Study guide
0.2 How to Use This Course
Property & Casualty Insurance Exam
Track your progress as you read
Finished sections get a check mark.
1 Introduction
0.1 About the Property & Casualty Exam 0.2 How to Use This Course
2 Chapter 1: Insurance Fundamentals
1.1 Risk and Risk Management 1.2 Types of Risk 1.3 Principles of Insurance 1.4 The Insurance Contract 1.5 Policy Structure and Components
3 Chapter 2: Property Insurance Concepts
2.1 Property Coverage Basics 2.2 Perils, Hazards, and Exclusions 2.3 Valuation Methods 2.4 Coinsurance and Insurance to Value 2.5 Deductibles and Policy Limits
4 Chapter 3: Dwelling Policies
3.1 Dwelling Policy Overview 3.2 Dwelling Policy Forms (DP-1, DP-2, DP-3) 3.3 Dwelling Property Coverages 3.4 Dwelling Exclusions and Conditions
5 Chapter 4: Homeowners Policies
4.1 Homeowners Policy Overview 4.2 Homeowners Policy Forms (HO-2 through HO-8) 4.3 Section I: Property Coverages 4.4 Section II: Liability Coverages 4.5 Homeowners Exclusions 4.6 Homeowners Conditions 4.7 Common Homeowners Endorsements
6 Chapter 5: Personal Auto Policy
5.1 Personal Auto Policy Overview 5.2 Part A: Liability Coverage 5.3 Part B: Medical Payments Coverage 5.4 Part C: Uninsured/Underinsured Motorists 5.5 Part D: Physical Damage Coverage 5.6 PAP Exclusions 5.7 No-Fault Insurance and PIP
7 Chapter 6: Liability Insurance Concepts
6.1 Liability Insurance Basics 6.2 Negligence and Tort Law 6.3 Types of Legal Liability 6.4 Personal Umbrella Policies
8 Chapter 7: Commercial Property Insurance
7.1 Commercial Package Policy (CPP) 7.2 Building and Personal Property Coverage Form 7.3 Causes of Loss Forms 7.4 Business Income Coverage 7.5 Businessowners Policy (BOP)
9 Chapter 8: Commercial General Liability
8.1 CGL Policy Overview 8.2 Coverage A: Bodily Injury and Property Damage 8.3 Coverage B: Personal and Advertising Injury 8.4 Coverage C: Medical Payments 8.5 CGL Exclusions 8.6 CGL Limits and Conditions
10 Chapter 9: Commercial Auto Insurance
9.1 Business Auto Policy Overview 9.2 Covered Auto Designation Symbols 9.3 BAP Liability Coverage 9.4 BAP Physical Damage Coverage 9.5 Garage and Truckers Coverage Forms
11 Chapter 10: Workers Compensation
10.1 Workers Compensation Overview 10.2 Part One: Workers Compensation Insurance 10.3 Part Two: Employers Liability 10.4 Workers Compensation Exclusions 10.5 Other States and USL&H Coverage
12 Chapter 11: Other Commercial Lines
11.1 Inland Marine Insurance 11.2 Ocean Marine Insurance 11.3 Commercial Crime Insurance 11.4 Surety Bonds 11.5 National Flood Insurance Program 11.6 Professional Liability Insurance 11.7 Commercial Umbrella and Excess Liability 11.8 Boatowners and Personal Watercraft Insurance 11.9 Farm and Ranch Insurance 11.10 Mobile Home and Manufactured Housing Insurance 11.11 Title Insurance
13 Chapter 12: Insurance Regulations and Ethics
12.1 Producer Licensing 12.2 Producer Authority and Responsibilities 12.3 Unfair Trade Practices 12.4 Claims Settlement Practices 12.5 State Insurance Department 12.6 Penalties and Disciplinary Actions
0.2 How to Use This Course
Key Takeaways Explain This Topic AI
This course teaches the national (general) P&C content — about 64-77% of the scored questions in Florida, Indiana and Texas
You MUST supplement with your state's law materials for the state-law section (about 23-36% of scored questions in Texas, Indiana and Florida)
Prioritize the heaviest-tested forms: HO-3 homeowners and the Personal Auto Policy (PAP)
Use active recall — work every quiz, then re-study only the topics you miss
- Plan roughly 40-80 hours over 4-6 weeks, ending with timed full-length practice exams
- Last updated: October 2026
Welcome to ExamFinch's free Property & Casualty study guide . This section explains exactly how to use the material so your study hours convert into a first-attempt pass.
What This Course Is — and Is Not
This guide teaches the national (general) portion of the exam: insurance principles and the standard ISO (Insurance Services Office) coverage forms used across the country. That national content is roughly 64-77% of the scored questions in Florida, Indiana and Texas. It does not teach your state's specific statutes, so you must pair this course with your state's official materials.
- This Course Covers (national) Study Separately (your state)
- General insurance concepts & contract law State licensing & appointment rules
- Standard ISO policy forms (HO, PAP, CGL) State-specific endorsements & filings
- Coverage analysis, limits, exclusions State financial-responsibility limits
- Ethics and regulatory principles State unfair-trade-practices act & CE rules
- Claims and settlement concepts State claims-payment timeframes
- The 12-Chapter Map
- Personal Lines (Chapters 1-5)
- Ch. 1 Insurance Basics — risk, indemnity, insurable interest, policy structure
- Ch. 2 Property Fundamentals — valuation (ACV vs. replacement cost), coinsurance, deductibles
- Ch. 3 Homeowners — HO-2, HO-3, HO-5; Coverages A-F; perils and exclusions
- Ch. 4 Dwelling Fire & Other Personal — DP-1/DP-2/DP-3, inland marine, flood (NFIP)
- Ch. 5 Personal Auto Policy — PAP Parts A-F, liability, physical damage
- Commercial Lines (Chapters 6-11)
- Ch. 6 Commercial Property — BPP, causes-of-loss forms, business income
- Ch. 7 Commercial General Liability — premises, operations, products-completed operations
- Ch. 8 Commercial Auto — BAP symbols, MCS-90, garage coverage
- Ch. 9 Business Owners Policy (BOP) — package eligibility
- Ch. 10 Workers Compensation — Coverage A & B, exclusive remedy, state funds
- Ch. 11 Other Commercial Lines — marine, crime, surety, umbrella, professional liability
Regulations & Ethics (Chapter 12) — producer licensing, unfair practices, claims settlement.
Study Features and How to Use Them
Text sections: Read once for comprehension, then re-skim only the bold first-use terms as a review pass. Definitions and exclusions are the most testable lines.
Diagrams: Use the flowcharts to memorize sequences (license process, claim flow) — exams love order-of-operations questions.
Charts: The weighting charts tell you where to spend time; do not over-invest in 5% topics.
Quizzes: Treat every quiz as a checkpoint. The explanations are mini-lessons — read them even when you answer correctly.
Recommended 5-Week Plan (40-80 hours)
- Week Focus Goal
- 1-2 Chapters 1-5 (Personal Lines) Master HO-3 and the PAP cold
- 3-4 Chapters 6-11 (Commercial Lines) Understand CGL triggers and workers comp
- 5 Chapter 12 + your state's materials Master the state-law section
- Final days Timed full-length practice exams Build speed (~1 minute per question)
- Prioritize by Exam Frequency
Priority Topics Why
High HO-3 structure, PAP Parts A-D Part of the two largest outline sections (property and casualty policy types: 22 and 23 of 100 general questions in Texas and Indiana)
- High Named perils vs. open (special) form Foundation distinction, tested repeatedly
- High Coinsurance & ACV calculations Math items appear on most exams
- Medium CGL occurrence vs. claims-made triggers Core commercial-liability concept
- Medium Workers comp exclusive remedy Unique, high-yield idea
- Medium Producer duties & unfair practices Reliable ethics questions
- A Worked Example of the Right Mindset
Suppose a quiz asks whether a homeowner's stolen jewelry is fully covered under an HO-3. The exam-smart move is to recall the special-limits sub-cap on theft of jewelry (commonly $1,500 unless scheduled). Memorizing that number — not just "jewelry is personal property" — is the difference between a 65% and a 75%. Throughout this course, hunt for the specific dollar limits, percentages, and time frames ; those are what distinguish passing candidates.
How to Read a P&C Question Stem
P&C questions reward careful reading more than raw recall. Train yourself to spot four signal words. "Except" and "NOT" flip the question — three options are true and you pick the false one (these stems carry many of the exclusion questions). "Best" means more than one option is technically correct and you choose the most complete answer. "First" signals an order-of-operations item (for example, the first step after a loss is to give the insurer prompt notice).
When a question gives a dollar amount, underline it on your noteboard — it is almost always needed for a coinsurance, deductible, or ACV calculation rather than decoration.
A Mini Calculation You Will See
Coinsurance math appears on nearly every exam, so internalize the formula now: (Insurance carried / Insurance required) x Loss = Recovery , capped at the policy limit and reduced by the deductible. Example: a building worth $500,000 has an 80% coinsurance clause, so the required limit is $400,000. The owner insured it for only $300,000 and suffers a $100,000 loss. Recovery = ($300,000 / $400,000) x $100,000 = $75,000 , then minus the deductible. The $25,000 shortfall is the coinsurance penalty for underinsuring. Chapter 2 drills this; recognizing the pattern here saves you time on test day.
Study Tips
Go in order — later chapters assume earlier vocabulary.
Front-load weak areas , then re-quiz to confirm the gap closed.
Drill exclusions — "what is NOT covered?" is a favorite question stem, often signaled by "except."
Make flashcards for coverage letters (A-F), dollar limits, and form names.
Practice the coinsurance and ACV formulas until they are automatic.
Simulate exam day — one timed full-length test, no notes, before your real one.
Ready? Open Chapter 1: Insurance Basics from the sidebar and begin.
Loading diagram...