Property and Casualty Test

The property and casualty test is required for insurance sales. It is required in order to obtain an insurance license. Each state requires that you have a license to sell insurance products, such as car insurance, renters insurance, and commercial building insurance. You will help clients protect their assets from loss due to acts of God, accidents, and other causes. Many insurance salespeople also sell products from the health and property area. However, this area is harder to gain licensure, so it is recommended that newcomers to the insurance field start with the property and casualty test.

To register for the property and casualty test, you will need to meet the prerequisites of your state. Each state has different requirements for licensing, so you will need to check with your state’s licensing board. There are generally insurance classes or training programs that you have to complete before you can take the property and casualty test. For example, some states require a basic course in insurance and a 30-hour course in insurance principles. When you have completed your coursework, you can register for the property and casualty test online or by telephone and pay the fee (around $45). You should take the test as soon as you complete your coursework, and you must register for the property and casualty test at least three days in advance.

On the day of the property and casualty test, be prepared to present two forms of valid ID. One must have both your signature and photo, while the other must contain at least your signature. The property and casualty test is a computer-based test consisting of multiple-choice questions that must be completed within a certain time limit. The number of questions and the time limit varies by state. Some tests have 40 questions that must be completed in one hour, while others consist of 60 questions that must be completed in two hours. The property and casualty test will consist of questions related to insurance laws, regulations, and procedures. On the test, you will be asked about general insurance regulations, which includes the Department of Insurance, licensing laws, claims, and producer/company compliance. You also must answer questions about regulation of personal lines, such as claims, automobile insurance, homeowner’s provisions, and other property and casual laws. The property and casualty test will also have questions about commercial line regulations. You will be asked questions about your state’s worker’s compensations laws, especially those involving benefits, minors, and who is and who is not required to be insured. You should also be familiar with surplus lines producers and the process for canceling commercial lines. There may also be questions about types of coverage, risk management, and ethics.

Once you complete the property and casualty test, you will immediately see your unofficial score on the computer screen. You will need a minimum score of 70 to pass. Once you receive a passing score, you must complete any additional licensing requirements. This may require giving a fingerprint, signing forms and releases, providing ID, and submitting to a background check. If you fail the property and casualty test, you can retake it when you are ready. There is no required waiting period.