Arizona P&C Study Guide
Failed the Arizona P&C exam? There's a good chance it wasn't you.
The most common complaint from people who don't pass isn't the test — it's the study material. And the part they point to most? The state regulations: a few generic, watered-down national pages that looked nothing like the real Arizona exam. TESTivity is built the other way around. Below is a real chapter from the Arizona P&C manual — written for Arizona specifically, not national prep with a state name slapped on the cover. Read it and see the difference for yourself.
Arizona · Property & Casualty Sample chapter
Chapter 10.2.4 Arizona Insurance Regulations
Arizona P&C is the mirror image of Michigan’s: a traditional fault system rather than no-fault, and — most importantly for the exam — the most forgiving fault rule in the country. That one concept, pure comparative fault, anchors the whole auto section. Add a distinctive workers’ comp setup and you’ve got Arizona’s high-value points. Let’s work through it.
Licensing — the quick version
Arizona P&C pre-licensing is just 20 hours per line (the light Arizona standard), with 24 hours of CE (3 of ethics) every 2 years. Surplus lines require a separate license and a documented diligent search of the admitted market first.
Auto — fault-based, 25/50/15, and SR-22
Arizona is a fault state — the at-fault driver’s liability pays — with no mandatory PIP. Minimum limits are 25/50/15 (A.R.S. § 28-4135). UM/UIM must be offered, with a signed written rejection required to decline. Drivers who violate the financial-responsibility law may be required to carry an SR-22 (an insurer-filed certificate of financial responsibility) for about three years.
Comparative fault — the most forgiving rule there is
This is the Arizona concept the exam keeps coming back to. Arizona uses pure comparative fault: an injured party can recover no matter how much they’re at fault — even 99% — with their award simply reduced by their share of the blame. There’s no bar percentage at all.
Homeowners — wildfire country
Arizona’s defining property peril is wildfire, especially in the wildland-urban interface, where standard-market coverage has gotten harder to find. The FAIR Plan is the insurer of last resort. Ordinance-or-law coverage matters here too — older homes often must be rebuilt to current code after a loss. And as always, flood is excluded from homeowners policies (Arizona’s monsoon flash floods make NFIP or private flood coverage a real need).
Workers’ comp — the broadest threshold
Arizona requires workers’ comp for every employer with one or more employees — no small-employer exception at all, one of the broadest thresholds in the country. The system is run by the Industrial Commission of Arizona (ICA), benefits replace 66⅔% of the average monthly wage, and there’s a 1-year filing deadline. The state fund, SCF Arizona, is the market of last resort.
Key terms so far
- Pure comparative fault
- Arizona lets you recover at any fault percentage, reduced by your share — the most forgiving rule.
- SR-22
- Insurer-filed certificate of financial responsibility, typically required for ~3 years.
- ICA
- Industrial Commission of Arizona — administers the state’s workers’ comp system.
Cancellation and nonrenewal
Arizona personal-lines nonrenewal needs 30 days notice (no reason required); commercial nonrenewal needs 45. In a new policy’s first 60 days, the insurer can cancel for any reason on 10 days’ notice; after that, mid-term cancellation narrows to nonpayment (10 days), or fraud, material misrepresentation, a substantial change in the risk, or a policy violation (30 days). Those notice
That's a taste of the real thing.
The full Property & Casualty study manual covers every exam topic in this same plain-English voice — every rule, every memory Hook, every worked example. Want the video course and full exam simulator too? They come with the Platinum study package.