Last reviewed: July 20, 2026

New York Property & Casualty Insurance Practice Exam Free - 2026

Use this free New York property and casualty insurance practice exam page to review licensing concepts before exam day. The page includes crawlable New York regulator and exam-source context, while the interactive practice test loads on the same URL.

New York property and casualty exam quick facts

State: New York
License category: Property & Casualty Insurance
Regulator: New York State Department of Financial Services
Exam vendor/source note: NYDFS says PSI Services provides examination services for candidates seeking New York insurance licenses, and the property/casualty application page references the PSI-administered exam.
Core practice topics: property insurance, casualty insurance, liability, auto, homeowners, commercial coverage, claims basics, ethics, and state-specific insurance rules.
Practice resource type: Independent free study aid with instant practice questions and explanations.

New York P&C exam facts (verified July 2026)

Exam structure	One combined Property & Casualty exam (Series 17-56) for both agent and broker - no single-line producer exams
Exam vendor	PSI Services (for NY Department of Financial Services)
Number of questions	150 questions (plus possible unscored experimental items)
Time limit	150 minutes
Passing score	70% correct
Exam fee	$40 per examination
Prelicensing education	90 hours for the Property/Casualty line

Source: NY DFS / PSI Candidate Information Bulletin and the state department page. Verified 2026-07-20. Exam details change - always confirm against the current official candidate handbook before scheduling.

Official New York sources to verify

Use these official or exam-vendor resources to confirm the current candidate handbook, scheduling process, fees, identification rules, retake rules, prelicensing rules, fingerprint/background rules where applicable, and license-specific requirements.

State-specific preparation notes

Confirm whether the correct New York path is agent, broker, or other P&C authority before scheduling or applying.
New York P&C candidates should review the PSI-administered exam details and the prelicensing/exam timing rules tied to the license type.
Use practice results to target weak areas, then verify New York-specific duties and insurance law from NYDFS materials.

Suggested study flow

Open the official candidate handbook or content outline for New York.
Take a practice set on this page without looking up answers.
Review every missed explanation and group weak areas by topic.
Return to the official outline and study state-specific sections separately from national insurance concepts.
Before exam day, verify scheduling, identification, testing environment, and retake rules through official sources.

Independent study disclaimer

Insurance Exam Practice is an independent educational resource. It is not affiliated with New York State Department of Financial Services, PSI, NIPR, NAIC, or any other exam administrator unless specifically stated. Practice questions are for study support only and do not guarantee exam results, licensing eligibility, or licensing approval.

Free New York Property & Casualty practice questions with answers

The New York property and casualty sample questions below are pulled from the same 270-question P&C bank as the interactive test. Answer first, then expand to see the correct choice and why the others are wrong.

Question 1: An aggregate limit in liability insurance is best described as what?

A. The maximum paid for one claimant only
B. The total maximum the policy will pay for all covered claims during a policy period
C. The deductible for every claim
D. The amount paid before coverage starts

Correct answer: B. The total maximum the policy will pay for all covered claims during a policy period

Explanation: An aggregate limit is the total amount a policy will pay for specified covered claims during a policy period, subject to the policy wording.

Question 2: An occurrence limit is most closely tied to which concept?

A. The maximum payable for one covered event or occurrence
B. The number of years a policy must remain active
C. The policy cancellation fee
D. The insured's credit score

Correct answer: A. The maximum payable for one covered event or occurrence

Explanation: An occurrence limit is the maximum amount payable for one covered occurrence, subject to other limits such as aggregate limits.

Question 3: A personal umbrella policy is generally designed to provide what?

A. Extra liability coverage above underlying policies
B. Replacement cost coverage for jewelry only
C. Coverage for normal vehicle maintenance
D. A separate health insurance plan

Correct answer: A. Extra liability coverage above underlying policies

Explanation: An umbrella policy can provide additional liability limits above required underlying policies and may provide broader liability coverage in some situations.

Question 4: Which situation is most likely a liability claim rather than a first-party property claim?

A. The insured's roof is damaged by hail
B. The insured's guest slips on the insured's icy steps and is injured
C. The insured's computer is stolen from home
D. The insured's garage is damaged by wind

Correct answer: B. The insured's guest slips on the insured's icy steps and is injured

Explanation: A guest injury may create a liability claim if the insured is alleged to be legally responsible. Damage to the insured's own property is usually a first-party property issue.

Question 5: Commercial property insurance is primarily designed to cover what?

A. Business-owned buildings and business personal property against covered causes of loss
B. Employee retirement accounts
C. Individual life insurance needs
D. Personal auto liability only

Correct answer: A. Business-owned buildings and business personal property against covered causes of loss

Explanation: Commercial property insurance generally covers business buildings, business personal property, and related property exposures against covered causes of loss.

Question 6: Business personal property coverage commonly applies to which item?

A. Inventory, furniture, and equipment owned by the business
B. The owner's private life insurance policy
C. The owner's personal vacation home only
D. A customer's medical expenses under health insurance

Correct answer: A. Inventory, furniture, and equipment owned by the business

Explanation: Business personal property generally includes covered business-owned contents such as inventory, furniture, equipment, and supplies at described premises.

Question 7: Business income coverage is generally intended to replace what after a covered property loss?

A. Lost net income and certain continuing expenses during restoration
B. Punitive damages in a lawsuit
C. Employee workers compensation benefits only
D. The owner's personal medical bills

Correct answer: A. Lost net income and certain continuing expenses during restoration

Explanation: Business income coverage can help replace lost income and continuing expenses when operations are suspended due to covered physical loss or damage.

Question 8: Extra expense coverage is designed to pay which type of cost?

A. Necessary expenses to reduce or avoid a business interruption after a covered loss
B. Normal payroll taxes in every year
C. Auto collision deductibles only
D. Premiums for a life policy

Correct answer: A. Necessary expenses to reduce or avoid a business interruption after a covered loss

Explanation: Extra expense coverage can pay necessary costs incurred to continue operations or reduce the business interruption after a covered property loss.

Question 9: A builders risk policy is most often used to cover what?

A. Property under construction
B. Completed medical claims
C. Private passenger auto liability
D. Directors and officers liability only

Correct answer: A. Property under construction

Explanation: Builders risk coverage is designed for buildings or structures while they are being constructed, renovated, or repaired, subject to policy terms.

Question 10: A causes of loss form helps determine what?

A. Which perils or causes of loss are covered or excluded
B. The insured's health rating
C. The producer's commission schedule only
D. The beneficiary of a life policy

Correct answer: A. Which perils or causes of loss are covered or excluded

Explanation: The causes of loss form identifies covered causes of loss and exclusions for commercial property coverage. It is central to determining whether property damage is covered.

Question 11: A vacancy condition in commercial property insurance is important because vacancy can do what?

A. Increase loss risk and restrict or reduce coverage under policy conditions
B. Automatically increase liability limits
C. Eliminate all deductibles
D. Convert property coverage into health coverage

Correct answer: A. Increase loss risk and restrict or reduce coverage under policy conditions

Explanation: Vacancy can increase risk of certain losses. Commercial property policies often include vacancy conditions that may limit or restrict coverage after a specified vacancy period.

Question 12: Coinsurance in commercial property insurance encourages the insured to do what?

A. Carry insurance close to the required percentage of the property's value
B. Buy only liability coverage
C. Cancel coverage after every loss
D. Avoid reporting property values

Correct answer: A. Carry insurance close to the required percentage of the property's value

Explanation: A coinsurance clause encourages adequate insurance-to-value. If the insured carries too little insurance, a coinsurance penalty may reduce a partial-loss payment.

Want more than 12 questions? The interactive test on this page draws from the full 270-question Property & Casualty bank, and you can download the free Property & Casualty questions and answers PDF to study offline.

New York property and casualty practice exam FAQ

Is this New York property and casualty practice exam official?

No. This page is an independent study resource and is not an official exam from New York State Department of Financial Services, PSI, Pearson VUE, PSI, Prometric, NIPR, NAIC, or any other regulator or exam administrator.

What should I study for the New York P&C insurance exam?

Start with the current candidate handbook or content outline, then review property insurance, casualty insurance, liability, auto, homeowners, commercial coverage, claims basics, ethics, and state-specific insurance rules.

Can this practice test guarantee that I will pass in New York?

No. Practice questions can help you find weak areas, but they do not guarantee passing, licensing eligibility, or application approval.

Where should I verify New York P&C exam rules?

Verify scheduling, fees, identification, prelicensing, retake, fingerprinting, and application rules through New York State Department of Financial Services and the current exam-vendor resources.

How should I use this page before exam day?

Take a practice set, review missed explanations, compare weak topics against the official New York outline, and re-test only after reviewing the relevant coverage concepts and state rules.

Also preparing for another license in New York?

Property & Casualty practice exams in nearby states:

Browse all states on the Property & Casualty Insurance practice test hub, or Property & Casualty Exam Questions and Answers PDF (Free Download).