How to Pass the Property and Casualty Insurance Exam

In order to sell insurance products, you must first become a state licensed insurance agent. Property and casualty insurance agents sell products that involve protecting both individuals and business from financial losses as a result of events such as fires, car accidents, workers compensation and employee benefits. To become a state licensed insurance agent that sells the above-mentioned products, you must first pass the Property and Casualty insurance exam.

Things You'll Need

  • Study guides and materials
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Instructions

  1. The Property Section

    • 1

      Know the main topics. The eight main topics are insurance regulation, general insurance knowledge, property insurance basics, dwellings, homeowners, commercial package policy, business owners and other types of insurance such as boat owners insurances and flood insurance.

    • 2

      Familiarize yourself with insurance regulations. This section covers state and federal regulations as well as different types of insurance licenses, insurance licensed maintenance and disciplinary actions such as suspensions and revocations of licenses as well as associated fines and fees.

    • 3

      Obtain general insurance knowledge. This includes risk management concepts, types of insurers, rules for insurance producers and agencies and contract knowledge.

    • 4

      Read about the property insurance basics. Study underwriting, insurance rates, insurance hazards, valuation of losses and basic insurance policy structure and provisions.

    • 5

      Learn dwelling and homeowners insurance concepts. Know the basic, broad and special coverage forms for dwelling and homeowners insurance policies as well as exclusions, conditions and endorsements.

    • 6

      Study Commercial Package Policy. Learn general commercial policy declarations and conditions. Also included in this section are coverage and loss forms for general commercial property, commercial inland marine property, boiler and machinery and finally, farm coverage.

    • 7

      Understand the concepts of business owner policy and other types of coverage. For business owner policies, be sure to know general business owner insurance characteristics and conditions. For other types of coverage, learn the concepts of boat owners and the National Flood Insurance program.

    The Casualty Section

    • 8

      Realize what this portion of the exam covers. There are nine sections: Insurance regulation, general insurance, casualty insurance basics, homeowners, auto, commercial package policy, business owners and other types of insurance coverage.

    • 9

      Understand that the Insurance regulations and general insurance concepts are the same as what is covered in the property section of this test.

    • 10

      Know the concepts of casualty insurance hazards, rates, insurable interest, underwriting, negligence, damages and liabilities. Also included in this section are policy structure and provisions.

    • 11

      Study homeowner's insurance liabilities, coverage, common exclusions and conditions as well as special provisions and endorsements.

    • 12

      Read about all insurance coverage, laws and liabilities associated with both private and commercial auto insurance.

    • 13

      Know what is included in Commercial Package Policy. The casualty section of Commercial Package Policy includes commercial liabilities and crimes as well as farm coverage.

    • 14

      Learn about business owners and workers' compensation insurance and liabilities. Know what is included in and excluded from business owners insurance policies as well as workers compensation laws.

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