Your Property and Casualty Exam Study Guide

Property and Casualty Exam

 

If you’re in the insurance game, you should have a property and casualty (P&C) license.

Getting a P&C license allows you to offer insurance to property owners, occupants and affiliated organizations, which can drastically increase the success of your insurance business. You’ll need to pass the P&C exam and get licensed as a P&C salesperson first.

What is P&C insurance?

Property and casualty insurance protects the insured person and the property they own. For example, property insurance covers things like a home or car. Casualty insurance is liability coverage that protects you if you ever cause an accident that results in injuries or property damage.

Why is P&C insurance valuable to insurance salespeople?

It’s important for people to choose the P&C insurance that best suits them and their situation rather than opting for the cheapest plan available. Many don’t fully understand the plans and their benefits. This is where property and casualty insurance agents can help. They help clients understand the P&C insurance and select the plan that’s right for them. One size does not fit all when it comes to P&C insurance, and helping clients choose the right plan can give them the coverage and peace of mind they need.

How to pass the P&C licensing exam

Before you begin preparing for the test, it’s important to know the testing structure and the content that might be included. Generally, the test is presented in two parts. The two parts will likely be general knowledge and state-specific.

For the general knowledge section, you should expect to be asked questions about the types of policies and the guidelines associated with them:

  • Homeowners insurance.
  • Flood insurance.
  • Commercial insurance.
  • Terms (risk, liability, bonds, etc.).
  • Provisions and contract law (declarations, exclusions, appraisal, etc.).

For the state-specific section, you should expect to see questions regarding state rules, statutes and regulations. These questions could ask about director of insurance, marketing practices, commissions and compensation, etc. You can easily find exam outlines on state department of insurance websites.

Now let’s talk about preparing for and passing the exam.  Here are ten tips you can use:

  1. Study for the recommended amount of time: You need to study until you feel confident you know the information. It’s recommended to give yourself a week or more to study.
  2. Study in an ideal space: Make sure you’re in a quiet, comfortable space that allows you to focus on the material in front of you. Try to eliminate any distractions and keep the space neat and tidy.
  3. Use visual aids: If you’re a visual learner, use flow charts and diagrams to prepare for testing day. You can even create your own charts and diagrams that represent the information you’ve learned. This can help you quickly recall the information you need for the test.
  4. Take practice tests: It’s vital to take practice tests while preparing for the exam. This can help you understand the format and types of questions you might find on the test. You can find practice exams and other study materials on our website.
  5. Teach the material: A great way to learn information is to teach it. So, find a family member or friend and teach them all you know about P&C insurance. This can make the information clearer in your mind.
  6. Move: Don’t forget to get up and move. Walking and exercising promotes better blood flow to your brain, which can help you have an easier and more productive study session.
  7. Take breaks: Make sure to take breaks regularly. Your break can be going on a walk, eating a meal or taking a nap. No matter what you do, make sure breaks are a priority.
  8. Eat food that boosts your brainpower: Some foods are known to help improve memory and concentration. It’s best to consume those foods (fish, nuts, yogurt, blueberries, etc.) rather than junk food.
  9. Prepare for testing day: It’s a good idea to have directions to the testing center ready (prepare for any traffic or construction delays), arrive at the center early, have the correct identification with you, prepare to get your picture taken and be aware of the testing time limit.
  10. Drink water: Drinking water keeps you healthy and hydrated, and that’s important during study time.

To learn more about how to pass the property and casualty exam, contact Securities Training Corporation.