Property and Casualty License (P&C License)
Updated: April 23, 2021|
Updated: April 23, 2021|
If you are looking to start a career in the insurance industry or scale up your portfolio with an additional license, getting a Property and Casualty License (P&C License) can be an advantageous step towards your professional goals.
A P&C license allows you to sell insurance products like homeowner’s, auto, commercial property, and professional liability. To obtain this license, you first need to pass your state’s Property and Casualty Insurance Exam and complete your state’s application process.
A Property and Casualty Insurance License enables an insurance agent or broker to sell or negotiate property and casualty insurance policies to protect people and businesses from financial losses resulting from property damages, accidents, theft, bad weather conditions, and other covered events.
Property insurance and casualty insurance are actually two separate lines of coverage, but in most cases, you’ll need to be licensed to sell both to work for an insurance agency.
Most insurance agents combine these two lines of authority, such as getting both property and casualty insurance licenses. It is a good idea to be licensed in as many insurance disciplines as possible to make yourself more attractive as an insurance professional and to be able to offer comprehensive solutions to your clients.
Along with the property and casualty license, agents will also generally get their Life and Health license.
To qualify for a license, it is important to meet the following pre-licensing requirements:
Each state outlines various requirements to obtain insurance licenses. Once you know the basic requirements, the next thing to do is prepare for the state’s examination.
Passing the property and casualty insurance exam is one of the requirements before applying for a license. Each state has a different set of qualifications for taking the exam.
Some states require a pre-licensing course before qualifying to register for the exam, while some states do not require a pre-licensing course. There are also some states that only need a completion certificate to present at the test center on exam day.
An insurance pre-licensing course will provide the general knowledge and state-specific information you need to study to pass the state licensing exam. If your state requires pre-license education credit hours, this course will also complete those requirements.
After completing your pre-license course, you will need to register to take the license property and casualty insurance exam. For information on registering for the exam, you can find more information on your state’s insurance license page.
Make sure to follow registration guidelines as required by your state. Incomplete or late registration may delay your exam and cost you additional fees.
While each state’s exam will vary, the exam has the same multiple-choice outline consisting of two sections: general knowledge and state-specific knowledge. Here are some of the topics that will be covered.
The general knowledge section includes:
Types of policies
Insurance terms and concepts
Policy provisions and contract law
Types of policies, surety, bonds, and related terms
The state-specific section includes state laws, statutes, and regulations common to property and casualty insurance, such as licensing requirements, agent duties, and responsibilities, approval of rates and forms, marketing practices, etc.
To pass the property and casualty exam, most states mandate a passing score of 60%. According to the National Association of Insurance Commissioners (NAIC), the passing rate for property and casualty insurance is 54.9%.
Passing the property and casualty exam can be a challenging process, but taking an exam prep course and developing a good study program can help you prepare and pass the exam.
If you fail the exam, you can retake it, but some states may require you to wait at least 60 days before retaking the exam if you have already failed it twice. Remember that each attempt of the exam has a fee, so be sure that you study well before your first attempt.
Once you passed the exam, completed a background check, and turned in your application, your state’s insurance authority will review your request for a license. Once you are approved, you will receive an email advising you that your license has been issued with instructions for printing a copy of your license.
When applying for an insurance-related job, your employer will ask for your license number and National Producer Number (NPN).
By having a license, you become authorized by the state to sell property and casualty insurance policies and related products that will provide financial protection to your clients against loss or damage.
As a holder of a property and casualty license, you can consider various career paths. Aside from being an agent or a broker, here are a few examples:
Insurance Adjuster: Insurance adjusters create reports detailing the events and damages related to the claim. One of the main duties of an insurance adjuster is to investigate claim settlements related to homes, businesses, and other insured properties.
Insurance Investigator: One of the key roles of insurance investigators is to review the filings of claimants and findings of insurance adjusters. The investigator looks at the documentation to ensure that the claimants and adjusters followed company guidelines.
Insurance Underwriter: Underwriters help the insurer comply with regulatory requirements, cover risks properly, and reject uninsurable risks. One of the main responsibilities would be determining a risk before the company enters into an insurance contract with any individual or business.
According to ZipRecruiter, most property and casualty insurance producers earn between $30,000 to $44,500. The top earners make $50,000+ annual salaries throughout the United States.
Using this and other insurance licenses, you could increase your earning potential by starting your own insurance agency. Generally, agency owners make considerably more than insurance producers. This increase in pay comes with an increase in responsibility, as you are essentially starting your own business.
The property and casualty license allows you to sell property and casualty insurance products, such as:
Whether you are looking for an entry-level position or transitioning into a multi-line insurance role, getting a Property and Casualty License provides you the stability and advancement in your insurance-related career.
A property and casualty license is issued to an insurance professional who passed the property and casualty insurance state licensing exam. A property and casualty license allows you to sell property and casualty insurance products, such as homeowner’s insurance, renter’s insurance, auto insurance, general liability, and worker’s compensation, among others.
It could take at least two to eight weeks to get a property and casualty license. The requirements for obtaining a license vary by state. Some states have a pre-licensing course requirement, while some states do not require a pre-licensing course.
Even if your state does not require a pre-licensing education course, most of your time will be spent studying for the exam. Once you pass the exam, your state’s insurance authority will review your application which could take anywhere from a few days to a few weeks. Once your application has been approved, you will get a notification and a copy of your official insurance license.
For property and casualty insurance agents, salaries range between $30,000 to $44,500 annually. The top earners make $50,000+ per year. Property and casualty insurance agents who sell homeowner’s and auto insurance can also earn a five to 20 percent commission based on policy premiums.
According to the National Association of Insurance Commissioners (NAIC), the passing rate for property and casualty insurance is 54.9%. Taking an exam prep course and making time to study weeks before test day can help you prepare and pass the exam.
There are several job roles you can take with a property and casualty license. Besides being an agent or broker, some examples of job positions include insurance adjuster, underwriter, insurance examiner, personal or commercial lines manager, operations manager, and insurance specialist, among others.
The property and casualty licensing exam is a two- to four-hour, multiple-choice type of exam with 150-170 questions consisting of two parts. The first part consists of questions covering general knowledge of products, terms, and concepts. The second part includes state-specific information regarding state licensing laws, statutes, and regulations.
Passing the exam is one of the requirements for applying for a license. Each state has a different set of qualifications for taking the exam, including the completion of a pre-licensing course and undergoing a fingerprint and background check. After passing the exam and completing the state requirements, you may apply for the license. The state will review your application, and once approved, you will officially receive a print of your insurance license.
Property and casualty license course fees depend on the course provider that you choose. For example, Kaplan Insurance Licensing’s program for a property and casualty license costs between $200 – $300.
You can take the property and casualty insurance license exam at a testing center or remote-based testing platform authorized and approved by your state. Many states contract with exam providers, such as PSI, Prometric, or Pearson Vue, to administer licensing exams. Whether you are taking the exam at a physical location or online, your exam will be proctored, so no open-book tests are allowed.
Unless you have multiple insurance licenses to sell various types of insurance products, having a property and casualty insurance license only grants you the eligibility to transact, negotiate, and sell property and casualty insurance products and not other types of insurance.
Information on this page has been gathered by a multitude of sources and was most recently updated on April 2021.
Any Information on this site is not guaranteed or warranted to be correct, accurate, or up to date. StateRequirement and its members and affiliates are not responsible for any losses, monetary or otherwise. StateRequirement is not affiliated with any state, government, or licensing body. For more information, please contact your state's authority on insurance.
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