PROPERTY AND CASUALTY
CERTIFICATION EVALUATION 2026 TEST
PAPER QUESTIONS AND SOLUTIONS
●● An exclusion that states that an insurer will not pay any claim in
which an individuals property is damaged as a result of the fact that the
individual did not maintain the property..
Answer: Neglect exclusion
●● Which Home Owner's form covers damage to a condo owner's
PROPERTY that occurs as the result of any event that is not specifically
excluded in the policy..
Answer: HO-6 Unit Owner's Form
●● Which Home Owner's form covers damage to a TENANT'S property
that occurs as a result of an aircraft, civil commotion, explosion, fire,
nail, lightning, smoke, theft, vandalism, vehicles and/or wind..
Answer: HO-4 Content's Broad Form
●● Which HO form covers damage to the DWELLING that occurs as
the result of any event that is not specifically excluded in the policy and
damage to the property inside the dwelling that results of an aircraft,
civil commotion, explosion, fire, hail, lightning, smoke, theft,
vandalism, vehicles, and/or wind..
,Answer: HO-3 Special Form
●● Which HO Form covers damage to the DWELLING & PROPERTY
inside the dwelling that occurs as an result of any event that is not
specifically excluded in the policy..
Answer: HO - 5 Comprehensive Form
●● What means conducting business in accordance with current rules
and laws set by government regulatory agencies and the courts..
Answer: Compliance
●● Standards of conduct and moral judgement..
Answer: Ethics
●● Legal term that describes the relationship between parties..
Answer: Agency
●● What is the term to describe how an insurer appoints an individual to
act on its behalf..
Answer: Agency Contract
●● An individual whose position and responsibilities involve a high
degree of trust and confidence (trustees, guardians, and executors)..
,Answer: Fiduciary
●● The name for the fact a producer must sell the kind of policies that
best fit the prospects needs and in amounts that the prospects can afford..
Answer: Needs Selling
●● What is given when the applicant pays the initial premium at the
time the application for a policy is signed..
Answer: Conditional Receipt
●● What is the term for informing the prospect or client of all facts
involving a specific policy or plan so that an informed decision can be
made..
Answer: Full Disclosure
●● What is the name for the watchdog group whose member companies
agree to adhere to and enforce ethical principles..
Answer: Insurance Standards Association (IMSA)
●● What Act deals with the inappropriate use of advertising..
Answer: Unfair Trade Practices Act
●● Any written or oral statement that does not accurately describe a
policy's features, benefits, or coverage..
, Answer: Misrepresentation
●● Any false, maliciously, critical or derogatory communication that
injures another's reputation, fame, or character..
Answer: Defamation
●● What is the term if the buyer of an insurance policy receives any part
of the producers commission or anything else of significant values as an
inducement to purchase a policy..
Answer: Rebating
●● The unethical act of persuading a policy owner to drop a policy
solely for the purpose of selling another policy without regard to the
possible disadvantages to the policy owner..
Answer: Twisting.
●● A resident producers license must meet what 2 requirements?.
Answer: 1.) May either reside in PA -or-
2.) Have their principal place of business in PA
●● In what 2 situations is it not required to be a licensed as a manager or
exclusive general agent?.
Answer: 1.) The licensee who has limited underwriting authority - or-
2.) A manager or agent who has started before Dec. 22, 1965
CERTIFICATION EVALUATION 2026 TEST
PAPER QUESTIONS AND SOLUTIONS
●● An exclusion that states that an insurer will not pay any claim in
which an individuals property is damaged as a result of the fact that the
individual did not maintain the property..
Answer: Neglect exclusion
●● Which Home Owner's form covers damage to a condo owner's
PROPERTY that occurs as the result of any event that is not specifically
excluded in the policy..
Answer: HO-6 Unit Owner's Form
●● Which Home Owner's form covers damage to a TENANT'S property
that occurs as a result of an aircraft, civil commotion, explosion, fire,
nail, lightning, smoke, theft, vandalism, vehicles and/or wind..
Answer: HO-4 Content's Broad Form
●● Which HO form covers damage to the DWELLING that occurs as
the result of any event that is not specifically excluded in the policy and
damage to the property inside the dwelling that results of an aircraft,
civil commotion, explosion, fire, hail, lightning, smoke, theft,
vandalism, vehicles, and/or wind..
,Answer: HO-3 Special Form
●● Which HO Form covers damage to the DWELLING & PROPERTY
inside the dwelling that occurs as an result of any event that is not
specifically excluded in the policy..
Answer: HO - 5 Comprehensive Form
●● What means conducting business in accordance with current rules
and laws set by government regulatory agencies and the courts..
Answer: Compliance
●● Standards of conduct and moral judgement..
Answer: Ethics
●● Legal term that describes the relationship between parties..
Answer: Agency
●● What is the term to describe how an insurer appoints an individual to
act on its behalf..
Answer: Agency Contract
●● An individual whose position and responsibilities involve a high
degree of trust and confidence (trustees, guardians, and executors)..
,Answer: Fiduciary
●● The name for the fact a producer must sell the kind of policies that
best fit the prospects needs and in amounts that the prospects can afford..
Answer: Needs Selling
●● What is given when the applicant pays the initial premium at the
time the application for a policy is signed..
Answer: Conditional Receipt
●● What is the term for informing the prospect or client of all facts
involving a specific policy or plan so that an informed decision can be
made..
Answer: Full Disclosure
●● What is the name for the watchdog group whose member companies
agree to adhere to and enforce ethical principles..
Answer: Insurance Standards Association (IMSA)
●● What Act deals with the inappropriate use of advertising..
Answer: Unfair Trade Practices Act
●● Any written or oral statement that does not accurately describe a
policy's features, benefits, or coverage..
, Answer: Misrepresentation
●● Any false, maliciously, critical or derogatory communication that
injures another's reputation, fame, or character..
Answer: Defamation
●● What is the term if the buyer of an insurance policy receives any part
of the producers commission or anything else of significant values as an
inducement to purchase a policy..
Answer: Rebating
●● The unethical act of persuading a policy owner to drop a policy
solely for the purpose of selling another policy without regard to the
possible disadvantages to the policy owner..
Answer: Twisting.
●● A resident producers license must meet what 2 requirements?.
Answer: 1.) May either reside in PA -or-
2.) Have their principal place of business in PA
●● In what 2 situations is it not required to be a licensed as a manager or
exclusive general agent?.
Answer: 1.) The licensee who has limited underwriting authority - or-
2.) A manager or agent who has started before Dec. 22, 1965
