Property & Casualty study guide
Property & Casualty · Work through your exam, one topic at a time.
The Property & Casualty producer license is the credential that allows you to sell, solicit, and negotiate property and casualty insurance - homeowners, dwelling, commercial property, personal and commercial auto, inland marine, crime, general liability, and workers' compensation. It is required for anyone acting as an agent or broker in these lines, whether you plan to work for a carrier, an independent agency, a captive agency, or your own brokerage. The Property & Casualty study guide has 10 sections and about 2,984 words.
01Insurance Principles, Concepts, and Contract Law
Insurance transfers pure risk (loss or no loss), not speculative risk. A pool works because of the law of large numbers; its enemies are adverse selection and moral hazard.
299 words, about 1 min02General Policy Provisions, Conditions, and Exclusions
Policies are built from declarations, insuring agreement, conditions, exclusions, and definitions (DICE). Declarations identify who, what, when, where, and how much.
304 words, about 2 min03Property Insurance Basics and Coverage Forms
Property insurance responds to direct loss to property and, in business forms, indirect loss such as lost income. First distinguish named-peril forms (basic, broad) from special/open forms, which cover all risks of direct physical loss unless excluded.
299 words, about 1 min04Dwelling and Homeowners Policies
The dwelling program (DP-1, DP-2, DP-3) covers 1–4 family residences, owner- or tenant-occupied, and includes no liability unless endorsed; it is common for rental dwellings and older homes. The homeowners program adds liability and medical payments: HO-3 (special on the dwelling, broad named perils on personal property), HO-5 (special on both), HO-2 (broad), HO-4 (tenants), HO-6 (condo), HO-8 (older homes, functional replacement cost).
310 words, about 2 min05Commercial Property and Commercial Package Policies
Building and personal property coverage, condominium forms, and builders risk use the same causes-of-loss forms as personal lines but add business income and extra expense. Key concepts: coinsurance (often 80%, 90%, or 100%), agreed value (suspends coinsurance), and reporting forms .
282 words, about 1 min06Inland Marine, Crime, and Specialty Property Coverages
Inland marine covers property in transit or property that is mobile and not fixed at one location. It descends from ocean marine and is usually written as a floater with no coinsurance, following the property wherever it goes.
286 words, about 1 min07Casualty Insurance Basics, Liability Concepts, and Negligence
Liability insurance pays third parties on behalf of an insured who is legally obligated because of bodily injury or property damage. The foundation is negligence : duty (reasonable care), breach, proximate cause, and damages.
292 words, about 1 min08Personal Automobile Policy
The PAP has Part A liability, Part B medical payments, Part C uninsured/underinsured motorists, and Part D damage to your auto (collision and other than collision). Definitions drive everything: insured includes the named insured and family members for the owned auto, plus anyone using the covered auto with permission; covered auto includes newly acquired autos, trailers, and temporary substitute autos.
312 words, about 2 min09Commercial Auto and Garage Coverages
Business auto coverage uses numbered symbols: 1 any auto, 2 owned autos, 3 owned private passenger, 4 owned autos other than private passenger, 5 owned autos subject to no-fault, 6 owned autos subject to compulsory uninsured motorist, 7 specifically described, 8 hired, 9 nonowned. Symbol 1 is broad but still has limits; employee-owned autos used in the business are a classic trap unless properly covered.
284 words, about 1 min10Workers' Compensation and Employers Liability
Workers compensation pays benefits regardless of who caused the injury, and in exchange the employer receives exclusive remedy protection. Benefits include medical care (unlimited in most states), disability income - temporary total, temporary partial, permanent partial (often scheduled by body part), and permanent total - death benefits for dependents, and rehabilitation.
316 words, about 2 min