Casualty Insurance Exam information
What it is, what's tested, and how it's scored.
Casualty Insurance exam details
To become a licensed Casualty Insurance agent and help protect individuals and businesses from financial loss due to accidents, emergencies, or other damages, you first need to pass your state's Casualty exam.
The essential topics you need to know for the licensing test include general insurance terminology and concepts; characteristics of insurance products; insurance policies and contracts; exclusions and limits; additional coverages; and endorsements. You must also be familiar with state-specific rules and regulations, as well as possess a strong understanding of the legal and financial frameworks that govern insurance transactions.
The structure, number of questions, cost, and specifics of each exam vary by state. Most states offer separate exams for Casualty Insurance and Property Insurance, as well as a combined Property and Casualty (P&C) exam, providing agents with flexibility in their certification journey. Some states require prelicensing courses to be completed before the exam can be taken and the license granted. Be sure to carefully review your state's requirements before starting the licensing process.
The Casualty Insurance exam is hosted by State-administered and costs $40-$60 to register. Participants have ~2 hours to answer ~100 multiple-choice questions. The passing score is around 70%.
Time
~2 hours
Format
~100 multiple-choice questions
Exam fee
$40-$60
Passing score
around 70%
Details
The Casualty Insurance exam is administered online by one of three testing providers. Find a testing location near you:
You can schedule your exam at your preferred location through your state's testing provider website. It's recommended to register as early as possible to secure a convenient time and location.
Most of the Casualty Insurance exam content is consistent across tests in the U.S. There is typically a small amount that varies by state due to state-specific rules and regulations, which are all covered in our course.
Casualty Insurance exam summary
Insurance Regulation
The Insurance Regulation section outlines the licensing process for various types of licensees, including producers, business entities, and financial institutions. It emphasizes distinctions between resident and nonresident statuses and temporary licenses. Additionally, it explores aspects related to license maintenance, renewal, reporting actions, and continuing education requirements.
General Insurance
This General Insurance section covers fundamental concepts crucial for understanding insurance principles and operations. It begins by exploring key risk management terms, including risk, exposure, hazard, peril, and loss, along with methods of handling risks such as avoidance, retention, sharing, reduction, and transfer.
Casualty Insurance Basics
This section covers essential principles integral to understanding insurance fundamentals. It explores key concepts such as insurable interest, underwriting functions, loss ratios, and various types of hazards, including physical and moral hazards. Additionally, it delves into negligence elements, defenses, and damages, alongside different causes of loss (perils) and types of construction.
Auto Insurance
The Auto Insurance section focuses on subjects such as personal auto policy details, including coverage types, deductibles, and endorsements that are specific to state regulations. Additionally, this portion addresses commercial auto coverage forms, liability coverage, physical damage coverage, exclusions, conditions, definitions, and selected endorsements relevant to commercial auto insurance policies.
Commercial Package Policy (CPP)
This section discusses components like policy declarations, conditions, endorsements, and coverage parts. It also includes details on commercial general liability coverage forms, components of a commercial policy, commercial inland marine insurance, and commercial crime insurance.
Business owners ('10) Policy
The Business Owners Policy (BOP) discusses the characteristics, purpose, and key components of the policy. The section also addresses common policy conditions and selected endorsements, such as hired auto liability, protective safeguards, and utility services coverage enhancements.
Workers Compensation Insurance
This section covers workers' compensation laws, including types such as monopolistic versus competitive and compulsory versus elective systems. It also discusses covered employment, injuries, occupational diseases, benefits, and federal laws like FELA, the Longshore and Harbor Workers' Compensation Act, and the Jones Act.
Other Coverages and Options
This section covers a variety of insurance options and coverages. It includes umbrella/excess liability policies for both personal and commercial purposes, as well as specialty liability insurance such as errors and omissions, directors and officers liability, and cybersecurity coverage.
Achievable Casualty Insurance content outline
1
General Insurance Concepts
An overview of foundational concepts essential to understanding the insurance industry. Risk management principles, sources of insurance, different insurance marketing systems, the authority of producers, insurance contracts, and the legal principles governing them.
2
Casualty Insurance Basics
The Casualty Licensing exam is very "definitional." Knowing the terminology is imperative to learning the subject matter and passing the exam. This chapter introduces several "must-know" concepts.
3
Underwriting
The role of the insurance underwriter. Different sources of underwriting information, how premiums are determined, and what it means to "rate" an insurance policy.
4
Claims Settlement
Claims processes in casualty insurance can be immensely complex. In this chapter, you will learn about coinsurance requirements and coordination clauses used when more than one policy covers an insured event.
5
Personal Auto Insurance (PAP)
The structure of a personal auto policy (coverage parts A, B, C, D, E, F) and the concept of a "split limits" policy are very testable. Everything you need to know is covered in this chapter.
6
Commercial General Liability (CGL)
All businesses (even those without a physical location) have a liability exposure. As a result, CGL insurance is added to almost every CPP.
7
Commercial Auto Insurance
While the coverages for Commercial Auto are similar to those for Personal Auto, the policy structure is more like a Homeowners policy. This chapter details the differences and covers Garage Keepers' and Truckers' liability insurance.
8
Crime and Professional Liability
The definitions of various crimes, what constitutes an insured "object," and Malpractice/E&O insurance are covered in this chapter.
9
Business Owners Policies (BOP) and Workers Comp
If a business is eligible, a BOP is generally easier and more cost-effective than a CPP. This chapter explores the eligibility requirements, structure, and available coverage parts of the Business Owners Policy.
10
Bonding
This chapter discusses Surety and fidelity bonds in detail. While there are two parties to most insurance contracts, bonds have three parties: the principal, the surety, and the obligee.
11
State Regulations and NAIC Insurance Law
While insurance concepts are relatively uniform in all 50 states, state regulations vary. The Achievable Casualty course is state-specific and covers exactly what you need to know about the state in which you will be testing.
Pass the Casualty Insurance exam.
Guaranteed.Achievable is the best Casualty Insurance exam prep course: effective, personalized, and convenient. With Achievable, you'll spend less time studying and pass your exam the first time, or your money back.