0.1 About the Property & Casualty Exam
Key Takeaways
P&C licensing exams run roughly 100-175 multiple-choice questions split into a national section and a separate state-law section
Passing standards are set by each state: Florida 70% correct, Texas a scaled score of 70, California 60%
Scoring rules differ by state: Texas scores the general and state-law questions together as one exam, so check your state's handbook
Exams are delivered by Pearson VUE, PSI, or Prometric depending on the state; exam fees vary (for example $33 in New York, $44 in Florida, $49 in Texas, $55 in California)
Pre-licensing rules vary: Florida's 2-20 license needs 200 hours (or qualifying experience), Texas requires no course, and California requires 12 hours of ethics study
Quick Answer: The Property & Casualty (P&C) insurance producer exam is a state-administered licensing test of roughly 100-175 multiple-choice questions, delivered by Pearson VUE, PSI, or Prometric. It is split into a national (general) section covering insurance principles plus property and casualty coverages, and a state-law section covering your state's statutes and regulations. Each state sets the passing standard (Florida 70% correct, Texas a scaled score of 70, California 60%) and how the sections are scored: Texas, for example, scores the general and state questions together as one exam.
What the License Lets You Do
Passing the P&C exam qualifies you for an insurance producer (agent) license to solicit, negotiate, and sell:
- Homeowners and dwelling fire policies (HO-2, HO-3, HO-5; DP-1, DP-2, DP-3)
- Personal auto (the Personal Auto Policy, or PAP)
- Commercial property (Building and Personal Property Coverage Form, business income)
- Commercial general liability (CGL) and commercial auto (Business Auto Policy)
- Workers compensation, inland and ocean marine, crime, surety, and umbrella
Eligibility and Pre-Licensing
Most states require you to be at least 18 years old and a resident (or to qualify as a non-resident). Pre-licensing education rules vary widely, and some states require no course:
| State | Pre-Licensing Hours | Vendor |
|---|---|---|
| California | 12 hours of ethics and California Insurance Code study (before the license is issued) | PSI |
| Texas | None required to sit | Pearson VUE |
| Florida | 200 hours (2-20 General Lines) | Pearson VUE |
| New York | 90 hours | PSI |
Exam Format by State
Question counts and time limits differ by jurisdiction. Many exams embed unscored "pretest" questions that look identical to scored ones, so answer every question.
| State | Questions (scored) | Time | Passing Score |
|---|---|---|---|
| California | 150 (plus pretest) | 3 hr 15 min | 60% |
| Texas | 145 (130 scored) | 2.5 hr | Scaled score of 70 |
| Florida (2-20) | 175 (160 scored) | 3 hr | 70% |
| New York (17-56) | 150 | 2.5 hr | 70% |
Always confirm current numbers with your state's exam content outline (published by Pearson VUE, PSI, or Prometric).
The National vs. State Split
This is the single most important structural fact about the exam. A P&C test is built from two distinct banks:
- National / general portion (about 64-77% of scored questions in Florida, Indiana and Texas): insurance principles, contract law, and the standard ISO coverage forms used nationwide. This is what a study course like this one teaches.
- State-law portion (about 23-36%): your state's licensing rules, unfair trade practices act, claims-settlement timeframes, financial responsibility limits, and required filings.
How the two sections are scored is set by each state. Texas scores the exam as a whole, not each part separately, and Florida computes one percentage across all of its questions, so check your own state's candidate handbook. Either way, budget real study time for state law: it is a sizable share of the score, and a national course does not teach it.
Exam-Day Procedures
- Arrive 30 minutes early to complete check-in and a palm/photo capture.
- Bring two forms of ID, at least one government-issued photo ID with a signature; names must match your registration exactly.
- No personal items in the testing room — phones, smart watches, notes, and food are stored in a locker.
- On-screen calculator and erasable noteboard are provided; you may not bring your own.
- Results are immediate — a pass/fail (and often a diagnostic by topic) prints before you leave.
After You Pass
| Step | Typical Requirement |
|---|---|
| Background check | Electronic fingerprinting in most states |
| License application | Filed via your state DOI, often through NIPR (National Insurance Producer Registry) |
| License fee | Set by each state (for example $50 plus a $5 ID fee in Florida, $188 in California) |
| Carrier appointment | An insurer must "appoint" you before you sell its products |
| Continuing education (CE) | Usually 24 CE hours per 2-year renewal, including an ethics requirement |
How P&C Differs From Life & Health
Many candidates take the P&C and Life & Health exams in the same week, so it helps to know what makes P&C distinct. P&C is built on the principle of indemnity — the insured is restored to their pre-loss financial position and cannot profit from a claim. That is why concepts like actual cash value (ACV), replacement cost, subrogation, and coinsurance penalties dominate P&C and barely appear on Life. Expect heavy testing of third-party liability (covering harm you cause to others), which has no real analog on the Life exam.
If you have studied Life first, consciously reset: P&C answers turn on coverage triggers, exclusions, and dollar limits rather than on cash values or beneficiaries.
Scoring, Retakes, and the Diagnostic Report
The score report you receive at the test center usually shows a topic-by-topic diagnostic (for example, "Personal Auto: below standard"). If you fail, this report is your study map for the retake. Retakes generally require rescheduling through the same vendor and re-paying the full exam fee; some states impose a short waiting period (often 24 hours to a few days) before you may sit again, and Florida allows five attempts at the same exam in 12 months. There is normally no penalty for wrong answers, so never leave an item blank.
Common Traps
- Assuming your state scores the exam the way another state does. Texas scores the whole exam together; read your own candidate handbook.
- Treating the state section as an afterthought: it is 30 of 130 scored questions in Texas and 36% of Florida's 2-20 exam.
- Confusing named-peril vs. open-peril (special form) coverage — a foundational distinction tested repeatedly.
- Mixing up occurrence vs. claims-made liability triggers — a frequent commercial-lines distractor.
- Forgetting that retakes usually require rescheduling and re-paying the full exam fee.
Official Resources
How does Texas score its General Lines Property and Casualty exam?
The national and state-law sections are scored separately and you must pass each
Only the state-law section is scored; the national portion is practice
Only the national section counts toward licensure
As one exam: the general and Texas-law questions are scored together
Which state is the well-known exception to the standard 70% P&C passing score?
California, which passes candidates at 60%
Texas, which requires 80%
Florida, which requires 75%
New York, which passes at 50%
What is the practical reason to answer every question, even ones that seem oddly worded?
Skipped questions trigger an automatic fail
Each blank deducts two points
The proctor manually reviews blanks
Exams often include unscored pretest questions indistinguishable from scored ones
Sections you finish are checked off in the contents.