Free Property & Casualty Insurance Exam Flashcards

The national first-time pass rate for P&C exams averages 50-57%, making it one of the more challenging insurance licensing exams. Pass rates vary significantly by state: Vermont leads with 68%, Arkansas at 57%, Alaska at 57% for casualty, Alabama at 54%, and Arizona at only 46%. The lower pass rate compared to Life & Health exams reflects the complexity of coinsurance calculations and liability concepts. Candidates who score 90%+ on practice exams have significantly higher first-time pass rates.

The P&C exam typically consists of 100-150 multiple-choice questions, depending on your state. The time limit ranges from 2 to 2.5 hours for most states, though some allow up to 4 hours. Questions cover both national content (general insurance principles, policy types, coverage) and state-specific content (insurance commissioner duties, licensing laws, unfair trade practices). State-specific questions make up 20-30% of the exam. Most states offer separate Property and Casualty exams, but a combined P&C exam is available in most jurisdictions.

The most challenging P&C exam topics include: coinsurance calculations (know these formulas cold—they appear on every exam), deductible application order in homeowners claims with multiple loss types, liability and negligence concepts including the four elements of negligence and legal defenses, state-specific insurance laws (20-30% of the exam), and distinguishing between coverage types for Property, Dwelling, Homeowners, and Auto policies. Many candidates underestimate the Types of Property chapter due to its breadth of content.

Plan to study 35-40 hours for the P&C exam, the same recommendation from Kaplan, ExamFX, A.D. Banker, and America's Professor. Give yourself 2-4 weeks minimum. Start studying no more than 4 weeks before your exam to keep information fresh. Take periodic 5-10 minute breaks every hour for better retention. Most states require 40 hours of pre-licensing education, which provides a foundation but shouldn't replace dedicated exam preparation with practice tests and review.

Most states allow you to retake the P&C exam within 24-48 hours of failing, with no limit on total attempts. However, you must pay the exam fee ($40-92 depending on state) for each attempt. Some states impose longer waits after multiple failures: Alabama requires 90 days after two failures and 180 days after four failures. Virginia mandates a 30-day wait after three consecutive failures. Since the exam fee is non-refundable, investing in thorough preparation is more cost-effective than multiple retakes.

You can only bring a valid government-issued photo ID (driver's license, passport, or military ID) that matches your exam registration name. All personal items—bags, wallets, calculators, cell phones, watches, food, and study materials—must be stored in provided lockers. A basic on-screen calculator is provided for coinsurance and other math questions. Some states require your pre-licensing Certificate of Completion. Arrive 30-45 minutes early for check-in. Cameras monitor the testing room, and any suspicious behavior results in disqualification.