Property Exam General Knowledge
62.5%of exam
Casualty Exam General Knowledge
62.5%of exam
Massachusetts Law All Lines
18.75-25%of exam
Massachusetts Line-Specific Law
12.5-18.75%of exam
Quick Facts
- Exams
- Two: Property and Casualty
- Vendor
- Pearson test centers only
- Items
- 90 each; 80 scored
- Pretest
- 10 unmarked per exam
- Pass
- Scaled 70 per exam
- Fee
- $37 per line exam
- Time
- Not published; shown at registration
- Blueprint
- Effective July 22, 2026
- Prelicensing
- None required in Massachusetts
- Retake
- Reapply, pay again; no wait
Exam Shape
50 general + 30 state = 80 scored
90 delivered per exam10 pretest, unmarkedScaled 70 to passTwo separate line exams
HO-3 vs HO-5
HO-3
- Open perils on dwelling
- Named perils on contents
- Lower premium
HO-5
- Open perils on dwelling
- Open perils on contents
- Insurer must prove exclusion
Contents basis is the difference
Which Property Form
- Tenant needs contents cover→HO-4(No Coverage A)
- Condominium unit owner→HO-6(Unit interior)
- Open perils on contents→HO-5(Broadest form)
- Owner wants standard cover→HO-3(Most common)
- Older home, low value→HO-8(Modified settlement)
- Landlord, tenant-occupied dwelling→DP-3(Open perils)
- Cheapest named perils dwelling→DP-1(ACV settlement)
- Declined by voluntary market→FAIR Plan(MPIUA)
- Small business needs package→BOP(Property plus liability)
- Income lost after damage→Business Income(Commercial property)
- Moveable or scheduled property→Inland marine floater
- Flood damage to dwelling→NFIP policy(Excluded elsewhere)
Property Exam Sections
- Types of Policies
- 22 scored itemsGeneral
- Terms and Concepts
- 15 scored items
- Provisions, Contract Law
- 13 scored items
- MA Laws, All Lines
- 20 scored itemsState
- MA Property Only
- 10 scored itemsState
- Pretest
- 5 per outline section
- Scored total
- 80 items
- Delivered total
- 90 items
Named Peril vs Open Peril
Named peril
- Lists the covered causes
- Insured proves the cause
- DP-1, DP-2, HO-2
Open peril
- Covered unless excluded
- Insurer proves the exclusion
- DP-3, HO-3, HO-5
Who must prove the cause
Homeowners Forms
- HO-2
- Broad named perils
- HO-3
- Open dwelling, named contents
- HO-4
- Tenant contents and liability
- HO-5
- Open dwelling and contents
- HO-6
- Condominium unit owner
- HO-8
- Older home, modified settlement
- Coverage A
- Dwelling
- Coverage B
- Other structures
- Coverage C
- Personal property
- Coverage D
- Loss of use
- Coverage E
- Personal liability
- Coverage F
- Medical payments to others
Short Rate vs Pro Rata
Short rate
- Insured cancels early
- Refund less than proportional
- Covers insurer expense
Pro rata
- Insurer cancels the policy
- Refund is proportional
- No penalty applied
Who cancels sets the refund
Dwelling Forms
- DP-1
- Basic named perils
- DP-2
- Broad named perils
- DP-3
- Open perils on dwelling
- Dwelling Coverage A
- The building
- Dwelling Coverage B
- Other structures
- Dwelling Coverage C
- Personal property
- Dwelling Coverage D
- Fair rental value
- Dwelling Coverage E
- Additional living expense
- No liability included
- Endorse liability separately
Property Valuation Terms
- ACV
- Replacement cost minus depreciation
- Replacement cost
- New, no depreciation deducted
- Market value
- Sale price, includes land
- Stated or agreed value
- Amount set at issue
- Salvage value
- Damaged property resale worth
- Coinsurance
- Insure to required percentage
- Proximate cause
- Unbroken chain to loss
- Direct loss
- Physical damage itself
- Indirect loss
- Income or expense consequence
- Vacancy
- No people, no contents
- Unoccupancy
- Contents remain, people gone
- Blanket limit
- One limit, several items
- Specific limit
- One limit per item
Property Policy Provisions
- Declarations
- Who, what, limits, dates
- Insuring agreement
- The insurer's promise
- Conditions
- Duties of both parties
- Exclusions
- Losses never covered
- Mortgagee clause
- Paid despite insured's acts
- Proof of loss
- Signed, sworn damage statement
- Appraisal
- Settles value, not coverage
- Subrogation
- Insurer pursues the wrongdoer
- Other insurance
- Pro rata sharing rule
- Binder
- Temporary evidence of coverage
- Concealment
- Hiding a material fact
- Warranty
- Statement guaranteed to be true
Occurrence vs Claims-Made
Occurrence
- Injury during policy period
- Report it any time
- No retroactive date
Claims-made
- Claim during policy period
- Retroactive date applies
- Tail extends reporting
When injured versus when claimed
Casualty Exam Sections
- Types, Bonds, Terms
- 23 scored itemsGeneral
- Terms and Concepts
- 15 scored items
- Policy Provisions
- 12 scored items
- MA Laws, All Lines
- 15 scored itemsState
- MA Casualty Only
- 15 scored itemsState
- Pretest
- 5 per outline section
- Scored total
- 80 items
- State share
- Higher than Property exam
Casualty Liability Terms
- Occurrence
- Accident or continuous exposure
- Claims-made
- Claim made during term
- Retroactive date
- Nothing covered before it
- Negligence
- Duty, breach, cause, damages
- Absolute liability
- Liable without any fault
- Strict liability
- Defective product liability
- Vicarious liability
- Liable for another's acts
- Compensatory damages
- General plus special damages
- Punitive damages
- Punish and deter conduct
- Per occurrence limit
- Most for one event
- Annual aggregate
- Most per policy year
- Deposit premium
- Estimate audited at expiration
CGL Coverages
- Coverage A
- Bodily injury, property damage
- Coverage B
- Personal, advertising injury
- Coverage C
- Medical payments, no fault
- Supplementary payments
- Paid outside the limit
- First named insured
- Gets notices, pays premium
- Products-completed operations
- Its own aggregate limit
- Premises and operations
- Ongoing work exposure
- Insured contract
- Assumed liability that is covered
Bonds and Crime
- Surety bond
- Three parties, guarantees performance
- Fidelity bond
- Covers employee dishonesty
- Principal
- Party who must perform
- Obligee
- Party protected by bond
- Burglary
- Forced entry, visible marks
- Robbery
- Taken by force, threat
- Theft
- Any unlawful taking
- Mysterious disappearance
- Gone, no known cause
- Forgery and alteration
- Falsified checks and drafts
Continuing Education Math
60 first, then 45, always 3 ethics
First renewal: 60 hoursLater renewals: 45 hoursEthics: 3 hoursCycle: 36 months
Which Massachusetts Rule
- Producer misstated the coverage→c.176D s.3(Unfair practice)
- Claim denied without explanation→c.176D s.3(9)(Claim practice)
- Commissioner stops the conduct→Cease and desist(c.176D s.7)
- Renewing after first term→45 CE hours(3 ethics)
- First renewal after licensing→60 CE hours(3 ethics)
- Insurer becomes insolvent→Insurers Insolvency Fund(c.175D)
- Cannot buy property coverage→FAIR Plan(c.175C)
- Cannot buy auto coverage→MAIP(c.175 s.113H)
- Worker out five days→c.152 s.34(60% of wage)
- Suing for pain, suffering→$2,000 threshold(c.231 s.6D)
- Placing hard-to-write risk→Surplus lines broker(c.175 s.168)
Massachusetts Producer Licensing
- Licensing chapter
- M.G.L. c.175 s.162G-X
- First renewal CE
- 60 hours
- Later renewal CE
- 45 hours
- Ethics requirement
- 3 hours each cycle
- CE cycle
- Every 36 months
- CE authority
- c.175 s.177E; 211 CMR 50
- First license term
- Expires in birth month
- Appointment filing
- Insurer files, c.175 s.162S
- Appointment termination
- c.175 s.162T
- Address change
- Report under s.162M
- Reporting actions
- c.175 s.162V
- Assumed names
- c.175 s.162P
- Temporary license
- c.175 s.162Q
- Nonresident license
- c.175 s.162N, 162U
- Records retention
- c.175 s.149R
- Apply after passing
- Through NIPR to DOI
Chapter 176D Unfair Practices
- Section 3 clauses
- Twelve enumerated practices
- Clause 9 subparts
- Fourteen claim practices
- Misrepresentation
- False benefit or term statements
- False advertising
- Deceptive statements about insurance
- Defamation
- False statements about insurer
- Boycott
- Coercion or intimidation
- False financial statements
- Filed with material omissions
- Unfair discrimination
- Unequal rates, same class
- Rebating
- Inducement outside the contract
- Complaint records
- Must maintain complaint register
- No prompt settlement
- Liability reasonably clear
- No denial explanation
- Reasonable basis not given
- Cease and desist
- c.176D s.7
- Hearings
- c.176D s.6
Insurer Types and Regulation
- Domestic insurer
- Formed in Massachusetts
- Foreign insurer
- Formed in another state
- Alien insurer
- Formed outside the country
- Authorized insurer
- Holds certificate of authority
- Unauthorized insurer
- No Massachusetts certificate
- Stock insurer
- Owned by shareholders
- Mutual insurer
- Owned by policyholders
- Surplus lines
- Placed by special broker
- Surplus lines citation
- c.175 s.168
- Commissioner powers
- c.175 s.3A; c.176D s.5
- Privacy statute
- M.G.L. c.175I
- Solvency oversight
- c.175 s.180A-L
Four Compulsory Parts
Injury, PIP, Uninsured, Property = Parts 1-4
Part 1: 25/50 bodily injuryPart 2: PIP $8,000Part 3: uninsured 25/50Part 4: property $30,000
Compulsory vs Optional Parts
Parts 1-4
- Required to register
- BI, PIP, uninsured, property
- Part 1 covers Massachusetts only
Parts 5-12
- Chosen by the insured
- Adds physical damage cover
- Part 5 extends outside Massachusetts
Four required, eight optional
Which MAP Part Responds
- Injure another driver, Massachusetts→Part 1(Compulsory)
- Your own medical, wages→Part 2(PIP, no fault)
- Hit by uninsured driver→Part 3(Compulsory)
- You damage another's car→Part 4($30,000 minimum)
- Accident outside Massachusetts→Part 5(Optional BI)
- Your passenger is injured→Part 5(Not Part 1)
- Medical bills above PIP→Part 6(Medical Payments)
- Your car strikes object→Part 7(Collision)
- Collision, under 50% fault→Part 8(Limited Collision)
- Fire, theft, or vandalism→Part 9(Comprehensive)
- Rental during covered repair→Part 10(Substitute Transportation)
- Disabled car needs tow→Part 11(Towing and Labor)
- At-fault driver underinsured→Part 12(Excess over PIP)
MAP Compulsory Parts
- Part 1
- Bodily Injury to Others25/50
- Part 2
- Personal Injury Protection$8,000
- Part 3
- Injury by Uninsured Auto25/50
- Part 4
- Damage to Others' Property$30,000
- Effective date
- Limits raised July 2025
- Prior limits
- 20/40 and $5,000
- Part 1 territory
- Massachusetts accidents only
- Part 1 passengers
- Your passengers not covered
- Statutory basis
- M.G.L. c.90 s.34A, 34O
Massachusetts Auto Limits
25 / 50 / 30, PIP 8,000
$25,000 per person$50,000 per accident$30,000 property damageUninsured matches 25/50
Cancellation vs Nonrenewal
Cancellation
- Ends the policy mid-term
- Auto: 20 days notice
- Fire policy: 5 days
Nonrenewal
- Ends at expiration date
- Auto: 45 days notice
- Dwelling fire: 45 days
Mid-term versus term end
MAP Optional Parts
- Part 5
- Optional Bodily Injury Others
- Part 6
- Medical Payments
- Part 7
- Collision
- Part 8
- Limited Collision
- Part 9
- Comprehensive
- Part 10
- Substitute Transportation
- Part 11
- Towing and Labor
- Part 12
- Injury by Underinsured Auto
- Part 5 territory
- United States and Canada
- Optional count
- Eight optional parts
- Default deductible
- $500 unless changed
Notice Day Counts
Fire 5, auto 20, nonrenewal 45
Fire cancellation: 5 daysFire nonpayment: 10 daysAuto cancellation: 20 daysNonrenewal: 45 days
PIP vs Medical Payments
Part 2 PIP
- Compulsory, paid regardless of fault
- $8,000 per person
- 75% of lost wages
Part 6 Med Pay
- Optional coverage
- Medical expenses only
- Pays above PIP
Compulsory no-fault versus optional excess
PIP Rules and Limits
- Total benefit
- $8,000 per person
- Medical expenses
- Reasonable, within two years
- Lost wages
- 75% of average wage
- Replacement services
- Paid to non-household helpers
- Health insurance rule
- PIP pays first $2,000
- Deductible options
- $100 through $8,000
- Claim deadline
- Within two years
- Payment start
- 10 days after physician notice
- Unpaid claim suit
- Costs and attorney fees
- Tort threshold
- Over $2,000 medical expenses
- Threshold exceptions
- Death, fracture, disfigurement, sight
- Threshold citation
- M.G.L. c.231 s.6D
- No-fault effect
- PIP replaces small tort claims
SDIP Point Ladder
Minor 2, accidents 3 and 4, major 5
Minor violation: 2Minor accident: 3Major accident: 4Major violation: 5
Uninsured vs Underinsured
Part 3 Uninsured
- Compulsory coverage
- No insurance or hit-and-run
- 25/50 minimum limits
Part 12 Underinsured
- Optional coverage
- Limits too low
- Excess over PIP
No coverage versus not enough
SDIP Surcharge Points
- Minor traffic violation
- 2 points
- Minor at-fault accident
- 3 points
- Major at-fault accident
- 4 points
- Major traffic violation
- 5 points
- Rated parts
- Parts 1, 2, 4, 7
- Excellent Driver Discount
- Code 98
- Excellent Driver Plus
- Code 99
- Oldest experience year
- Sixth year assigns nothing
- Merit rating lookback
- Six years maximum
- Surcharge duration
- Five years maximum
- At-fault standard
- More than 50% responsible
- Appeal window
- 30 days, $50 fee
- Merit Rating Board
- Sits inside the RMV
- Regulation
- 211 CMR 134.00
FAIR Plan vs MAIP
FAIR Plan
- Property residual market
- Authority is c.175C
- Basic property insurance
MAIP
- Auto residual market
- Authority is c.175 s.113H
- Assigns for three years
Property versus auto last resort
Massachusetts Auto Rules
- Cancellation notice
- At least 20 days
- Nonrenewal notice
- At least 45 days
- Agent forwards notice
- Within 15 days
- Deposit premium cap
- 30% of the premium
- New household driver
- Report within 60 days
- Switch without penalty
- 30 days after renewal invoice
- Used auto inspection
- Deferred up to 10 days
- Prohibited rating factors
- Sex, age, income, education
- Credit information
- Banned for rating, underwriting
- Garaging location
- Rating yes, underwriting no
- Aftermarket parts
- Like kind and quality
- Appraisal regulation
- 211 CMR 133.00
- Required policy term
- One year on request
SDIP vs Company Merit Plan
SDIP
- State-set credits and surcharges
- Points run 2 to 5
- Applies to MAIP policies
Company merit plan
- The insurer's own filing
- Commissioner must approve it
- May be used instead
State plan versus insurer plan
Massachusetts Standard Fire Policy
- Authority
- M.G.L. c.175 s.99
- Company cancels
- 5 days written notice
- Nonpayment cancellation
- 10 days written notice
- Insured cancels
- Anytime, short rate refund
- Company refund basis
- Pro rata unearned premium
- Proof of loss
- Signed, sworn, rendered forthwith
- Company must act
- Within 30 days
- Appraisal panel
- Three disinterested referees
- Award standard
- Majority award is conclusive
- Suit limitation
- Two years from loss
- Vacancy, small residential
- 60 consecutive days
- Vacancy, all others
- 30 consecutive days
- Willful concealment
- Voids the entire policy
- Dwelling fire nonrenewal
- 45 days, reasons stated
Residual Markets and Fund
- MPIUA
- The Massachusetts FAIR Plan
- MPIUA authority
- M.G.L. c.175C
- MPIUA eligibility
- Declined in voluntary market
- MPIUA product
- Basic property insurance only
- MPIUA membership
- All basic property insurers
- Urban area scope
- Entire commonwealth designated
- MAIP
- Auto residual market plan
- MAIP citation
- M.G.L. c.175 s.113H
- MAIP assignment
- Up to three years
- CAR
- Commonwealth Automobile Reinsurers
- Hospitality Mutual
- Liquor liability joint underwriters
- Insolvency fund
- M.G.L. c.175D covered claims
- Per claimant cap
- $500,000 most covered claims
- First-party property cap
- $1,000,000 per occurrence
- Workers comp claims
- No dollar cap
- Member assessment cap
- 2% of written premium
Massachusetts Workers Compensation
- Governing chapter
- M.G.L. c.152
- Section 34
- 60% wage, 156 weeks
- Section 35
- 60% of wage difference
- Section 35 cap
- 75% of section 34
- Section 35 weeks
- 260, extendable to 520
- Section 34A
- Two-thirds wage, permanent total
- Waiting period
- Five calendar days
- Paid from day one
- If 21 days or more
- Five to twenty days
- Paid from sixth day
- Exclusive remedy
- c.152 s.24
- Subrogation
- c.152 s.15
- Assigned risk pool
- For declined employers
- Trust Fund
- Pays uninsured employer claims
Common Traps
Old limits vs current limits
20/40/5 retired July 2025 ≠ 25/50/30 applies now
Prometric vs Pearson
Prometric ended July 16, 2026 ≠ Pearson since July 22, 2026
One exam vs two
No combined P&C sitting ≠ Property and Casualty are separate
Part 8 vs Part 9
Part 8 is Limited Collision ≠ Part 9 is Comprehensive
Percentage vs scaled score
70 is a scaled score ≠ Not 70 percent correct
PIP vs health insurance
PIP pays the first $2,000 ≠ Health insurer takes over
Uninsured vs underinsured
Part 3 is compulsory ≠ Part 12 is optional
Flat CE vs front-loaded CE
First renewal needs 60 ≠ Later renewals need 45
Part 1 vs Part 5 territory
Part 1 is Massachusetts only ≠ Part 5 travels with you
Remote testing vs test center
Remote proctoring ended ≠ In-person centers only
Last Minute
- 1.Two exams: Property and Casualty
- 2.90 items; 80 are scored
- 3.50 general + 30 Massachusetts
- 4.Pass = scaled 70, not percent
- 5.Fee = $37 per line exam
- 6.Limits: 25/50/30; PIP 8,000
- 7.Parts 1-4 compulsory; 5-12 optional
- 8.Part 1 covers Massachusetts only
- 9.Part 5 covers outside Massachusetts
- 10.Fire cancel 5; nonrenewal 45
- 11.Auto cancel 20; nonrenewal 45
- 12.CE = 60 first, then 45
- 13.Ethics = 3 hours per cycle
- 14.SDIP points: 2, 3, 4, 5
- 15.Tort threshold = $2,000 medical
- 16.FAIR Plan = property last resort
- 17.MAIP = auto last resort
- 18.Workers comp: 60%, 156 weeks
- 19.Fire policy suit limit: two years
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