Vermont property and casualty practice exam
Free property and casualty practice for the Vermont producer exam: 367 general questions plus 22 Vermont state law questions, each with an explanation.
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Getting your Vermont property and casualty license
Vermont's insurance exams are given by Prometric at a test center or remotely. After you pass, you can apply online through NIPR in 48 hours.
- Exam provider
- Prometric, at a test center or remotely (ProProctor)
- After you pass
- Apply online through NIPR 48 hours after passing
- Continuing education
- 24 hours every 2-year review period, including at least 3 hours of ethics
Official links
- Vermont Department of Financial Regulation - official state insurance department
- Prometric, Vermont Licensing Information Bulletin (effective Mar 2026) - exam provider information
Licensing facts checked on , against official sources. Fees and rules change, so confirm with the Vermont Department of Financial Regulation and your exam's candidate handbook before you register.
Vermont state law questions
Every Vermont question with its answer, explanation, and the law it comes from.
Licensing and CE
5 questions
1. How many hours of approved continuing education must a Vermont producer complete in each two-year review period?
- 12 hours
- 20 hours
- 24 hours
- 30 hours
Show answer
Vermont Regulation I-2000-02 requires 24 hours of approved CE during the preceding two years.
2. How many of a Vermont producer's required continuing education hours must be on ethics?
- At least 3 hours
- At least 1 hour
- At least 2 hours
- At least 6 hours
Show answer
The regulation requires at least 3 of the 24 hours to be ethics-related.
3. A Vermont producer licensed for property and casualty must complete a one-time National Flood Insurance Program course of how many hours?
- 1 hour
- 2 hours
- 8 hours
- 3 hours
Show answer
Vermont Regulation I-2000-02 requires one 3-hour NFIP course whether or not the producer sells flood insurance.
4. At most how many of a Vermont producer's 24 continuing education hours may be insurance agency management courses?
- 3 hours
- 6 hours
- 9 hours
- 12 hours
Show answer
Section 7B3 of Regulation I-2000-02 caps agency management courses at 6 hours.
5. Vermont's continuing education review period begins on April 1 of which year?
- An odd-numbered year
- An even-numbered year
- Any year in which the license was issued
- The year after the first renewal
Show answer
The review period is 24 months, starting April 1 of an odd-numbered year and ending March 31 two years later.
Auto Insurance
4 questions
1. What are the minimum liability limits for a Vermont automobile liability policy?
- $15,000 for one person, $30,000 for two or more persons, and $5,000 property damage
- $20,000 for one person, $40,000 for two or more persons, and $10,000 property damage
- $25,000 for one person, $50,000 for two or more persons, and $25,000 property damage
- $25,000 for one person, $50,000 for two or more persons, and $10,000 property damage
Show answer
23 V.S.A. 800(a) sets these minimums for bodily injury or death and property damage in any one crash.
2. Under 23 V.S.A. 800, what civil penalty can apply to an owner or operator who violates the Vermont requirement to maintain automobile liability coverage?
- Up to $100
- Up to $250
- Up to $500
- Up to $1,000
Show answer
Subsection (b) sets a civil penalty of up to $500 and treats the violation as a traffic violation.
3. Vermont policies must include uninsured and underinsured motorist coverage for bodily injury at what minimum limits?
- $50,000 for one person and $100,000 for two or more persons
- $25,000 for one person and $50,000 for two or more persons
- $30,000 for one person and $60,000 for two or more persons
- $100,000 for one person and $300,000 for two or more persons
Show answer
23 V.S.A. 941(c) sets minimums of $50,000 and $100,000 for new or renewed policies.
4. Vermont uninsured motorist property damage coverage applies up to $10,000 per claim, subject to which deductible?
- $100
- $150
- $200
- $250
Show answer
23 V.S.A. 941 applies a $150 deductible to uninsured motorist property damage claims, with stated exceptions.
Cancellation and Nonrenewal
6 questions
1. Under 8 V.S.A. 4223, which ground permits a Vermont insurer to cancel an automobile policy?
- The insured filed a single collision claim
- The insured moved to a new town in Vermont
- Suspension or revocation of a driver's license during the policy period
- The insured added a teenage driver
Show answer
Section 4223(a) permits cancellation for unpaid premium, fraud or material misrepresentation, or license suspension or revocation.
2. A new Vermont automobile policy (not a renewal) is outside the cancellation-ground limits of 8 V.S.A. 4223 if it has been in effect fewer than how many days when notice is mailed?
- 30 days
- 45 days
- 90 days
- 60 days
Show answer
Section 4223(b) excludes policies in effect less than 60 days at the time of notice, unless the policy is a renewal.
3. How many days' notice must a Vermont insurer give to cancel an automobile policy for reasons other than nonpayment of premium?
- 45 days
- 15 days
- 30 days
- 60 days
Show answer
8 V.S.A. 4224 requires 45 days' notice stating the reasons, or 15 days for nonpayment.
4. How many days' notice does Vermont require when an automobile policy is cancelled for nonpayment of premium?
- 10 days
- 15 days
- 30 days
- 45 days
Show answer
8 V.S.A. 4224 shortens the 45-day notice to 15 days for nonpayment.
5. Under 8 V.S.A. 4225, a Vermont insurer must mail or deliver notice of nonrenewal of an automobile policy at least how many days before it takes effect?
- 15 days
- 30 days
- 45 days
- 60 days
Show answer
Section 4225 requires at least 45 days' advance notice, unless the insurer offered to renew or the premium was not paid.
6. Under 8 V.S.A. 3880, a Vermont insurer cancelling a fire or casualty policy may give only 15 days' notice for nonpayment of premium or for:
- a change in the insured's occupation
- the insured's late filing of a claim
- a rate increase approved by the Commissioner
- a substantial increase in hazard
Show answer
Section 3880 allows 15 days for nonpayment or substantial increase in hazard, and 45 days otherwise, excluding workers' compensation policies.
Guaranty Association
2 questions
1. What per-claim figure limits the Vermont Property and Casualty Insurance Guaranty Association's obligation on most covered claims?
- $100,000
- $500,000
- $300,000
- $1,000,000
Show answer
8 V.S.A. 3615 limits the Association's obligation per covered claim to less than $500,000, with workers' compensation claims not capped.
2. In any year, a Vermont guaranty association assessment against a member insurer may not exceed what share of its net direct written premiums for each account?
- 2 percent
- 1 percent
- 3 percent
- 5 percent
Show answer
8 V.S.A. 3615 caps annual assessments at 2 percent of net direct written premiums per account.
Workers Compensation
2 questions
1. Under 21 V.S.A. 692, the Vermont Commissioner may assess an employer with no workers' compensation coverage a penalty of up to how much per day for the first seven days?
- $25 per day
- $50 per day
- $100 per day
- $250 per day
Show answer
Section 692(a) allows up to $100 per day for the first seven days and up to $150 per day after that.
2. After investigating an uninsured Vermont employer, what must the Commissioner issue under 21 V.S.A. 692?
- A written warning with a one-year grace period
- A license suspension for the employer's owners
- A refund of premiums to the employees
- A stop-work order until coverage is secured
Show answer
Section 692(b) requires an emergency order to stop work until the employer secures coverage.
Claims Practices
3 questions
1. Under Vermont's fair claims practices regulation, an insurer must acknowledge receipt of a claim notice within how many business days?
- 5 business days
- 10 business days
- 15 business days
- 30 business days
Show answer
Section 5(A) of Regulation I-1979-02 sets 10 business days to acknowledge a claim notice, orally or in writing.
2. After receiving proofs of loss, a Vermont insurer must notify a first-party claimant of acceptance or denial within how many business days?
- 15 business days
- 10 business days
- 30 business days
- 45 business days
Show answer
Section 6(A) of Regulation I-1979-02 requires notice of acceptance or denial within 15 business days of proofs of loss.
3. After a settlement is agreed, a Vermont insurer must mail payment within how many business days under the fair claims regulation?
- 5 business days
- 15 business days
- 30 business days
- 10 business days
Show answer
Section 6(G) of Regulation I-1979-02 requires payment to be mailed within 10 business days of agreement.
Key Vermont terms
23 plain-English cards on Vermont insurance law, from the Vermont flashcard deck.
Licensing and CE
- Vermont P&C CE requirement
- 24 hours of approved CE in each two-year review period.
- Vermont ethics CE hours
- At least 3 of the required hours must be on ethics.
- Vermont NFIP course
- A P&C producer completes a one-time 3-hour National Flood Insurance Program course.
- Vermont agency management CE cap
- No more than 6 of the 24 hours may be insurance agency management courses.
- Vermont CE review period start
- Begins on April 1 of an odd-numbered year.
- Vermont exam delivery
- Prometric, at a test center or remotely (ProProctor). Apply through NIPR 48 hours after passing.
Auto Insurance
- Vermont minimum liability limits
- 25/50/10: $25,000 for one person, $50,000 for two or more persons, $10,000 property damage.
- Vermont no-liability civil penalty
- Up to $500 for an owner or operator who violates the liability coverage requirement (23 V.S.A. 800).
- Vermont UM/UIM minimum
- $50,000 for one person and $100,000 for two or more persons.
- Vermont UM property damage
- Up to $10,000 per claim, subject to a $150 deductible.
Cancellation and Nonrenewal
- Vermont auto cancellation ground
- Suspension or revocation of a driver's license during the policy period permits cancellation (8 V.S.A. 4223).
- Vermont new auto policy exception
- A new policy in effect fewer than 60 days when notice is mailed is outside the cancellation-ground limits.
- Vermont auto cancellation notice
- 45 days notice for reasons other than nonpayment of premium.
- Vermont auto nonpayment cancellation notice
- 15 days notice.
- Vermont auto nonrenewal notice
- At least 45 days before it takes effect (8 V.S.A. 4225).
- Vermont fire and casualty short notice
- 15 days notice is enough for nonpayment of premium or a substantial increase in hazard (8 V.S.A. 3880).
Guaranty Association
- Vermont guaranty association limit
- The obligation on most covered claims is limited to $500,000 per claim.
- Vermont guaranty assessment cap
- A member insurer's annual assessment may not exceed 2 percent of net direct written premiums for each account.
Workers Compensation
- Vermont uninsured employer penalty
- Up to $100 per day for the first seven days (21 V.S.A. 692).
- Vermont stop-work order
- After investigating an uninsured employer, the Commissioner issues a stop-work order until coverage is secured.
Claims Practices
- Vermont claim acknowledgment
- An insurer must acknowledge receipt of a claim notice within 10 business days.
- Vermont first-party claim decision
- After receiving proofs of loss, notify the claimant of acceptance or denial within 15 business days.
- Vermont settlement payment
- Mail payment within 10 business days after a settlement is agreed.
Keep studying
The general topics make up most of the exam.
Vermont exam questions
Can I take the Vermont insurance exam online?
Yes. Prometric offers remote testing through ProProctor, which needs a computer (not a tablet) with a camera, microphone and internet connection.Source: Prometric, Vermont Licensing Information Bulletin (effective Mar 2026)
When can I apply after passing in Vermont?
Residents can apply online through NIPR 48 hours after passing.Source: Prometric, Vermont Licensing Information Bulletin (effective Mar 2026)
How much continuing education does Vermont require?
24 hours every two-year review period, including at least 3 hours of ethics.Source: Vermont Department of Financial Regulation, Continuing Education Requirements for Insurance Producers
How much of the Vermont property and casualty exam is state law?
State law is usually around 20 to 30 percent of a state's producer exam. Check the Vermont candidate handbook from your testing provider for the exact content outline.
What does the Vermont 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, Claims Practices.
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 Vermont state law questions.