FREE PA Property & Casualty Exam Guide 2026

Pennsylvania Property & Casualty Insurance License Exam Overview

The Pennsylvania Property & Casualty Insurance License Exam is administered by PSI Services (PSI) on behalf of the Pennsylvania Insurance Department (PID). Pennsylvania is the fifth-largest state by population, with Philadelphia and Pittsburgh serving as major economic centers with diverse personal and commercial insurance needs.

Passing this exam qualifies you to sell property insurance, auto insurance, liability coverage, and related products throughout Pennsylvania—a state with nearly 13 million residents and strong demand for both personal and commercial lines.

The biggest 2026 change: As of April 29, 2025, Pennsylvania no longer requires pre-licensing education to sit for the exam. Act 142 of 2024 repealed the old 24-hour preexamination requirement, so you can register for the PSI exam directly. (Prep is still strongly recommended—candidates who study a structured course pass at much higher rates—but it is no longer mandatory.)

Exam Format at a Glance

Combined vs. separate: Most candidates take the combined Property & Casualty exam (Series 16-06) for $53—150 questions, one sitting. You can instead take Property (16-04) and Casualty (16-05) as two separate 100-question exams at $43 each, but that costs more total and means two trips. Take the combined exam unless you only need one authority.

Why Get P&C Licensed in Pennsylvania?

• Major northeast market — Nearly 13 million potential clients
• Major metro areas — Philadelphia and Pittsburgh create agency opportunities
• No pre-licensing barrier — You can schedule the exam directly as of 2025
• Diverse economy — Manufacturing, healthcare, energy, and tech sectors
• Competitive compensation — Average PA P&C agent salary roughly $55,000–$65,000, with top producers earning far more on commission

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Key Topics Covered on the Exam

The PA combined exam is split into a general/national section (property and casualty insurance concepts) and a Pennsylvania-specific section (state law). The approximate weighting below reflects published PSI content outlines; use it to prioritize study, not as an exact count.

1. Property Insurance (~30%)

Homeowners Insurance:

• HO-2, HO-3, HO-4, HO-5, HO-6, HO-8 policy forms
• Coverage A (Dwelling), B (Other Structures), C (Personal Property)
• Coverage D (Loss of Use), E (Personal Liability), F (Medical Payments)
• Dwelling fire policies (DP-1, DP-2, DP-3)

Pennsylvania-Specific Property Topics:

• Pennsylvania FAIR Plan (residual market for hard-to-insure property)
• Mine subsidence coverage (the state-backed PA Mine Subsidence Insurance program—unique to PA)
• Ordinance or law coverage
• Property cancellation and nonrenewal notice rules

Commercial Property:

• Building and personal property coverage form (BPP)
• Business income and extra expense
• Equipment breakdown
• Inland marine and builder's risk

2. Casualty & Liability Insurance (~30%)

Personal Liability:

• Homeowners liability (Coverage E)
• Personal umbrella policies
• Medical payments coverage

Commercial Liability:

• Commercial General Liability (CGL)
• Products and completed operations
• Professional liability (E&O) and directors and officers (D&O)

Pennsylvania Workers' Compensation:

• Coverage required for virtually all employers with one or more employees
• Pennsylvania Workers' Compensation Act
• Self-insurance and the State Workers' Insurance Fund (SWIF)
• Statutory benefits vs. employers liability

3. Auto Insurance (~25%)

Pennsylvania Auto Insurance Requirements:

Pennsylvania Tort Options (heavily tested):

• Limited Tort — Lower premiums; you can recover medical and out-of-pocket costs but generally cannot sue for pain and suffering unless the injury is "serious"
• Full Tort — Higher premiums; preserves your full right to sue for non-economic damages
• The tort choice is made in writing when the policy is issued

Additional Auto Topics:

• Personal Auto Policy (PAP) coverage parts
• Pennsylvania financial responsibility law
• First-party benefits (medical, income loss, funeral, accidental death)
• Uninsured/underinsured motorist (UM/UIM) coverage and stacking
• SR-22 financial responsibility filings
• Commercial auto and covered-auto symbols

4. Pennsylvania Insurance Code and Regulations (~10%)

Title 40 Key Provisions:

• Producer licensing, appointment, and termination
• Unfair Insurance Practices Act (rebating, twisting, misrepresentation, defamation)
• Unfair claims settlement practices
• Policy cancellation and nonrenewal rules and required notice periods
• Advertising and replacement guidelines

Licensing & Maintenance Requirements:

• Pre-licensing education: not required as of 4/29/2025
• License term: 2 years
• Continuing education: 24 hours every 2 years
• Ethics: 3 of the 24 CE hours must be ethics
• Flood: P&C licensees must include 2 of the 24 CE hours on flood insurance
• Fingerprint-based criminal background check required for new resident producers

5. Ethics and Professional Conduct (~5%)

• Fiduciary duties to insureds
• Premium handling and trust-account requirements
• Claims reporting obligations
• Privacy and confidentiality (NAIC privacy model)

Study Timeline for Success

Total recommended study time: 50-60 hours. Because PA no longer mandates pre-licensing, your free practice questions and study guide become your primary preparation—not a supplement.

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Step-by-Step: How to Get Your PA P&C License in 2026

1. (Optional) Take a prep course or use free practice questions. Pre-licensing is no longer required, but structured study sharply raises pass rates.
2. Register and schedule with PSI. Book the combined Property & Casualty exam (Series 16-06, $53) or the separate Property/Casualty exams ($43 each) at psiexams.com or by phone. Choose an in-person test center or online proctored exam.
3. Pass the exam (70%). Bring a valid government-issued photo ID whose name matches your registration. You receive a pass/fail result at the test center.
4. Apply for the license through NIPR or Sircon. Submit your application and the $55 resident license fee immediately after passing.
5. Complete fingerprinting at IdentoGO. Pennsylvania requires fingerprint-based FBI background checks for new resident producers. Register with PID service code 1KGBGJ; do not schedule fingerprinting until after you have passed and applied.
6. Get appointed by a carrier. Affiliate with an insurer that appoints you to sell its products.
7. Print your license from the PID portal once approved, and maintain CE going forward.

Pennsylvania-Specific Exam Tips

1. Know Pennsylvania Auto Minimums

Pennsylvania requires 15/30/5 liability coverage:

• $15,000 per person bodily injury
• $30,000 per accident bodily injury
• $5,000 property damage

PA also mandates at least $5,000 of first-party medical benefits on every auto policy.

2. Master the Tort Options

Pennsylvania's tort-choice system is one of the most heavily tested state topics:

• Limited Tort — Cannot sue for pain and suffering unless the injury meets the "serious injury" threshold
• Full Tort — Preserves the full right to sue
• The choice is made in writing at issuance and affects premium significantly

3. Understand the FAIR Plan and Mine Subsidence

• The Pennsylvania FAIR Plan provides basic property insurance for high-risk properties that cannot get private coverage.
• Mine subsidence coverage, backed by a state program, protects against ground collapse from abandoned coal mines—a PA hallmark question.

4. Key Numbers to Remember

Common Mistakes to Avoid

1. Confusing tort options — Know the difference between limited and full tort cold
2. Misreading auto minimums — PA is 15/30/5, and don't forget the $5,000 first-party medical floor
3. Skipping workers' comp — PA WC rules are tested
4. Forgetting mine subsidence and the FAIR Plan — Signature PA property topics
5. Assuming you still need pre-licensing — You don't, but you do still need fingerprinting
6. Not practicing timed exams — 2 hours 50 minutes for 150 questions on the combined exam
7. Cramming last minute — Spread study over 4-5 weeks

After Passing Your Exam

1. Apply for the license through NIPR or Sircon immediately after passing
2. Pay the license fee — $55 for a 2-year resident license
3. Complete fingerprinting at IdentoGO (service code 1KGBGJ)
4. Affiliate with an insurer — Get appointed by a carrier
5. Maintain CE compliance — 24 hours every 2 years, including 3 ethics hours and 2 flood hours for P&C authority
6. Begin selling — Your license is valid for 2 years and renewable

2026 Pennsylvania Updates

For 2026, the key changes from Act 142 of 2024 (Senate Bill 1241) are now in force:

• Pre-licensing education eliminated (effective 4/29/2025)—you can sit for the exam directly
• CE ethics requirement added — 3 of the 24 CE hours must be ethics
• Flood CE for P&C — 2 of the 24 CE hours must cover flood insurance
• Fingerprint-based background checks remain required for new resident producers

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The Pennsylvania P&C license opens doors to one of the nation's largest insurance markets. With proper preparation, you can pass the exam on your first attempt.

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Our free study materials include:

• ✅ Complete topic coverage
• ✅ Practice questions with explanations
• ✅ Pennsylvania-specific regulations (Title 40)
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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 can change even when the insurance concepts stay the same. Check the Pennsylvania insurance department first, then the testing vendor 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 Pennsylvania 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 Pennsylvania 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, medical payments or personal injury protection where relevant, 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 Pennsylvania law. After every practice set in /practice/pa-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 Pennsylvania 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. 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. 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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