PROPERTY AND CASUALTY EXAM
SCRIPT FULL EVALUATION VERIFIED A
◉ Increases a chance for loss Answer: Hazard (i.e. leaving a door
unlocked)
◉ Chance of a loss Answer: Risk
◉ A means of transferring the risk of loss Answer: Insurance
◉ The cause of the loss Answer: Perils (i.e. Fire, Flood, Collision,
Theft)
◉ States that there must be an adequate spread of risk for insurance
to be effective. Answer: Law of Large #s
◉ Installing an automatic sprinkler system is an example of Answer:
Reduction (can not avoid risk but can reduce it)
◉ Deciding not to produce a produce due to serious potential side
effects. Answer: Avoidance (avoid the risk of being sued)
,◉ Person in good health cancels health insurance policy...What is
risk management Answer: Retention (retaining the risk)
◉ Under what regulation in PA does it state that insurers must
maintain a specific minimum levels of capital stock and surplus?
Answer: Regulation of Insurer Solvency.
◉ Who regulates insurance rates to avoid excessive, inadequate, or
unfairly discriminatory rates? Answer: Casualty & Surety Rate
Regulatory Act
◉ Who must an insurer notify when they terminate a producer's
appointment? Answer: The Commissioner and producer.
◉ Which of the following is not a power and duty of the insurance
commissioner? Answer: Issuing a cease and desist order,
prosecuting producers who violate state insurance laws, conducting
complaint hearings, appointing examiners.
◉ What unfair practices is when a producer offers, promises, allows,
gives, sets off, or pays a rebate on the contract of insurance. Answer:
Rebating
,◉ What unfair insurance practice is the purchase of insurance from
a financial institution or from a designated insurer or producer as a
condition of any loan or deposited transaction. Answer: Tie-In Sales
◉ Non-public personal financial information about individuals.
Answer: Privacy of Consumer's Financial information
◉ Term for instruction by the consumer to the licensee no to
disclose non-public personal financial information about the
consumer to a non-affiliated third party. Answer: opt-out
◉ When a producer shares a commission with an unlicensed person.
Answer: If a license was held at a time of sale; Referring a person can
receive a one time nominal set fee
◉ When a personal fire insurance policy is cancelled because the
insured's acts increased the hazard insured against, how many days
notice must be provided to the insured. Answer: 30 days
◉ When a auto policy is cancelled for a reason other than non-
payment of premium, how many days notice must be provided to the
insured? Answer: 30 days
, ◉ If an insured's drivers license has been suspended, the insurer
may cancel the auto insurance policy by giving how many days
notice? Answer: 15 days
◉ What are the minimum limits of liability any individual must
provide for bodily injury and property damage? Answer: 15/30/5
$15,000 per person bodily injury
$30,000 per accident for bodily injury
$5,000 per accident for property damage
◉ Purchased in the normal of standard market. Answer: PA Fair Plan
Act
◉ After an accident, what is the waiting period before the insured
can apply for income loss benefits? Answer: 5 working days
◉ What must occur in order to pay for funeral expenses? Answer:
Death within 24 hours of accident
◉ An insurer must notify an insured at least how many days before
increasing the premium on a commercial casualty insurance policy.
Answer: 30 days
SCRIPT FULL EVALUATION VERIFIED A
◉ Increases a chance for loss Answer: Hazard (i.e. leaving a door
unlocked)
◉ Chance of a loss Answer: Risk
◉ A means of transferring the risk of loss Answer: Insurance
◉ The cause of the loss Answer: Perils (i.e. Fire, Flood, Collision,
Theft)
◉ States that there must be an adequate spread of risk for insurance
to be effective. Answer: Law of Large #s
◉ Installing an automatic sprinkler system is an example of Answer:
Reduction (can not avoid risk but can reduce it)
◉ Deciding not to produce a produce due to serious potential side
effects. Answer: Avoidance (avoid the risk of being sued)
,◉ Person in good health cancels health insurance policy...What is
risk management Answer: Retention (retaining the risk)
◉ Under what regulation in PA does it state that insurers must
maintain a specific minimum levels of capital stock and surplus?
Answer: Regulation of Insurer Solvency.
◉ Who regulates insurance rates to avoid excessive, inadequate, or
unfairly discriminatory rates? Answer: Casualty & Surety Rate
Regulatory Act
◉ Who must an insurer notify when they terminate a producer's
appointment? Answer: The Commissioner and producer.
◉ Which of the following is not a power and duty of the insurance
commissioner? Answer: Issuing a cease and desist order,
prosecuting producers who violate state insurance laws, conducting
complaint hearings, appointing examiners.
◉ What unfair practices is when a producer offers, promises, allows,
gives, sets off, or pays a rebate on the contract of insurance. Answer:
Rebating
,◉ What unfair insurance practice is the purchase of insurance from
a financial institution or from a designated insurer or producer as a
condition of any loan or deposited transaction. Answer: Tie-In Sales
◉ Non-public personal financial information about individuals.
Answer: Privacy of Consumer's Financial information
◉ Term for instruction by the consumer to the licensee no to
disclose non-public personal financial information about the
consumer to a non-affiliated third party. Answer: opt-out
◉ When a producer shares a commission with an unlicensed person.
Answer: If a license was held at a time of sale; Referring a person can
receive a one time nominal set fee
◉ When a personal fire insurance policy is cancelled because the
insured's acts increased the hazard insured against, how many days
notice must be provided to the insured. Answer: 30 days
◉ When a auto policy is cancelled for a reason other than non-
payment of premium, how many days notice must be provided to the
insured? Answer: 30 days
, ◉ If an insured's drivers license has been suspended, the insurer
may cancel the auto insurance policy by giving how many days
notice? Answer: 15 days
◉ What are the minimum limits of liability any individual must
provide for bodily injury and property damage? Answer: 15/30/5
$15,000 per person bodily injury
$30,000 per accident for bodily injury
$5,000 per accident for property damage
◉ Purchased in the normal of standard market. Answer: PA Fair Plan
Act
◉ After an accident, what is the waiting period before the insured
can apply for income loss benefits? Answer: 5 working days
◉ What must occur in order to pay for funeral expenses? Answer:
Death within 24 hours of accident
◉ An insurer must notify an insured at least how many days before
increasing the premium on a commercial casualty insurance policy.
Answer: 30 days
