Free Property and Casualty Insurance Practice Exam
Property and Casualty insurance license practice exam covering homeowners, auto, liability, commercial lines, and state regulations. National content tested in all 50 states. 70% to pass.
Or choose a specific topic below to drill a domain.
About the Property & Casualty Insurance Exam
The Property and Casualty insurance producer license exam is required in all 50 states before selling homeowners insurance, auto insurance, commercial property insurance, liability insurance, or workers' compensation. The P&C license is one of the most common insurance licenses in the country, as P&C products are used by virtually every household and business. While each state has its own exam, the national content is consistent across all states.
Most state P&C exams contain 150–165 questions with a time limit of 2–2.5 hours. Passing scores typically range from 60–70%. This national practice exam prepares you for the content that appears in every state. Supplement it with state-specific practice for your jurisdiction's unique laws, cancellation rules, and mandatory coverage requirements.
Property & Casualty Insurance Exam Topic Breakdown
| Topic | Approx. Weight | Key Areas |
|---|---|---|
| Property Insurance | ~30% | Homeowners forms (HO-2 through HO-8), dwelling, inland marine, flood/earthquake |
| Casualty/Liability Insurance | ~25% | Personal liability, umbrella, workers' comp, professional liability, GL |
| Personal Auto Insurance | ~20% | Liability, collision, comprehensive, uninsured motorist, no-fault states |
| Insurance Concepts and Principles | ~15% | Insurable interest, indemnity, subrogation, adhesion, utmost good faith |
| Commercial Lines | ~10% | BOP, commercial property, commercial auto, excess and surplus lines |
Sample Property & Casualty Insurance Exam Questions
1. A homeowner's HO-3 policy covers the dwelling on an open-perils basis. A tree falls on the house during a windstorm and damages the roof. Under the HO-3, this loss is most likely:
2. Subrogation in property and casualty insurance allows the insurer to:
3. A personal auto policy's collision coverage pays for damage to the insured's vehicle caused by:
Study Tips for the P&C Insurance Exam
The homeowners policy forms (HO-1 through HO-8) are tested on every state P&C exam. Know the coverage form for each: HO-2 (named perils for dwelling and contents), HO-3 (open perils for dwelling, named perils for contents), HO-4 (renters — named perils for contents only), HO-5 (open perils for both), HO-6 (condo owners), HO-8 (older homes at actual cash value). The HO-3 is the most common and most tested.
Insurance principles — insurable interest, indemnity, subrogation, contribution, and adhesion — are foundational and appear on every exam. For auto insurance, know the difference between collision and comprehensive, the six standard PAP coverages (BI liability, PD liability, medical payments, uninsured motorist, collision, comprehensive), and how no-fault states differ from tort states. State-specific topics (cancellation rules, mandatory coverages, assigned risk plans) vary by state and require state-specific study.
Preparing for a specific state? See our state exams for California, Florida, New York, and Texas. Also pursuing life and health lines? See the Life & Health practice exam, and use the insurance license study guide for a full prep plan.
Frequently Asked Questions — P&C Insurance Exam
What is covered on the national Property & Casualty insurance exam?
The national P&C exam covers property insurance (homeowners, dwelling, inland marine), casualty and liability insurance (personal liability, umbrella, workers' comp), personal auto insurance (collision, comprehensive, liability, uninsured motorist), insurance principles (insurable interest, indemnity, subrogation), and commercial lines basics (BOP, commercial property and auto).
What is the difference between open perils and named perils in property insurance?
Named perils coverage only covers losses caused by perils specifically listed in the policy (e.g., fire, lightning, windstorm, theft). Open perils (also called all-risk) coverage covers losses from any cause except those specifically excluded. Open perils is broader and more favorable to the insured. The HO-3 uses open perils for the dwelling and named perils for personal property.
What is subrogation and why does it matter for the exam?
Subrogation is the insurer's right to step into the insured's legal shoes to recover damages from the responsible third party after paying the insured's claim. It prevents double recovery by the insured and allows insurers to reduce losses. The insured must cooperate with subrogation and cannot waive the insurer's subrogation rights without permission. Anti-subrogation rules may apply in certain landlord-tenant and construction contexts.
What is the difference between collision and comprehensive auto coverage?
Collision covers damage to your vehicle from a collision with another vehicle or object, regardless of fault. Comprehensive (other than collision) covers damage from non-collision events including fire, theft, vandalism, hail, flooding, falling objects, and animal strikes. Both are subject to a deductible. Liability coverage is mandatory in most states; collision and comprehensive are optional but may be required by lenders if the vehicle is financed.
What are the standard homeowners policy forms?
HO-1: basic named perils (rarely used today). HO-2: broad named perils for dwelling and contents. HO-3: open perils for dwelling, named perils for contents (most common). HO-4: renters insurance (named perils for contents, no dwelling coverage). HO-5: open perils for both dwelling and contents (most comprehensive). HO-6: condo owners. HO-7: mobile homes. HO-8: older/historic homes at actual cash value.
What is an umbrella policy and how does it work?
An umbrella policy provides additional liability coverage above and beyond the limits of underlying policies (homeowners, auto, etc.). For example, if your auto policy has $300,000 in liability coverage and you are sued for $1,000,000, an umbrella policy would cover the remaining $700,000 (minus any self-insured retention). Umbrella policies typically require minimum underlying coverage levels and cover a broader range of claims than the underlying policies.
What is the difference between actual cash value (ACV) and replacement cost value (RCV)?
Actual cash value is the replacement cost of the property minus depreciation. Replacement cost value pays the full cost to replace the damaged property with a new equivalent, without depreciation deduction. RCV policies are more expensive but provide better protection. For a 5-year-old roof, ACV might pay $8,000 while RCV pays $15,000. Most standard HO-3 policies pay ACV for personal property and RCV for the dwelling if insured to value.