your license requirements by visiting the website of a test preparation company, such as ExamFX, which offers continuing education courses.

Frequently asked questions