PA Property and casualty Exam prep
Questions and All Correct Answers
2026.
Under the Fair Credit Reporting Act, if a consumer challenges the accuracy of the information
contained in a consumer or investigative report, the reporting agency must - Answer
Respond to the consumer's complaint.
Which of the following will NOT be considered unfair discrimination by insurers
1
Cancelling individual coverage based on the insured's marital status
2
Discriminating in benefits and coverages based on the insured's habits and lifestyle
3
Assigning different risk classifications to applicants based on gender identity
4
Charging applicants with similar health histories different premiums based on their ethnicity -
Answer 2
All else being equal, which of the following will NOT be considered unfair discrimination by
insurers - Answer A. Cancelling individual coverage based on the insured's marital status
B. Charging applicants with similar health histories different premium rates
C. Discriminating in benefits and coverages based on the insured's habits and lifestyle
D. Assigning different risk classifications to applicants based on ethnicity
Answer: C
How often must the Commissioner examine rating organizations - Answer A. Every 2 years
B. Annually
C. Every 3 years
D. Every 5 years
,The land under the residence.
2
Business property while on the residence premises.
3
Losses caused by off-premises power failure.
4
Property of tenants, roomers, or boarders not related to any insured. - Answer 2
Which of the following is an example of a producer being involved in an unfair trade practice of
rebating - Answer A. Charging a client a higher premium for the same policy as another
client in the same insuring class
B. Telling a client that their first premium will be waived if the client purchases the policy from
the producer
C. Making deceptive statements about a competitor
D. Inducing the insured to drop a policy in favor of another one when it is not in the insured's
best interest
Answer: B
A banker is ready to close on a customer's loan. The bank is prepared to offer the loan but only
if the customer purchases an insurance policy from the bank in the amount of the loan. This is
an example of - Answer A. Defamation.
B. Twisting.
C. Coercion.
D. Loading.
Answer: C
How soon after the due date should the insurer pay the agent appointment fees - Answer A.
Within 30 days
B. Immediately
C. Within 10 days
D. Within 60 days
,Producers are responsible to collect and disperse premiums, and return premiums or other
funds. Which insurance term is associated with this? - Answer A. Fiduciary capacity
B. Financial trust
C. Monetary gatekeeping
D. Brokering
Answer: A
If a telemarketer wants to make an unsolicited sales call to a potential customer, what is the
earliest time the telemarketer can call the prospect's residence? - Answer A. 9 am
B. 7 am
C. Noon
D. 8 am
Answer: D
All of the following are requirements for producer license renewal EXCEPT - Answer A.
Renewal fees.
B. Record of fingerprints.
C. Renewal examination.
D. Up-to-date continuing education
Answer: C
All of the following violations may result in an agent's imprisonment EXCEPT - Answer A.
Failing to report to the department a criminal prosecution taken against the agent in another
jurisdiction.
B. Knowingly obtaining information about a consumer under false pretenses.
C. Engaging in the business of insurance after being convicted of breach of trust.
D. Embezzling funds from the insurer
Answer: A
, C. Sharing commission with the insured
D. Giving a client a $50 pen with the insurer's logo during the insurance application process
Answer: D
Which of the following reports will provide the underwriter with the information about an
insurance applicant's credit?
A. Any federal report
B. Agent's report
C. Consumer report
D. Inspection report - Answer C
When the Commissioner suspects that a person is violating an insurance law or other
regulation, what can be issued that would order the person to stop committing the act of
violation?
A. Stop Action Order
B. Cease and Desist Order
C. Limitation of Authority Order
D. Suspension of Power Order - Answer B
Agents who persuade insureds to cancel a policy in favor of another one when it might not be in
the insured's best interest are guilty of
A. Defamation.
B. Misrepresentation.
C. Twisting.
D. Rebating. - Answer C
Forcing a client to buy insurance from a particular lender as a condition of granting a loan is
defined as
A. Coercion.
B. Defamation.
C. Misleading advertising.
D. Rebating. - Answer A
Questions and All Correct Answers
2026.
Under the Fair Credit Reporting Act, if a consumer challenges the accuracy of the information
contained in a consumer or investigative report, the reporting agency must - Answer
Respond to the consumer's complaint.
Which of the following will NOT be considered unfair discrimination by insurers
1
Cancelling individual coverage based on the insured's marital status
2
Discriminating in benefits and coverages based on the insured's habits and lifestyle
3
Assigning different risk classifications to applicants based on gender identity
4
Charging applicants with similar health histories different premiums based on their ethnicity -
Answer 2
All else being equal, which of the following will NOT be considered unfair discrimination by
insurers - Answer A. Cancelling individual coverage based on the insured's marital status
B. Charging applicants with similar health histories different premium rates
C. Discriminating in benefits and coverages based on the insured's habits and lifestyle
D. Assigning different risk classifications to applicants based on ethnicity
Answer: C
How often must the Commissioner examine rating organizations - Answer A. Every 2 years
B. Annually
C. Every 3 years
D. Every 5 years
,The land under the residence.
2
Business property while on the residence premises.
3
Losses caused by off-premises power failure.
4
Property of tenants, roomers, or boarders not related to any insured. - Answer 2
Which of the following is an example of a producer being involved in an unfair trade practice of
rebating - Answer A. Charging a client a higher premium for the same policy as another
client in the same insuring class
B. Telling a client that their first premium will be waived if the client purchases the policy from
the producer
C. Making deceptive statements about a competitor
D. Inducing the insured to drop a policy in favor of another one when it is not in the insured's
best interest
Answer: B
A banker is ready to close on a customer's loan. The bank is prepared to offer the loan but only
if the customer purchases an insurance policy from the bank in the amount of the loan. This is
an example of - Answer A. Defamation.
B. Twisting.
C. Coercion.
D. Loading.
Answer: C
How soon after the due date should the insurer pay the agent appointment fees - Answer A.
Within 30 days
B. Immediately
C. Within 10 days
D. Within 60 days
,Producers are responsible to collect and disperse premiums, and return premiums or other
funds. Which insurance term is associated with this? - Answer A. Fiduciary capacity
B. Financial trust
C. Monetary gatekeeping
D. Brokering
Answer: A
If a telemarketer wants to make an unsolicited sales call to a potential customer, what is the
earliest time the telemarketer can call the prospect's residence? - Answer A. 9 am
B. 7 am
C. Noon
D. 8 am
Answer: D
All of the following are requirements for producer license renewal EXCEPT - Answer A.
Renewal fees.
B. Record of fingerprints.
C. Renewal examination.
D. Up-to-date continuing education
Answer: C
All of the following violations may result in an agent's imprisonment EXCEPT - Answer A.
Failing to report to the department a criminal prosecution taken against the agent in another
jurisdiction.
B. Knowingly obtaining information about a consumer under false pretenses.
C. Engaging in the business of insurance after being convicted of breach of trust.
D. Embezzling funds from the insurer
Answer: A
, C. Sharing commission with the insured
D. Giving a client a $50 pen with the insurer's logo during the insurance application process
Answer: D
Which of the following reports will provide the underwriter with the information about an
insurance applicant's credit?
A. Any federal report
B. Agent's report
C. Consumer report
D. Inspection report - Answer C
When the Commissioner suspects that a person is violating an insurance law or other
regulation, what can be issued that would order the person to stop committing the act of
violation?
A. Stop Action Order
B. Cease and Desist Order
C. Limitation of Authority Order
D. Suspension of Power Order - Answer B
Agents who persuade insureds to cancel a policy in favor of another one when it might not be in
the insured's best interest are guilty of
A. Defamation.
B. Misrepresentation.
C. Twisting.
D. Rebating. - Answer C
Forcing a client to buy insurance from a particular lender as a condition of granting a loan is
defined as
A. Coercion.
B. Defamation.
C. Misleading advertising.
D. Rebating. - Answer A
