Vermont Property & Casualty Exam Overview

Welcome to OpenExamPrep's FREE Vermont Property & Casualty Insurance exam prep guide. This comprehensive resource covers Vermont-specific regulations, licensing requirements, and state insurance laws you need to know to pass your exam and begin your career as a licensed P&C producer.

About the Vermont P&C Exam

The Vermont Property & Casualty insurance examination is administered by Pearson VUE on behalf of the Vermont Department of Financial Regulation (DFR). The exam tests your knowledge of:

• Vermont insurance law and regulations
• Property insurance principles and coverages
• Casualty insurance including auto and liability
• Policy provisions and endorsements
• Ethics and professional conduct
• Claims handling and consumer protection

Exam Structure

Important: Vermont requires you to pass the combined exam covering both general P&C knowledge and Vermont state-specific laws. You must score 70% or higher on the entire exam.

Pre-Licensing Education Requirements

Before scheduling your Vermont P&C exam, you must complete:

Required Education

Education Topics Covered

1. Property Insurance (20 hours)

   • Homeowners insurance
   • Commercial property
   • Inland marine
   • Fire and allied lines

2. Casualty Insurance (20 hours)

   • Auto insurance
   • General liability
   • Workers' compensation
   • Professional liability

3. Vermont Insurance Law (integrated)

   • State regulations
   • Consumer protection
   • Licensing requirements
   • Ethical standards

Exam Tip: Vermont requires 40 hours of pre-licensing education. Most successful candidates spend an additional 40-60 hours on self-study and practice exams to achieve the 70% passing score.

License Application Process

Step-by-Step Process

1. Complete Pre-Licensing Education

   • Finish 40 hours from approved provider
   • Receive completion certificates
   • Certificates valid for application

2. Submit License Application

   • Apply through NIPR (National Insurance Producer Registry)
   • Complete background check
   • Pay application fee ($175 for residents, $300 for non-residents)
   • Receive approval and Authorization to Test

3. Schedule Your Exam

   • Register with Pearson VUE
   • Schedule within your authorization window
   • Choose testing center or online proctored
   • Pay exam fee ($52)

4. Take the Exam

   • Arrive 30 minutes early (or log in early for online)
   • Bring two forms of identification
   • Complete 155 questions in 2.5 hours
   • Receive instant pass/fail results

5. Receive License

   • License issued upon passing exam
   • Valid for 2 years from date of issuance
   • Renewed biennially (every 2 years) by March 31st of odd-numbered years

Total Costs

Continuing Education Requirements

Once licensed, Vermont requires ongoing continuing education:

Standard CE Requirements

One-Time Requirements

Exam Tip: Vermont's biennial renewal cycle runs on odd-numbered years. If you get licensed in 2026 (even year), your first renewal will be March 31, 2027. Plan your CE hours accordingly.

What This Guide Covers

This FREE study guide focuses on Vermont state-specific content:

Chapter 1: Vermont P&C Regulation & Licensing

• Vermont Department of Financial Regulation structure and authority
• Producer licensing requirements and continuing education
• Ethics and professional responsibilities
• Prohibited practices and disciplinary actions

Chapter 2: Vermont Property Insurance

• Homeowners insurance regulations
• Commercial property coverage
• State-mandated coverages and exclusions
• Claims handling requirements
• Vermont winter weather considerations

Chapter 3: Vermont Casualty & Auto Insurance

• Vermont auto insurance minimum requirements (25/50/10 liability)
• Mandatory uninsured/underinsured motorist coverage (50/100/10)
• Liability insurance principles
• Workers' compensation regulations

Chapter 4: Vermont Ethics & Professional Conduct

• Fiduciary duties to clients and insurers
• Disclosure requirements
• Consumer protection laws
• Professional standards

Note: This guide covers ONLY Vermont state law. You must also study national P&C insurance principles to fully prepare for the exam.

Exam Content Distribution

The Vermont P&C exam emphasizes:

Vermont Department of Financial Regulation Contact

Important Resources

Testing Center Information

Pearson VUE

• Website: www.pearsonvue.com
• Candidate Services: (800) 274-1926
• Online scheduling available 24/7
• Multiple testing centers throughout Vermont
• Online proctored exams available

Vermont Auto Insurance Minimums (Critical Exam Topic)

Vermont has unique auto insurance requirements that differ from most states:

Liability Coverage (25/50/10)

Mandatory Uninsured/Underinsured Motorist (50/100/10)

Vermont requires UM/UIM coverage at these minimums:

Critical Exam Point: Vermont's UM/UIM limits (50/100/10) are HIGHER than the basic liability limits (25/50/10). This is unusual—most states set UM/UIM equal to or lower than liability limits. Know this for the exam!

What This Means

• Every Vermont auto policy MUST include UM/UIM coverage
• UM/UIM cannot be declined—it's mandatory by law (unless rejected in writing)
• If liability limits are higher than 50/100/10, UM/UIM must match unless policyholder directs otherwise
• Vermont is one of only 19 states requiring UM coverage and 14 requiring UIM coverage

How to Use This Guide

Study Strategy

1. Complete Pre-License Education First (40 hours required)
2. Study National P&C Content - Build your foundation (40-50 hours)
3. Read Each Chapter of This Guide - Focus on Vermont-specific regulations (20-30 hours)
4. Test Your Knowledge - Complete all quiz questions
5. Review Key Takeaways - Create flashcards from bullet points
6. Take Practice Exams - Aim for 85%+ before scheduling real exam (10-15 hours)

Recommended Study Timeline

Success Tip: Give yourself 7-8 weeks to study thoroughly. Vermont's 70% passing score demands solid preparation across both national concepts and state-specific laws.

Vermont Insurance Market Overview

Unique Vermont Characteristics

Winter Weather Perils:

• Heavy snow accumulation (Vermont receives 60-100+ inches annually in mountain areas)
• Ice dam damage (extremely common in Vermont's cold climate)
• Frozen pipe bursts (temperatures routinely below -10°F in winter)
• Roof collapse from snow load
• Nor'easter storms

Rural Property Risks:

• Remote locations with longer emergency response times
• Volunteer fire departments (may affect ISO ratings)
• Limited public water/sewer systems
• Oil heating systems common
• Older housing stock
• Wood frame construction predominant

Vacation Home Market:

• Ski resort area properties (Killington, Stowe, Stratton, Sugarbush, etc.)
• Lake properties (Lake Champlain, Lake Bomoseen, other lakes)
• Seasonal occupancy issues
• Special insurance considerations for unoccupied properties
• Short-term rental exposures

Vermont Demographics:

• Most rural state in New England
• Aging housing stock (many homes pre-1960)
• Wood heating common
• Significant agricultural operations
• Small towns with volunteer emergency services

Common Mistakes to Avoid

❌ Don't Do This

1. Skipping pre-license education - It's required, not optional
2. Ignoring Vermont state law - 30-40% of the exam tests Vermont-specific content
3. Confusing UM/UIM limits with liability limits - Vermont's UM/UIM (50/100/10) is HIGHER than liability (25/50/10)
4. Rushing the application - Background checks and authorization take time
5. Forgetting flood insurance CE - One-time 3-hour requirement for all P&C producers

✅ Do This Instead

1. Complete 40 hours from approved provider - No shortcuts
2. Master Vermont-specific topics - Use this guide thoroughly
3. Memorize Vermont minimums - 25/50/10 liability + 50/100/10 UM/UIM
4. Submit application 2-3 weeks early - Allow time for processing
5. Plan for flood CE - Complete during first renewal cycle

Next Steps

Ready to begin? Start with Chapter 1: Vermont P&C Regulation & Licensing to learn about the Vermont Department of Financial Regulation, licensing requirements, and professional responsibilities.

Good luck on your exam! 🎓