New York property and casualty practice exam
Free property and casualty practice for the New York producer exam: 367 general questions plus 15 New York state law questions, each with an explanation.
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Getting your New York property and casualty license
New York's property and casualty agent or broker license takes 90 hours of pre-licensing education and a PSI exam passed within 2 years of applying. You need 70 percent to pass.
- Exam provider
- PSI
- Exam length
- Property and casualty agent/broker (17-56): 150 questions, 2.5-hour time limit.
- Passing score
- 70 percent
- Exam fee
- $40, forfeited if you do not test within 1 year
- License fee
- $80 for a New York resident
- Pre-licensing education
- 90 hours for property and casualty agent or broker. 40 hours for personal lines.
- Exam valid for
- Pass the exam within 2 years of applying for the license
- Retakes
- No new appointment on the same day. Call PSI the next day; you may retest as soon as the following day.
How to plan your retake
Retake rules by state - Continuing education
- 15 credits per licensing period, including at least 1 hour of flood insurance for property and casualty licensees
Official links
- New York State Department of Financial Services - official state insurance department
- PSI, New York Insurance Candidate Information Bulletin - exam provider information
Licensing facts checked on , against official sources. Fees and rules change, so confirm with the New York State Department of Financial Services and your exam's candidate handbook before you register.
New York state law questions
Every New York question with its answer, explanation, and the law it comes from.
Licensing and CE
2 questions
1. How much continuing education must a New York property and casualty agent complete to renew a license?
- 24 credits, including 3 hours of ethics
- 20 credits, including 2 hours of ethics
- 15 credits, including at least 1 hour of ethics and professionalism
- 30 credits, including 3 hours of ethics
Show answer
New York requires 15 CE credits to renew, and at least 1 of them must be ethics and professionalism. The 24-credit total common in other states does not apply in New York.
2. Which continuing education topic does New York require only of licensees who sell property or casualty lines?
- At least 1 hour of flood insurance
- At least 1 hour of Insurance Law
- At least 1 hour of diversity, inclusion, and elimination of bias
- At least 1 hour of ethics and professionalism
Show answer
Every New York licensee needs at least 1 hour each of ethics, Insurance Law, and diversity and elimination of bias. Licensees with property or casualty lines must also take at least 1 hour of flood insurance, and those who sell flood through the NFIP need 3 hours of enhanced flood training.
Auto Insurance
3 questions
1. What are the minimum auto liability limits required in New York?
- $15,000 per person, $30,000 per accident, and $5,000 property damage
- $25,000 per person, $50,000 per accident, and $25,000 property damage
- $30,000 per person, $60,000 per accident, and $25,000 property damage
- $25,000 per person, $50,000 per accident, and $10,000 property damage
Show answer
New York requires $25,000 for bodily injury to one person, $50,000 for bodily injury to all persons, and $10,000 for property damage in any one accident. The property damage minimum is only $10,000, which is the detail most often missed.
2. How much mandatory no-fault coverage must a New York auto policy include?
- $10,000
- $50,000
- $25,000
- $100,000
Show answer
New York is a no-fault state and requires $50,000 of no-fault coverage on every auto policy, in addition to the liability minimums. Lower amounts like $10,000 are the PIP minimums of some other no-fault states.
3. Which statement about uninsured motorists bodily injury coverage in New York is true?
- It is optional and must be rejected in writing
- It is required only on vehicles with a loan or lease
- It must be included, subject to the same minimums as bodily injury liability
- It is required only for property damage
Show answer
New York auto policies must include uninsured motorists bodily injury coverage, and it is subject to the same minimums as the liability coverage. It is not an optional coverage the insured can simply decline.
Cancellation and Nonrenewal
6 questions
1. Once a New York personal auto policy has been in effect for 60 days, which is an allowed reason for the insurer to cancel it?
- The driver's license of the named insured or a regular operator was suspended or revoked during the required policy period
- The insured filed two not-at-fault claims
- The insured moved to another county in New York
- The insurer decided to stop writing auto policies in that ZIP code
Show answer
After 60 days, a New York auto policy can be cancelled only for listed reasons: nonpayment of premium, suspension or revocation of the named insured's or a regular operator's license during the required policy period, or fraud or material misrepresentation. Claims history, a move, or an insurer's business decision are not on the list.
2. How far in advance must a New York insurer mail a notice of nonrenewal on a personal auto policy?
- At least 10 days before the policy ends
- At least 30 days before the policy ends
- At least 90 but not more than 120 days before the policy ends
- At least 45 but not more than 60 days before the policy ends
Show answer
New York requires nonrenewal notice at least 45 but not more than 60 days before the end of the policy period, and the notice must state the specific reasons. The window has both a minimum and a maximum, so 10 or 30 days is too short and 90 to 120 days is too early.
3. For New York personal auto insurance, the required policy period is:
- Six months from the effective date
- One year from the date the policy becomes effective
- Three years from the effective date
- The term the insured chooses
Show answer
For auto insurance, New York's required policy period is one year from the date a covered policy becomes effective. The cancellation limits apply throughout that one-year period.
4. After the first 60 days, a New York homeowners policy generally cannot be cancelled or nonrenewed, except for listed reasons, for a period of:
- One year
- Five years
- Three years
- As long as the insured pays the premium
Show answer
Once a New York homeowners policy is past its first 60 days, the insurer cannot cancel or nonrenew it for three years except for specific listed reasons. At the end of that three-year period, the insurer may decline to renew.
5. After the first 60 days, which is an allowed reason for a New York insurer to cancel a homeowners policy?
- Physical changes in the property occurring after the policy was issued
- The insured filed one small claim
- The insured reached age 75
- The insured changed jobs
Show answer
New York allows cancellation after 60 days only for listed reasons, including nonpayment, fraud or material misrepresentation, certain crimes or willful acts that increase the hazard, and physical changes in the property after issuance. A single claim, the insured's age, or a job change is not on the list.
6. A New York homeowners insurer mails a cancellation notice for nonpayment. The policy will not be cancelled if payment is received within how many days of the mailing?
- 5 days
- 10 days
- 30 days
- 15 days
Show answer
In New York, if the insurer receives the premium within 15 days of mailing the cancellation notice for nonpayment, the policy will not be cancelled. The same 15-day payment rule appears in the personal auto law.
Guaranty Association
1 question
1. The New York Property/Casualty Insurance Security Fund will not pay more than how much on any one claim?
- $300,000
- $1,000,000
- $500,000
- There is no limit
Show answer
Payments from the New York Property/Casualty Insurance Security Fund are capped at $1,000,000 on any one claim, and never more than the policy's own limit. That is well above the $300,000 limit used by many other states.
Workers Compensation
2 questions
1. A New York employer that fails to carry workers compensation coverage can face penalties as high as:
- $500 for every day without coverage
- $5,000 for each month without coverage
- $2,000 for every 10-day period without coverage
- A one-time fine of $1,000
Show answer
The New York Workers' Compensation Board can assess up to $2,000 for every 10-day period without coverage. The uninsured employer is also responsible for all wage and medical benefits awarded to its injured employees.
2. In New York, failing to secure workers compensation for more than five employees within a 12-month period is:
- A class E felony
- An administrative violation only
- A misdemeanor
- Not a crime as long as the employer pays claims
Show answer
New York treats failing to cover more than five employees within a 12-month period as a class E felony, with fines of $5,000 to $50,000. Failing to cover five or fewer is a misdemeanor, and a repeat conviction within five years becomes a class D felony.
Residual Markets
1 question
1. Which coverage is NOT available from the New York Property Insurance Underwriting Association (NYPIUA)?
- Coverage on dwelling buildings
- Coverage on commercial buildings and their contents
- Coverage on household furnishings and personal property
- Liability coverage
Show answer
NYPIUA, New York's FAIR plan, insures buildings, commercial contents, and household personal property. It does not offer liability, flood, or theft coverage, so those must come from other sources.
Key New York terms
18 plain-English cards on New York insurance law, from the New York flashcard deck.
Licensing and CE
- New York P&C prelicensing
- 90 hours for a property and casualty agent or broker license; 40 hours for personal lines.
- New York P&C exam format
- The 17-56 property and casualty agent/broker exam has 150 questions in 2.5 hours. Passing score is 70 percent.
- New York exam validity
- The exam must be passed within 2 years of applying for the license.
- New York CE requirement
- 15 credits per licensing period, with at least 1 hour each of ethics, Insurance Law, and diversity and elimination of bias.
- New York flood CE hour
- Licensees with property or casualty authority must include at least 1 hour of flood insurance in their CE.
Auto Insurance
- New York auto liability minimums
- 25/50/10: $25,000 per person and $50,000 per accident bodily injury, $10,000 property damage.
- New York no-fault coverage
- Every New York auto policy must include $50,000 of no-fault coverage in addition to liability.
- New York uninsured motorists requirement
- Uninsured motorists bodily injury must be included, with the same minimums as bodily injury liability.
Cancellation and Nonrenewal
- New York auto policy period
- A personal auto policy runs one year from its effective date, and cancellation limits apply through that year.
- New York auto cancellation after 60 days
- Allowed only for listed reasons, such as nonpayment or suspension or revocation of the license of the named insured or a regular operator.
- New York auto nonrenewal notice
- Mailed at least 45 but not more than 60 days before the policy ends, with the specific reason.
- New York homeowners three-year rule
- After the first 60 days, a homeowners policy cannot be canceled or nonrenewed for three years except for listed reasons.
- New York homeowners cancellation reasons
- After 60 days, only for listed reasons such as nonpayment, fraud, certain crimes, or physical changes to the property after issue.
- New York nonpayment cure
- If the insurer receives the premium within 15 days of mailing a nonpayment cancellation notice, the homeowners policy is not canceled.
Guaranty Association
- New York Property/Casualty Insurance Security Fund
- Pays claims of insolvent P&C insurers, capped at $1,000,000 on any one claim and never more than the policy limit.
Residual Markets
- New York Property Insurance Underwriting Association
- New York's FAIR plan. Insures buildings and contents; does not offer liability, flood or theft coverage.
Workers Compensation
- New York uninsured employer penalty
- The Workers' Compensation Board can assess up to $2,000 for every 10-day period without coverage.
- New York workers comp felony
- Failing to cover more than five employees in a 12-month period is a class E felony, with fines of $5,000 to $50,000.
Keep studying
The general topics make up most of the exam.
New York exam questions
How many pre-licensing hours does New York require for property and casualty?
90 hours for a property and casualty agent or broker license, or 40 hours for personal lines.Source: NY DFS, Agent and Broker Prelicensing Education
How long do I have to apply after passing the New York exam?
You must have passed the PSI exam within 2 years of applying for the license.Source: NY DFS, Licensing Application: Property and Casualty Agent or Broker
How much continuing education do New York property and casualty agents need?
15 credits each licensing period, including at least one hour of flood insurance.Source: NY DFS, Continuing Education
How much of the New York property and casualty exam is state law?
State law is usually around 20 to 30 percent of a state's producer exam. Check the New York candidate handbook from your testing provider for the exact content outline.
What does the New York 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, 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 New York state law questions.