Summary
P&C License Definition
A Property and Casualty License (P&C) is an insurance license that allows you to sell auto, home, commercial, and other property-related insurance products.
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What is a Property and Casualty License?
For most folks looking to start a career in insurance, a Property and Casualty license is most likely the first step.
Most new agents or insurance producers start with their P&C license, as it covers the most common types of insurance products—like home insurance, auto insurance, and renter’s insurance.
To get your P&C license, you’ll typically need to:
- Complete pre-licensing education
- Pass a state licensing exam
- Submit a license application and pay a fee
- Pass a background check
Types of Insurance a P&C License Covers
With a P&C license, you can sell a wide range of insurance products that fall into two main categories:
Property Insurance
Covers physical items that can be damaged, destroyed, or stolen.
- Homeowners insurance
- Renters insurance
- Flood insurance
- Earthquake insurance
- Commercial property insurance
- Business interruption insurance
Casualty Insurance
Covers liability and legal responsibility when someone gets hurt or their property is damaged because of your actions.
- Auto insurance
- General liability insurance
- Professional liability insurance
- Workers’ compensation insurance
- Product liability insurance
- Umbrella policies
P&C License vs Personal Lines License
A common question we receive is: What is the difference between a P&C license and a Personal Lines license?
Personal Lines – Lets you sell insurance to individuals (mainly auto and home).
Property & Casualty – Covers both personal AND commercial insurance.
Not all states offer a Personal Lines license, but some offer it alongside the P&C, which can confuse folks who are just getting their first license.
We recommend getting the P&C license from the start, as it offers more flexibility and growth potential.
How to Get A Property and Casualty License
Getting your P&C license is a reasonably simple process.
Since insurance licensing is regulated at the state level, the fees, exams, and order of steps varies by state.
If this is your first insurance license, you’ll start with your home state’s license.
Select Your State
For state-specific instructions on how to get your P&C license, choose your state from the dropdown menu.
The general steps and requirements, however, are fairly similar.
General Insurance License Requirements
Before starting the process, make sure you meet these basic requirements:
- Be at least 18 years old
- Have a valid Social Security number
- Be a legal resident of the US, and the state where you’re seeking your first license (you can get additional state’s licenses after getting your home state’s license)
- Be able to pass a background check (more info below)
Pre-Licensing or Exam Prep Course
Taking an insurance exam prep course is the first step to getting your insurance license. These courses have one goal – to prepare you for your insurance exam.
Some states require a certain amount of pre-licensing credit-hours before sitting for the exam. But even in states where it’s not required, taking an insurance course is the only way to get the information you need to pass the exam.
Insurance courses are usually taken online as recorded video classes, taken at your own pace. Depending on how much time you’re able to dedicate to your course, completing it usually takes between 1-3 weeks.
Recommended
We recommend Kaplan for P&C exam-prep courses. With industry-leading pass rates and a 4.7/5 star rating, more than 81% of our readers choose them.
Visit KaplanA good course will provide you not only with the industry-specific knowledge you need to pass the state exam, but also practice exams to test your understanding of the material.
Property & Casualty License Exam
After you’ve finished your exam prep course, the next step is to pass your state’s P&C license exam.
Insurance exams are:
- Proctored (usually at an in-person testing facility)
- Between $29 – $105 per attempt
- Between 50-200 questions
- 1-3 hour time limit
- 70% or higher passing grade
- Closed-book
- Multiple choice
What’s on the P&C Exam?
The P&C license exam covers topics related to insurance principles, policies, laws, and practices. Depending on your state, you might take a single combined P&C exam or separate Property and Casualty exams.
Sample Property and Casualty Exam Content Outline (TX)
A. Homeowners (HO-2, HO-3, HO-4, HO-5, HO-6, HO-8)
B. Dwelling Policies (DP-1, DP-2, DP-3)
C. Commercial Lines (CPP, Commercial Property, BOP, Builders Risk, Cyber)
D. Inland Marine (Personal Articles, Commercial Floaters)
E. National Flood Insurance Program
F. Others (Earthquake, Mobile Homes, Watercraft, Farm Owners, Windstorm)
A. Insurance (Law of Large Numbers)
B. Insurable Interest
C. Risk (Pure vs. Speculative)
D. Hazard (Moral, Morale, Physical)
E. Peril
F. Loss (Direct, Indirect)
G. Loss Valuation (ACV, Replacement Cost, Market, Stated, Salvage)
H. Proximate Cause
I. Deductible
J. Indemnity
K. Limits of Liability
L. Coinsurance/Insurance to Value
M. Occurrence
N. Cancellation
O. Nonrenewal
P. Vacancy/Unoccupancy
Q. Liability (Absolute, Strict, Vicarious)
R. Negligence
S. Binder
T. Endorsements
U. Blanket vs. Specific
A. Declarations
B. Insuring Agreement
C. Conditions
D. Exclusions
E. Definition of Insured
F. Duties of Insured
G. Obligations of Insurer
H. Mortgagee Rights
I. Proof of Loss
J. Notice of Claim
K. Appraisal
L. Other Insurance
M. Subrogation
N. Contract Elements
O. Warranties, Representations, Concealment
P. Underwriting Information
Q. Fair Credit Reporting Act
R. Gramm-Leach-Bliley Act
S. Policy Application
T. TRIA
U. Territory
A. Commercial General Liability
B. Automobile (Personal, Business)
C. Workers Compensation/Employers Liability
D. Crime (Dishonesty, Theft, Robbery, Burglary, Forgery)
E. Bonds (Surety, Fidelity)
F. Professional Liability (E&O, Malpractice, D&O, EPLI, Cyber, Liquor)
G. Umbrella/Excess Liability
H. Business Owners Policy (BOP)
A. Risk
B. Hazards (Moral, Morale, Physical)
C. Indemnity
D. Insurable Interest
E. Loss Valuation (ACV, Replacement, Market, Stated, Salvage)
F. Negligence
G. Liability
H. Occurrence
I. Binders
J. Warranties
K. Representations
L. Concealment
M. Deposit Premium/Audit
N. Certificate of Insurance
O. Law of Large Numbers
P. Pure vs. Speculative Risk
Q. Endorsements
R. Damages (Compensatory, Punitive)
S. Fair Credit Reporting Act Compliance
A. Declarations
B. Insuring Agreement
C. Conditions
D. Exclusions
E. Definition of Insured
F. Duties After Loss
G. Cancellation/Nonrenewal
H. Supplementary Payments
I. Proof of Loss
J. Notice of Claim
K. Other Insurance
L. Subrogation
M. Loss Settlement
N. TRIA
A. Commissioner of Insurance (Powers, Duties, Penalties)
B. Insurance Definitions (Authority, Transacting, Types)
C. Licensing Requirements (Types, Exemptions, CE, Records)
D. Marketing Practices (Unfair Practices, Rating)
E. Agent Duties (Fiduciary)
A. Property/Casualty Definitions
B. Surplus Lines
C. Rate/Form Approval
D. Homeowners (Declination, FAIR Plan, TWIA, Loss Settlement)
E. Automobile (Coverage, Financial Responsibility, Renewal, TAIPA, TNC)
F. Workers’ Compensation (Definitions, Coverage, Benefits)
G. Texas Guaranty Association
H. Texas Medical Liability Underwriting (JUA)
P&C Exam Sample Questions
Wondering what kinds of questions you’ll face? Here are three sample questions similar to what you might see on the actual exam:
Sample Question 1: Property Insurance
Which of the following is NOT typically covered under a standard homeowners (HO-3) policy?
A. Fire damage to the dwelling
B. Theft of personal property
C. Flood damage
D. Lightning strikes
Answer: C. Flood damage
Explanation: Standard homeowners policies exclude flood damage. Flood insurance must be purchased separately, typically through the National Flood Insurance Program (NFIP) or a private insurer that offers flood coverage.
Sample Question 2: Auto Insurance
In which of the following situations would collision coverage apply?
A. Your car is stolen from your driveway
B. Your car is damaged by a hailstorm
C. You back into a pole in a parking lot
D. A tree falls on your parked car
Answer: C. You back into a pole in a parking lot
Explanation: Collision coverage applies when your vehicle collides with another object or overturns, regardless of fault. The other scenarios would be covered under comprehensive coverage.
Sample Question 3: Insurance Regulations
An agent has just completed the sale of a homeowners policy. How long does the agent have to deliver the policy to the insured?
A. 24 hours
B. 30 days
C. 60 days
D. Varies by state
Answer: D. Varies by state
Explanation: Policy delivery timeframes are regulated at the state level and vary by jurisdiction. Agents must be familiar with their specific state’s requirements for timely policy delivery.
How Hard Is the P&C Exam?
The question on everyone’s mind: Is the P&C exam hard?
The truth is, it depends on how well you prepare. The national pass rate for P&C exams hovers around 60%, meaning that nearly half of test-takers don’t pass on their first attempt.
Why do people fail? Usually, it’s one of these reasons:
- Not studying enough (most states recommend 40+ hours of study)
- Underestimating the technical insurance terminology
- Test anxiety
But don’t let that discourage you. With proper preparation, most people can pass the exam. Taking an exam prep course from a reputable provider dramatically increases your chances of success on the first try.
Many successful agents say the key is to:
- Take a complete exam prep course
- Use practice exams to identify weak areas
- Focus your study time on those challenging sections
- Take practice tests until you’re consistently scoring 90% or higher
Remember, this exam isn’t testing your ability to be a good insurance agent—it’s testing whether you understand the basic concepts and regulations. Once you’re working in the field, you’ll learn much more through experience.
After Getting Your P&C License
Once you’ve passed your exam and received your license, you’re ready to start your insurance career. Here’s what comes next:
Getting a Job in Insurance
Once you’ve gotten your license, you can put yourself on the job market! Get ready to put the license to work and start making all those commissions you’ve been dreaming about.
A great place to find agencies hiring new P&C producers near you is StateRequirement Jobs. This is an insurance-focused job board that’s 100% free for job seekers.
Additional Licenses
After getting comfortable with your P&C license, you might consider adding:
- Life and Health License: Allows you to offer a complete insurance portfolio to clients (life insurance, health insurance, disability, Medicare supplements, etc.)
- Non-Resident Licenses: Get licensed in neighboring states to expand your territory
- Specialty Designations: Credentials like CPCU, CIC, or ARM that show expertise in specific areas of insurance
Many successful agents recommend getting your Life and Health license within your first year, as it significantly increases your earning potential.
Continuing Education and Renewal
Insurance licenses aren’t permanent by design. In order to keep your license in good standing with the state, you’ll need to:
- Take a continuing education course, satisfying the 20-24 credit hour requirement
- Pay a renewal fee
- Complete CE and renewal before your expiration date (late fees can be wildly expensive)
Property and Casualty License FAQ
How hard is the test for the property and casualty license?
With proper study, we believe everyone can pass the P&C exam. The national pass rate is around 60%. A quality pre-licensing course significantly increases your chances of first-attempt success.
How much is the property and casualty insurance license?
The total cost to get your P&C license typically ranges from $300 to $550, including pre-licensing education, exam fees, license application fees, and background checks. Costs vary significantly by state.
How long does it take to get a property and casualty license?
Most people can get their P&C license in 2-8 weeks. This includes pre-licensing education, studying, taking the exam, and application processing time. Motivated individuals can sometimes complete the process in as little as 2 weeks.
What does a property and casualty agent do?
P&C insurance agents help clients protect their assets by explaining policy options, providing quotes, processing applications, assisting with claims questions, and staying current on insurance products and regulations. Their time is generally divided between sales, client service, and administrative tasks.
How to make money in property and casualty insurance?
P&C agents earn through commissions (10-15% on new policies, 2-5% on renewals) and performance bonuses. New agents typically earn $30,000-$50,000 their first year, with experienced producers making $60,000-$150,000+ annually. Top performers can earn well over $200,000.
Is property and casualty insurance a good career?
Property and casualty insurance offers stability, strong income potential without requiring a college degree, and schedule flexibility once established. It’s ideal for people who enjoy building relationships and solving problems. Insurance is a product that will be required and sold without fail into the future.
