The Best Guide to Property and Casualty Insurance License In 2023

TLTR: This is the ultimate guide for anyone looking to get a property and casualty insurance license. You’ll learn how to study for your exam, when to apply with your state department of insurance, and where to take classes.

Getting into the insurance industry can be an attractive career choice. But even though the requirements to enter this profession aren’t particularly taxing, aspiring insurance agents still need a proper license. In this article, we’re going to focus on obtaining a license to specialize in property and casualty insurance.

Property and casualty insurance, also known as P&C insurance, helps cover your home, vehicle, and liability for another person’s injuries. According to Statista, the property and casualty insurance sector is a fast-growing industry with a market size that’s expected to grow over $850 billion in 2023.

P&C insurance policies come in different types depending on various factors. These factors are the coverage offered, claims processing time, deductibles, mentioned limits, and more.

Please note that this coverage does not include life insurance and health insurance.

What Can you Sell with A Property and Casualty Insurance License?

A property and casualty license is mandatory for an insurance agent to sell policies that protect an individual’s personal or business property. Secondly, with this license you are authorized in your state to sell various types of insurance such as car insurance, homeowners insurance, commercial property insurance, and general liability insurance.

Requirements For a P&C Insurance Agent

If you’re planning to become a P&C insurance agent, you must meet a few requirements. First and foremost, a state-specific personal and casualty license is a must. Of course, this license requires the successful completion of relevant insurance licensing exams.

You are required to be familiar with state laws and regulations regarding property and casualty insurance. Agents must also be knowledgeable with federal regulations for insurance and general public transactions in the industry.

How to Get a Property and Casualty Insurance License?

No need to worry. Getting a property and casualty insurance license is a straightforward process that you can complete on your own time. All you need is the proper state-certified property and casualty agent license certification from an accredited school.
You could get property and casualty licensing education in as little as one semester if you want to obtain some extra credits for college while earning money with it, too! These property and casualty licenses are not too difficult to get as they are state-specific.

If you’re looking for courses or providers for property casualty license, you can check out the following:

• ExamFX
• Kaplan Financial Education
• Compu Cram
• A.D. Banker & Company

These providers offer courses on how to sell property and casualty insurance from beginning to end. Their courses include marketing techniques, policy writing fundamentals, renewal strategies, and more. And many qualified trainers will be available to help you along the way!

In addition to these, every state has specific licensing requirements as per the department of insurance. These requirements are essential for any individual looking to start a career in P&C insurance. You can refer to the National Association of Insurance Commission (NAIC) for detailed information.

Note: If you are interested in getting licensed in multiple states, you would need to go through state-specific licensing requirements to be eligible in the state you wish to operate.

Steps To Get a Property and Casualty Insurance License

The Property and Casualty Licensing Exam is a vital prerequisite for applicants pursuing a career in the P&C industry. It goes without saying that before you sell property and casualty insurance, you will need to clear the property and casualty licensing exam successfully.

Enroll in Courses

You will need to be familiar with relevant insurance materials via a certified course before you take your licensing exam. Pick the course you want that’s available in your state and decide which path you wish to take.

Set a Study Timeline

Based on your course material and duration, you should set a schedule to study. On average, it’s best to put in about 35 to 40 total hours of studying to pass the P&C licensing exam. Whether you study every day or during the weekend is completely up to you. The main thing is that you should end up with a firm grasp of the material.

Don’t try to cram for the course a day or week before the test. Prepare ahead and cover the essential study topics accordingly throughout your study period.

Get the Necessary Materials for the Property and Casualty License Exam

Once you have enrolled in state–accredited courses, you will need to obtain certain study materials for your exam. They are as follows:

• State law supplement
• Relevant textbooks for P&C insurance topics
• Online study materials such as PDFs, articles, notes
• Insurance-related videos and podcasts
• Usually, these materials are included by your course provider when you enroll.

Keep in mind that the internet itself can be a great learning tool. You can browse online FAQs, forums, or watch videos from professional P&C insurance agents to get an insight that you might not find in textbooks.

Register for Your State Exam

As you are preparing for your property casualty license exam, it’s best to register and set your exam date. Once you have an exam date, you will have a goal to work towards and prepare accordingly. Make sure you register correctly with your state’s designated exam provider and get the necessary time and location for the exam. You don’t want to miss it after preparing for it.

Attend and Give Your State Licensing Exam

When the day of the licensing exam arrives, make sure you’re well prepared. Familiarize yourself with the location of the test center, relevant procedures, and rules. The test usually lasts for two to three hours. The test format will typically be multiple choice.

Depending on the test center, you can usually receive your results within a few hours or the same day. Some centers might take an additional day or two to send you the results. You can confirm this with your test center.

Note: If you don’t get a passing score, you can reschedule the exam again on a later date.

Submit Your Documents to The State Insurance Board

Once you’ve successfully passed the exam and received your results, your next step will be to send your documents to the state insurance board.

All states require applicants to submit official documents for a background assessment to check for their previous work history and criminal records. Along with these documents, a state exam certificate, biometrics, a citizen affidavit, and a background report are also necessary.

The state insurance board will review and approve your property and casualty insurance license based on this. Once you’ve acquired your license, you are legally allowed to work as a P&C insurance agent.

What To Do on the Day of Your Property and Casualty Insurance Licensing Exam?

Arrive early: On your exam day, be sure to get there with time to spare. There can be instances where you live far away from the test center, or you could get stuck in traffic. So, plan your time accordingly so you feel stress-free and ready to go.

Check-in documents: Once you’ve arrived at the test center, you will have to present proper identification and documents to prove you are there to take the licensing exam. And, you might also need to provide a P&C course completion certificate. Make sure to take these documents with you.

Dress simply: Don’t worry about styling it. Wear comfortable, casual clothes. Treating the exam like a formal occasion will only add to the stress.

Pro Tips for Your Property and Casualty Insurance Licensing Exam Preparation

Follow these helpful hints to better prepare for your P&C licensing exam.

• Study early: Every P&C applicant needs to spend 35-40 hours studying the relevant materials. So, the sooner you begin studying, the more time you will have to review the course content you have already completed. This way, you can avoid cramming as the day of the exam draws near.
• Review the state exam model: Looking over the state exam model is a great way to gauge the test sections’ material. It will also give you a good idea of how every section will be weighted. This can give you an indication as to which specific sections to concentrate on.
• Use practice test models: Practice test models are a great way to help you understand the test sections. They contain questions and relevant material that simulate an actual exam. By utilizing these practice tests, you can get an idea about what sort of material the actual test will cover. You will also see the section divisions as per the state exam model. The course providers mentioned before, such as ExamFX, Compucram, tend to provide such practice test models to those who enroll in their course.
• Stay away from distractions: Distractions are always present, and they can hinder your concentration. Be sure to put aside your phone, and stay away from your TV, or other entertainment devices when you study. Also, taking periodic breaks while studying—about five or ten minutes every hour—helps you focus much better than continuously studying.

Is It Beneficial to Work in the P&C sector?

2020 presented many challenges due to the COVID-19 pandemic. Many industries faced logistical and operational challenges, including the insurance industry. But as time passed, the insurance industry was able to adapt due to the implementation of technology.

The need for this coverage will continue to grow along with the population. As long as people want to purchase property or insure it, P&C insurance will be a vital industry. And even if the industry is slowly moving towards automation, it will always require a human element. Thus, the property and casualty insurance sector will continue to require reliable professionals.

If you have any additional questions regarding the insurance sector or wish to see how we function, check out our insurance directory today!