Property & Casualty Exam information
What it is, what's tested, and how it's scored.
Property & Casualty Insurance exam details
To become a licensed Property & Casualty (P&C) insurance agent and sell both personal and commercial lines of insurance, you first need to pass your state's Property and Casualty exam or exams.
The essential topics you need to know for the exam include: general insurance terminology and concepts, the characteristics of insurance products, insurance policy and contracts, exclusions and limits, additional coverages, and endorsements. You must also be familiar with state-specific rules and regulations and 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 differ from state to state. Most states offer a combined Property and Casualty (P&C) exam, while others administer both lines separately in two exams. 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 Property & Casualty Insurance exam is hosted by State-administered and costs $40-$150 (varies by state) to register. Participants have 2-4 hours (varies by state) to answer 100-150 multiple-choice questions. The passing score is 70%.
Time
2-4 hours (varies by state)
Format
100-150 multiple-choice questions
Exam fee
$40-$150 (varies by state)
Passing score
70%
Details
The property and casualty 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 Property & 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.
Property & Casualty Insurance exam summary
Insurance Regulation
13%
13-20 questions
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
11%
11-17 questions
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.
Property and Casualty Insurance Basics
14%
14-21 questions
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.
Dwelling ('02) Policy
4%
4-6 questions
This Dwelling Policy section discusses the policy's purpose, coverage forms against basic, broad, and special perils, and various property coverages, such as dwelling, personal property, and more. Note: Specific policies, such as the 2002 New Hampshire policy, may be tested on a state-by-state basis instead of more general contracts.
Homeowners ('11) Policy
12%
12-18 questions
This section covers various aspects regarding Homeowners' insurance, including coverage forms (HO-2 through HO-6), definitions, property coverages, liability coverages, insured perils, exclusions, conditions, and selected endorsements.
Auto Insurance
14%
14-21 questions
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)
10%
10-15 questions
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
8%
8-12 questions
The Business Owners Policy (BOP) discusses the characteristics, purpose, and key components of the policy, including property coverage details such as exclusions, limits, deductibles, and loss conditions. 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
7%
7-11 questions
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
7%
7-11 questions
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 Property & 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
Property & Casualty Insurance Basics
The P&C 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 property and casualty, the claims process is significantly more complex. In this chapter, you will learn various ways to value insured property, coinsurance requirements, and coordination clauses used when more than one policy covers an insured event.
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
Commercial Package Policy (CPP)
A Commercial Package Policy (CPP) is like a shopping cart into which you can add various commercial coverages. While each coverage part added has its own conditions and declarations page, all coverage parts will be governed by the conditions and declarations of the CPP.
12
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.
13
Commercial Auto Insurance
While the coverages for Commercial Auto are similar to Personal Auto, the policy structure is more like an HO. This chapter details the differences and covers Garage Keepers' and Truckers' liability insurance.
14
Ocean and Inland Marine Insurance
This chapter covers Jewelers Block insurance and Marine insurance, which includes "Instrumentalities of transportation and communication."
15
Crime, Farm, Boiler, and Professional Liability
The definitions of various crimes, what constitutes farming operations, an insured "object," and Malpractice/E&O insurance are covered in this chapter.
16
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.
17
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.
18
State Regulations and NAIC Insurance Law
While insurance concepts are relatively uniform in all 50 states, state regulations vary. The Achievable Property and Casualty course is state-specific and covers exactly what you need to know about the state in which you will be testing.