Arizona P&C Law & Coverage Requirements
The state portion of the Arizona property & casualty exam tests the coverage rules that differ from the national fundamentals: Arizona's compulsory auto insurance limits, how injury claims are settled, cancellation and nonrenewal protections, and the dwelling/homeowners products used for Arizona property. These sit on top of the shared national P&C bank.
Compulsory Auto Liability Limits in Arizona
Arizona requires every registered vehicle to carry at least the state minimum liability coverage. Under A.R.S. 28-4009 (limits for policies issued on or after July 1, 2020), the minimums are $25,000 for bodily injury per person, $50,000 per accident, and $15,000 for property damage — commonly written 25/50/15. These are floors, not recommendations; higher limits and optional coverages (uninsured/underinsured motorist, collision, comprehensive) are available. Confirm the current statutory figures with the Arizona Department of Insurance and Financial Institutions (DIFI) before quoting them.
How Arizona Settles Auto Injury Claims
Arizona is a tort ('at-fault') state, not a no-fault state; the at-fault driver's liability coverage responds to the injured party's claim. Knowing whether Arizona is a tort or no-fault state tells the producer which coverage responds first and how an injured party recovers. Uninsured/underinsured motorist coverage protects the insured when the at-fault party has no or too little insurance.
Cancellation, Nonrenewal, and Dwelling/Homeowners Coverage
Arizona protects personal-lines policyholders by regulating when and how an insurer may cancel a policy midterm or decline to renew it, generally requiring advance written notice with a stated reason; the exact number of days is fixed by state law and should be verified with the Arizona Department of Insurance and Financial Institutions (DIFI). For property, homeowners (HO) forms require owner-occupancy, while a Dwelling (DP) policy covers rental or non-owner-occupied dwellings — a national distinction the exam applies to Arizona risks.
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State-specific details
State exam facts
- State regulator
- Arizona Department of Insurance and Financial Institutions
- Exam vendor
- PSI
- Passing score
- 70%
Who regulates property & casualty insurance licensing in Arizona?
The Arizona Department of Insurance and Financial Institutions (DIFI) licenses property & casualty producers. As of September 2025, PSI Services replaced Pearson VUE as Arizona's exam vendor, so P&C candidates now register through PSI.
What can I sell with an Arizona P&C license?
The property & casualty license covers personal and commercial property/casualty lines — homeowners, personal and commercial auto, general liability, commercial property, and workers' compensation — broader than the personal-only Personal Lines license. A score of 70% is required to pass.
Does Arizona require prelicensing education for the P&C exam?
Arizona's prelicensing requirement has been the subject of recent changes; confirm the current property & casualty requirement directly with DIFI before enrolling in a course.
Sources: https://difi.az.gov, https://www.psiexams.com/
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