AZ Property & Casualty study guide
AZ Property & Casualty · Work through your exam, one topic at a time.
The Arizona Property & Casualty producer license is a state credential that allows a person to sell, solicit, and negotiate property and casualty insurance products in Arizona. It is aimed at new agents entering personal or commercial lines, agency staff who need a producer license, and career changers moving into insurance sales. The AZ Property & Casualty study guide has 5 sections and about 1,682 words.
01Insurance Regulation: Who Governs the Policy You Sell
Insurance is regulated primarily by the states, a division of authority confirmed by the McCarran-Ferguson Act of 1945. Congress declared that continued state supervision serves the public interest, so federal antitrust law yields to state insurance codes.
359 words, about 2 min02General Insurance Concepts: The Vocabulary Behind Every Question
Risk is uncertainty about loss; a peril is the cause of loss (fire, wind, theft); a hazard increases the chance or severity of loss. Physical hazards are tangible (oily rags), moral hazards involve dishonesty (arson for profit), and morale hazards are indifference (leaving doors unlocked).
336 words, about 2 min03Property Insurance Basics: Reading the Policy Structure
Every property form contains declarations (who, what, where, how much), an insuring agreement (what is covered and for which perils), conditions (duties after loss, appraisal, salvage, mortgagee rights), exclusions, and definitions. Covered property is described precisely - building, business personal property, personal property - because items outside that description are not covered no matter how valuable.
318 words, about 2 min04Casualty Insurance Basics: Liability, Auto, and Workers Comp
Liability insurance responds to the insured's legal obligation to pay damages. Negligence requires duty, breach of that duty, proximate cause, and actual damages.
324 words, about 2 min05Coverages and Exclusions: Where the Exam Lives
An HO-3 covers the dwelling on an open-peril basis and personal property on a named-peril basis - a distinction tested constantly. Coverage A is the dwelling, B other structures, C personal property, D loss of use, E personal liability, F medical payments to others.
345 words, about 2 min