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A Complete Overview of the Property and Casualty Exam

March 29, 2022

The property and casualty insurance industry offers career opportunities for those wanting to become an insurance agent. Anyone who owns a home, car, business, or any type of property is a potential client.


Before you can become a property and casualty insurance agent, you must first take and pass your state’s licensing exam.


ExamFX has been helping insurance and securities professionals pass licensing exams for more than two decades. Millions of insurance agents have begun their careers by enrolling in one of our exam prep courses.



What Is Property and Casualty Insurance?

Property and casualty insurance is designed to protect you if things you own are damaged or stolen (Property coverage), or if you are legally responsible for causing injury to another person or damaging someone else’s property (Casualty or Liability coverage).


A great example of property protection is when a homeowners property insurance policy covers the loss of a window that is broken by accident or a roof that is damaged by a falling tree. Another example is when auto policies cover the cost of direct damage to your vehicle, like repairing damage by hail.


Casualty insurance is designed to cover legal liability. If a visitor at your house falls down the stairs and sues for coverage of their medical expenses, a property and casualty policy could provide that coverage.


Business (commercial) insurance is also a major part of the property and casualty industry. All businesses need to protect their structures, real property, fleets of vehicles, and business equipment. Additionally, commercial liability insurance, as well as workers compensation insurance, are a necessity for successful business operations.

A State-Specific Exam

Insurance is regulated at the state level, not by a federal authority.


While individual state insurance exams may vary by number of questions or passing score, the core information is consistent from state to state.


It is very important for candidates to familiarize themselves with their state’s regulations and the process of becoming a licensed producer. At ExamFX, we’ve made the process simple by building a comprehensive State Insurance Prelicensing Requirement page. Just navigate to the website and click on your state.


We also recommend reviewing your state’s exam content outline, which is available on your testing provider’s website. The outline provides specific information about the exam, including terms and concepts, focus areas, and the number of questions by topic. Becoming thoroughly familiar with your state’s specific guidelines will help you focus and pass your exam.

The Property and Casualty Insurance Exam

ExamFX has identified seven areas that are common to most state property and casualty exams:

  • Property and Casualty Insurance Basics
    • Terms and definitions
    • Policy structure
    • Common policy provisions
  • Dwelling and Homeowners Insurance
    • General structure
    • Types of coverage
    • Conditions and exclusions
  • Auto Insurance
    • Types of autos
    • Types of coverage
    • Business auto
  • Commercial Package Policy
    • General policy structure
    • Types of coverages
  • Commercial General Liability Insurance
    • General form structure
    • Types of Coverage
  • Other Types of Policies
    • Inland marine
    • Farm insurance
    • National Flood Insurance Program
    • Umbrella and excess liability policies
    • Professional liability
  • Workers compensation insurance Applicable State Laws and Regulations
    • Licensing and continuing education
    • Insurance laws and regulations
    • Trade practices
    • Specific laws pertaining to Property and Casualty

Some state property and casualty exams may also cover the following subjects:

  • Completing an Application for Insurance
    • Insurability
    • Credit
    • Warranties
    • Endorsements
  • Marketing
    • Fraud
    • Misrepresentation
    • Advertising
    • Commissions
    • Communication with the public
  • Insurance Crime
    • Theft
    • Bribery
    • Extortion
    • Fraud

Taking the Property and Casualty Exam

The property and casualty exam is usually administered by one of three testing providers: Prometric, Pearson VUE, or PSI Exams Online. To guarantee the most convenient time and location to take your state exam, make sure to schedule your test early.


To find your state testing provider click here.


The testing providers’ websites provide information on your state testing policies, testing locations, and how to schedule your exam.


You can expect the property and casualty exam to be multiple-choice and to take several hours to complete.

Passing the Property and Casualty Insurance Exam

To prepare for the property and casualty exam, candidates should dedicate at least 30-50 hours of study time. Be sure to check your state requirements, some states impose specific time requirements. Taking practice exams during test preparation is an excellent way to gauge your readiness.


ExamFX is so confident in our training program we guarantee users who successfully complete our Guarantee Exam will pass their licensing exam on their first try. If you do not pass your licensing exam within three days after scoring 80% or higher on the Guarantee Exam, we will refund the cost of your course. It is that simple.

What Is the Best Way to Prepare for the Property and Casualty Exam?

It is recommended that candidates enroll in a professional exam prep course that offers expert instruction, an interactive learning platform, and high-quality study tools.


At ExamFX, we offer comprehensive online courses with flash cards, a study guide, a tip sheet, practice exams, videos, and instructor-led live training sessions. Our programs are designed to accommodate different learning preferences, and we offer packages to meet any budget.

Ready to Enroll

Please visit our website to enroll in one of our training programs or to learn more about ExamFX and how we can help.