PA PROPERTY AND CASUALTY EXAM ACTUAL
PAPER 2026 QUESTIONS SOLUTIONS GRADED
A+
◉ 90 days. Answer: An application as a resident agent must be made
in how many days if an individual establishes a principal place of
residence within Pa from another state?
◉ a temporary license. Answer: issued for 180 days for surviving
spouse, surviving inactive officer or partner, legal representative.
Can be used upon death or incompetency of producer, or when
individuals are serving in the military.
◉ Endorse Insurers. Answer: Commissioner can do all of the
following except?
◉ provides incorrect or misleading info, been denied in another
state or violated commonwealth insurance laws.. Answer: Insurance
department can deny an application if the applicant....
◉ Cease & Desist order. Answer: the insurance department may
issue this which requires the insurer or person to stop activity in
question
,◉ the Governor. Answer: Insurance commissioner is appointed by...
◉ Guaranty Fund. Answer: administered by a U.S. state to protect
policyholders in the event that an insurance company defaults on
benefit payments or becomes insolvent. Producers are prohibited to
advertise it's existence to secure business.
◉ Rate Regulation. Answer: Performed by commissioner to prohibit
rates that are excessive, inadequate or unfairly;y discriminatory.
◉ 10 working days. Answer: Insurance company should
acknowledge receipt of claim within...
◉ 15 days. Answer: Insurance should respond to insurance
department inquiry within...
◉ Rebating. Answer: Bribery, returning a portion of the premium or
the agent's/broker's commission on the premium to the insured or
other INDUCEMENTS to place business with a specific insurer.
◉ Misrepresentation. Answer: When producer makes false
statements
,◉ Twisting. Answer: When insurance agent makes incomplete
comparisons as an inducement to terminate, surrender one's policy
for another of similar risks
◉ False Advertising. Answer: using media with deliberate deceit to
defraud
◉ Coercion. Answer: persuading someone to buy insurance through
the use of threats
◉ Misappropriation of funds. Answer: improper holding, breaking
fiduciary obligations
◉ Defamation. Answer: making false or derogatory statements as to
insurance company's financial position
◉ Redlining. Answer: unfair discrimination based on location of
insured's home or business
◉ Commingling funds. Answer: when a producer is collecting
premiums from applicants and adding it to their personal funds,
holding out premium
, ◉ Fiduciary responsibility. Answer: is a producer's obligation to
handle funds of the insured in a responsible and ethical manner
◉ The Insurer. Answer: Who can terminate a producers
appointment
◉ Insurance Producer. Answer: means any person/entity who or
which is licensed to solicit, negotiate, or sell insurance.
◉ the department of insurance. Answer: Who is allowed to conduct
as many examinations of insurance agencies/agents as they want
◉ Commissions. Answer: can be shared when 2 producers are in the
same authority
◉ Consulting Fees. Answer: allowed, must include a written advance
notice of the fee disclosed to the person and must be reasonable in
relationship to service provided
◉ Gramm-Leach-Bailey Act. Answer: purpose is to protect the
privacy of consumer financial info (customers can opt out and
prohibit insurance agency from disseminating nonpublic personal
info to non-affiliated third party)
PAPER 2026 QUESTIONS SOLUTIONS GRADED
A+
◉ 90 days. Answer: An application as a resident agent must be made
in how many days if an individual establishes a principal place of
residence within Pa from another state?
◉ a temporary license. Answer: issued for 180 days for surviving
spouse, surviving inactive officer or partner, legal representative.
Can be used upon death or incompetency of producer, or when
individuals are serving in the military.
◉ Endorse Insurers. Answer: Commissioner can do all of the
following except?
◉ provides incorrect or misleading info, been denied in another
state or violated commonwealth insurance laws.. Answer: Insurance
department can deny an application if the applicant....
◉ Cease & Desist order. Answer: the insurance department may
issue this which requires the insurer or person to stop activity in
question
,◉ the Governor. Answer: Insurance commissioner is appointed by...
◉ Guaranty Fund. Answer: administered by a U.S. state to protect
policyholders in the event that an insurance company defaults on
benefit payments or becomes insolvent. Producers are prohibited to
advertise it's existence to secure business.
◉ Rate Regulation. Answer: Performed by commissioner to prohibit
rates that are excessive, inadequate or unfairly;y discriminatory.
◉ 10 working days. Answer: Insurance company should
acknowledge receipt of claim within...
◉ 15 days. Answer: Insurance should respond to insurance
department inquiry within...
◉ Rebating. Answer: Bribery, returning a portion of the premium or
the agent's/broker's commission on the premium to the insured or
other INDUCEMENTS to place business with a specific insurer.
◉ Misrepresentation. Answer: When producer makes false
statements
,◉ Twisting. Answer: When insurance agent makes incomplete
comparisons as an inducement to terminate, surrender one's policy
for another of similar risks
◉ False Advertising. Answer: using media with deliberate deceit to
defraud
◉ Coercion. Answer: persuading someone to buy insurance through
the use of threats
◉ Misappropriation of funds. Answer: improper holding, breaking
fiduciary obligations
◉ Defamation. Answer: making false or derogatory statements as to
insurance company's financial position
◉ Redlining. Answer: unfair discrimination based on location of
insured's home or business
◉ Commingling funds. Answer: when a producer is collecting
premiums from applicants and adding it to their personal funds,
holding out premium
, ◉ Fiduciary responsibility. Answer: is a producer's obligation to
handle funds of the insured in a responsible and ethical manner
◉ The Insurer. Answer: Who can terminate a producers
appointment
◉ Insurance Producer. Answer: means any person/entity who or
which is licensed to solicit, negotiate, or sell insurance.
◉ the department of insurance. Answer: Who is allowed to conduct
as many examinations of insurance agencies/agents as they want
◉ Commissions. Answer: can be shared when 2 producers are in the
same authority
◉ Consulting Fees. Answer: allowed, must include a written advance
notice of the fee disclosed to the person and must be reasonable in
relationship to service provided
◉ Gramm-Leach-Bailey Act. Answer: purpose is to protect the
privacy of consumer financial info (customers can opt out and
prohibit insurance agency from disseminating nonpublic personal
info to non-affiliated third party)
