Arizona property and casualty practice exam
Free property and casualty practice for the Arizona producer exam: 367 general questions plus 13 Arizona state law questions, each with an explanation.
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Getting your Arizona property and casualty license
Arizona's combined property and casualty exam costs $59 through PSI, and you need 70 percent to pass. You get 4 attempts in 12 months, and producers complete 48 hours of continuing education per license period.
- Exam provider
- PSI
- Exam fee
- Combined property and casualty: $59. Property alone: $50. Casualty alone: $42.
- Exam length
- Property and casualty producer (13-34): 150 questions, 2.5 hours.
- Passing score
- 70 percent
- Retakes
- Up to 4 attempts per exam in a 12-month period. After a fourth failed attempt, wait one year.
How to plan your retake
Retake rules by state - License fee
- $120 per license class
- Fingerprints
- Required for Arizona residents and nonresidents moving to Arizona
- After you pass
- The department must receive your full application and fees within one year
- Continuing education
- 48 credit hours per license period, including 6 hours of ethics
Official links
- Arizona Department of Insurance and Financial Institutions - official state insurance department
- PSI, Arizona Insurance Candidate Information Bulletin (rev. Jun 2026) - exam provider information
Licensing facts checked on , against official sources. Fees and rules change, so confirm with the Arizona Department of Insurance and Financial Institutions and your exam's candidate handbook before you register.
Arizona state law questions
Every Arizona question with its answer, explanation, and the law it comes from.
Auto Insurance
2 questions
1. What are Arizona's minimum bodily injury liability limits, according to the Arizona Department of Transportation?
- $15,000 for one person and $30,000 for two or more people
- $30,000 for one person and $60,000 for two or more people
- $50,000 for one person and $100,000 for two or more people
- $25,000 for one person and $50,000 for two or more people
Show answer
ADOT lists $25,000 bodily injury liability for one person and $50,000 for two or more people.
2. What is Arizona's minimum property damage liability limit, according to ADOT?
- $10,000
- $15,000
- $25,000
- $5,000
Show answer
ADOT lists $15,000 property damage liability as part of the mandatory insurance minimums.
Cancellation and Nonrenewal
4 questions
1. After an Arizona auto policy has been in force for how long does state law limit cancellation to a specific list of reasons?
- 30 days
- 90 days
- 60 days
- 6 months
Show answer
The Department says that after a policy has been in force 60 days, Arizona law permits cancellation only for the listed reasons.
2. Which is a listed reason an Arizona insurer may cancel an auto policy that has been in force more than 60 days?
- The insured's driver's license is suspended or revoked
- The insured filed a single comprehensive claim
- The insured reached age 70
- The insured moved to a different ZIP code in Arizona
Show answer
Listed reasons include nonpayment, fraudulent misrepresentation and a suspended or revoked license, among others.
3. Arizona law allows an auto insurer to nonrenew for any reason other than which of the following?
- Nonpayment of premium
- The residence location, age, race, color, religion, sex, national origin or ancestry of an insured
- The insured establishing a primary residence outside Arizona
- The insurer's business decision to stop writing that line
Show answer
The Department states nonrenewal is allowed for any reason other than those protected characteristics. Moving the primary residence out of state is a permitted ground.
4. Within how many days of receiving an auto cancellation or nonrenewal notice may an Arizona insured write to the Director of Insurance to object?
- 30 days
- 60 days
- 5 days
- 10 days
Show answer
The Department says the insured may write to the Director within ten days of receiving the notice.
Guaranty Association
4 questions
1. The Arizona Property and Casualty Insurance Guaranty Fund limits recovery on most covered claims to the policy limit or:
- $300,000, whichever is less
- $100,000, whichever is less
- $500,000, whichever is greater
- $1,000,000, whichever is less
Show answer
The Department states recovery is limited to the policy limit or $300,000, whichever is less.
2. What deductible applies to each claim paid by the Arizona Property and Casualty Insurance Guaranty Fund?
- $500
- $25
- $100
- $1,000
Show answer
Each claim paid by the Arizona Property and Casualty Insurance Guaranty Fund carries a $100 deductible. The other dollar amounts are not the fund's per-claim deductible.
3. How does the Arizona guaranty fund treat covered workers compensation claims?
- Capped at $300,000 with a $100 deductible
- Capped at $100,000
- They are not covered
- No cap or deductible applies
Show answer
The Department states no cap or deductible applies to workers compensation claims.
4. For unearned premiums, the Arizona guaranty fund considers amounts above what figure, up to what maximum per policy?
- Above $100, up to $300,000 per policy
- Above $25, up to $10,000 per policy
- Above $500, up to $5,000 per policy
- Above $50, up to $1,000 per policy
Show answer
The Department states paid but unearned premiums are considered only above $25, up to $10,000 per policy.
Workers Compensation
3 questions
1. According to the Arizona Industrial Commission, which employers are generally required to carry workers compensation insurance?
- Only employers with five or more employees
- Only employers with ten or more employees
- All employers who have at least one employee
- Only employers in hazardous industries
Show answer
The Commission's FAQ says generally all employers with at least one employee must have workers compensation coverage, under A.R.S. 23-961(A).
2. The Arizona Industrial Commission civil penalty for an uninsured employer ranges from:
- $1,000 to $10,000
- $100 to $500
- $10,000 to $50,000
- $250 to $2,500
Show answer
The Compliance FAQ states the fines associated with the Civil Penalty range from $1,000 to $10,000.
3. Besides a civil penalty, what may the Arizona Industrial Commission seek against an employer without workers compensation coverage?
- Immediate seizure of business bank accounts
- An injunction forcing the business to cease operations until it complies
- A one-year ban on hiring
- Mandatory enrollment in the residual market
Show answer
The Compliance FAQ says the Commission may seek an injunction that would force the business to cease operations until it complies.
Key Arizona terms
15 plain-English cards on Arizona insurance law, from the Arizona flashcard deck.
Auto Insurance
- Arizona auto bodily injury minimums
- Required liability limits are $25,000 for one person's bodily injury and $50,000 for two or more people.
- Arizona auto property damage minimum
- Required property damage liability coverage is $15,000.
Cancellation and Nonrenewal
- Arizona auto cancellation protection trigger
- Restrictions on cancellation apply after 60 days on a new policy and immediately on a renewal policy.
- Arizona suspended-license cancellation ground
- Suspension or revocation during the policy period of a named insured's or qualifying driver's license can justify cancellation.
- Arizona protected auto nonrenewal characteristics
- An insurer cannot nonrenew solely for residence location, age, race, color, religion, sex, national origin or ancestry.
- Arizona objection to auto cancellation or nonrenewal
- An insured alleging a violation may file a written objection with the director within 10 days after receiving notice.
- Arizona unpaid-premium cancellation ground
- Failure to pay a premium or installment when due is a permitted ground for canceling a protected auto policy.
- Arizona out-of-state move nonrenewal exception
- An insurer may nonrenew when a named insured establishes a primary residence outside Arizona.
Guaranty Association
- Arizona ordinary guaranty claim range
- Except for covered workers compensation, the fund's obligation covers claim amounts above $100 and below $300,000.
- Arizona guaranty policy limit restriction
- The fund cannot pay more than the face amount of the policy giving rise to a covered claim.
- Arizona workers compensation guaranty exception
- Covered workers compensation benefit claims are excepted from the ordinary claim dollar band.
- Arizona guaranty unearned premium range
- Covered return-premium claims include amounts above $25, not exceeding $10,000.
Workers Compensation
- Arizona workers compensation employer threshold
- Generally, employers with at least one employee must carry workers compensation insurance, subject to exceptions.
- Arizona uninsured employer civil penalties
- The Compliance FAQ lists civil fines ranging from $1,000 to $10,000 for nonexempt uninsured businesses.
- Arizona uninsured employer injunction
- If a civil penalty is unpaid, the Commission may seek an injunction stopping business operations until compliance.
Keep studying
The general topics make up most of the exam.
Arizona exam questions
How much does the Arizona property and casualty exam cost?
$59 for the combined exam. Property alone is $50 and casualty alone is $42.Source: PSI, Arizona Insurance Candidate Information Bulletin (rev. Jun 2026)
How many times can I take the Arizona exam?
Up to 4 attempts in a 12-month period. After a fourth failure, you wait one year before retaking that exam.Source: PSI, Arizona Insurance Candidate Information Bulletin (rev. Jun 2026)
How much continuing education does Arizona require?
48 credit hours each license period, including 6 hours of ethics.Source: Arizona Revised Statutes, Section 20-2902
How much of the Arizona property and casualty exam is state law?
State law is usually around 20 to 30 percent of a state's producer exam. Check the Arizona candidate handbook from your testing provider for the exact content outline.
What does the Arizona state law section cover?
Common areas include licensing and continuing education, auto liability minimums, cancellation and nonrenewal notice rules, and the guaranty fund. This page covers: Auto Insurance, Cancellation and Nonrenewal, Guaranty Association, Workers Compensation.
Where do these state questions come from?
Each state question is written from the state's statutes, regulations, or insurance department guidance, and the source is linked under the answer so you can read it yourself.
Do I still need the general questions?
Yes. Most of the exam is general property and casualty knowledge. The full exam option here mixes 367 general questions with the Arizona state law questions.