Louisiana Property & Casualty Exam Overview

Welcome to OpenExamPrep's FREE Louisiana Property & Casualty Insurance exam prep guide. This comprehensive resource covers Louisiana-specific regulations, licensing requirements, the Direct Action Statute, and state insurance laws you need to know to pass your exam in 2026.

About the Louisiana P&C Exam

The Louisiana Property & Casualty insurance examination is administered by PSI Services LLC on behalf of the Louisiana Department of Insurance (LDI). The exam tests your knowledge of:

• Louisiana Insurance Code (Title 22 Revised Statutes)
• Property insurance principles (homeowners, fire, commercial property)
• Casualty insurance principles (auto, liability, workers' compensation)
• Louisiana Citizens Property Insurance Corporation
• Hurricane and flood coverage requirements
• Ethics and professional conduct

Exam Structure

Important: As of July 8, 2024, PSI no longer offers remote proctored exams for Louisiana. All exams must be taken in-person at a PSI testing center.

PSI Testing Locations in Louisiana

PSI operates testing centers throughout Louisiana:

Exam Content Breakdown

The Series 106 Property & Casualty exam covers two sections:

Major Update: No Pre-Licensing Education Required

Effective June 3, 2022, Louisiana eliminated its pre-licensing education requirement.

Before June 3, 2022

After June 3, 2022 (Current - 2026)

Key Points About Pre-Licensing

• Louisiana has no formal pre-licensing education requirement
• However, taking an exam prep course is strongly recommended
• The exam covers comprehensive insurance knowledge and Louisiana law
• First-time pass rates are significantly higher for those who take prep courses
• You can schedule and take the exam immediately after registering

Exam Tip: While pre-licensing isn't required, the exam is challenging. This FREE study guide will help you prepare for both general P&C concepts and Louisiana-specific content.

Louisiana Insurance Market Context

Why Louisiana Is Unique

Louisiana has one of the most challenging P&C insurance markets in the United States:

1. Natural Disaster Risk

   • Hurricanes: Louisiana is one of the most hurricane-prone states
   • Floods: Much of Louisiana is below sea level or in flood zones
   • Coastal Erosion: Louisiana loses about 25-35 square miles of land annually
   • Wind and Hail: Severe storms are common

2. Market Challenges

   • Multiple insurers have exited the Louisiana market since 2020
   • Louisiana Citizens Property Insurance has grown significantly
   • Hurricane deductibles range from 2-5% of dwelling coverage
   • Flood insurance is often required and separate from homeowners

3. Regulatory Approach

   • Elected Insurance Commissioner (one of only 11 states)
   • Strong consumer protection laws
   • Prior approval for most rate increases
   • Active market conduct enforcement

4. Auto Insurance Requirements

   • Minimum liability: 15/30/25
   • Direct Action Statute: Unique right to sue insurers directly
   • No Pay, No Play Law: Limits uninsured driver recoveries
   • UM/UIM coverage automatically included unless rejected in writing

Louisiana Citizens Property Insurance Corporation

Louisiana Citizens is the state-created insurer of last resort:

License Application Process

Step-by-Step Process

1. Study and Prepare (Recommended first)

   • Complete this FREE study guide
   • Review national P&C concepts
   • Take practice quizzes
   • Focus on Louisiana-specific laws

2. Schedule and Pass the Exam

   • Register with PSI online at test-takers.psiexams.com
   • Pay $53 exam fee
   • Choose a PSI testing center location
   • Pass with 70%+ score

3. Complete Fingerprinting

   • Required for all license applicants
   • Use Louisiana's vendor: IdentoGO
   • Must be electronically fingerprinted
   • Cost: $39.25

4. Apply for License

   • Submit application through NIPR
   • Pay $75 application fee + $5.60 transaction fee
   • Provide all required documentation
   • Must apply within 1 year of passing exam

5. Receive License

   • LDI review includes background check
   • License issued upon approval
   • Valid for 2 years
   • Begin selling P&C insurance in Louisiana

Exam Day Requirements

What to Bring:

• Two valid forms of government-issued ID
• One ID must contain your photograph
• PSI confirmation number

What NOT to Bring:

• Cell phones or electronic devices
• Study materials or notes
• Bags or personal items (lockers provided)

Exam Retake Policy

Total Costs Summary

Note: Louisiana has one of the lower total licensing costs due to no pre-licensing requirement and reasonable exam fees.

License Maintenance

Continuing Education Requirements

Louisiana P&C producers must complete:

• 24 total CE hours every 2-year licensing period
• 3 hours of ethics included in the 24 hours
• 3 hours of flood insurance for P&C licensees

Louisiana Auto Insurance Requirements

Minimum Liability Limits

Louisiana requires the following minimum auto liability coverage:

Memory Tip: Louisiana minimums are 15/30/25 - remember "Louisiana" starts with "L" for "Lower" minimums.

Key Louisiana Auto Insurance Laws

1. Direct Action Statute

• Louisiana is one of only a few states with this law
• Injured parties can sue the insurer directly (without suing the insured first)
• This increases litigation in Louisiana's auto insurance market

2. No Pay, No Play Law

• Uninsured drivers who cause accidents have limited recovery rights
• Cannot recover first $15,000 of bodily injury damages
• Cannot recover first $25,000 of property damage
• Applies only to uninsured drivers at fault

3. UM/UIM Coverage

• Uninsured/Underinsured Motorist coverage is automatically included
• Insured must reject in writing to waive UM/UIM
• Economic-only UM is available at lower cost

Louisiana Department of Insurance Contact

What This Guide Covers

This FREE study guide focuses on Louisiana state-specific content for the P&C exam:

Chapter 1: Louisiana Insurance Regulation & Licensing

• Louisiana Department of Insurance (LDI) structure
• Insurance Commissioner powers (elected position)
• Producer licensing requirements and CE
• Title 22 Louisiana Revised Statutes

Chapter 2: Louisiana Property Insurance Laws

• Homeowners insurance requirements
• Louisiana Citizens Property Insurance Corporation
• Hurricane deductibles and windstorm coverage
• Flood insurance requirements and NFIP
• Coastal property considerations

Chapter 3: Louisiana Casualty Insurance Laws

• Auto insurance minimums (15/30/25)
• Direct Action Statute
• No Pay, No Play Law
• UM/UIM requirements
• Workers' compensation requirements

Chapter 4: Ethics & Consumer Protection

• Unfair trade practices
• Claims handling requirements
• Louisiana Insurance Guaranty Association (LIGA)
• Producer conduct standards

Note: This guide covers ONLY Louisiana state law. Complete the national Property & Casualty exam prep first for foundational insurance knowledge.

Study Tips for Success

Key Numbers to Memorize

Louisiana-Specific Laws to Know

1. Direct Action Statute - Sue insurer directly
2. No Pay, No Play - Uninsured driver limitations
3. Louisiana Citizens - Insurer of last resort
4. Elected Commissioner - Voters elect Insurance Commissioner
5. UM/UIM Auto-Include - Must reject in writing

Next Steps

Ready to begin? Here's your action plan:

1. Complete this FREE study guide - Read all 4 chapters
2. Study national P&C concepts - See our Property & Casualty exam prep
3. Take chapter quizzes - Test your knowledge
4. Register with PSI - Schedule your exam
5. Pass exam - With 70%+ score
6. Complete fingerprinting - Through IdentoGO
7. Apply for license - Pay $75 + $5.60 fee

Remember: No pre-licensing is required in Louisiana, but thorough preparation is essential. Use this guide and practice quizzes to ensure success on exam day!

Let's get started with Chapter 1: Louisiana Insurance Regulation & Licensing!