Free Practice Questions for NY Property & Casualty

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Exam Review

Key Facts: NY Property & Casualty Exam

2.5 hrs

Exam Time

PSI NY bulletin

150 Q

Exam Questions

NY DFS

90 hrs

Pre-License Education

PSI NY bulletin

25/50/10

Auto Minimums

NY Insurance Law

$1M

Security Fund Limit

Per claim

$40

Exam Fee

PSI

New York is a no-fault auto state with Article 51 providing $50,000 in PIP benefits. The P&C exam (17-56) follows 90 hours of pre-license education and has 150 questions in 2.5 hours, with 70% to pass. NY's Property/Casualty Insurance Security Fund provides up to $1 million per claim.

Sample NY Property & Casualty Practice Questions

Try these sample questions to review concepts for the NY Property & Casualty exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 434+ question experience with AI tutoring.

1Which New York state agency is the primary regulator of property and casualty insurance companies and producers?

A.New York Department of State (DOS)

B.New York Department of Financial Services (DFS)

C.New York Insurance Commission

D.New York Office of General Services

Explanation: The New York Department of Financial Services (DFS) is the primary regulator of all insurance companies and producers in New York, including property and casualty lines. DFS was created in 2011 by merging the former Insurance Department and the Banking Department. The Department of State handles other licensing (such as real estate), not insurance regulation.

2How many hours of pre-license education must a candidate complete before sitting for the New York property and casualty insurance producer exam?

A.40 hours

B.60 hours

C.90 hours

D.120 hours

Explanation: New York requires 90 hours of pre-license education for property and casualty insurance producers, which is the highest pre-license education requirement in the nation. This rigorous requirement reflects New York's commitment to ensuring that insurance producers are thoroughly prepared before being licensed to sell property and casualty insurance.

3What was the significance of the 2011 creation of the New York Department of Financial Services (DFS)?

A.It separated banking regulation from insurance regulation

B.It merged the former Insurance Department and Banking Department into one agency

C.It transferred insurance regulation to the federal government

D.It eliminated the role of the Superintendent of Insurance

Explanation: In 2011, New York created the Department of Financial Services (DFS) by merging the former New York Insurance Department and the New York Banking Department into a single, unified regulatory agency. The head of DFS is the Superintendent of Financial Services, who assumed the responsibilities of both the former Superintendent of Insurance and the Superintendent of Banks.

4How many hours of continuing education (CE) must a New York property and casualty insurance producer complete during each two-year license renewal period?

A.12 hours

B.15 hours

C.24 hours

D.30 hours

Explanation: New York requires property and casualty insurance producers to complete 15 hours of continuing education during each two-year license renewal period. Of these 15 hours, at least 1 hour must be in ethics. Producers must complete their CE requirements before their license expiration date to maintain their active license status.

5Under New York Insurance Law, which of the following is required for an individual to obtain a property and casualty producer license?

A.A four-year college degree in business or finance

B.Completion of 90 hours of approved pre-license education, passing the state exam, and a background check

C.Three years of experience working in an insurance agency

D.Sponsorship by an existing licensed insurance company

Explanation: To obtain a New York property and casualty producer license, an individual must complete 90 hours of approved pre-license education, pass the state licensing examination, and submit to a background check. There is no requirement for a college degree, prior work experience, or sponsorship by an insurance company, though the applicant must be at least 18 years old and a resident of New York (or qualifying non-resident).

6Under New York law, what is the role of an excess line broker (surplus lines broker)?

A.To sell only auto insurance policies

B.To place coverage with non-admitted insurers when coverage is unavailable from admitted insurers in New York

C.To provide reinsurance to domestic insurance companies

D.To act as a claims adjuster for commercial property losses

Explanation: An excess line (surplus lines) broker in New York is licensed to place insurance coverage with non-admitted (unauthorized) insurers when the needed coverage cannot be obtained from insurers admitted to do business in New York. The broker must make a diligent search of the admitted market before placing business with a non-admitted carrier, and must file the required documentation with DFS.

7Which of the following accurately describes the New York property and casualty pre-license education requirement compared to other states?

A.New York requires the fewest hours of any state

B.New York requires 40 hours, which is average among all states

C.New York requires 90 hours, the highest pre-license education requirement in the nation

D.New York has no pre-license education requirement

Explanation: New York requires 90 hours of pre-license education for property and casualty insurance producers, which is the highest pre-license education requirement in the nation. Most other states require between 20 and 40 hours. This extensive requirement ensures that New York producers have a thorough understanding of insurance principles, state laws, and consumer protection regulations before they are licensed.

8Under New York Insurance Law, how long does a producer have to notify DFS of a change of address?

A.10 days

B.30 days

C.60 days

D.90 days

Explanation: New York Insurance Law requires that a licensed insurance producer notify the Department of Financial Services (DFS) within 30 days of any change of address. Failure to notify DFS in a timely manner can result in administrative action against the producer's license, including fines or license suspension.

9In New York, which entity has the authority to approve or disapprove property and casualty insurance rates?

A.The state legislature

B.The New York Department of Financial Services (DFS)

C.The Insurance Services Office (ISO)

D.The National Association of Insurance Commissioners (NAIC)

Explanation: The New York Department of Financial Services (DFS) has the authority to approve or disapprove property and casualty insurance rates under New York's prior approval rating system. Insurers must file rates with DFS and receive approval before using them. ISO provides advisory rates but does not have regulatory authority. The NAIC is a voluntary organization of state regulators and does not have direct authority over rates.

10What minimum age must an applicant meet to obtain a property and casualty insurance producer license in New York?

A.16 years old

B.18 years old

C.21 years old

D.25 years old

Explanation: An applicant must be at least 18 years old to obtain a property and casualty insurance producer license in New York. This age requirement applies to all lines of insurance authority in the state. The applicant must also be a U.S. citizen or legal resident and must complete the required pre-license education and pass the state licensing exam.

About the NY Property & Casualty Exam

The New York property and casualty insurance exam covers DFS licensing requirements, New York Insurance Law, the NY no-fault auto system (Article 51), homeowners coverage, commercial insurance, workers compensation, and New York-specific consumer protections including the NY Property/Casualty Insurance Security Fund and Regulation 64.

Exam sponsor: New York Department of Financial Services (DFS) / PSI. The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Questions

150 questions

Time Limit

2 hours 30 minutes

Passing Score

70%

Exam / Certification Fees

$40

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Official sources

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

Insurance Regulation

Licensing, DFS and Superintendent powers, unfair practices, producer regulation, FCRA and fraud laws

General Insurance

Risk terms, insurer types, agency rules and contract principles

13%

Property and Casualty Insurance Basics

Underwriting, rates, negligence, perils, loss valuation, policy structure, common provisions and TRIA

Dwelling (2014) Policy

Basic, broad and special forms, Coverages A-E, exclusions, conditions and New York endorsements

14%

Homeowners (2011) Policy

HO-2 through HO-6 and HO-8, Section I and II coverages, perils, exclusions and New York endorsements

11%

Auto Insurance

New York financial responsibility, no-fault PIP, MVAIC, UM and SUM coverage, personal and commercial auto

11%

Commercial Package Policy (CPP)

Commercial general liability, commercial property, crime, inland marine, equipment breakdown and farm coverage

Businessowners (2010) Policy

BOP property and liability forms, common policy conditions and endorsements

Workers' Compensation Insurance

New York Workers' Compensation Law, FELA and other federal laws, the WC/EL policy, disability benefits and Paid Family Leave

Other Coverages and Options

Umbrella/excess, specialty liability, excess lines, surety bonds, NFIP and the New York FAIR Plan

Accident and Health Insurance

Health policy provisions, disability income, medical plans, New York mandates, HIPAA and the ACA

Preparing for the NY Property & Casualty Exam

What You Need to Know

Passing score: 70%
Exam length: 150 questions
Time limit: 2 hours 30 minutes
Exam / certification fees: $40 Official sources

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NY Property & Casualty: Suggested Study Strategy

1Master NY Article 51 no-fault — $50K PIP, 80% wage loss, 3-year maximum

2Know NY requires 90 hours of pre-license education for the P&C agent license

3Understand Regulation 64 claims handling timeframes: acknowledge within 15 business days, and accept or reject within 15 business days of a complete proof of loss

4Learn NY 25/50/10 auto minimums plus mandatory $50K PIP

5Study NY P/C Insurance Security Fund — $1 million per claim limit

Frequently Asked Questions

How hard is the New York property and casualty insurance exam?

The New York P&C exam (17-56) has 150 questions in 2.5 hours and requires 70% to pass. New York requires 90 hours of pre-license education for the P&C agent license. The no-fault auto system (Article 51) and Regulation 64 are heavily tested.

How does New York's no-fault auto insurance system work?

Under NY Article 51, all auto policies include Personal Injury Protection (PIP) covering $50,000 in medical expenses, lost wages (80% up to $2,000/month for 3 years), and other reasonable expenses regardless of fault. Minimum liability coverage is 25/50/10 plus $50K PIP.

What is New York Regulation 64?

Regulation 64 (11 NYCRR 216) establishes standards for prompt, fair, and equitable settlement of claims. It requires insurers to acknowledge claims within 15 business days and to accept or reject a claim in writing within 15 business days after receiving a properly executed proof of loss and all requested items (30 business days if arson is suspected), or to explain in writing why more time is needed.

What is the NY Property/Casualty Insurance Security Fund?

The NY P/C Insurance Security Fund pays allowed claims left unpaid because an authorized insurer is insolvent, for the kinds of insurance listed in Insurance Law section 7603. No payment on any one claim may exceed $1 million. Separate security funds exist for public motor vehicle liability and for workers' compensation.

Free Practice Questions for NY Property & Casualty

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