Property Exam: General Insurance
20%of exam
Property Exam: Personal Lines
36%of exam
Property Exam: Commercial Lines
36%of exam
Property Exam: Kentucky Law
8%of exam
Agent LicensingUnfair PracticesCancellation RulesGuaranty Fund
Casualty Exam: General Insurance
26%of exam
Casualty Exam: Personal Lines
26%of exam
Casualty Exam: Commercial Lines
38%of exam
Casualty Exam: Kentucky Law
10%of exam
No-Fault & BRBKY Auto MinimumsKIGA Guaranty FundKY Workers Comp Law
Quick Facts
- Property Exam
- 50 questions
- Casualty Exam
- 50 questions
- Passing Score
- 70% each exam
- Time Limit
- Not published
- Exam Fee
- $50 combined P&C
- Administrator
- Kentucky DOI, no vendor
- Testing Mode
- In person only
- Prelicense Hours
- 40 (20 + 20)
- Retake Window
- 120 days, unlimited tries
- CE Renewal
- 24 hrs / 2 yrs
- Outline Date
- Rev. 04-15-2010
Risk & Insurable Interest
- Pure Risk
- Loss or no loss
- Speculative Risk
- Loss or gain, not insurable
- Law of Large Numbers
- More exposures, better prediction
- Peril
- Cause of loss
- Hazard
- Condition that increases loss
- Insurable Interest
- Must exist at loss time
Company Types & Regulation
- Stock Insurer
- Owned by shareholders
- Mutual Insurer
- Owned by policyholders
- Four Lines
- Life, health, property, casualty
- Producer (Agent)
- Insurer's licensed representative
- Regulation of Agent
- State licensing oversight
Property Exam Weight Order
General 20, Personal 36, Commercial 36, Law 8
Personal = Commercial (36% each)Law = smallest slice (8%)Check both before Casualty
ACV vs Replacement Cost
ACV
- Replacement cost minus depreciation
- Lower payout
Replacement Cost
- New materials, no depreciation
- Higher payout
Depreciate or not
Homeowners Form Picker
- Standard owner-occupied home→HO-3(Open peril dwelling)
- Renting an apartment→HO-4(Contents only)
- Own a condo unit→HO-6(Limited dwelling coverage)
- Want broadest coverage tier→HO-5(Open peril, dwelling + contents)
- Older home, low market value→HO-8(ACV settlement)
Property Insurance Basics
- Insuring Agreement
- Insurer's basic promise
- Exclusions
- Excluded perils or property
- Coinsurance
- Insure to value or penalty
- Subrogation
- Insurer recovers from at-fault party
- Appraisal
- Resolves value disputes
- Salvage & Abandonment
- Insurer may take damaged property
Homeowners Section Split
Section I property, Section II liability
Coverage A-D = propertyCoverage E-F = liability
Dwelling Policy vs Homeowners Policy
Dwelling (DP)
- Property only
- No liability unless endorsed
Homeowners
- Property + liability
- Owner-occupant
Property only vs packaged
Dwelling Policy Forms
- DP-1 Basic Form
- Named perils, ACV only
- DP-2 Broad Form
- More named perils
- DP-3 Special Form
- Open peril dwelling
- Vacancy Clause
- Limits coverage if vacant
- Fair Rental Value
- Lost rental income
Homeowners Section I
- HO-2 Broad Form
- Named perils, wider list
- HO-3 Special Form
- Open peril dwelling, named contents
- HO-4 Contents Broad
- Renters; no dwelling
- HO-5 Comprehensive
- Open peril dwelling and contents
- HO-6 Unit-Owners
- Condo; limited dwelling
- HO-8 Modified
- Older homes, ACV settlement
- Coverage D
- Loss of use
Personal Auto Physical Damage
- Part D
- Damage to insured's own auto
- Collision
- Upset or impact with object
- Other Than Collision
- Comprehensive perils (theft, fire, glass)
- Transportation Expenses
- Rental reimbursement after covered loss
Flood, FAIR Plan & Misc
- NFIP Building Limit
- $250,000 residential
- NFIP Contents Limit
- $100,000 residential
- NFIP Waiting Period
- 30 days for new policy
- Earthquake Coverage
- Separate policy or DIC
- Kentucky FAIR Plan
- Residual market since 1968
- Personal Watercraft
- Boatowners or yacht policy
Discovery vs Loss Sustained
Discovery Form
- Discovered during policy period
- Any occurrence date
Loss Sustained Form
- Occurs during policy period
- Discovered within 1 year
Discovered vs occurred
Crime Form Picker
- Want any-time discovery window→Discovery Form(Extended discovery period)
- Want simple occurrence trigger→Loss Sustained Form(1-year discovery cap)
- Employee steals company funds→Employee Theft Coverage(Inside crime form)
- Vendor steals via forged check→Forgery Coverage(Separate insuring agreement)
Commercial Package Policy
- Eligible Coverages
- 2+ coverage parts combined
- Common Declarations
- Shared policy-level information
- Common Conditions
- Cancellation, changes, premiums, inspections
- First Named Insured
- Gets cancellation notice, pays premium
Businessowners Policy (BOP)
- BOP Eligibility
- Small/mid business classes
- Ineligible Risks
- Auto dealers, bars, banks
- Building Coverage
- Owned structure
- Business Personal Property
- Contents and equipment
- Coverage Extensions
- Built-in added coverage
Commercial Property Forms
- Building & Personal Property Form
- Core commercial property form
- Causes of Loss Forms
- Basic, broad, or special
- Builders Risk Form
- Covers property under construction
- Business Income
- Lost income during restoration
- Extra Expense
- Costs to keep operating
Marine, Crime & Misc
- Nationwide Marine Definition
- Sets what marine may cover
- Filed vs Nonfiled Forms
- ISO-filed or company-specific
- Discovery Form
- Loss discovered in policy period
- Loss Sustained Form
- Loss occurs in policy period
- Equipment Breakdown
- Sudden mechanical or electrical failure
- TRIA
- Federal terrorism loss backstop
KY Agent Licensing (KRS 304.9)
- License Renewal
- KRS 304.9-260
- Continuing Education
- KRS 304.9-295
- Record Retention
- KRS 304.9-390
- Change of Address
- KRS 304.9-200
- Licensing Penalties
- KRS 304.9-470
KY Market Conduct & Guaranty
- Unfair Claims Settlement
- KRS 304.12-230
- Unfair Practices
- KRS 304.12-010
- Cancellation & Nonrenewal
- KRS 304.20-300
- Insurance Guaranty Fund
- KRS 304.36-030
- Insurance Fraud
- KRS 304.47-020
- Surplus Lines
- KRS 304.10
Representation vs Warranty
Representation
- Believed true
- Immaterial error still valid
Warranty
- Guaranteed true
- Any breach voids cover
Believed vs guaranteed
Contract Formation
- Offer & Acceptance
- Application, then insurer approval
- Consideration
- Premium for insurer's promise
- Unilateral
- Only insurer is bound
- Adhesion
- Insurer drafts; ambiguity favors insured
- Aleatory
- Unequal value exchanged
Underwriting & Transaction
- Binder
- Temporary proof of coverage
- Fair Credit Reporting Act
- Governs credit-based underwriting
- Representation
- Believed true; must be material
- Warranty
- Guaranteed true; breach voids
- Waiver
- Voluntary surrender of right
- Estoppel
- Bars insurer's later denial
UM vs UIM
UM
- At-fault driver uninsured
- Included unless rejected
UIM
- At-fault limits too low
- Available on request
No insurance vs not enough
Auto Coverage Part Picker
- Insured hits another car→Part A(Liability)
- Insured needs own medical bills→Part B(No-fault)
- At-fault driver has no insurance→UM(Part C)
- At-fault limits too low→UIM(KY: available on request)
- Insured's car is damaged→Part D(Collision or other-than-collision)
Negligence & Liability Basics
- Duty
- Legal obligation to act
- Breach
- Duty not met
- Causation
- Breach caused the injury
- Damages
- Actual measurable harm
- Vicarious Liability
- Liable for another's acts
- Absolute Liability
- Liable without fault
Homeowners Section II
- Coverage E
- Personal liability
- Coverage F
- Medical payments, no-fault
- Section II Exclusions
- Business pursuits, motor vehicles
- Additional Coverages
- Claim expenses, first aid
PAP Liability Parts
- Part A
- Liability to others
- Part B
- Medical payments, no-fault
- Supplementary Payments
- Defense costs, bail bonds
- Who Is An Insured
- Named insured, resident relatives
- Parts E & F
- Duties and general conditions
UM, UIM & Umbrella
- UM Coverage
- At-fault driver uninsured
- UIM Coverage
- At-fault limits too low
- KY UM Rule
- Included unless rejected in writing
- KY UIM Rule
- Available only on request
- Personal Umbrella
- Excess liability above auto/home
Casualty Exam Weight Order
General 26, Personal 26, Commercial 38, Law 10
Commercial is largest sliceGeneral = Personal (26% each)Law bigger than Property's
Occurrence vs Claims-Made
Occurrence
- Injury during policy period
- Claim anytime after
Claims-Made
- Claim made during period
- Needs retroactive date
When injury vs when claimed
Commercial Auto Symbol Picker
- Cover every vehicle used→Symbol 1(Any auto)
- Cover only titled vehicles→Symbol 2(Owned autos)
- List each vehicle by VIN→Symbol 7(Specifically described)
- Employee rents a car→Symbol 8(Hired autos)
- Employee uses personal car→Symbol 9(Nonowned autos)
CGL Coverage Parts
- Coverage A
- Bodily injury, property damage
- Coverage B
- Personal, advertising injury
- Coverage C
- Medical payments, no fault
- Occurrence Form
- Injury during policy period
- Claims-Made Form
- Claim made during period
- Retroactive Date
- Earliest covered injury date
Bond Party Order
Principal promises, obligee benefits, surety guarantees
Principal = doerObligee = protected partySurety = guarantor
Fidelity Bond vs Surety Bond
Fidelity Bond
- Employer-obligee, dishonest employee
- Crime-style coverage
Surety Bond
- Contractor is principal
- Guarantees performance
Employee risk vs performance risk
Bond Type Picker
- Guarantee contractor completes job→Contract Bond(Surety, 3 parties)
- Court requires funds guarantee→Judicial Bond(e.g., appeal bond)
- Protect employer from dishonest staff→Fidelity Bond(Crime-style protection)
- Guarantee any principal's duty→Surety Bond(Principal, obligee, surety)
Commercial Auto Symbols
- Symbol 1
- Any auto
- Symbol 2
- Owned autos only
- Symbol 7
- Specifically described autos
- Symbol 8
- Hired autos
- Symbol 9
- Nonowned autos
- Garage Coverage Form
- Dealers and repair shops
Workers Compensation
- Part One
- Statutory benefits, no fault
- Part Two
- Employers liability, third-party suits
- Temporary Total
- Fully disabled, recovering
- Permanent Partial
- Lasting partial disability
- Exclusive Remedy
- Employee's only recourse
Bonds & Misc Commercial
- Fidelity Bond
- Protects employer from employee theft
- Surety Bond
- 3-party performance guarantee
- Contract Bond
- Guarantees construction performance
- Judicial Bond
- Court-ordered guarantee
- EPLI
- Employment practices liability
- Commercial Umbrella
- Excess over commercial liability
BRB Tort Threshold
Over $1,000 or fracture, death, disfigurement
$1,000 medical triggerFracture triggers tortPermanent injury triggers tortDeath triggers tort
Kentucky Comparative Fault vs Contributory
KY Pure Comparative
- Fault reduces damages
- Recovery not barred
Contributory Negligence
- Any fault bars recovery
- Not used in KY
Reduces vs bars recovery
Kentucky Law Answer Picker
- Injury exceeds $1,000 medical→Sue in tort(Threshold met)
- Injury stays under threshold→BRB only(No pain and suffering)
- Insurer becomes insolvent→File with KIGA(Caps apply)
- Employer has 1+ employees→Buy workers comp(Except agriculture)
KY No-Fault & Auto Law
- BRB Limit
- $10,000 per person per accident
- Funeral Sub-Limit
- $5,000 within BRB
- Tort Threshold
- Over $1,000 medical or fracture
- KY Auto Minimums
- $25k/$50k/$25k or $60k limit
- Auto Insurance Plan
- KRS 304.13-151
- PAP Declination Rule
- KRS 304.20-040
KY Numbers to Memorize
10k BRB, 25-50-25 auto, 300k KIGA
BRB = $10,000 capAuto = 25-50-25 or 60kKIGA = $300,000 per claimant
KIGA & KY Workers Comp Law
- KIGA Claimant Cap
- $300,000 per claimant
- KIGA Premium Cap
- $10,000 unearned premium
- KY WC Trigger
- KRS 342.630, one-plus employees
- Agriculture Exemption
- Farm employers excluded
- KY Comparative Fault
- KRS 411.182, pure form
Common Traps
BRB vs Tort Suit
BRB pays no-fault always ≠ Tort needs threshold met
UM vs UIM Kentucky Rule
UM auto-included, opt out ≠ UIM only if requested
Property Exam vs Casualty Exam
Property = Section I, Part D ≠ Casualty = Section II, Parts A-C
Discovery vs Loss Sustained Crime
Discovery = found in period ≠ Sustained = occurred in period
Surety Bond vs Insurance
Surety expects no loss ≠ Insurance pools expected loss
Representation vs Warranty Breach
Rep needs materiality ≠ Warranty voids on any breach
KY Retake vs Same-Day
No same-day retake allowed ≠ Next business day earliest
Producer Exam vs Consultant Exam
Producer = 50Q each line ≠ Consultant = 150Q, 190 min
Last Minute
- 1.Property exam has 50 questions
- 2.Casualty exam has 50 questions
- 3.Need 70% to pass each exam
- 4.Producer time limit not published
- 5.Kentucky DOI gives exam, no vendor
- 6.Testing is in person only
- 7.Retake needs next business day
- 8.Unlimited retakes within 120 days
- 9.$50 fee covers both exams
- 10.Prelicense = 40 hours total
- 11.CE = 24 hours every 2 years
- 12.BRB pays up to $10,000
- 13.Tort threshold is $1,000 medical
- 14.Auto minimum is $25k/$50k/$25k
- 15.UM included unless rejected in writing
- 16.KIGA caps claims at $300,000
Study guide on MometrixSame family resources
Explore More Property & Casualty Insurance
Continue into nearby exams from the same family. Each card keeps practice questions, study guides, flashcards, videos, and articles in one place.
More From This Family
Videos and articles for deeper review.
VideoActual Cash Value (ACV) ExplainedVideoAdverse Selection ExplainedVideoBinder ExplainedVideoCalifornia Insurance CE Requirements 2026: 24 HoursArticleFree Insurance Exam Podcast (2026): Life & Health, Property & Casualty Audio Study Guide8 min readArticleHow Much Do Insurance Agents Make in 2026? Salary Guide & Income Breakdown14 min readArticleFree P&C Practice Questions (2026): 30 Q + Full Explanations14 min readArticleP&C Insurance Exam Cheat Sheet 2026: Key Facts, Formulas & Quick Reference18 min read