Kentucky property and casualty practice exam
Free property and casualty practice for the Kentucky producer exam: 367 general questions plus 16 Kentucky state law questions, each with an explanation.
Licensing facts checked on
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Studying for Life and Health? Kentucky life and health practice exam
Getting your Kentucky property and casualty license
Kentucky requires a 20-hour pre-licensing course for the lines you want. You schedule the exam through the Department's eServices after your application is processed.
- Pre-licensing education
- 20-hour classroom or self-study course for the lines of authority you want
- Exam scheduling
- Scheduled through the Department's eServices after your application is processed
- Passing score
- 70 percent of the questions answered correctly.
- Retakes
- Pay the $50 retake fee and reschedule through eServices as soon as the next business day
How to plan your retake
Retake rules by state - Missed appointments
- If you do not show up for a scheduled exam, you may lose the $50 fee
- Continuing education
- 24 hours, including at least 3 hours of ethics
Official links
- Kentucky Department of Insurance - official state insurance department
Licensing facts checked on , against official sources. Fees and rules change, so confirm with the Kentucky Department of Insurance and your exam's candidate handbook before you register.
Kentucky state law questions
Every Kentucky question with its answer, explanation, and the law it comes from.
Licensing and CE
1 question
1. How many continuing education hours must a Kentucky agent complete each biennium, and how many must concentrate in ethics?
- 24 hours, including 3 hours of ethics
- 24 hours, including 6 hours of ethics
- 15 hours, including 3 hours of ethics
- 30 hours, including 3 hours of ethics
Show answer
KRS 304.9-295 requires 24 hours each biennium, with 3 hours having a course concentration in ethics.
Auto Insurance
5 questions
1. What is the minimum split liability coverage required for a Kentucky motor vehicle under KRS 304.39-110?
- $15,000 per person, $30,000 per accident, and $10,000 property damage
- $20,000 per person, $40,000 per accident, and $15,000 property damage
- $30,000 per person, $60,000 per accident, and $25,000 property damage
- $25,000 per person, $50,000 per accident, and $25,000 property damage
Show answer
KRS 304.39-110(1)(a) sets 25/50/25, or a single limit of $60,000 per accident. The policy must also provide basic reparation benefits.
2. Under the Kentucky Motor Vehicle Reparation Act, basic reparation benefits are capped at what amount for all economic loss from one accident to one person?
- $5,000
- $10,000
- $25,000
- $50,000
Show answer
KRS 304.39-020 caps basic reparation benefits at $10,000 per person per accident, covering medical expense, work loss, and replacement services loss.
3. Within basic reparation benefits in Kentucky, medical expense includes a funeral, cremation, and burial allowance of up to:
- $1,000 per person
- $2,500 per person
- $5,000 per person
- $10,000 per person
Show answer
KRS 304.39-020 includes up to $5,000 per person for funeral, cremation, and burial within medical expense.
4. Under KRS 304.39-060, a Kentucky accident victim bound by the tort limitation may sue for pain and suffering if medical expense benefits payable exceed:
- $1,000
- $500
- $2,500
- $10,000
Show answer
Unless a listed serious injury such as permanent disfigurement, certain fractures, or death applies, the medical expense threshold is $1,000.
5. How may a Kentucky motorist reject the limitations on tort rights under KRS 304.39-060?
- Orally, to the insurance agent at renewal
- By notifying the Transportation Cabinet after an accident
- By a written rejection on the Department of Insurance's form, filed before the accident
- By paying an additional premium with no filing
Show answer
The rejection must be in writing or electronic on a form the Department of Insurance prescribes, filed before the accident, and it stays in force until revoked.
Cancellation and Nonrenewal
3 questions
1. Under KRS 304.20-320, an insurer cancelling a covered property or casualty policy that has been in effect more than 60 days must give written notice at least how many days before cancellation?
- 14 days
- 30 days
- 45 days
- 75 days
Show answer
KRS 304.20-320(2)(b) requires 75 days notice once a policy has been in effect more than 60 days, and the notice must state the specific reason.
2. Under KRS 304.20-320, how much notice is required to cancel for nonpayment of premium?
- At least 10 days
- At least 14 days
- At least 30 days
- At least 75 days
Show answer
KRS 304.20-320(2)(b) sets 14 days for nonpayment, and for cancellations within 60 days of policy issuance.
3. KRS 304.20-320 requires written notice of nonrenewal, stating a specific reason, at least how many days before the end of the policy period?
- 30 days
- 45 days
- 60 days
- 75 days
Show answer
KRS 304.20-320(3)(a) requires notice at least seventy-five days before the end of the policy period.
Guaranty Association
2 questions
1. What is the most the Kentucky Insurance Guaranty Association pays per claimant for most covered claims under KRS 304.36-080?
- $100,000
- $250,000
- $300,000
- $500,000
Show answer
KRS 304.36-080 limits payment to $300,000 per claimant for covered claims other than special categories such as workers compensation.
2. How does the Kentucky Insurance Guaranty Association treat a covered claim from a workers compensation policy of an insolvent insurer?
- Capped at $100,000 per claimant
- Capped at $300,000 per claimant
- Not covered
- Paid in full, with no stated dollar cap
Show answer
KRS 304.36-080 pays the full amount of a covered claim arising from a workers compensation policy.
Claims Practices
2 questions
1. Under 806 KAR 12:095, an insurer must acknowledge receipt of a claim notice within how many days?
- 5 days
- 15 days
- 30 days
- 45 days
Show answer
Section 5(1) requires acknowledgment within fifteen days, and Section 5 also gives 15 days to reply to Department inquiries.
2. Under 806 KAR 12:095, an insurer must offer any payment due on a first-party claim within how many calendar days of receiving proof of loss?
- 30 calendar days
- 10 calendar days
- 15 calendar days
- 60 calendar days
Show answer
Section 6(1)(a) requires the offer within thirty calendar days of receipt of proof of loss, or notice within that time that more time is needed.
Workers Compensation
2 questions
1. Under KRS 342.730, temporary total disability is paid at 66 2/3 percent of the average weekly wage, subject to a maximum of what share of the state average weekly wage?
- 85 percent
- 100 percent
- 110 percent
- 133 percent
Show answer
KRS 342.730(1)(a) sets the maximum at 110 percent and the minimum at 20 percent of the state average weekly wage.
2. Under KRS 342.340, proof of workers compensation coverage must be filed within how many days after the policy is issued?
- 5 days
- 10 days
- 30 days
- 60 days
Show answer
KRS 342.340 requires the filing within ten days after issuance, and the carrier files on the employer's behalf.
Residual Markets
1 question
1. Under KRS 304.35-010, who must establish and maintain the Kentucky FAIR Plan and its reinsurance association?
- Only the Department of Insurance
- All insurers licensed to write property or casualty insurance on a direct basis
- Only domestic mutual insurers
- Only surplus lines insurers
Show answer
KRS 304.35-010 requires insurers licensed to write property or casualty insurance on a direct basis to set up the plan and association, subject to the commissioner's approval.
Key Kentucky terms
15 plain-English cards on Kentucky insurance law, from the Kentucky flashcard deck.
Licensing and CE
- Kentucky agent CE biennium
- Nonexempt agents must complete 24 approved hours each biennium, including three concentrated in ethics.
Auto Insurance
- Kentucky minimum auto liability options
- Minimum coverage is 25/50/25 split limits or a $60,000 single limit per accident.
- Kentucky basic reparation benefit maximum
- Basic reparation benefits total no more than $10,000 per injured person per accident for economic loss.
- Kentucky reparation funeral expense allowance
- Medical expense includes up to $5,000 per person for funeral, cremation and burial costs.
- Kentucky noneconomic tort medical threshold
- For persons subject to no-fault restrictions, medical benefits generally must exceed $1,000 unless a listed serious injury applies.
Cancellation and Nonrenewal
- Kentucky established-policy cancellation notice
- For policies subject to section 304.20-320 in force over 60 days, ordinary cancellation requires 75 days' notice.
- Kentucky early-policy or nonpayment notice
- For policies subject to section 304.20-320, early-policy and unpaid-premium cancellations require at least 14 days' notice.
- Kentucky applicable P&C nonrenewal notice
- For policies subject to sections 304.20-300 through 350, give 75 days' notice and the specific reason.
Guaranty Association
- Kentucky ordinary guaranty claim maximum
- For covered claims outside special categories, payment is limited to $300,000 per claimant.
- Kentucky guaranty workers compensation claims
- The association pays the full covered workers compensation benefit claim under a policy satisfying section 342.340.
Claims Practices
- Kentucky claim acknowledgment deadline
- For claims governed by 806 KAR 12:095, acknowledge loss notice within 15 days unless payment is made within that time.
- Kentucky ordinary proof-of-loss payment offer
- Generally offer payment within 30 calendar days after proof of loss, or timely explain why more investigation time is needed.
Workers Compensation
- Kentucky total disability weekly benefit cap
- Temporary or permanent total disability is capped at 110 percent of the state average weekly wage.
- Kentucky workers compensation proof filing
- The carrier or self-insured group files coverage evidence within 10 days after a policy, endorsement or similar document is issued.
Residual Markets
- Kentucky FAIR Plan participating insurers
- Insurers licensed to write direct property or casualty business must establish and maintain the commissioner-approved plan.
Keep studying
The general topics make up most of the exam.
Kentucky exam questions
Do I need a pre-licensing course for property and casualty in Kentucky?
Yes. Complete a 20-hour classroom or self-study course for the lines of authority you are applying for.Source: Kentucky DOI, Pre-Licensing and Continuing Education
How do I schedule the Kentucky insurance exam?
Through the Department's eServices, after the Department processes your license application.Source: Kentucky DOI, Testing Sites and Schedules
What if I fail the Kentucky exam?
Pay the $50 retake fee and reschedule through eServices, as soon as the next business day.Source: Kentucky DOI, Testing Sites and Schedules
How much of the Kentucky property and casualty exam is state law?
State law is usually around 20 to 30 percent of a state's producer exam. Check the Kentucky candidate handbook from your testing provider for the exact content outline.
What does the Kentucky 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: Licensing and CE, Auto Insurance, Cancellation and Nonrenewal, Guaranty Association, Claims Practices, Workers Compensation, Residual Markets.
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 Kentucky state law questions.