PROPERTY AND CASUALTY
PENNSYLVANIA EXAM 2025/2026
QUESTIONS AND ANSWERS 100% PASS.
Fair Credit Reporting Act (FCRA) - ANS Requires consumer reporting agencies to adopt
reasonable procedures for exchanging information on credit, personnel, insurance, and other
subjects in a manner that is fair and equitable to the consumer with respect to the
confidentiality, accuracy, relevancy, and proper use of the information
all insurers and producers must comply
Notice to the applicant within three days after the report was requested
Maximum penalty $5000 one year in prison or both
Terrorism risk insurance program re-authorization act (TRIPRA) - ANS This act is designed to
limit the exposure of individual ensures and the insurance industry as a whole and to make
insurance available in affordable under a system where the federal government participates and
shares the risk of loss there are several key provisions included in the act
Result of 9/11 attacks on US
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Congress originally enacted in 2002
Limits exposure of insurance in case of another catastrophic event
Triggering event Dash $200 million
Fraud and false statements - ANS A person who transact insurance in interstate commerce
and who intentionally makes false material statements in connection with financial reports or
documents presented to insurance regulators appointed to investigate the person in attempt to
influence the actions of such officials is subject to:
it is illegal to make false statements
if found guilty you will pay-
A fine
imprisonment for up to 10 years
or both
Up to 15 years in prison and false statements jeopardize the insurer
Under the fair credit reporting act the maximum penalty for obtaining consumer information
reports under false pretense is - ANS $5000, imprisonment for one year, or both
An act of terrorism must be certified by the secretary of treasury in consultation with the
security of homeland security, and the - ANS U.S. Attorney General
Which of the following acts requires financial institutions; companies that offer consumers
financial products or services like loans, financial, or investment advice; and insurance
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,companies, to explain their information sharing practices to their customers and to safeguard
sensitive data - ANS Graham - Leach - bliley act
Imprisonment may be ordered for up to how many years if all statements made jeopardize the
safety and soundness of an ensure and where a significant cause of the issue were being placed
in conversation, rehabilitation, or liquidation by the courts? - ANS 15 years
Motorcarrier act of 1980 (MCS-90 endorsement) - ANS Require trucking companies to certify
that they are able to meet financial obligations if they become liable for injury or damage
arising from their trucking operations
MCS-90 Endorsement - ANS Endorsement attached to the Truckers coverage form to provide
public liability coverage for bodily injury, property damage, and environmental restoration.
Limits of liability required by the motor carrier act that have a gross vehicle weight of 10,000
pounds or more - ANS $750,000 for interstate transportation of non-hazardous property
$5,000,000 for interstate or interstate transportation of large quantities of certain hazardous
materials, such as compressed gas, radioactive materials or explosives
$1,000,000 for interstate or intrastate transportation of oil or other hazardous waste
Methods of Handling Risk (STARR) - ANS Sharing
transfer
avoidance
retention
Reduction
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Sharing - ANS Two or more individuals or businesses agree to pay a portion of any loss
insured by any member of the group.
Example - stockholders in a corporation share the risk
transfer - ANS This is what happens with Insurance. The insurance company agrees to pay if
an insured has a loss - the insured no longer bears that risk. The individual has a cost in the form
of a premium payment. But, in contrast to the loss which is large and uncertain, the premium is
a much smaller certainty
Avoidance - ANS Eliminating a particular risk by not engaging in a certain activity
example Dash an individual who does not drive avoids the risk of injuring somebody in an
automobile collision and being held liable for those damages
retention - ANS Means the individual or business will pay for the loss if it occurs, or a portion
of the loss via deductible
Example - if you don't have car insurance to pay for the damages you caused another person in
an accident, you have retained that risk
reduction - ANS Lessening the chance of a loss for occur, or lessening the extent of a loss if it
occurs
If a business install the sprinkler system and its building, this will help reduce or eliminate the
damage caused by a fire
Elements of Insurable Risk (CANHAM) - ANS Elements of insurable risk
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
PENNSYLVANIA EXAM 2025/2026
QUESTIONS AND ANSWERS 100% PASS.
Fair Credit Reporting Act (FCRA) - ANS Requires consumer reporting agencies to adopt
reasonable procedures for exchanging information on credit, personnel, insurance, and other
subjects in a manner that is fair and equitable to the consumer with respect to the
confidentiality, accuracy, relevancy, and proper use of the information
all insurers and producers must comply
Notice to the applicant within three days after the report was requested
Maximum penalty $5000 one year in prison or both
Terrorism risk insurance program re-authorization act (TRIPRA) - ANS This act is designed to
limit the exposure of individual ensures and the insurance industry as a whole and to make
insurance available in affordable under a system where the federal government participates and
shares the risk of loss there are several key provisions included in the act
Result of 9/11 attacks on US
1 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,Congress originally enacted in 2002
Limits exposure of insurance in case of another catastrophic event
Triggering event Dash $200 million
Fraud and false statements - ANS A person who transact insurance in interstate commerce
and who intentionally makes false material statements in connection with financial reports or
documents presented to insurance regulators appointed to investigate the person in attempt to
influence the actions of such officials is subject to:
it is illegal to make false statements
if found guilty you will pay-
A fine
imprisonment for up to 10 years
or both
Up to 15 years in prison and false statements jeopardize the insurer
Under the fair credit reporting act the maximum penalty for obtaining consumer information
reports under false pretense is - ANS $5000, imprisonment for one year, or both
An act of terrorism must be certified by the secretary of treasury in consultation with the
security of homeland security, and the - ANS U.S. Attorney General
Which of the following acts requires financial institutions; companies that offer consumers
financial products or services like loans, financial, or investment advice; and insurance
2 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
,companies, to explain their information sharing practices to their customers and to safeguard
sensitive data - ANS Graham - Leach - bliley act
Imprisonment may be ordered for up to how many years if all statements made jeopardize the
safety and soundness of an ensure and where a significant cause of the issue were being placed
in conversation, rehabilitation, or liquidation by the courts? - ANS 15 years
Motorcarrier act of 1980 (MCS-90 endorsement) - ANS Require trucking companies to certify
that they are able to meet financial obligations if they become liable for injury or damage
arising from their trucking operations
MCS-90 Endorsement - ANS Endorsement attached to the Truckers coverage form to provide
public liability coverage for bodily injury, property damage, and environmental restoration.
Limits of liability required by the motor carrier act that have a gross vehicle weight of 10,000
pounds or more - ANS $750,000 for interstate transportation of non-hazardous property
$5,000,000 for interstate or interstate transportation of large quantities of certain hazardous
materials, such as compressed gas, radioactive materials or explosives
$1,000,000 for interstate or intrastate transportation of oil or other hazardous waste
Methods of Handling Risk (STARR) - ANS Sharing
transfer
avoidance
retention
Reduction
3 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
, Sharing - ANS Two or more individuals or businesses agree to pay a portion of any loss
insured by any member of the group.
Example - stockholders in a corporation share the risk
transfer - ANS This is what happens with Insurance. The insurance company agrees to pay if
an insured has a loss - the insured no longer bears that risk. The individual has a cost in the form
of a premium payment. But, in contrast to the loss which is large and uncertain, the premium is
a much smaller certainty
Avoidance - ANS Eliminating a particular risk by not engaging in a certain activity
example Dash an individual who does not drive avoids the risk of injuring somebody in an
automobile collision and being held liable for those damages
retention - ANS Means the individual or business will pay for the loss if it occurs, or a portion
of the loss via deductible
Example - if you don't have car insurance to pay for the damages you caused another person in
an accident, you have retained that risk
reduction - ANS Lessening the chance of a loss for occur, or lessening the extent of a loss if it
occurs
If a business install the sprinkler system and its building, this will help reduce or eliminate the
damage caused by a fire
Elements of Insurable Risk (CANHAM) - ANS Elements of insurable risk
4 @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED.
