The Property and Casualty license exam is a state-administered test required for anyone who wants to sell or advise on property or casualty insurance products. Before you can legally work in this field, you must pass this exam and meet your state’s licensing requirements.
The exam is multiple choice, between 100 and 150 questions, and most states require you to score at least 70% to pass. You will usually have 2 to 3 hours to complete it at an authorized testing center.
The exam covers a wide breadth of material from policy structures and coverage types to state-specific regulations and the questions are written to test application of knowledge
Sources: New York DFS 2023 Report; Texas DOI 2024; Achievable.me state compilations
Challenges Candidates Face in P&C
- Volume of content: The exam covers seven distinct topic areas, each with its own terminology, rules, and exceptions.
- Tricky question wording: Many questions test distinctions between coverage types or policy conditions.
- State-specific content: A portion of every exam is unique to your state’s laws, which adds another layer of material on top of the national content.
- Time pressure: Most candidates are trying to pass within a few weeks of completing their pre-licensing course, leaving limited time to absorb dense material.
Property and Casualty Exam Pass Rates
Pass rates vary considerably by state, but they consistently show that a large share of test-takers do not pass on their first attempt.| State | First-Time Pass Rate | Fail Rate |
| New York | ~24% | ~76% |
| Texas | ~49–60% | ~40–51% |
| North Carolina | ~49% | ~51% |
| South Carolina | ~50% | ~50% |
| National Average | ~50–60% | ~40–50% |
What Topics Does the P&C Exam Cover?
The exam is structured around seven main content areas. You will need working knowledge of all of them:- P&C Insurance Basics and Common Policy Provisions: Foundational terms, policy structure, and common provisions that appear across multiple policy types.
- Dwelling and Homeowners Policies: Coverage types, conditions, exclusions, and key endorsements for personal property.
- Auto Insurance: Personal auto policy coverage, business auto coverage, definitions, and liability limits.
- Commercial Package Policies: Structure and characteristics of commercial lines coverage forms.
- Commercial General Liability and Businessowners Coverage: CGL forms, BOP structure, and key liability concepts.
- Other Property and Liability Coverages: Umbrella, inland marine, crime, and specialty coverages.
- State-Specific Laws and Regulations: This section is unique to your state and requires separate study of your state’s insurance code.
How Much Time Do You Need to Study?
Most exam prep experts recommend budgeting 35 to 40 hours of focused study time before sitting for the P&C exam. That doesn’t mean 40 hours of skimming — it means active review: reading material, taking notes, and working through practice questions section by section. A realistic study schedule might look like this:- Weeks 1–2: Cover each content section systematically, one topic per day or two.
- Week 3: Focus on your state-specific laws and any weak areas identified during review.
- Final 3–5 days: Take full-length practice exams under timed conditions. Review every wrong answer.
Top Tips to Pass the P&C Exam on Your First Try
1. Use Practice Exams Early and Often
Don’t wait until the end to start practice tests. Use them throughout your study process to identify gaps in your knowledge. The exam tests how you apply concepts, not just whether you can recall definitions — practice questions train your brain for that format.2. Learn the “Why” Behind Policy Provisions
When you understand why a coverage provision exists, what risk it addresses, who it protects it becomes much easier to answer scenario-based questions correctly. Don’t just memorize definitions; understand the logic.3. Don’t Neglect the State Law Section
Many candidates overprepare on national content and underestimate the state-specific section. This part of the exam covers your state’s insurance code, licensing rules, and consumer protection laws and it counts just as much as everything else.4. Focus on High-Weight Topics
Homeowners and auto insurance typically make up the largest share of questions on most state exams. Get very comfortable with personal lines coverages before moving into commercial lines.5. Simulate Real Exam Conditions
Time yourself. Sit down, set a timer, and work through a full practice exam without interruptions. Identifying and correcting bad habits — like spending too long on one question — is something you want to do before exam day, not during it.How Difficult is the Property and Casualty Exam in Texas Specifically?
Property and Casualty exam has 145 questions in total. Here is how they are broken down:- 100 scorable questions on national/general insurance content
- 10 pretest questions on national content (unscored, but you won’t know which ones)
- 30 scorable questions on Texas state-specific content
- 5 pretest questions on state content (also unscored)
FAQS
How hard is the Property and Casualty exam?
The Property and Casualty exam is considered moderately difficult. Most states report first-time pass rates between 50% and 60%, meaning many candidates need strong preparation and practice exams to pass on their first attempt.Where students take the Texas Property and Casualty exam?
The Texas Property and Casualty licensing exam is administered at authorized Pearson VUE testing centers across Texas. Candidates must schedule their exam through the testing provider after completing the required pre-licensing education. While the exam is taken in person, many training providers offer online, in-person, or on-demand courses to help students prepare.What is the hardest part of the Property and Casualty exam?
Many candidates find the most challenging parts of the exam to be:- Understanding the differences between policy coverages
- Learning commercial insurance concepts
- Memorizing state-specific insurance laws and regulations