New York Property & Casualty Insurance License Exam Overview
The New York Property & Casualty Insurance Agent/Broker Exam is administered by PSI Services LLC on behalf of the New York Department of Financial Services (DFS). New York has some of the strictest insurance regulations in the nation, including the highest mandatory PIP (no-fault) coverage requirement of any state.
Passing this exam qualifies you to sell property, casualty, and auto insurance in New York — the 4th largest state by population with roughly 19.8 million residents and one of the largest personal and commercial insurance markets in the country.
Exam Format at a Glance
| Component | Details |
|---|---|
| Total Questions | 150 multiple-choice |
| Time Limit | 2 hours 30 minutes |
| Passing Score | 70% (105 of 150 correct) |
| Exam Fee | $33 per attempt |
| Pre-licensing Education | 90 hours required |
| Testing Vendor | PSI Services |
| License Term | 2 years (expires on your birthday in an even or odd year matching your birth year) |
There are two exam versions with nearly identical content: the Agent exam and the Broker exam. Both run 150 questions in 2.5 hours with a 70% passing score; the section weights differ by only a point or two between versions (see the breakdown below).
Why Get P&C Licensed in New York?
- Massive market — Roughly 19.8 million residents, the 4th largest state
- Highest PIP requirement — $50,000 mandatory no-fault coverage
- Commercial hub — NYC business insurance needs
- Strict regulations — DFS oversight ensures professionalism
- High premiums — Greater earning potential
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Key Topics Covered on the Exam (Official DFS/PSI Content Outline)
New York publishes an exact content outline for the Property and Casualty Insurance Agent Examination (PSI exam code, 150 questions / 2.5 hours). Use these weights to plan study time — they tell you exactly how many questions to expect from each area.
| Section | Weight | What's Tested |
|---|---|---|
| 1.0 Insurance Regulation | 10% | DFS authority, producer licensing, unfair trade practices |
| 2.0 General Insurance | 10% | Risk management, insurable interest, contract law, policy basics |
| 3.0 P&C Insurance Basics | 16% | Underwriting, rates, negligence, perils, loss valuation, policy structure |
| 4.0 Dwelling (2002) Policy | 6% | DP-1, DP-2, DP-3 forms, coverage and exclusions |
| 5.0 Homeowners (2000) Policy | 15% | HO-2 through HO-8 forms, Coverages A–F, endorsements |
| 6.0 Auto Insurance | 10% | Personal auto policy, NY no-fault, mandatory coverages |
| 7.0 Commercial Package Policy (CPP) | 10% | Commercial property, CGL, inland marine modules |
| 8.0 Businessowners (BOP) Policy | 8% | Eligible classes, property and liability combined form |
| 9.0 Workers' Compensation Insurance | 5% | NYSIF, statutory benefits, employer liability |
| 10.0 Other Coverages and Options | 10% | Umbrella, flood, FAIR Plan, fidelity/surety, miscellaneous |
(The Broker exam content outline runs Insurance Regulation 9% / General Insurance 9% / P&C Basics 12% with the difference redistributed slightly across other sections — the topics tested are the same.)
Highest-weight areas deserve the most study time
Property & Casualty Basics (16%) and Homeowners (15%) together make up nearly a third of the exam. Inside Homeowners, know:
- HO-2, HO-3, HO-4, HO-5, HO-6, HO-8 forms and which perils each covers (named-peril vs. open-peril)
- Coverage A through F (dwelling, other structures, personal property, loss of use, liability, medical payments)
- Replacement cost vs. actual cash value vs. functional replacement cost
- The NY FAIR Plan (New York Property Insurance Underwriting Association, Insurance Law §5401–5412) — the insurer of last resort for property owners who can't get standard fire coverage
Auto Insurance (10%) is concentrated but high-yield because New York's rules are distinctive — see the dedicated section below.
Commercial Property & Casualty (CPP 10% + BOP 8% + Workers' Comp 5% = 23% combined) covers business interruption, causes-of-loss forms (Basic/Broad/Special), coinsurance, equipment breakdown, inland marine, and NY's workers' compensation system through the New York State Insurance Fund (NYSIF), which competes with private carriers but is not a true monopolistic fund.
New York Auto Insurance & No-Fault (PIP) Rules
New York Mandatory Coverages:
| Coverage | Minimum Requirement |
|---|---|
| Bodily Injury (per person) | $25,000 |
| Bodily Injury (per accident) | $50,000 |
| Property Damage | $10,000 |
| Personal Injury Protection (PIP) | $50,000 |
| Uninsured Motorist | $25,000/$50,000 |
These 25/50/10 liability limits and the $50,000 PIP minimum (set by Insurance Law §3420 and Article 51) have not changed since the mid-1990s — they remain current for 2026.
NY No-Fault System (PIP):
- $50,000 minimum PIP — highest in the nation
- Covers medical expenses and lost wages "no matter who's at fault"
- Serious-injury threshold required before an injured party can sue for non-economic damages
- New York is an add-on no-fault state, not a pure no-fault state — lawsuits remain possible above the threshold
- Governed by Regulation 68 (11 NYCRR Part 65), in force since 1974 and last substantially revised in 2002
Additional Auto Topics:
- Supplementary Uninsured/Underinsured Motorist (SUM) coverage
- Medical payments coverage
- Collision and comprehensive (physical damage)
- NY Automobile Insurance Plan (assigned risk pool) for drivers who can't find coverage voluntarily
New York Insurance Law and DFS Regulations (Verified Citations)
DFS Regulations actually tested on the P&C exam:
- Regulation 64 (11 NYCRR 216) — minimum standards for prompt, fair claims handling; the basis for "unfair claims settlement practices" violations under Insurance Law §2601
- Regulation 68 (11 NYCRR 65) — the no-fault auto insurance rules described above
- Regulation 90 (11 NYCRR Parts 218.1–.7) — prohibits geographic redlining in underwriting and rating
- Regulation 95 — requires insurers above a policy-count threshold to file a fraud-detection and prevention plan, and requires a fraud-warning statement on applications above the signature line
Prohibited Producer Practices (Insurance Law Article 24):
- Rebating and unlawful inducements
- Misrepresentation of policy terms
- Twisting and churning (inducing replacement of a policy for the producer's benefit, not the client's)
- Unfair discrimination in underwriting or rating
Ethics and General Insurance (10% combined with General Insurance section above)
Producer Responsibilities:
- Fiduciary duties over premium funds held in trust
- Client disclosure obligations
- Record retention requirements
Continuing Education (after licensing):
- 15 CE credit hours every 2-year licensing period
- Must include 1 hour of ethics, 1 hour of insurance law/regulation updates, and 1 hour of diversity, inclusion, and elimination-of-bias content
- Producers who hold both Life/Health and P&C licenses need 15 hours in each line (30 hours total)
- DFS-approved courses only; a completed CE course can't be repeated for credit
Study Timeline for Success
| Week | Focus Area | Hours |
|---|---|---|
| Week 1-2 | P&C basics, Dwelling, and Homeowners forms (31% of the exam) | 18-22 |
| Week 2-3 | Commercial Package, Businessowners, and Workers' Comp (23%) | 15-18 |
| Week 3-4 | Auto insurance and NY no-fault (10%) | 8-10 |
| Week 4-5 | Insurance Regulation, General Insurance, and Other Coverages (30%) | 14-16 |
| Week 5-6 | Practice exams and mixed-topic review | 12-15 |
Total recommended study time: 65-80 hours, in addition to the mandatory 90-hour pre-licensing course.
🎯 Free Practice Questions Available
Test your knowledge with hundreds of free practice questions designed specifically for the New York P&C exam.
New York-Specific Exam Tips
1. Master the $50,000 PIP Requirement
New York has the highest mandatory PIP in the nation:
- $50,000 minimum coverage required
- Covers medical expenses and lost wages regardless of fault
- Understand the serious-injury threshold and when a lawsuit is still possible
- Know that NY is add-on, not pure, no-fault
2. Know NY Auto Minimums (25/50/10)
New York's liability minimums are specific:
- $25,000 per person bodily injury
- $50,000 per accident bodily injury
- $10,000 property damage
- Plus mandatory PIP and uninsured/underinsured motorist coverage
3. Understand DFS Authority
The Department of Financial Services oversees insurance:
- Licensing and regulation through PSI-administered exams
- Claims practices oversight (Regulation 64)
- Consumer protection enforcement under Insurance Law Article 24
- No-fault administration (Regulation 68)
4. Key Numbers to Remember
| Topic | New York Requirement |
|---|---|
| Total questions | 150 (Agent or Broker exam) |
| Time limit | 2 hours 30 minutes |
| Passing score | 70% (105/150) |
| Exam fee | $33 per attempt |
| Pre-licensing | 90 hours |
| License fee | $40/year ($80 for the 2-year term) |
| License term | 2 years |
| CE requirement | 15 hours/2 years (1 ethics, 1 law, 1 DEI) |
| PIP minimum | $50,000 |
| Auto BI minimums | 25/50 |
Common Mistakes to Avoid
- Underestimating the 90-hour requirement — Plan accordingly
- Confusing NY no-fault with pure no-fault — NY is add-on
- Missing DFS regulations — Regulation 64, 68, 90, and 95 are all fair game
- Forgetting FAIR Plan details — Know eligibility and the statute (§5401–5412)
- Ignoring workers' comp rules — NYSIF is important
- Not practicing enough — 150 questions in 2.5 hours is substantial; build speed with timed sets
After Passing Your Exam
- Submit your license application to DFS through the National Insurance Producer Registry (NIPR) or DFS's online system
- Pay the license fee — $40 per year, charged as $80 for a typical 2-year individual agent/broker term
- Complete fingerprinting through a DFS-authorized IdentoGO center (roughly $100-105, separate from the license fee)
- Obtain appointment from an insurance carrier (required before you can transact business as an agent)
- Maintain CE requirements (15 hours every 2 years)
- Begin your insurance career in New York
2026 New York Updates
For 2026, be aware of:
- The exam is administered by PSI Services, not Prometric — confirm your registration is with PSI before scheduling
- NY's 25/50/10 auto liability minimums and $50,000 PIP minimum remain unchanged from prior years
- DFS continues to expand remote online proctoring options for insurance licensing exams, alongside in-person test centers
- Verify your specific pre-licensing course and exam registration details directly with DFS and PSI, since administrative logistics can shift between licensing cycles even when the tested concepts stay stable
Start Your New York P&C Career Today
The New York Property & Casualty license opens doors to serving one of the nation's largest insurance markets with unique regulations and coverage requirements. With proper preparation, you can pass the exam on your first attempt.
Our free study materials include:
- ✅ Complete topic coverage mapped to the official DFS/PSI content outline
- ✅ Practice questions with explanations
- ✅ NY DFS regulation specifics
- ✅ Study guides and summaries
- ✅ AI-powered study assistance
Don't pay for expensive prep courses when everything you need is available FREE.
How to Verify the Rules Before You Schedule
Use this guide for exam strategy, then confirm the current licensing steps with official sources before you pay for an appointment. Property and casualty licensing is state-administered, and administrative details — testing vendor, fees, scheduling — can change even when the insurance concepts stay the same (New York itself moved its exam administration to PSI Services). Check the New York DFS website first, then the PSI candidate handbook, then the application path used after passing. The NAIC state insurance department directory is the safest way to find the current regulator site, and NIPR state requirements can help you confirm post-exam application steps where NIPR is used.
For exam content, keep two buckets separate. The national bucket includes property policies, casualty policies, liability principles, negligence, risk management, policy structure, exclusions, conditions, endorsements, and claims concepts. The New York bucket includes regulator authority, producer licensing, unfair practices, cancellation and nonrenewal rules, state auto requirements, residual market mechanisms, and local compliance duties. When a question includes a deadline, dollar limit, filing duty, required notice, or licensing step, ask whether it is a general insurance concept or a New York rule.
What to Master for Property Questions
Property questions reward careful reading. Know the difference between named-peril and open-peril coverage, replacement cost and actual cash value, direct and indirect loss, vacancy and unoccupancy, and first-party property coverage versus third-party liability. Homeowners forms are a frequent source of points because the forms look similar but solve different problems. Practice identifying who is insured, what property is covered, which location qualifies as the residence premises, and whether the loss is excluded before an endorsement changes the answer.
Do not treat deductibles, limits, and valuation as afterthoughts. A question may describe a covered loss but test whether the settlement is reduced by deductible, limited by a sublimit, valued at actual cash value, or excluded because the cause of loss is not covered. Commercial property questions add business personal property, business income, extra expense, equipment breakdown, inland marine, and builder's risk concepts. For commercial forms, focus on why a business would need the coverage and what exposure remains if it does not have it.
What to Master for Casualty and Liability Questions
Casualty questions often turn on liability logic. Before choosing an answer, identify the claimant, the insured, the alleged injury or damage, and the legal theory. Negligence questions usually require duty, breach, causation, and damages. Liability policy questions ask whether the policy responds to bodily injury, property damage, personal and advertising injury, medical payments, or a specifically excluded exposure.
For auto, separate personal auto policy structure from state financial responsibility requirements. You need to know liability, personal injury protection, uninsured and underinsured motorist concepts, damage to your auto, covered auto definitions, exclusions, and endorsements. For commercial auto, pay attention to covered auto symbols, hired and non-owned autos, business use, and garage exposures. For workers' compensation, separate statutory benefits from employer liability and remember that workers' compensation is not ordinary negligence coverage.
Final Two-Week Study Plan
In the first week, rotate by coverage family: homeowners and dwelling property, commercial property, personal auto, commercial auto, general liability, workers' compensation, and New York law. After every practice set in /study-guides/ny-property-casualty, write down whether each miss was caused by vocabulary, form structure, state rule, or careless reading. Vocabulary misses need flashcards. Form structure misses need diagrams. State-rule misses need a one-page New York checklist. Careless reading needs slower question markup.
In the second week, stop studying by chapter only. The actual exam mixes topics, so your practice should mix them too. Use timed sets and force yourself to decide quickly whether the question is asking about coverage trigger, excluded cause, valuation, limit, condition, producer conduct, or state filing rule. Review explanations immediately. The review is where your score improves; simply taking more questions without fixing the reason for misses mostly measures the same weakness again.
Common P&C Exam Traps
One trap is choosing the coverage that sounds familiar instead of the coverage that fits the loss. A flood loss, an employee injury, a professional advice claim, a business income interruption, and a personal auto collision may all involve money damages, but they do not belong in the same policy part. Another trap is ignoring who owns the property or who is legally liable. Property insurance usually protects the insured's financial interest in property; liability insurance responds to claims made by others against the insured.
Cancellation and nonrenewal questions also deserve attention. The exam may test required notice, permitted reasons, timing, or who has authority to act. If the question is state-specific, do not rely on a generic national rule. Unfair trade practice questions work the same way: rebating, twisting, misrepresentation, false advertising, unfair claims handling, and fiduciary misuse of premiums are tested because they show whether a producer can operate lawfully after the exam.
Exam-Day Workflow
Confirm your appointment, identification, remote-proctoring rules, allowed materials, and reschedule deadline before test day — PSI requires two valid forms of government-issued ID and your certificate of completion for the pre-licensing course. At check-in, your legal name should match the exam registration. During the test, take the easy points first. If a scenario is long, identify the policy, the insured, the covered property or claimant, the cause of loss, and the question's command word. If two answers are legally true, choose the one that answers the exact fact pattern.
If you miss the passing score, use the report as a map. New York places no limit on retake attempts, though you must wait until the next business day to reschedule and pay the $33 fee again each time. Rebuild the two weakest content areas, then retest with mixed questions. Candidates often improve fastest by mastering policy architecture: declarations, insuring agreement, conditions, exclusions, definitions, and endorsements. Once you can locate where a rule lives inside the policy, unfamiliar questions become easier to reason through.
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