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Property and Casualty Insurance Exam Cheat Sheet: Must-Know Insider Tips! (2025 Update)


Property and Casualty Insurance Exam Cheat Sheet: The Property and Casualty insurance exam generally has around 150 questions. It's essential to focus on the most widely tested terms, laws, and topics in 2025. Test your knowledge on the understanding of core insurance principles, policies, laws, and ethics and basic insurance terminology. This section typically include auto, homeowners, renters, liability, and commercial coverage.


You’ll schedule your exam through authorized providers like Pearson VUE or PSI and depending on your State, you may need to complete a pre-licensing education course. Understanding the structure and purpose of the exam is your first step toward success.


How Many Questions Are on the P&C Exam and What’s the Format?

Typically, the P&C insurance exam consists of 100 to 150 multiple-choice questions, depending on the state. The time limit ranges from 2 to 2.5 hours, and the questions cover both national and state-specific content.

You can expect a combination of questions structured in different formats:

  • Scenario-based questions

  • Definitions and regulatory terminology

  • Policy structure and application

  • Ethics, licensing rules, and Commissioner questions

Every question is multiple choice. Knowing the structure ahead of time lets you simulate real test conditions during practice, increasing both speed and accuracy on exam day.


Core Topics Covered on the Property and Casualty Exam

Here’s what you must master:

  • Insurance Basics: Risk, indemnity, insurable interest

  • Types of Policies: Homeowners (HO-1 through HO-8), Auto (PAP), Commercial Package, BOP

  • Policy Structure: Declarations, insuring agreements, conditions, exclusions

  • Underwriting & Claims: Roles of agents, adjusters, binders

  • State Regulations: Licensing rules, CE, disciplinary actions

  • Ethics: Consumer protection, fraud, fiduciary duty

In addition, you’ll need a working knowledge of how different types of insurance interact, especially when dealing with claims, deductibles, liability limits, and endorsements.

Many candidates underestimate the importance of memorizing common policy structures. Spending time studying with P&CP's study guide where you can view charts and visuals that break down each section helps boost retention.


State-Specific Laws You Must Know for the Exam

Each state includes a portion of the exam on state insurance law, which can include:

  • Department of Insurance roles and powers

  • State licensing procedures

  • Required coverages (e.g., PIP, UM/UIM)

  • State-specific CE requirements

Some states test for time limits on claim reporting, grace periods, and unique policies like fair access to insurance requirements (FAIR plans).

The best way to master this section is to download your state’s specific content outline and highlight all terms that differ from the general national content.

Use mnemonics and flashcards for state rules—these high-yield details are often what separates pass from fail.


property and casualty insurance exam cheat sheet

Minimum Score Needed to Pass the Exam

Most states require a minimum passing score of 70%, though this may vary slightly depending on jurisdiction. Some testing centers will show a breakdown of your performance by category, helping you focus future study if needed.


Best Study Materials to Use Alongside This Cheat Sheet

To make the most of this cheat sheet, pair it with:


Also, following online social media instructors like Denise from P&CP where you'll see short clips and longer videos for that extra boost!

Listening to videos from an on-demand class while driving or walking can also boost recall, especially for long definitions or state-specific coverage rules.


Best Property and Casualty exam tips on tiktok
Top-notch Property and Casualty test prep tips and insights available on TikTok.





Best Property and Casualty exam tips on Youtube
Top-notch Property and Casualty test prep tips and insights available on YouTube



















Essential Knowledge & Smart Prep Tactics – Property and Casualty Insurance Exam Cheat Sheet

Key Insurance Terms You MUST Memorize


To pass the property and casualty insurance exam, you must know essential insurance terms inside and out. These are repeatedly tested and form the basis of many question scenarios.

Here are must-know definitions:

  • Premium – The amount the insured pays monthly to the insurer for coverage to remain active.

  • Deductible – The portion due from the Insured in the event of an accident before the Insurer will pay on a claim.

  • Indemnity – The principle of restoring the insured to the same Financial Condition they were in prior to suffering the Loss.

  • Risk – The uncertainty of future loss.

  • Hazard – Anything that increases the likelihood of a loss.

  • Loss Ratio – An insurer's loss ratio is one way to determine the insurer's profitability and is determined by dividing current losses by current earned premiums.

  • Insurable Interest – Concept that insurance can only be purchased when the applicant has a potential for financial loss.



Top Coverage Types You Must Know

Every state exam tests you on coverage types — their purpose, scope, exclusions, and endorsements.


Here's a breakdown:


Homeowners Insurance (HO1 through HO-8)

  • HO1- Basic

  • HO2-Broad

  • HO3-Special

  • HO4- Renters / Tenants

  • HO5-Comprehensive Form

  • HO6- Condos

  • HO8- Modified Coverage Form


    Auto Insurance (PAP)

  • Includes liability, uninsured motorist (UM/UIM), medical payments (MedPay), and physical damage: Collision + Comprehensive (Other than Collision) .

  • Must know your State specifics for Auto: Must know your State limits, IE: Spilt and/or single limits (IE: 100/300/100).


    Commercial General Liability (CGL)

  • Protects businesses against 3-party bodily injury and property damage. Know the difference between occurrence vs. claims-made policies and key terms like trigger, Retroactive Date, and types of tails.


    Business Owner’s Policy (BOP)

  • Types of businesses eligible for small businesses. Know terms like business income and extra expense.




Policy Structure: Master the Layout (DICE)

Most policies follow a structure that includes:

  1. Declarations Page – (Who/What/When/Where/How Much)

  2. Insuring Agreement – Insurer’s Promises | The heart of the policy, Lists the covered perils and the insurer's responsibilities.

  3. Conditions – Rights and Obligations of the Inured. Rules of the Road.

  4. Exclusions – What’s specifically NOT covered, What’s “Omitted” from coverage, any reductions in coverage




Insurance Acronyms to Memorize

You'll see acronyms throughout the exam. These are the most tested:

  • PAP – Personal Auto Policy

  • DP: Dwelling Policy

  • HO – Homeowners Policy

  • BOP – Business Owners Policy

  • CGL – Commercial General Liability

  • ACV – Actual Cash Value

  • RCV – Replacement Cost Value

  • UM/UIM – Uninsured/Underinsured Motorist

  • FAIR – Fair Access to Insurance Requirements

  • NAIC – National Association of Insurance Commissioners

✅ Tip: Make acronym flashcards. Quiz yourself daily.


How to Memorize Legal Terms Faster

Legal definitions can feel dry and overwhelming. Use these tactics:

  • Use mnemonics: e.g., “DICE” for Declarations, Insuring Agreement, Conditions, Exclusions.

  • Break them into parts: Don’t memorize one paragraph—split it into chunks.

  • Use analogies: Subrogation = “They pay, then get reimbursed.”

  • Explain aloud: Teach someone else. It reinforces retention.

🎯 Example: “Insurable Interest” = financial or emotional stake in avoiding loss (e.g., owning a home, being a spouse).



Conclusion: Your Shortcut to Passing the P&C Exam in 2025

The property and casualty insurance exam can feel overwhelming, but it doesn’t have to be.

With this cheat sheet in your hands, you’ve now unlocked:

  • A high-level overview of every major concept

  • The most-tested terms and policy structures

  • Smart memory hacks and study routines

  • Time-saving exam tactics and stress management tips

Thousands of students pass this exam every year, and the ones who succeed don’t just read textbooks. They work smarter with tools like what P&CP has to offer!


So what’s next?

  1. Download your state’s exam outline

  2. Start your daily review with this cheat sheet

  3. Take full-length Practice Exams

  4. Grab the complete Study Resources

  5. Join a proven Course for guided instruction

  6. Believe in yourself — because your license, income, and future career starts HERE!


🟩 Start strong. Stay focused. Pass smart. Let this cheat sheet be your daily companion — and you’ll crush the P&C exam on your first try.


 FAQ: Property and Casualty Insurance Exam Cheat Sheet

Q1. What’s the best way to use a P&C exam cheat sheet? Use the cheat sheet alongside of a course like, P&CP's On-Demand Courses. Focus on high-yield topics daily, and combine them with practice exams to reinforce concepts through repetition.

Q2. Can I pass the P&C exam just using a cheat sheet? No. A cheat sheet is a helpful summary tool, not a full prep solution. It should be used with a complete course, flashcards, state outlines, and timed mock exams.

Q3. How many questions are on the P&C insurance exam? Depending on the state, you’ll face between 100 and 150 multiple-choice questions, covering both general national topics and your state’s specific insurance laws.

Q4. What is the passing score for the P&C exam ? Most states require a score of at least 70% to pass. Some states may also provide category scores so you can see which areas need more focus if you retake the test.

Q5. Does the cheat sheet include state-specific laws? The cheat sheet focuses on national-level content. You should download your state’s exam content outline to ensure you’re studying all mandatory local laws.

Q6. What’s the fastest way to memorize endorsements? Break them into categories, use real-world examples, and review them with flashcards daily. Visual aids and spaced repetition are proven techniques to retain endorsements.

Q7. What if I fail the property and casualty exam? Don't panic. Review your score breakdown, identify weak areas, study strategically, and retake the test after the waiting period. Many pass on their 2nd or 3rd attempt. Take advantage of a teacher who will break down each chapter for you, these topics are not easy!

Q8. How long should I study before taking the PP&C exam? Study for at least 3–4 weeks. Break sessions into daily blocks and use a structured plan with practice questions and cheat sheets.





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