PA PROPERTY AND CASUALTY EXAM 2026
ACTUAL TEST PAPER VERIFIED SOLUTIONS
◉ Terrorism risk insurance program re-authorization act (TRIPRA)
Answer: 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
Congress originally enacted in 2002
Limits exposure of insurance in case of another catastrophic event
Triggering event Dash $200 million
◉ Fraud and false statements Answer: 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 Answer: $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 Answer:
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 companies, to explain their
information sharing practices to their customers and to safeguard
sensitive data Answer: 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? Answer: 15 years
,◉ Motorcarrier act of 1980 (MCS-90 endorsement) Answer: 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 Answer: 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 Answer: $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) Answer: Sharing
transfer
avoidance
retention
, Reduction
◉ Sharing Answer: 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 Answer: 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 Answer: 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 Answer: 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
ACTUAL TEST PAPER VERIFIED SOLUTIONS
◉ Terrorism risk insurance program re-authorization act (TRIPRA)
Answer: 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
Congress originally enacted in 2002
Limits exposure of insurance in case of another catastrophic event
Triggering event Dash $200 million
◉ Fraud and false statements Answer: 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 Answer: $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 Answer:
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 companies, to explain their
information sharing practices to their customers and to safeguard
sensitive data Answer: 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? Answer: 15 years
,◉ Motorcarrier act of 1980 (MCS-90 endorsement) Answer: 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 Answer: 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 Answer: $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) Answer: Sharing
transfer
avoidance
retention
, Reduction
◉ Sharing Answer: 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 Answer: 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 Answer: 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 Answer: 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
