Read a free sample — District of Columbia Property & Casualty Insurance Producer Exams — Complete Study Guide (2026) (Chapter 8)

The Producer Licensing Act of 2002 (chapter 11A of Title 31, §§ 31-1131.01 to 31-1131.19) is the statute behind this part of both exams, and the licensing regulations are in chapter 1 of Title 26-A (26-A DCMR §§ 100 to 108). Everything below comes from those two sources unless it says otherwise. The outline lists six topics: the producer license, denial or revocation, appointments, commissions, reporting of actions, and renewal.

8.1 Who needs a license, and for which lines

A person may not sell, solicit or negotiate insurance in the District for any class of insurance unless licensed for that line of authority. The license does not itself give authority to represent or commit an insurer. (§ 31-1131.03(a)) The three words are defined:

Sell: to sell or exchange a contract of insurance by any means, for money or its equivalent, on behalf of an insurer.
Solicit: attempting to sell insurance, or asking or urging a person to apply for a particular kind of insurance from a particular company.
Negotiate: conferring directly with or offering advice directly to a purchaser or prospective purchaser concerning the substantive benefits, terms or conditions of a particular contract of insurance, when the person sells insurance or obtains it from insurers for purchasers. (§ 31-1131.02)

The lines of authority a District producer may hold are: life; accident and health or sickness; property; casualty; variable life and variable annuity; personal lines (property and casualty coverage sold to individuals and families for primarily noncommercial purposes); bail bonds; surplus lines; and the limited lines (car rental, credit, crop, portable electronics, surety, travel, and others the Commissioner establishes or recognizes). (§ 31-1131.07(a))

Property is "insurance coverage for the direct or consequential loss or damage to property of every kind." Casualty is "insurance coverage against legal liability, including that for death, injury, or disability, or damage to real or personal property." (§ 31-1131.07(a)(3), (4))
A person cannot be licensed in bail bonds or surplus lines unless the person holds, or is simultaneously issued, a property or casualty license. (§ 31-1131.07(a-1); 26-A DCMR § 100.10)
Resident or nonresident. Someone whose principal residence and principal place of business are in the District applies for a resident license. Someone whose residence and business are both elsewhere applies for a nonresident license. Someone with only one of the two in the District applies for a nonresident license if licensed as a resident of another state, and for a resident license if not. (§ 31-1131.03(b))

Exceptions. Officers, directors and employees of an insurer or producer need no license if they receive no commission on District risks and their activities are executive, administrative, managerial or clerical, relate to underwriting, loss control, inspection or claims, or are technical support for licensed producers. A person who only advertises, without intent to solicit District risks, is exempt, as is a nonresident who sells commercial property and casualty insurance for risks in more than one state if licensed in the state of the insured's principal place of business. (§ 31-1131.04(b))

8.2 Getting a license: exam, fingerprints, fees

An individual applying for a resident license must pass a written examination, unless applying for a limited line or surplus lines, or exempt (for example because currently licensed for the same line in another state, or applying within 90 days of cancelling a license in good standing in another state). The exam tests the lines of authority, the duties and responsibilities of a producer, and the insurance laws and regulations of the District. (§§ 31-1131.05, 31-1131.09)

Before approving an individual's application, the Commissioner must find that the individual:

Is at least 18 years of age;
Has committed no act that is a ground for denial, suspension or revocation (§ 31-1131.12);
Has completed a pre-licensing course of study if the Commissioner requires one;
Has paid the fees; and
Unless exempt, has passed the exam for the lines applied for. (§ 31-1131.06(a))

Three details:

Pre-licensing education. The statute says only that the Commissioner may require, by rule, a pre-licensing course (§ 31-1131.05a). The producer-licensing regulations this book read (26-A DCMR chapter 1) contain no pre-licensing course requirement. The Pearson VUE candidate handbook says a mandatory 40-hour pre-licensing course "is not mandated" in the District, and then, in the next sentence, says candidates "have to show proof of a Pre-Licensing Course." Because the two statements conflict and no rule was found, this book does not say a course is required or that it is not; confirm with DISB before you schedule. Whatever the answer, this book is not an approved pre-licensing course and gives no pre-licensing or continuing-education credit.
Passing score and the one-year rule. The regulation requires a score of at least 70 on the written examination, and the applicant must apply for the license within one year of passing; if not, the score is invalid and the fee forfeited. (26-A DCMR § 100.3) The Pearson VUE handbook also lists 70 as the required scaled passing score for the producer exams.
Fingerprints. A resident applicant (except one applying only for a limited line) must submit fingerprints and consent to a criminal-history background check, at the applicant's expense. (§ 31-1131.06a) Pearson's District page says a candidate who passes the exam must submit to fingerprinting and a background check through Fieldprint.

A business entity applying for a producer license must pay the fees and designate a licensed individual producer responsible for the entity's compliance. Under the regulation, an entity with major lines of authority needs at least one affiliated individual with the same lines, and an individual license for every officer, director, employee and shareholder who personally sells, solicits or negotiates. (§ 31-1131.06(b); 26-A DCMR § 100.5)

Fees. The regulation sets $100 for the property and casualty group of lines (property, casualty, personal lines and bail bonds), $100 for the life and health group, $100 for limited lines, and $200 for a surplus lines producer. The renewal fee equals the initial fee, a late fee is double, and the reinstatement fee is double. (26-A DCMR § 105.1) These are the amounts in the regulations as published; DISB posts its own license-fee schedule, which was not available for this edition, so confirm current fees with DISB.

The exam itself. The exam fee set by the Pearson VUE handbook (revision of December 2024) is $75, and each candidate has two hours; the handbook says all examinations are offered individually. Property and Casualty are therefore two exams with two reservations. Confirm the fee and time with Pearson VUE before you schedule.

8.3 License term, renewal and reinstatement

An initial individual license expires on the last day of the producer's birth month that falls not less than 18 and not more than 29 months after the license's effective date. A business entity license expires on the May 31 that falls in the same 18-to-29-month window. A renewal runs 2 years from the prior expiration. (§ 31-1131.07a(a)-(c); 26-A DCMR § 102.1)
The Commissioner renews if the producer applies, pays the fees, meets continuing education (for residents), is not subject to nonrenewal under § 31-1131.12 and has submitted fingerprints if required. A nonresident must still be a resident licensee in good standing at home. (§ 31-1131.07a(e))
Late renewal. The regulation allows a producer who fails to renew to renew within 30 days after expiration by paying the late fee, and the producer is treated as continuously licensed. After 30 days the license is considered lapsed, and the producer must apply for reinstatement. (26-A DCMR § 102.5-102.6)
Reinstatement. A producer who lets a license lapse may, within one year after expiration, reinstate the same license without re-taking the exam, by paying a penalty of twice the unpaid renewal fee (statute) / a reinstatement fee of double the initial fee (regulation 105.1(f), and the DISB reinstatement page). The Commissioner will not reinstate if no application is made within one year; the person must meet the requirements for an initial license. (§ 31-1131.07a(f); 26-A DCMR § 103.6) DISB's reinstatement page adds that a late fee of double the license fee begins on the first day after expiration and that the applicant must state whether District business was conducted while lapsed.
A person whose license was revoked cannot apply for reinstatement for 3 years unless the order says otherwise. (26-A DCMR § 104.1)
Military or extenuating circumstances. A producer unable to meet renewal procedures because of military service or other extenuating circumstances may request a waiver. (§ 31-1131.07a(g))

Continuing education

A producer seeking renewal must certify 24 credit hours of approved continuing education, including at least 3 hours of ethics, within the license period. A producer renewing in both the life-and-health group and the property-and-casualty group must complete at least 6 hours for each group. Property and casualty producers also have a flood-insurance hours requirement in the first renewal period after the rule took effect; the codified text prints the number as "four (3)," so confirm the flood-hour figure with DISB. Limited-lines-only producers have no CE requirement. Other rules: a licensee may not satisfy more than one half of the requirement with insurer-sponsored courses, excess hours do not carry forward, and a producer who misses the CE deadline may renew within 30 days after expiration by submitting proof and paying the late fee. (26-A DCMR § 106) Title-insurance CE (8, 16 and 4 hours) is separate and not on this exam. The Pearson handbook's CE paragraph describes the same 24-hour rule and says renewal requires at least six hours "related to each line of authority"; where its wording on insurer-sponsored courses differs from the regulation, this book follows the regulation.

8.4 Nonresident producers and reciprocity

A person licensed as a resident of another state may get a nonresident license in the District if currently licensed and in good standing at home, with the request, fees and a completed NAIC Uniform Application. A nonresident license carries the same rights and privileges as a resident one. The District waives other requirements if the home state grants District residents nonresident licenses on the same basis. If the home license ends, the District nonresident license and appointment terminate. A nonresident's satisfaction of home-state CE satisfies the District's if the home state treats District CE reciprocally. (§§ 31-1131.08, 31-1131.16)

A producer who moves must inform the Commissioner of a change of residential or business address within 30 days, and a change of legal or corporate name within 30 days. A producer licensed elsewhere who moves to the District must apply for a District resident license within 90 days of establishing residence. (§ 31-1131.08a) A producer doing business under an assumed name must notify the Commissioner before using it. (§ 31-1131.10) The Commissioner may issue a temporary license for up to 180 days, without an exam, for example to service the business of a producer who dies or becomes disabled, or one called to active military service. (§ 31-1131.11)

8.5 Denial, nonrenewal, suspension and revocation (§ 31-1131.12)

The Commissioner may refuse to issue a license; place a producer on probation; suspend, revoke or refuse to renew a license; levy a civil penalty; issue subpoenas and administer oaths; or do any combination, if the applicant or producer:

gives incorrect, misleading, incomplete or materially untrue information in the application;
violates any insurance law, regulation, subpoena or order of the Commissioner or another state's commissioner;
obtains or attempts to obtain a license through misrepresentation or fraud;
improperly withholds, misappropriates or converts money or property received in the course of doing insurance business;
intentionally misrepresents the terms of an actual or proposed policy or application;
is convicted of a felony;
admits or is found to have committed any insurance unfair trade practice or fraud;
uses fraudulent, coercive or dishonest practices, or shows incompetence, untrustworthiness or financial irresponsibility;
has a license denied, suspended or revoked in any other state or country;
forges another's name on an application or insurance document;
improperly uses notes or cheats on a license exam;
knowingly accepts business from an unlicensed person;
fails to comply with a child-support order or fails to pay District income tax or comply with a tax-payment order; or
misrepresents completion of, or cheats on an exam in, a pre-licensing or CE course.

A business entity can be disciplined if partners, officers or managers knew or should have known of a violation, the violation was not reported to the Commissioner, and no corrective action was taken. (§ 31-1131.12(a-1))

Process. The Commissioner must give written notice of the proposed action and reason, and tell the producer that a hearing may be requested within 30 days; if requested, the hearing is held within 30 days of the request and the action is not taken before it closes. The exceptions: the Commissioner may suspend or revoke without prior notice if further business would be hazardous to the public, policyholders or creditors (with a hearing offered within 30 days afterward), and may refuse an initial license without prior hearing (with a hearing offered within 30 days). After a hearing the Commissioner may impose a civil penalty not exceeding $5,000 or require restitution. (§ 31-1131.12(b)-(d)) Even after revocation, surrender or lapse, the Commissioner may still enforce against a person under investigation. (§ 31-1131.12(e))

Producer Licensing in the District (DC outline area I, part C)