Insurance Exams10 min read

FREE Vermont Property & Casualty Insurance Exam Guide 2026: Pass on Your First Try

Complete free Vermont Property & Casualty insurance exam prep guide for 2026. Covers exam format, Department of Financial Regulation requirements, auto minimums 25/50/10, winter weather coverage, and free practice questions to help you get your P&C license.

Ran Chen, EA, CFP®January 15, 2026

Key Facts

  • Vermont P&C exam has 150 questions with a 70% passing score requirement
  • Pre-licensing education requirement is 40 hours in Vermont
  • Vermont auto liability minimums are 25/50/10 with required UM/UIM coverage
  • Vermont has significant winter weather and flood exposure affecting property coverage
  • Exam fee is $55 and is administered by Prometric

Vermont Property & Casualty Insurance License Exam Overview

The Vermont Property & Casualty Insurance License Exam is administered by Prometric on behalf of the Vermont Department of Financial Regulation (DFR). Vermont is a unique state with strong consumer protection regulations, a rural character, and severe winter weather that creates specialized insurance needs.

Passing this exam qualifies you to sell property insurance, auto insurance, liability coverage, and related products throughout Vermont—a state with about 650,000 residents, significant winter weather exposure, and a community-focused insurance market that values personalized service.

Exam Format at a Glance

ComponentDetails
Total Questions150 multiple-choice
Scored Questions150
Time Limit2 hours
Passing Score70% (105 correct answers)
Testing VendorPrometric
Exam Fee$55
Pre-licensing Education40 hours required

Why Get P&C Licensed in Vermont?

  • Strong consumer protection — Vermont leads in insurance regulation
  • Rural market opportunity — Personalized service highly valued
  • Unique risks — Winter weather and flooding create specialized needs
  • Captive insurance capital — Vermont leads the nation in captive insurance
  • Quality of life — Excellent work-life balance for agents

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Key Topics Covered on the Exam

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)
  • Dwelling fire policies

Vermont-Specific Property Topics:

  • Vermont FAIR Plan (residual market)
  • Ice dam and snow load coverage
  • Frozen pipe coverage
  • Flood insurance (NFIP) requirements
  • Heating system coverage (oil, propane, wood)

Commercial Property:

  • Building and personal property coverage forms
  • Business income coverage
  • Equipment breakdown
  • Inland marine coverage

2. 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)
  • Workers' compensation requirements

Vermont Workers' Compensation:

  • Required for all employers with employees
  • State-administered program
  • Competitive state (private market)
  • Self-insurance options for qualified employers

3. Auto Insurance (25%)

Vermont Auto Insurance Requirements:

CoverageMinimum Limit
Bodily Injury (per person)$25,000
Bodily Injury (per accident)$50,000
Property Damage$10,000
Uninsured Motorist$25,000/$50,000

Additional Auto Topics:

  • Personal Auto Policy (PAP) coverage parts
  • Vermont financial responsibility law
  • Uninsured motorist coverage (required)
  • Underinsured motorist coverage (required)
  • SR-22 requirements
  • Commercial auto insurance
  • Winter driving considerations

4. Vermont Insurance Code and Regulations (10%)

Title 8 Key Provisions:

  • Producer licensing requirements
  • Unfair trade practices
  • Unfair claims settlement practices
  • Policy cancellation and nonrenewal rules
  • Advertising guidelines

Licensing Requirements:

  • Pre-licensing education: 40 hours
  • Continuing education: 24 hours every 2 years
  • Ethics requirement: 3 hours included in CE
  • Background check required

5. Ethics and Professional Conduct (5%)

  • Fiduciary duties to insureds
  • Premium handling requirements
  • Claims reporting obligations
  • Privacy and confidentiality

Study Timeline for Success

WeekFocus AreaHours
Week 1-2Property insurance fundamentals10-12
Week 2-3Liability insurance10-12
Week 3-4Auto insurance and VT requirements10-12
Week 4-5Vermont regulations (Title 8)8-10
Week 5-6Practice exams and review10-12

Total recommended study time: 50-60 hours


Free Practice Questions Available

Test your knowledge with hundreds of free practice questions designed specifically for the Vermont P&C exam.

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Vermont-Specific Exam Tips

1. Know Vermont Auto Minimums

Vermont requires 25/50/10 liability coverage:

  • $25,000 per person bodily injury
  • $50,000 per accident bodily injury
  • $10,000 property damage
  • UM/UIM required — Same limits as liability

2. Master Winter Weather Coverage

Vermont experiences severe winters:

  • Ice dams — Major cause of property damage
  • Snow load — Roof collapse concerns
  • Frozen pipes — Coverage and prevention
  • Heating system failures — Oil, propane, wood stove coverage

3. Understand Flood Insurance

Vermont has significant flood exposure:

  • Hurricane Irene devastation (2011) still impacts regulations
  • NFIP policies vs. private flood insurance
  • River valley flood zones
  • Coverage limitations and exclusions

4. Key Numbers to Remember

TopicVermont Requirement
Auto minimums25/50/10
WC thresholdAll employers
Pre-licensing40 hours
CE requirement24 hours/2 years
Passing score70%

Common Mistakes to Avoid

  1. Wrong property damage limit — Vermont is only $10,000 (lower than most states)
  2. Forgetting UM/UIM requirement — Both required in Vermont
  3. Skipping winter coverage — Critical for Vermont properties
  4. Ignoring flood insurance — Major VT exposure
  5. Not practicing timed exams — 2 hours for 150 questions
  6. Cramming last minute — Spread study over 5-6 weeks

After Passing Your Exam

  1. Apply for license through Vermont DFR online portal
  2. Complete background check — Required for all applicants
  3. Pay license fee — $50 for 2-year resident license
  4. Affiliate with insurer — Get appointed by carrier
  5. Maintain CE compliance — 24 hours every 2 years
  6. Begin selling — Your license is valid for 2 years

2026 Vermont Updates

For 2026, be aware of:

  • Winter weather coverage updates
  • Flood insurance program changes
  • Climate-related coverage adjustments
  • Enhanced consumer protection regulations
  • Captive insurance industry updates

Start Your Vermont P&C Insurance Career Today

The Vermont P&C license opens doors to a unique insurance market that values personalized service and strong client relationships. As the captive insurance capital of the nation, Vermont offers specialized opportunities for insurance professionals. With proper preparation, you can pass the exam on your first attempt.

→ Begin FREE Vermont P&C Exam Prep NowFree exam prep with practice questions & AI tutor

Our free study materials include:

  • Complete topic coverage
  • Practice questions with explanations
  • Vermont-specific regulations (Title 8)
  • Study guides and summaries
  • AI-powered study assistance

Don't pay for expensive prep courses when everything you need is available FREE.

Test Your Knowledge
Question 1 of 4

How many hours of pre-licensing education does Vermont require?

A
20 hours
B
30 hours
C
40 hours
D
50 hours
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