PSI PA PROPERTY AND CASUALTY EXAM GUIDE Q AND A

PSI PA PROPERTY AND CASUALTY
EXAM GUIDE Q AND A

Brokervy-vyanswer--Accordingvytovythevyinsurancevylaw,vywhovyisvythevyprincipal?

90vydaysvy-vyanswer--
Anvyapplicationvyasvyavyresidentvyagentvymustvybevymadevyinvyhowvymanyvydaysvyifvyanvyindi
vidualvyestablishesvyavyprincipalvyplacevyofvyresidencevywithinvyPavyfromvyanothervystate?

avytemporaryvylicensevy-vyanswer--
issuedvyforvy180vydaysvyforvysurvivingvyspouse,vysurvivingvyinactivevyofficervyorvypartner,vyl
egalvyrepresentative.vyCanvybevyusedvyuponvydeathvyorvyincompetencyvyofvyproducer,vyorvy
whenvyindividualsvyarevyservingvyinvythevymilitary.

EndorsevyInsurersvy-vyanswer--Commissionervycanvydovyallvyofvythevyfollowingvyexcept?

providesvyincorrectvyorvymisleadingvyinfo,vybeenvydeniedvyinvyanothervystatevyorvyviolatedvyc
ommonwealthvyinsurancevylaws.vy-vyanswer--
Insurancevydepartmentvycanvydenyvyanvyapplicationvyifvythevyapplicant....

Ceasevy&vyDesistvyordervy-vyanswer--
thevyinsurancevydepartmentvymayvyissuevythisvywhichvyrequiresvythevyinsurervyorvypersonvyt
ovystopvyactivityvyinvyquestion

thevyGovernorvy-vyanswer--Insurancevycommissionervyisvyappointedvyby...

GuarantyvyFundvy-vyanswer--
administeredvybyvyavyU.S.vystatevytovyprotectvypolicyholdersvyinvythevyeventvythatvyanvyinsur
ancevycompanyvydefaultsvyonvybenefitvypaymentsvyorvybecomesvyinsolvent.vyProducersvya
revyprohibitedvytovyadvertisevyit'svyexistencevytovysecurevybusiness.

RatevyRegulationvy-vyanswer--
Performedvybyvycommissionervytovyprohibitvyratesvythatvyarevyexcessive,vyinadequatevyorvy
unfairly;yvydiscriminatory.

10vyworkingvydaysvy-vyanswer--
Insurancevycompanyvyshouldvyacknowledgevyreceiptvyofvyclaimvywithin...

15vydaysvy-vyanswer--
Insurancevyshouldvyrespondvytovyinsurancevydepartmentvyinquiryvywithin...

Rebatingvy-vyanswer--Bribery,vyreturningvyavyportionvyofvythevypremiumvyorvythevyagent's/
broker'svycommissionvyonvythevypremiumvytovythevyinsuredvyorvyothervyINDUCEMENTSvyto
vyplacevybusinessvywithvyavyspecificvyinsurer.

,Misrepresentationvy-vyanswer--Whenvyproducervymakesvyfalsevystatements

Twistingvy-vyanswer--
Whenvyinsurancevyagentvymakesvyincompletevycomparisonsvyasvyanvyinducementvytovyter
minate,vysurrendervyone'svypolicyvyforvyanothervyofvysimilarvyrisks

FalsevyAdvertisingvy-vyanswer--usingvymediavywithvydeliberatevydeceitvytovydefraud

Coercionvy-vyanswer--
persuadingvysomeonevytovybuyvyinsurancevythroughvythevyusevyofvythreats

Misappropriationvyofvyfundsvy-vyanswer--
impropervyholding,vybreakingvyfiduciaryvyobligations

Defamationvy-vyanswer--
makingvyfalsevyorvyderogatoryvystatementsvyasvytovyinsurancevycompany'svyfinancialvyposi
tion

Redliningvy-vyanswer--
unfairvydiscriminationvybasedvyonvylocationvyofvyinsured'svyhomevyorvybusiness

Comminglingvyfundsvy-vyanswer--
whenvyavyproducervyisvycollectingvypremiumsvyfromvyapplicantsvyandvyaddingvyitvytovytheirvy
personalvyfunds,vyholdingvyoutvypremium

Fiduciaryvyresponsibilityvy-vyanswer--
isvyavyproducer'svyobligationvytovyhandlevyfundsvyofvythevyinsuredvyinvyavyresponsiblevyandvy
ethicalvymanner

ThevyInsurervy-vyanswer--Whovycanvyterminatevyavyproducersvyappointment

InsurancevyProducervy-vyanswer--meansvyanyvyperson/
entityvywhovyorvywhichvyisvylicensedvytovysolicit,vynegotiate,vyorvysellvyinsurance.

thevydepartmentvyofvyinsurancevy-vyanswer--
Whovyisvyallowedvytovyconductvyasvymanyvyexaminationsvyofvyinsurancevyagencies/
agentsvyasvytheyvywant

Commissionsvy-vyanswer--
canvybevysharedvywhenvy2vyproducersvyarevyinvythevysamevyauthority

ConsultingvyFeesvy-vyanswer--
allowed,vymustvyincludevyavywrittenvyadvancevynoticevyofvythevyfeevydisclosedvytovythevypers
onvyandvymustvybevyreasonablevyinvyrelationshipvytovyservicevyprovided

Gramm-Leach-BaileyvyActvy-vyanswer--
purposevyisvytovyprotectvythevyprivacyvyofvyconsumervyfinancialvyinfovy(customersvycanvyoptv
youtvyandvyprohibitvyinsurancevyagencyvyfromvydisseminatingvynonpublicvypersonalvyinfovyt

ovynon-affiliatedvythirdvyparty)

, $5000/$10000/$15000vy-vyanswer--
InsurancevyFraudvyRegulation,vycriminalvyprosecutionvyandvycivilvypenaltyvyupvyto?
vy(amounts)



FairvyCreditvyReportingvyActvy-vyanswer--
establishedvytovyprotectvyconsumersvyfromvyunfairvyandvyinaccuratevyinfo,vymaxvypenaltyvy
ofvy$2500vyand/orvy2vyyearsvyinvyprison

protectvyagainstvythevycirculationvyofvyinaccuratevyorvyobsoletevypersonalvyorvyfinancialvyinf
o.vy-vyanswer--
QOT:vyPrimaryvypurposevyofvythevyFCRAvy(fairvycreditvyreport.vyact)vyisvyto...?

$50,000vyand/orvy10-15vyyearsvyinvyprisonvy-vyanswer--Fraudvy&vyFalsevystatements---
fraudvythatvyaffectsvyinterstatevycommercevysuffersvymaxvypenaltyvyof...

Riskvy-vyanswer--exposurevytovyorvyuncertaintyvyofvyloss

PurevyRiskvy-vyanswer--
onlyvycanvybevynovychargevyorvyloss,vyonlyvytypevyofvyriskvyinsurancevycoversvy(novyfinancialv
ygain)



SpeculativevyRiskvy-vyanswer--
canvyeithervybevylostvyorvyhavevythevychancevytovywinvyfromvyavyriskvy(ex.vyGambling)

Hazardsvy-vyanswer--conditionsvythatvyincreasevythevyprobabilityvyofvyanvyinsuredvyloss

PhysicalvyHazardvy-vyanswer--
individualvycharacteristicsvythatvyincreasevythevychancesvyofvythevycausevyofvyloss---
(physicalvycondition,vypastvymedicalvyhistory,vybirthvydefect,vyblindness)

MoralvyHazardvy-vyanswer--tendenciesvytowardsvyincreasedvyriskvy(character/reputation)

MoralevyHazardsvy-vyanswer--
arisevyfromvystatevyofvymindvythatvycausesvyindifferencevytovylossvy(carelessness)

Elementsvyofvyinsurablevyriskvy-vyanswer--
mustvybevydefinable,vyaccidental,vypredictable,vylawvyofvylargevy#svyshouldvyapply,vycreatevy
financialvyhardship,vyreasonablevypremiums,vynotvycatastrophic

Exposurevy-vyanswer--
unitvyofvymeasurementvyusedvytovydeterminevyratesvychargedvyforvyinsurancevycoverage

Homogeneousvy-vyanswer--
largevy#vyofvyunitsvyhavingvythevysamevyorvysimilarvyexposurevytovyloss

Insurancevy-vyanswer--
transfersvythevyriskvyofvylossvyfromvyindividualvyorvyentityvytovyinsurancevycompany,vywhichvy
spreadsvythevycostsvyofvyunexpectedvylossesvytovymanyvyindividuals,vyincludesvysolicitatio
n,vynegotiations,vysale,vyandvyadvisingvyonvyindividualvyconcerns,vycoveragevyorvyclaims