The Best Guide to Property and
Casualty Insurance License
TLTR: This is the ultimate guide for anyone looking to get a property and casualty insurance license. You will learn what you need, how to study for your exam, when to apply with your state department of insurance, and where to take classes.
The insurance industry is an attractive profession for many individuals. Even if the requirements to get into this sector are low, aspiring insurance beginners still require a proper license especially, if they are looking to getting into the property and casualty industry.
Property and casualty insurance, also known as P&C insurance, helps cover your home, vehicle, and in situations where you are liable for another person’s injuries. According to Statista, the property and casualty insurance sector is a fast-growing industry with a market size in the U.S. of 694 billion as of 2020.
P&C insurance policies come in different types depending on various factors. These factors are the coverages offered, claims processing time, deductibles, mentioned limits, and more. One thing to note is that this coverage does not include life insurance and health insurance.
In this blog
- What is a Property and Casualty Insurance License?
- Requirements For a P&C Insurance Agent
- How to Get a Property and Casualty Insurance License?
- Steps To Get a Property and Casualty Insurance License
- Enroll in Courses
- Set a Study Timeline
- Get the Necessary Materials for the Property and Casualty License Exam
- Register for Your State Exam
- Attend and Give Your State Licensing Exam
- Submit Your Documents to The State Insurance Board
- What To Do on the Day of Your P&C Licensing Exam?
- Pro Tips for Your P&C Licensing Exam Preparation
- Is It Beneficial to Work in the P&C sector?
- Frequently Asked Questions
What is 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. 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 have a few requirements. First and foremost, a state-specific personal and casualty license is a must. Of course, this license requires the successful completion relevant insurance licensing exams.
Furthermore, you are also required to be familiar with state laws and regulations regarding property and casualty insurance. In addition, agents must also be knowledgeable with federal regulations to 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:
These providers offer courses on how to sell property & casualty insurance from beginning to end. Their course includes marketing techniques, policy writing fundamentals, renewal strategies & more. And, many qualified trainers will be able 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 looking at getting licensed in multiple states, individual licenses are necessary each time instead of just going through the exam like usual. However, this would not apply for property and casualty insurance licenses as they are state-specific.
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. These exams will be specific to the state where you live and work in.
Enroll in Courses
As mentioned before, you will need to be familiar with relevant insurance materials via a certified course before you begin your career as a P&C insurance agent. Pick the course you want available in your state and decide which path you wish to take.
Set a Study Timeline
Once you have selected your course, you need to set aside some time to learn what is necessary. Based on your course material and duration, you should set a schedule to study. On average, it is best to put in about 35 to 40 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 know the subject topics in your course.
And remember, do not cram all the subject material a day or week before the test. It’s not going to help you at all. 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 have 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. However, it’s always a good idea to note any relevant materials you might need from them.
Furthermore, the internet itself is also a great tool to learn. 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 is 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 wouldn’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 are well prepared. Familiarize yourself with the location of the test center, relevant procedures, and rules. The test usually lasts for two to three hours. Also, the test format will typically be multiple choice and cover your course material.
Depending on the test center, you can 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: Even if you do not 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 P&C Licensing Exam?
Once you have scheduled your P&C licensing exam, you must remember the test location, time, and date. Note it down if you have to. You can even set a reminder or mark your calendar with a large circle. Besides that, here are a few additional tips you can follow for your exam day.
Arrive early: On your exam day, it’s always great to arrive earlier than your testing time. 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 and try to reach early so that you’re not late.
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. Sometimes you might also need to provide a course P&C course completion certificate. So, make sure to take these documents with you.
Dress simple: Try to dress formally. If you dress in something that hinders your movement while sitting, standing, or walking, it will divert your focus away from the exam. After all, it’s an exam and not some wedding reception you’re attending.
Pro Tips for Your P&C Licensing Exam Preparation
If you’re planning on giving the property and casualty insurance license exam, you already know how tough it is. With that in mind, you can follow these tips while studying to better prepare for your P&C licensing exam.
- Study early: As mentioned before, every P&C applicant needs to spend 35-40 hours studying the relevant materials. The earlier you study, 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 assist you to focus on specific sections with the best questions to weightage ratio to score better.
- Use practice test models: Practice test models are a great way to help you understand the test sections. Plus, it will let you know how well you have understood the information you studied. You will also see the section divisions as per the state exam model. The practice test models will also help you with your pacing as you give the exam.
- Stay away from distractions: Distractions are always present, and they can hinder your studies. Make an effort to remove all distractions such as your phone, TV, or entertainment devices so that you can focus on preparing for the exam. Also, taking periodic breaks while studying 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 logistics and operational challenges, including the insurance industry. But as time passed, the insurance industry was able to adapt due to the implementation of technology. According to Deloitte, the P&C insurance sector will see a 3% growth in 2021.
The need for this coverage will continue to grow along with the population. So, as long as people look 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 to keep the automation in check. Thus, the property and casualty insurance sector will continue to require reliable professionals.
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Frequently Asked Questions
Is the Property and Casualty Insurance License Exam Difficult?
The P&C license exam is not easy. Nor is it overly complicated. The exam tests you on the relevant insurance materials that you should know as an agent. Topics such as insurance terms, risk management, policy terms, and insurance laws are some of the important information you should know.
As long as you have prepared ahead of time and studied the course correctly, you will pass with flying colors.
Is a Degree Necessary to Get an Insurance License?
According to IBISWorld, as of 2021, there are 422,688 insurance brokers and agencies businesses in the U.S. These establishments have little to no preference for an individual who has a degree over someone without one when it comes to hiring practices.
A high school diploma or GED will be enough to qualify for an insurance license test. Although having some form of education is always beneficial since many insurers prefer that their agents have a background-related field such as finance, sales marketing, or business management.
Can You Sell Property and Casualty Insurance Without a License?
No. It’s illegal to sell insurance without a license. To sell insurance, an individual must have a license and approval by the state insurance board.
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