P&C Insurance Cheat Sheet.
The night-before summary, built like the exam.

Property & Casualty Insurance License Exam — Cheat Sheet

Exam Snapshot (Must-Know Numbers)

• Questions: 130 scoreable questions
• Time limit: 150 minutes (~69 seconds per question)
• Exam fee: $49
• Passing score: 70%

Score Math

• 70% of 130 ≈ 91 correct answers needed to pass.
• You can miss roughly 39 questions and still pass.
• Pace target: answer ~1 question per minute to leave a buffer for review.

Property Insurance — Core Concepts

• Insurable interest: must exist at time of loss for property coverage.
• Indemnity: restore insured to pre-loss condition — no profit from a loss.
• ACV = Replacement Cost − Depreciation.
• Coinsurance penalty: Claim Payment = (Carried ÷ Required) × Loss − Deductible.
• Perils: Named-peril (only listed causes) vs. Open/All-risk (everything except exclusions).
• HO forms: HO-2 (broad), HO-3 (special — open peril dwelling), HO-4 (renters), HO-6 (condo), HO-8 (modified).

Casualty (Liability) — Core Concepts

• Negligence elements: Duty → Breach → Causation → Damages.
• Liability limits: Split limits (e.g., 100/300/50) vs. Combined Single Limit (CSL).
• Damages: Compensatory (special + general) vs. Punitive.
• Auto coverage parts: Liability (BI/PD), Med Pay/PIP, UM/UIM, Collision, Comprehensive.

Key Policy Provisions to Memorize

• Declarations: the "who/what/how much" page.
• Insuring agreement: the promise to pay.
• Conditions: duties after loss, notice, proof of loss.
• Exclusions: what is NOT covered.
• Subrogation: insurer recovers from at-fault third party after paying.
• Pro rata / other insurance: multiple policies share loss proportionally.

High-Yield Rules

• Utmost good faith: both parties deal honestly (representations, warranties, concealment).
• Adhesion: ambiguity is construed against the insurer (drafter).
• Aleatory: unequal exchange of value based on chance.
• Deductible reduces claim payment; limit caps the maximum payout.

Test-Day Strategy

• Read for qualifiers: always, never, except, not.
• Eliminate two wrong options first, then choose between the remaining two.
• Flag and skip time-sinks; return with your buffer.
• Since a wrong answer costs nothing extra, never leave a question blank — answer all 130.