Personal Lines Exam information
What it is, what's tested, and how it's scored.
Personal Lines Insurance exam details
Personal lines insurance refers to any insurance product that covers individuals in the event of death, injury, or loss of property. This type of insurance protects individuals who own a home, car, or other property from financial risk in the event of an accident or other emergency. Personal lines include homeowners, renters, car, life, health, and disability insurance, and differ from commercial lines.
To become a licensed Personal Lines insurance agent and legally sell policies under this umbrella, you first need to pass your state's Personal Lines exam. These are the foundational areas you need to know for the exam: regulatory and legal statutes, risk management, dwelling and homeowners policy details, and topics like insurable interest, underwriting, liability, hazards, perils, loss valuation, and negligence. You must also be familiar with state-specific rules and regulations and have a strong command of the legal and financial stipulations of insurance transactions.
The structure, number of questions, cost, and specifics of each exam differ from state to state. Some states require the completion of prelicensing courses before the test can be taken and the license granted. Closely review your state's requirements before beginning the licensing process.
The Personal Lines Insurance exam is hosted by State-administered and costs $40-$150 to register. Participants have 2 hours (varies by state) to answer ~100 multiple-choice questions (varies by state). The passing score is 70%.
Time
2 hours (varies by state)
Format
~100 multiple-choice questions (varies by state)
Exam fee
$40-$150
Passing score
70%
Details
The personal lines exam is administered online by secure 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 Personal Lines insurance exam content is the same for tests across all 50 States. Typically, a small amount varies by state due to state-specific rules and regulations, which are covered in our course.
Personal Lines Insurance exam summary
Insurance Regulation
10%
10-15 questions
- Licensing requirements, maintaining a license, and disciplinary actions.
- State laws, regulations, and important insurance concepts.
General Insurance
10%
10-15 questions
- Definitions, risk management, insurable risks, and types of insurers (e.g., mutual, stock).
- Insurance contracts, basic policy structures, and the role of producers.
Property and Casualty Insurance Basics
17%
15-20 questions
- Concepts like insurable interest, underwriting, hazards, perils, loss valuation, and negligence.
- Common policy provisions, including limits of liability and policy cancellation.
Dwelling Policy
11%
10-15 questions
- Coverage forms and property coverages (dwelling, other structures, personal property).
- General exclusions and selected endorsements.
Homeowners Policy
23%
20-25 questions
- Forms like HO-2, HO-3, and HO-6 which cover property and liability coverage.
- Section I (property coverages) and Section II (liability coverages).
Other Personal Insurance Coverages
16%
15-20 questions
- Personal auto policies, medical payments, uninsured motorists, and exclusions.
- Additional coverages, such as watercraft and recreational vehicles.
Additional Coverage
8%
8-12 questions
- Inland marine insurance, flood insurance, and umbrella policies.
Achievable Personal Lines 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
Personal Lines Insurance Basics
The personal lines 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
With life insurance, you are either dead, or you are not dead. In personal lines, the claims process is significantly more complex. In this chapter, you will learn about coinsurance requirements, coordination clauses used when more than one policy covers an insured event, and the various ways to value insured property.
5
Dwelling Policies (DP)
An introduction to the simplest forms of property insurance, Basic form (DP1), Broad form (DP2), and Special form (DP3), and their respective coverages.
6
Dwelling Policy Conditions
A deeper look into dwelling policies, conditions, available endorsements, and common exclusions.
7
Homeowners Policies (HO)
This chapter explores the five testable Homeowner forms: HO-2, HO-3, HO-4, HO-6, and HO-8. It focuses on the structure of the HO policy, introducing Section I (property coverage) and Section II (liability coverage).
8
Endorsements and Scheduled Property
A homeowner's policy may be customized with several endorsements. This chapter discusses the most common testable endorsements.
9
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.
10
Flood and Other Limited Policies
This chapter covers the Regular and Emergency flood insurance programs, Comprehensive Personal Liability (CPL), Excess and Umbrella insurance, and miscellaneous personal lines policies.
11
State Regulations and NAIC Insurance Law
While insurance concepts are relatively uniform in all 50 states, state regulations vary. The Achievable Personal Lines course is state-specific and covers exactly what you need to know about the state in which you will be testing.