Kentucky Property & Casualty Insurance Exam 2026

Welcome to your FREE Kentucky Property & Casualty (P&C) Insurance exam preparation guide. This comprehensive study resource covers Kentucky-specific insurance laws, regulations, and requirements you need to pass your state licensing exam.

Note: This guide covers Kentucky state-specific content. You should also study national Property & Casualty insurance concepts, as approximately 73% of the exam tests general insurance knowledge.

Why Get Licensed in Kentucky?

Kentucky is a dynamic insurance market with unique opportunities:

• Growing Market: Kentucky's insurance market serves over 4.5 million residents with diverse needs
• No-Fault Auto System: Kentucky's choice no-fault system creates unique opportunities in auto insurance
• Horse Industry: Kentucky's signature equine industry requires specialized insurance knowledge
• Coal Mining: Specialized commercial insurance for Kentucky's mining industry
• River Commerce: Ohio River commerce creates significant commercial insurance opportunities
• Healthcare Hub: Louisville's healthcare industry drives professional liability and commercial coverage needs

What This Guide Covers

This FREE study guide includes:

✓ Kentucky Insurance Law & Regulations - Department of Insurance, KRS Chapter 304, producer licensing ✓ Property Insurance - Homeowners, dwelling, commercial property, Kentucky FAIR Plan ✓ Auto & Casualty Insurance - Kentucky's 25/50/25 liability requirements, no-fault PIP system ✓ Kentucky-Specific Topics - UM/UIM requirements, coal mining insurance, flood risks, equine coverage ✓ Ethics & Professional Conduct - Kentucky producer responsibilities and prohibited practices ✓ Practice Questions - Quiz questions in each chapter to test your knowledge

Exam Format & Requirements

Exam Structure

Exam Costs & Fees

• P&C Exam Fee: $50 (administered by Kentucky DOI)
• Background Check: Required through Administrative Office of the Courts
• License Application Fee: $100 (resident producer license)
• Transaction Fee: Varies by payment method

Pre-License Education

Kentucky REQUIRES 40 hours of pre-licensing education for Property & Casualty insurance:

• Property Line: 20 hours of approved pre-licensing education
• Casualty Line: 20 hours of approved pre-licensing education
• Combined P&C: 40 hours total required

Important: Applicants holding designations such as CPCU, CIC, AAI, or ARM are exempt from pre-license education requirements for property, personal lines, and casualty lines.

Background Check Requirements

All applicants must:

• Complete a criminal background check through Kentucky Administrative Office of the Courts
• Be at least 18 years old
• Non-citizens must provide work authorization or green card documentation

Exam Tip: Kentucky's 40-hour pre-licensing requirement is higher than some neighboring states. The education must be completed through Kentucky-approved providers before taking the exam.

Exam Content Areas

National Content (73% of exam - 110 questions)

The national portion covers general P&C insurance principles:

1. General Insurance Principles (15-20%)

   • Risk and insurance fundamentals
   • Policy structure and provisions
   • Insurable interest and indemnity
   • Insurance companies and operations

2. Property Insurance (25-30%)

   • Homeowners policies (HO-2, HO-3, HO-4, HO-6, HO-8)
   • Dwelling policies (DP-1, DP-2, DP-3)
   • Commercial property (BPP, BOP)
   • Inland marine and personal articles

3. Casualty Insurance (25-30%)

   • Auto insurance coverage types
   • General liability insurance
   • Commercial liability policies
   • Workers' compensation basics

4. Other Insurance Lines (20-25%)

   • Professional liability
   • Commercial lines overview
   • Bonds and surety
   • Risk management

Kentucky State Content (27% of exam - 40 questions)

The Kentucky-specific portion covers:

1. Kentucky Insurance Regulations (30-35% of state portion)

   • Kentucky Department of Insurance authority under KRS Chapter 304
   • Producer licensing requirements (40 hours pre-licensing)
   • Continuing education (24 hours/2 years including 3 hours ethics)
   • File-and-use rate system

2. Kentucky-Specific Insurance Laws (25-30% of state portion)

   • Kentucky Revised Statutes (KRS) Chapter 304
   • Unfair trade practices and prohibited activities
   • Producer responsibilities and duties
   • Consumer protection laws

3. Kentucky Auto Insurance Requirements (20-25% of state portion)

   • Minimum liability: 25/50/25
   • No-fault PIP system ($10,000 basic PIP required)
   • Uninsured/underinsured motorist (UM/UIM) provisions
   • Financial responsibility law

4. Kentucky Property & Casualty Provisions (15-20% of state portion)

   • Kentucky FAIR Plan
   • Policy cancellation and non-renewal rules
   • Kentucky Insurance Guaranty Association
   • State-mandated coverages and disclosures

How to Use This Study Guide

Recommended Study Plan

Week 1-2: General Insurance & Property

• Study general insurance principles and property insurance
• Focus on policy types, coverage, and exclusions
• Complete all practice questions
• Review key takeaways and summaries

Week 3-4: Casualty & Auto Insurance

• Study casualty insurance and auto coverage
• Master liability concepts and workers' compensation
• Complete all practice questions
• Understand claims processes

Week 5-6: Kentucky State-Specific Content

• Deep dive into Kentucky regulations and KRS Chapter 304
• Focus on Kentucky Department of Insurance requirements
• Master Kentucky auto insurance minimums (25/50/25 + PIP)
• Study Kentucky FAIR Plan and Insurance Guaranty Association
• Review producer licensing and continuing education

Week 7: Review & Practice

• Review all key takeaways
• Retake practice questions
• Take full-length practice exams
• Focus on weak areas

Study Tips

1. Master Kentucky-Specific Laws: 27% of your exam tests Kentucky law—don't underestimate this portion
2. Know National Concepts First: Build strong foundation in general P&C insurance principles
3. Understand Kentucky Auto Requirements: Know the 25/50/25 liability minimums and $10,000 PIP requirement cold
4. Practice with Questions: Use the quiz questions throughout this guide to test your knowledge
5. Focus on KRS Chapter 304: Kentucky's insurance code is comprehensive—understand the key subtitles
6. Kentucky's No-Fault System: Understand how Kentucky's choice no-fault system works with PIP coverage

Taking the Exam

Scheduling Your Exam

1. Complete Pre-Licensing Education: Finish all 40 hours through approved Kentucky providers
2. Submit Background Check: File criminal background report from Administrative Office of Courts
3. Apply for Exam: Submit application through Kentucky Department of Insurance or NIPR
4. Schedule Exam: Book your exam through approved testing provider
5. Pay Exam Fee: $50 exam fee

Before the Exam

Required:

• Valid government-issued photo ID (driver's license or passport)
• Confirmation number from testing provider
• Proof of completed pre-licensing education

Not Allowed:

• Phones, calculators, or reference materials
• Watches or electronic devices
• Notes or study materials

Provided:

• Scratch paper or dry-erase board
• Calculator (on-screen if needed)

On Exam Day

Arrive 15-30 minutes early to complete check-in procedures.

Testing Center Rules:

• Photo taken at check-in
• Personal belongings stored in locker
• No breaks during 3-hour exam period
• Results provided immediately after completing exam

After Passing the Exam

Next Steps:

1. Submit License Application: Apply through Kentucky Department of Insurance or NIPR ($100 fee)
2. Complete Background Check: Ensure criminal background check is on file
3. Receive License: Kentucky DOI reviews and issues license (approximately 5 days if no issues)
4. Get Appointed: Obtain company appointments to sell insurance products
5. Complete CE Requirements: 24 hours of approved CE every 2 years (3 hours ethics, 6 hours line-specific)

If You Don't Pass

• Wait Time: You can retake the exam after waiting period (check with Kentucky DOI)
• Retake Fee: Full $50 exam fee required for each attempt
• Study More: Review weak areas and focus on sections where you scored lowest
• Score Report: Review your score breakdown to identify improvement areas

Kentucky Department of Insurance

The Kentucky Department of Insurance regulates the P&C insurance industry:

Kentucky Department of Insurance Contact:

• Website: insurance.ky.gov
• Phone: (502) 564-3630 (main line)
• Consumer Protection Hotline: (800) 595-6053
• Email: insurance.info@ky.gov

Kentucky Insurance Market Overview

Unique Kentucky Characteristics

No-Fault Auto Insurance System:

• Kentucky uses a "choice" no-fault system with mandatory $10,000 PIP
• Drivers can reject PIP coverage in writing (must accept tort liability)
• 25/50/25 minimum liability limits required
• UM/UIM coverage must be offered

Geographic & Economic Risks:

• Ohio River flooding (commercial and residential properties)
• Coal mining operations (specialized commercial coverage)
• Horse farms and equine industry (specialized agricultural insurance)
• Tornado and severe weather risk (property damage)
• Bourbon distillery operations (unique commercial exposures)

Kentucky Demographics:

• Population over 4.5 million with significant rural coverage needs
• Major urban centers: Louisville, Lexington, Bowling Green
• Significant agricultural and manufacturing sectors
• Growing healthcare and education industries

Ready to Start?

Let's dive into Chapter 1: Kentucky P&C Insurance Regulation & Licensing to begin your exam preparation!

Remember: This content is 100% FREE. Use AI assistance whenever you get stuck—click "Ask AI" buttons throughout this guide or use the floating AI helper at the bottom right of your screen.

Important Resources

Official Kentucky Resources

• Kentucky Department of Insurance
• Kentucky Revised Statutes - Chapter 304
• Kentucky Insurance Plans (FAIR Plan)
• NIPR Licensing Portal

Study Resources

• Kentucky Producer Licensing Guide
• Kentucky FAIR Plan Information
• This FREE study guide (you're reading it!)

After Licensing

• National Insurance Producer Registry (NIPR)
• Kentucky Administrative Office of Courts (Background Checks)
• Kentucky CE Requirements