PENNSYLVANIA PROPERTY AND CASUALTY LICENSING EXAM 2025
Pennsylvania Property and Casualty Licensing
EXAM COMPREHENSIVE QUESTIONS WITH DETAILED VERIFIED
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ANSWERS |GET IT 100% CORRECT| ALREADY GRADED A+
1. Law of Large Numbers Recognizes that as the number
of exposure units increases, the
more likely it is to predict accu-
rately the expected outcome.
2. What must an insurance producer do to apply for Prove that their license is in
a nonresident license in Pennsylvania? good standing in their home
state
3. Which best describes the responsibilities an agent To provide the agreed-upon in-
owes when they sell a policy? surance and to place coverage
with a solvent insurer
4. Which of the following is not a prohibited market- Discrimination among risks
ing practice?
5. Which law, act, or regulation governs how insurers Privacy of Consumer Financial
and their producers treat personal financial infor- Information Regulation
mation from individuals?
6. Retention "do nothing" option; a person
becomes personally responsi-
ble for the consequences of risk
7. Can an insurer change their assumed name? Yes, but they must notify the
Commissioner before using the
assumed name?
8. Contract of Adhesion "take-it-or-leave-it," drafted by
one party; other party has no
opportunity to negotiate terms
and prices. Party must "adhere"
to provisions as presented
, Pennsylvania Property and Casualty Licensing
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9. Tad used unauthorized material to assist him on Tad committed a prohibited act.
his examination for his insurance producer li-
cense. He justified this by saying the materials
would be available to him in a real life situation.
Which statement is true?
10. What is the maximum fine that may be imposed $20,000; A fine of up to $10,000
upon a producer for violating two of the Commis- for each violation of an order
sioner's orders? issued by the commissioner.
11. Admitted Insurer An insurance company autho-
rized and licensed to transact
business in a particular state.
12. Which of the following is not acting as an insur- Brian, who is a VP at AllPro's hu-
ance producer? man resources department and
does not receive commissions
13. Edwin has decided not to retain the risk of home Transfer: the risk of loss is
ownership himself. What method of risk does he transferred from the insured to
choose when he purchases homeowners insur- the insurance company in ex-
ance? change for a premium payment
14. Alien Insurer Incorporated in a country other
than the United States
15. What fine will the Commissioner impose for the Up to $5,000 for each violation
practice of unfair methods of competition? (but not more than $50,000 in a
6 month period)
16. Which of the following is not an unfair claims Failing to promptly settle a claim
settlement practice if committed by an insurance for which liability is uncertain.
company in Pennsylvania? (An insurer is not obligated to
, Pennsylvania Property and Casualty Licensing
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settle a claim for which it's not
clearly liable)
17. Which of the following would NOT be considered Enthusiastically promoting an
misrepresentation of an insurance policy? insurance product
18. Which of the following statements BEST describes Not all risks are transferable via
the transfer of risk via an insurance contract? insurance contracts
19. Must the Commissioner conduct an examination The Commissioner may choose
of every foreign or alien insurer licensed in Penn- to waive examinations under
sylvania? certain circumstances
20. Aleatory Contract One party may receive a benefit
that is out of proportion to the
consideration he or she paid for.
21. Bill failed to satisfy the continuing education re- No, he must apply for a new li-
quirements to keep his producer's license active in cense.
Pennsylvania. Two years later, he decides to renew
his license. Can he do so?
22. Which of the following is NOT the action of an Making a misrepresentation of
agent considering the best interests of an appli- the terms of a proposed policy
cant or insured?
23. Who is the head of the Pennsylvania Insurance Insurance Commissioner
Department?
24. May a producer charge a service fee for complet- No
ing a consumer's insurance application?
25. What must an insurance company do to employ *File a notice of appointment
someone as a producer? with the Department.* The de-
, Pennsylvania Property and Casualty Licensing
Study online at https://quizlet.com/_he7dbi
partment then will verify if the
producer is eligible for appoint-
ment. If ineligible, they will no-
tify the insurer. The insurer pays
a fee for every appointment.
26. To boost her insurance sales at the end of the Rebating (offering anything of
year, Trudy started offering potential clients a $250 value in exchange for the pur-
cash gift card in exchange for purchasing an in- chase of insurance)
surance policy. Which prohibited sales practice has
she committed?
27. Within how many days must the Commissioner 30
approve or disapprove rates?
28. The federal Fair Credit Reporting Act protects the Consumers
rights of:
29. Larry submitted a claim under his homeowners Open Perils
insurance policy. The insurance company has the
burden of proof to show that the loss is excluded;
otherwise, it must pay Larry's claim. What causes
of loss are contained on Larry's policy.
30. Open Peril All perils except those specifi-
cally excluded
31. Sara sustains a water damage loss to her home No, this kind of loss is typically
due to torrential rains that flooded her neighbor- excluded.
hood. She reports the loss to her agent and says
that according to the insuring agreement of her
policy, she is insured against risks of direct loss to
Pennsylvania Property and Casualty Licensing
EXAM COMPREHENSIVE QUESTIONS WITH DETAILED VERIFIED
Study online at https://quizlet.com/_he7dbi
ANSWERS |GET IT 100% CORRECT| ALREADY GRADED A+
1. Law of Large Numbers Recognizes that as the number
of exposure units increases, the
more likely it is to predict accu-
rately the expected outcome.
2. What must an insurance producer do to apply for Prove that their license is in
a nonresident license in Pennsylvania? good standing in their home
state
3. Which best describes the responsibilities an agent To provide the agreed-upon in-
owes when they sell a policy? surance and to place coverage
with a solvent insurer
4. Which of the following is not a prohibited market- Discrimination among risks
ing practice?
5. Which law, act, or regulation governs how insurers Privacy of Consumer Financial
and their producers treat personal financial infor- Information Regulation
mation from individuals?
6. Retention "do nothing" option; a person
becomes personally responsi-
ble for the consequences of risk
7. Can an insurer change their assumed name? Yes, but they must notify the
Commissioner before using the
assumed name?
8. Contract of Adhesion "take-it-or-leave-it," drafted by
one party; other party has no
opportunity to negotiate terms
and prices. Party must "adhere"
to provisions as presented
, Pennsylvania Property and Casualty Licensing
Study online at https://quizlet.com/_he7dbi
9. Tad used unauthorized material to assist him on Tad committed a prohibited act.
his examination for his insurance producer li-
cense. He justified this by saying the materials
would be available to him in a real life situation.
Which statement is true?
10. What is the maximum fine that may be imposed $20,000; A fine of up to $10,000
upon a producer for violating two of the Commis- for each violation of an order
sioner's orders? issued by the commissioner.
11. Admitted Insurer An insurance company autho-
rized and licensed to transact
business in a particular state.
12. Which of the following is not acting as an insur- Brian, who is a VP at AllPro's hu-
ance producer? man resources department and
does not receive commissions
13. Edwin has decided not to retain the risk of home Transfer: the risk of loss is
ownership himself. What method of risk does he transferred from the insured to
choose when he purchases homeowners insur- the insurance company in ex-
ance? change for a premium payment
14. Alien Insurer Incorporated in a country other
than the United States
15. What fine will the Commissioner impose for the Up to $5,000 for each violation
practice of unfair methods of competition? (but not more than $50,000 in a
6 month period)
16. Which of the following is not an unfair claims Failing to promptly settle a claim
settlement practice if committed by an insurance for which liability is uncertain.
company in Pennsylvania? (An insurer is not obligated to
, Pennsylvania Property and Casualty Licensing
Study online at https://quizlet.com/_he7dbi
settle a claim for which it's not
clearly liable)
17. Which of the following would NOT be considered Enthusiastically promoting an
misrepresentation of an insurance policy? insurance product
18. Which of the following statements BEST describes Not all risks are transferable via
the transfer of risk via an insurance contract? insurance contracts
19. Must the Commissioner conduct an examination The Commissioner may choose
of every foreign or alien insurer licensed in Penn- to waive examinations under
sylvania? certain circumstances
20. Aleatory Contract One party may receive a benefit
that is out of proportion to the
consideration he or she paid for.
21. Bill failed to satisfy the continuing education re- No, he must apply for a new li-
quirements to keep his producer's license active in cense.
Pennsylvania. Two years later, he decides to renew
his license. Can he do so?
22. Which of the following is NOT the action of an Making a misrepresentation of
agent considering the best interests of an appli- the terms of a proposed policy
cant or insured?
23. Who is the head of the Pennsylvania Insurance Insurance Commissioner
Department?
24. May a producer charge a service fee for complet- No
ing a consumer's insurance application?
25. What must an insurance company do to employ *File a notice of appointment
someone as a producer? with the Department.* The de-
, Pennsylvania Property and Casualty Licensing
Study online at https://quizlet.com/_he7dbi
partment then will verify if the
producer is eligible for appoint-
ment. If ineligible, they will no-
tify the insurer. The insurer pays
a fee for every appointment.
26. To boost her insurance sales at the end of the Rebating (offering anything of
year, Trudy started offering potential clients a $250 value in exchange for the pur-
cash gift card in exchange for purchasing an in- chase of insurance)
surance policy. Which prohibited sales practice has
she committed?
27. Within how many days must the Commissioner 30
approve or disapprove rates?
28. The federal Fair Credit Reporting Act protects the Consumers
rights of:
29. Larry submitted a claim under his homeowners Open Perils
insurance policy. The insurance company has the
burden of proof to show that the loss is excluded;
otherwise, it must pay Larry's claim. What causes
of loss are contained on Larry's policy.
30. Open Peril All perils except those specifi-
cally excluded
31. Sara sustains a water damage loss to her home No, this kind of loss is typically
due to torrential rains that flooded her neighbor- excluded.
hood. She reports the loss to her agent and says
that according to the insuring agreement of her
policy, she is insured against risks of direct loss to
