Idaho Property & Casualty Insurance Exam

Welcome to your comprehensive guide for the Idaho Property & Casualty Insurance Exam. This study guide covers everything you need to know to pass the exam and begin your career as a licensed insurance producer in Idaho.

Why Get Licensed in Idaho?

Idaho's insurance market serves a diverse population across both urban centers like Boise and Meridian and extensive rural areas. The state faces unique insurance challenges including:

• Wildfire Risk: Increasing wildfire activity in forested areas
• Earthquake Exposure: Part of the seismically active Intermountain West
• Rural Property Challenges: Remote properties with limited fire protection
• Agricultural Insurance Needs: Significant farming and ranching operations
• Severe Weather: Hailstorms, winter storms, and flooding events

Licensed P&C producers in Idaho help residents and businesses protect their most valuable assets against these and other risks.

Exam Format & Structure

Test Administration

The Idaho P&C exam is administered by PSI Exams, Idaho's official testing vendor for insurance licensing exams.

Important: You must pass BOTH the property section (70% minimum) AND the casualty section (70% minimum) to pass the exam. If you fail one section, you may be able to retake only that section (check current PSI policies).

Question Distribution

The exam covers four main content areas:

Exam Day Logistics

What to Bring:

• Valid government-issued photo ID (driver's license, passport, state ID)
• Your PSI confirmation number
• Glasses/contacts if needed

NOT Allowed:

• Cell phones, smart watches, or electronic devices
• Study materials, notes, or reference materials
• Calculators (provided by testing center if needed)
• Bags, backpacks, or purses in testing room
• Food or beverages

Testing Center Procedures:

1. Arrive 15 minutes early for check-in
2. Present valid photo ID
3. Store all personal items in locker
4. Receive scratch paper and pencil (returned at end)
5. Review computer-based testing tutorial
6. Complete exam at your own pace within time limit
7. Receive preliminary pass/fail result immediately

Pre-Licensing Education Requirements

Idaho's Unique Approach

Idaho is one of the few states that does NOT require pre-licensing education for Property & Casualty insurance licensing. However:

Reality Check: While not legally required, pre-licensing education is strongly recommended. The exam tests detailed knowledge of:

• Insurance principles and terminology
• Policy provisions and coverages
• Idaho-specific regulations and statutes
• Risk management concepts
• Claims handling and ethics

Most successful candidates either:

• Complete a self-study course (20-40 hours)
• Take a formal pre-licensing class
• Study independently using comprehensive materials (like this guide)

Recommended Study Time

Licensing Process Overview

Step-by-Step Path to Licensure

graph TD
    A[Study for Exam] --> B{Pass Both<br/>Sections?}
    B -->|No| A
    B -->|Yes| C[Complete Licensing Application]
    C --> D[Submit Fingerprints & Background Check]
    D --> E[Pay Licensing Fees]
    E --> F[Receive License from Idaho DOI]
    F --> G[Appointed by Insurance Company]
    G --> H[Begin Selling Insurance]

Post-Exam Requirements

After passing the exam, you must:

1. Complete Licensing Application

   • Apply through the National Insurance Producer Registry (NIPR) at nipr.com
   • Or apply directly with Idaho Department of Insurance

2. Background Check

   • Submit fingerprints for FBI background check
   • Disclose any criminal history or regulatory actions

3. Pay Licensing Fees

   • Initial license fee (check current Idaho DOI fee schedule)
   • License good for 2 years from birth month

4. Obtain Company Appointment

   • Must be appointed by at least one insurance company to sell their products
   • Company submits appointment to Idaho DOI

5. Complete Continuing Education

   • 24 hours every 2 years (including 3 hours of ethics)
   • Due by last day of birth month in renewal year
   • New licensees: prorated based on initial license date

Continuing Education (CE) Requirements

Idaho CE Mandates for P&C Producers

All Idaho-licensed P&C producers must complete 24 hours of CE every 2 years:

Special CE Courses

One-Time Annuity Training (If Selling Annuities):

• Licensed on/after July 1, 2021: Must complete 4-hour Annuity Best Interest Certification Training before selling annuities
• One-time requirement (not part of regular CE)

NFIP Flood Insurance Certification:

• 3-hour course required before selling flood insurance
• One-time requirement
• Must be completed through approved provider

Exam Tip: The 24-hour CE requirement includes a MINIMUM of 3 ethics hours. You can take more ethics if desired, and it counts toward the 24-hour total.

What Makes Idaho Different?

Unique Idaho Insurance Landscape

Idaho's insurance environment differs from other states in several key ways:

1. No Pre-Licensing Education Requirement

• Rare among states
• Reflects Idaho's less-regulatory approach
• Places responsibility on candidates to prepare adequately

2. Wildfire Insurance Challenges

• Growing wildfire risk in forested areas
• Some insurers reducing coverage in high-risk zones
• Important topic for Idaho producers to understand

3. Rural Property Considerations

• Many properties far from fire departments
• Protection class ratings impact premiums
• Special considerations for farms and ranches

4. Minimum Auto Insurance Limits (25/50/15)

• $25,000 bodily injury per person
• $50,000 bodily injury per accident
• $15,000 property damage per accident
• Lower than many states, but sufficient for legal compliance

5. Optional Uninsured/Underinsured Motorist Coverage

• Insurers MUST offer UM/UIM coverage
• Policyholders MAY reject in writing
• Important consumer protection consideration

6. Earthquake Risk

• Idaho sits in seismically active region
• Earthquake coverage typically excluded from standard homeowners policies
• Separate earthquake insurance available

Study Strategy & Tips

How to Use This Study Guide

This guide is organized into four chapters that mirror the exam content:

Chapter 1: Idaho P&C Regulation & Licensing

• Idaho Department of Insurance structure and authority
• Producer licensing requirements and processes
• Continuing education mandates
• Record keeping and administrative requirements

Chapter 2: Idaho Property Insurance

• Homeowners insurance policies and forms
• Dwelling and personal property coverage
• Commercial property insurance
• Farm and ranch property considerations
• Idaho-specific property risks (wildfire, earthquake)

Chapter 3: Idaho Auto & Casualty Insurance

• Personal auto insurance and Idaho minimums (25/50/15)
• Uninsured/underinsured motorist coverage
• Commercial auto insurance
• General liability and business insurance
• Workers' compensation basics

Chapter 4: Idaho Ethics & Professional Conduct

• Unfair trade practices and prohibited acts
• Consumer protection laws
• Ethical responsibilities of producers
• Complaint handling and enforcement

Effective Study Techniques

1. Start with Fundamentals

• Master basic insurance concepts before tackling Idaho-specific rules
• Understand the "why" behind regulations, not just the "what"

2. Focus on Idaho-Specific Content

• Memorize Idaho minimum auto liability limits (25/50/15)
• Know CE requirements (24 hours every 2 years, 3 ethics)
• Understand Idaho DOI authority and structure
• Learn Idaho-unique insurance challenges (wildfire, rural properties)

3. Use Practice Questions

• Take quiz questions after each section
• Review explanations for wrong answers
• Identify weak areas and study them more

4. Create Memory Aids

• 25/50/15: Idaho minimum auto liability
• 24/3/2: 24 CE hours, 3 ethics, every 2 years
• 70%: Passing score on both sections
• 158/240: Questions/minutes (roughly 1.5 minutes per question)

5. Simulate Exam Conditions

• Take full-length practice exams
• Time yourself (120 minutes per 79-question section)
• Practice with computer-based format if possible

Common Study Mistakes to Avoid

❌ Skipping Idaho-specific content: National insurance knowledge isn't enough ❌ Memorizing without understanding: Exam tests application, not just recall ❌ Neglecting ethics: Ethics questions appear throughout the exam ❌ Cramming the night before: Spread studying over weeks, not days ❌ Ignoring practice questions: Questions reveal what you don't know ❌ Not learning from mistakes: Review wrong answers to understand concepts

Test-Taking Strategies

During the Exam:

1. Read Carefully: Every word matters in exam questions
2. Identify Key Information: Note dollar amounts, time periods, specific terms
3. Eliminate Wrong Answers: Narrow down to 2 options, then choose the best
4. Watch for Absolutes: Words like "always," "never," "must" are often wrong
5. Flag Difficult Questions: Skip and return later (don't waste time)
6. Manage Time: ~1.5 minutes per question (track pace at 40, 80, 120 questions)
7. Review if Time Permits: Check flagged questions and review answers

Common Question Patterns:

• Scenario Questions: Read the situation, identify the issue, apply the rule
• "Best Answer" Questions: All options may be partially correct; choose the MOST accurate
• Negative Questions: "Which is NOT..." or "All are true EXCEPT..."
• Calculation Questions: Few on this exam; usually simple premium or limit calculations

Resources & Support

Official Resources

Idaho Department of Insurance

• Website: doi.idaho.gov
• Producer Licensing: (775) 687-0700, option 2
• Email: nevada.licensing@doi.nv.gov
• Address: 700 W. State Street, 3rd Floor, Boise, ID 83720

PSI Exams (Testing Vendor)

• Website: psiexams.com
• Schedule exams online or by phone
• View exam content outlines
• Find testing center locations

National Insurance Producer Registry (NIPR)

• Website: nipr.com
• Apply for Idaho license online
• Manage license renewals and updates

Additional Study Materials

While this guide is comprehensive, some candidates benefit from:

• Official Idaho insurance statutes (Title 41)
• Sample insurance policies (homeowners, auto)
• Idaho DOI consumer guides
• Supplemental practice exams
• Live or online pre-licensing courses

Ready to Begin?

You now understand:

• What the Idaho P&C exam covers
• How the exam is structured and administered
• Idaho's licensing process and requirements
• Effective study strategies for success

Next Steps:

1. Review Chapter 1: Idaho P&C Regulation & Licensing
2. Complete all section quiz questions
3. Move systematically through Chapters 2-4
4. Take practice exams to assess readiness
5. Schedule your exam when consistently scoring 80%+ on practice tests
6. Pass the exam and launch your insurance career in Idaho!

Success Mindset: Thousands of people pass this exam every year. With dedicated study using this guide, you'll join them. Stay consistent, focus on understanding (not just memorizing), and trust the process.

Let's get started!