Maryland Property & Casualty Insurance Exam 2026

Welcome to your FREE Maryland Property & Casualty (P&C) Insurance exam preparation guide. This comprehensive study resource covers Maryland-specific insurance laws, regulations, and requirements you need to pass your state licensing exam.

Note: This guide covers Maryland state-specific content. You should also study national Property & Casualty insurance concepts, as the exam tests both general insurance knowledge and Maryland-specific laws.

Why Get Licensed in Maryland?

Maryland offers an attractive insurance market with unique opportunities:

• Mid-Atlantic Hub: Strategic location serving Washington D.C., Baltimore, and the Chesapeake Bay region
• Growing Economy: Strong financial services sector with increasing insurance demand
• Coastal & Urban Markets: Diverse property risks from coastal properties to urban high-rises
• No Pre-License Education: As of October 1, 2024, Maryland eliminated the 40-hour pre-license requirement
• Streamlined Licensing: Prometric testing with immediate results
• Competitive Market: File-and-use rating system encourages innovation and competition

What This Guide Covers

This FREE study guide includes:

✓ Maryland Insurance Regulation - Maryland Insurance Administration, Commissioner powers, rate filing ✓ Maryland Property Insurance - Homeowners, dwelling, Maryland FAIR Plan (MPCIA/JIA) ✓ Maryland Auto & Casualty - 30/60/15 liability requirements, UM/UIM, optional PIP ✓ Maryland Ethics & Professional Conduct - Title 27 unfair trade practices, producer responsibilities ✓ Practice Questions - Quiz questions in each chapter to test your knowledge

Exam Format & Requirements

Exam Structure

Exam Costs

• P&C Exam Fee: $60 (paid to Prometric)
• License Application Fee: $54
• Total Initial Cost: $114

Pre-License Education

IMPORTANT CHANGE: As of October 1, 2024, Maryland NO LONGER requires pre-licensing education for Property & Casualty insurance producers.

Previously, Maryland required 40 combined hours of pre-licensing education. This requirement has been eliminated to streamline entry into the insurance profession.

Exam Tip: While Maryland doesn't require pre-license courses, the exam is comprehensive. Plan to study both national P&C concepts AND Maryland-specific laws thoroughly. Most successful candidates spend 40-60 hours studying.

Exam Content Areas

The Maryland P&C exam covers 10 key content areas:

1. Insurance Regulation (10-15% of exam)

• Maryland Insurance Administration structure and authority
• Commissioner of Insurance powers and responsibilities
• Producer licensing requirements and continuing education
• Rate filing and competitive rating system
• Title 27 - Unfair Trade Practices

2. General Insurance Concepts (10-15% of exam)

• Risk and insurance fundamentals
• Principle of indemnity and insurable interest
• Policy structure (declarations, insuring agreements, conditions, exclusions)
• Insurance companies and operations
• Loss settlement methods

3. Property and Casualty Insurance Basics (8-12% of exam)

• Property vs. casualty insurance distinction
• Direct vs. indirect losses
• Actual cash value vs. replacement cost
• Coinsurance and deductibles
• Perils vs. hazards

4. Dwelling Policies (8-12% of exam)

• DP-1 Basic Form
• DP-2 Broad Form
• DP-3 Special Form
• Coverage A, B, C distinctions
• Maryland dwelling insurance requirements

5. Homeowners Policies (12-16% of exam)

• HO-2 Broad Form
• HO-3 Special Form (most common)
• HO-4 Contents Broad Form (renters)
• HO-6 Unit-Owners Form (condos)
• HO-8 Modified Coverage Form
• Section I (Property) vs. Section II (Liability)
• Additional coverages and endorsements
• Maryland homeowners insurance market

6. Personal Auto Insurance (15-20% of exam)

• Maryland minimum liability: 30/60/15
• Part A - Liability Coverage
• Part B - Medical Payments
• Part C - Uninsured/Underinsured Motorists (required 30/60/15)
• Part D - Physical Damage (Collision & Comprehensive)
• Personal Injury Protection (PIP) - Optional but offered
• Maryland auto insurance laws and regulations

7. Commercial Package and Business Owner Policies (10-14% of exam)

• Commercial Package Policy (CPP) structure
• Building and Business Personal Property
• Business Income coverage
• Business Owner's Policy (BOP)
• Maryland commercial insurance considerations

8. Workers' Compensation Insurance (6-10% of exam)

• Workers' compensation system basics
• Employer obligations in Maryland
• Benefits and coverage
• Exclusive remedy doctrine
• Maryland Workers' Compensation Commission

9. Other Coverages and Options (8-12% of exam)

• Inland marine insurance
• Umbrella and excess liability
• Professional liability
• Flood insurance (National Flood Insurance Program)
• Maryland Joint Insurance Association (FAIR Plan)

10. Ethics and Professional Responsibilities (6-10% of exam)

• Producer fiduciary duties
• Disclosure requirements
• Prohibited practices under Title 27
• Unfair claim settlement practices
• Consumer protection laws

How to Use This Study Guide

Recommended Study Plan

Week 1-2: Insurance Regulation & General Concepts

• Study Maryland Insurance Administration structure
• Master general insurance principles
• Focus on insurance regulation and producer licensing
• Complete all practice questions
• Review Maryland-specific regulatory changes (2024-2026)

Week 3-4: Property Insurance

• Study dwelling and homeowners policies thoroughly
• Master differences between policy forms (DP-1, DP-2, DP-3)
• Understand Section I vs. Section II coverage
• Learn Maryland FAIR Plan (MPCIA/JIA) details
• Complete all practice questions

Week 5: Auto & Casualty Insurance

• Deep dive into Maryland auto requirements (30/60/15)
• Master UM/UIM coverage requirements
• Understand optional PIP coverage ($2,500 minimum)
• Study commercial policies (CPP, BOP)
• Workers' compensation basics
• Complete all practice questions

Week 6: Ethics & Final Review

• Study Title 27 unfair trade practices in detail
• Review producer responsibilities and prohibitions
• Retake all practice questions
• Focus on weak areas
• Take full-length practice exams

Study Tips

1. Master Maryland Auto Requirements: Know the 30/60/15 liability minimums AND the 30/60/15 UM/UIM requirements cold
2. Understand PIP is Optional: Maryland offers but doesn't require PIP - understand the $2,500 minimum and waiver process
3. Learn Maryland FAIR Plan: Maryland Joint Insurance Association (MPCIA/JIA) provides last-resort property insurance
4. Know Rate Filing System: Maryland uses "file-and-use" competitive rating (not prior approval) for most P&C lines
5. Focus on Title 27: Unfair trade practices and prohibited acts are heavily tested
6. Commissioner is Appointed: The Maryland Commissioner of Insurance is appointed by the Governor (not elected)

Taking the Exam

Scheduling Your Exam

1. Register with Prometric: Visit www.prometric.com/maryland/insurance or call 1-800-610-1174
2. Create Account: Set up a Prometric account online
3. Select Exam: Choose "Property and Casualty" exam
4. Choose Testing Location: Select from Prometric testing centers in Maryland
5. Pay Exam Fee: $60 exam fee (credit/debit card or voucher)

Before the Exam

Required:

• Valid government-issued photo ID (driver's license or passport)
• Confirmation number from Prometric

Not Allowed:

• Phones, calculators, or reference materials
• Watches or electronic devices
• Notes or study materials
• Bags, purses, or personal items

Provided:

• Scratch paper or dry-erase board
• Calculator (on-screen if needed)

On Exam Day

Arrive 15-30 minutes early to complete check-in procedures.

Testing Center Rules:

• Photo taken at check-in
• Personal belongings stored in locker
• Palm vein scan for identity verification
• No breaks during 2.5-hour exam period
• Results provided immediately after completing exam

After Passing the Exam

Next Steps:

1. Submit License Application: Complete the NAIC Uniform Individual Application online
2. Pay Application Fee: $54 license application fee
3. Background Check: Maryland conducts background verification
4. Receive License: Maryland Insurance Administration reviews and issues license
5. Get Appointed: Obtain company appointments to sell insurance products
6. Complete CE Requirements: Meet continuing education requirements for license renewal

If You Don't Pass

• Wait Time: You can retake the exam after a 4-day waiting period
• Retake Fee: Full $60 exam fee required for each attempt
• Score Report: Review your score breakdown to identify improvement areas
• Study More: Focus on sections where you scored lowest
• No Limit: Maryland has no limit on retake attempts

Maryland Insurance Administration

The Maryland Insurance Administration (MIA) regulates the P&C insurance industry:

Maryland Insurance Administration Contact:

• Website: insurance.maryland.gov
• Producer Licensing Email: mia.producer@maryland.gov
• Consumer Complaint Hotline: 1-800-492-6116
• General Information: (410) 468-2000

Recent Changes (2024-2026)

October 1, 2024: Pre-licensing education requirement eliminated for P&C producers

2026: Continued focus on competitive rating and consumer protection

Maryland Insurance Market Overview

Unique Maryland Characteristics

Geographic Diversity:

• Coastal properties along Chesapeake Bay and Atlantic Ocean
• Urban centers (Baltimore, Rockville, Silver Spring)
• Suburban communities surrounding Washington D.C.
• Rural agricultural areas in Western Maryland
• Hurricane and flood exposure on Eastern Shore

Market Characteristics:

• Proximity to federal government creates unique insurance needs
• High concentration of government employees and contractors
• Diverse property values from rural to high-value urban properties
• Significant condominium and rental housing market
• Strong commercial insurance market in Baltimore and D.C. suburbs

Maryland-Specific Risks:

• Hurricane exposure (Eastern Shore, coastal areas)
• Chesapeake Bay flooding and storm surge
• Urban property crime (Baltimore, Prince George's County)
• Winter weather and ice damage
• Wildfire risk in Western Maryland mountains

Maryland Demographics

• Population: Approximately 6.2 million (19th largest state)
• Major Metro Areas: Baltimore-Washington metropolitan area
• Housing Market: Mix of urban, suburban, and rural properties
• Median Home Value: Higher than national average
• Diverse Communities: Significant ethnic and cultural diversity

Ready to Start?

Let's dive into Chapter 1: Maryland P&C Insurance Regulation & Licensing to begin your exam preparation!

Remember: This content is 100% FREE. Use AI assistance whenever you get stuck—click "Ask AI" buttons throughout this guide or use the floating AI helper at the bottom right of your screen.

Important Resources

Official Maryland Resources

• Maryland Insurance Administration
• Maryland Insurance Code
• Prometric Maryland Insurance Testing
• Producer Licensing Information

Study Resources

• Maryland Producer Licensing Guide (PDF)
• Maryland Continuing Education Requirements
• Maryland Joint Insurance Association (FAIR Plan)
• This FREE study guide (you're reading it!)

After Licensing

• NIPR (National Insurance Producer Registry)
• Maryland Insurance Administration - Producer Portal
• Maryland CE Requirements