PROPERTY AND CASUALTY PA QUIZ
QUESTIONS & ELABORATED
CORRECT ANSWERS PASSED 100%
All of the following are requirements to be licensed in PA except:
-Complete a four-week long pre-licensing course
-Pass the appropriate exam
-Apply for a license with the insurance department and pay the appropriate fee
-Have your fingerprints taken and submitted - Correct Answer ✔✔ Complete a four-
week long pre-licensing course
All of the following statements are correct except:
-An applicant has up to one year to be licensed after successfully passing the exam
-The fee for the PA Property-casualty license is $55 for two years
-An Insurance Agency does not need to be licensed if they are a corporation
-You must be at least 18 years of age to be licensed - Correct Answer ✔✔ An Insurance
Agency does not need to be licensed if they are a corporation
Which statement is false?
-A resident producer must both live and work in Pennsylvania
-The maximum limit for a temporary license is 180 days
-An insurance company's license is called a certificate of authority
-A producer must be licensed to sell, solicit, or negotiate contracts of insurance -
Correct Answer ✔✔ A resident producer must both live and work in Pennsylvania
Which time period is incorrect?
-30 days to report a change of address
-30 days to report a criminal conduct of being charged
-60 days to reinstate a lapsed license retroactively
-Four years to complete 24 hours of continuing education - Correct Answer ✔✔ Four
years to complete 24 hours of continuing education
Possible insurance department penalties for insurance law violations include all of the
following except:
-Fines
-Revoking a license
-Increased requirement of CE hours
-Issuance of an order to cease and desist - Correct Answer ✔✔ Increased requirement
of CE hours
,All of the following are general duties and powers of the insurance commissioner
except:
-Prosecute the individual in a court of law
-Collect fees
-Investigate complaints
-Regulate rates - Correct Answer ✔✔ Prosecute the individual in a court of law
Rate regulatory law requires rates to be all of the following except:
-Not excessive
-Equal for all policy holders
-Adequate
-Not unfairly discriminatory - Correct Answer ✔✔ Equal for all policy holders
Which statement is false?
-The insurance commissioner is appointed by the governor
-All rates must be filed and approved before they can be used
-Maximum jail term for an insurance violation is six months
-Illegal inducement is doing business with unlicensed persons - Correct Answer ✔✔
Illegal inducement is doing business with unlicensed persons
Which activity would be a prohibited practice under the unfair claims practices law?
-Failing to act promptly on a communication dealing with a claim
-Reporting the claim to the insurance company online
-Denying payment of a claim that is not covered by the policy
-Assigning an adjuster to investigate the claim before payment - Correct Answer ✔✔
Failing to act promptly on a communication dealing with a claim
Which activity would not be a prohibited practice under the Unfair Trade Practice Law?
-Intentionally misrepresenting coverage terms in the policy
-Forging a client's signature on an application
-Not remembering your clients birthday
-Committing a felony - Correct Answer ✔✔ Not remembering your clients birthday
Misrepresentation call be all of the following except:
-Twisting
-Sharing part of your own commission with a client
-Misrepresenting benefits, terms or conditions
-Misrepresenting in advertisements - Correct Answer ✔✔ Sharing part of your own
commission with a client
All of the following are Unfair Trade Practices activities except:
-Comingling of funds
-Rebating
-Defamation
-Boycott, coercion, or intimidation - Correct Answer ✔✔ Comingling of funds
,The Fair Credit Reporting Act requires all of the following except:
-Notification of a credit investigation at time of application
-A copy of the report sent to the client
-The name and address of the credit reporting agency given to the client
-Notice must be in writing - Correct Answer ✔✔ A copy of the report sent to the client
The Gramm-Leach-Bliley Act requires all of the following except:
-Annual privacy notification given to all customers
-Customers given the option to opt out of sharing info to others
-Insurers must protect the security of financial information
-An annual report must be sent to the federal government - Correct Answer ✔✔ An
annual report must be sent to the federal government
Which statement is false concerning the Federal Terrorism Risk Insurance Act (TRIA)?
-It applies to all lines of insurance, both personal and commercial
-The premium must be shown to the client with the opportunity to reject coverage
-It provides coverage for acts of terrorism
-The federal government shares in payment of covered losses with insurance industry -
Correct Answer ✔✔ It applies to all lines of insurance, both personal and commercial
Before federal funds are made available under TRIA the following must certify an act of
terrorism
-The president & congress
-Secretary of the Treasury and Secretary of Homeland Security
-The attorney general and congress
-The FBI - Correct Answer ✔✔ Secretary of the Treasury and Secretary of Homeland
Security
The Motor Carrier act of 1980 was passed to deal with:
-Unlicensed trucks traveling interstate
-Uninsured cargo traveling interstate
-Transporting hazardous cargo causing pollution accidents
-Unlicensed drivers of motor vehicles - Correct Answer ✔✔ Transporting hazardous
cargo causing pollution accidents
Under the motor carrier act of 1980 the minimum limit of liability required when
transporting hazardous cargo is:
-$500,000
-$750,000
-$1,000,000
-$5,000,000 - Correct Answer ✔✔ $750,000
All of the following statements are correct concerning the MCS-90 endorsement except:
-It is not insurance protection
-It guarantees clean-up of a pollution spill
-It responds like a surety bond
, -The insured will not have to pay back costs even if they do not have pollution insurance
coverage for the spill - Correct Answer ✔✔ The insured will not have to pay back costs
even if they do not have pollution insurance coverage for the spill
The Telephone Consumer Protection Act requires all of the following except:
-The law does not apply to fax communications
-Telemarketers must maintain a do not call list
-No phone calls can take place before 8:00 A.M. or after 9:00 P.M.
-Prohibits artificial voice or recording - Correct Answer ✔✔ The law does not apply to
fax communications
The application fee for a resident producer is ___ and the non-resident producer is ___?
-$25, $30
-$55, $110
-$75, $125
-$65, $165 - Correct Answer ✔✔ $55, $110
Which person is not exempt from taking the appropriate exam:
-CPCU for Property-Casualty
-CISR for Property-Casualty
-CLU for Life-Health
-CIC for Property-Casualty - Correct Answer ✔✔ CISR for Property-Casualty
All of the following procedures would be required if a licensed producer is representing
a client in the procurement of insurance with a company with whom he is not licensed
as an authorized agent except:
-A written agreement with the client
-A disclosure of any fees to be charges to the client
-No fee charged for filling out an application
-All insurance quotes must be with a company rated A+ or better - Correct Answer ✔✔
All insurance quotes must be with a company rated A+ or better
A consent agreement:
-Is an agreement to settle an insurance claim
-Is a written agreement in which an accused personal does not admit or deny the
charges but consents to payment of civil liability
-Is the finances agreement to get married
-Is an agreement between an insurance company and a prospective agent - Correct
Answer ✔✔ Is a written agreement in which an accused personal does not admit or
deny the charges but consents to payment of civil liability
Commingling is defined as:
-Mixing two different agency's loss ratios together for reporting purposes
-Involves not keeping all insurance premiums separate from the agencies operating
account
-Inviting underwriters and agents to an annual meeting
QUESTIONS & ELABORATED
CORRECT ANSWERS PASSED 100%
All of the following are requirements to be licensed in PA except:
-Complete a four-week long pre-licensing course
-Pass the appropriate exam
-Apply for a license with the insurance department and pay the appropriate fee
-Have your fingerprints taken and submitted - Correct Answer ✔✔ Complete a four-
week long pre-licensing course
All of the following statements are correct except:
-An applicant has up to one year to be licensed after successfully passing the exam
-The fee for the PA Property-casualty license is $55 for two years
-An Insurance Agency does not need to be licensed if they are a corporation
-You must be at least 18 years of age to be licensed - Correct Answer ✔✔ An Insurance
Agency does not need to be licensed if they are a corporation
Which statement is false?
-A resident producer must both live and work in Pennsylvania
-The maximum limit for a temporary license is 180 days
-An insurance company's license is called a certificate of authority
-A producer must be licensed to sell, solicit, or negotiate contracts of insurance -
Correct Answer ✔✔ A resident producer must both live and work in Pennsylvania
Which time period is incorrect?
-30 days to report a change of address
-30 days to report a criminal conduct of being charged
-60 days to reinstate a lapsed license retroactively
-Four years to complete 24 hours of continuing education - Correct Answer ✔✔ Four
years to complete 24 hours of continuing education
Possible insurance department penalties for insurance law violations include all of the
following except:
-Fines
-Revoking a license
-Increased requirement of CE hours
-Issuance of an order to cease and desist - Correct Answer ✔✔ Increased requirement
of CE hours
,All of the following are general duties and powers of the insurance commissioner
except:
-Prosecute the individual in a court of law
-Collect fees
-Investigate complaints
-Regulate rates - Correct Answer ✔✔ Prosecute the individual in a court of law
Rate regulatory law requires rates to be all of the following except:
-Not excessive
-Equal for all policy holders
-Adequate
-Not unfairly discriminatory - Correct Answer ✔✔ Equal for all policy holders
Which statement is false?
-The insurance commissioner is appointed by the governor
-All rates must be filed and approved before they can be used
-Maximum jail term for an insurance violation is six months
-Illegal inducement is doing business with unlicensed persons - Correct Answer ✔✔
Illegal inducement is doing business with unlicensed persons
Which activity would be a prohibited practice under the unfair claims practices law?
-Failing to act promptly on a communication dealing with a claim
-Reporting the claim to the insurance company online
-Denying payment of a claim that is not covered by the policy
-Assigning an adjuster to investigate the claim before payment - Correct Answer ✔✔
Failing to act promptly on a communication dealing with a claim
Which activity would not be a prohibited practice under the Unfair Trade Practice Law?
-Intentionally misrepresenting coverage terms in the policy
-Forging a client's signature on an application
-Not remembering your clients birthday
-Committing a felony - Correct Answer ✔✔ Not remembering your clients birthday
Misrepresentation call be all of the following except:
-Twisting
-Sharing part of your own commission with a client
-Misrepresenting benefits, terms or conditions
-Misrepresenting in advertisements - Correct Answer ✔✔ Sharing part of your own
commission with a client
All of the following are Unfair Trade Practices activities except:
-Comingling of funds
-Rebating
-Defamation
-Boycott, coercion, or intimidation - Correct Answer ✔✔ Comingling of funds
,The Fair Credit Reporting Act requires all of the following except:
-Notification of a credit investigation at time of application
-A copy of the report sent to the client
-The name and address of the credit reporting agency given to the client
-Notice must be in writing - Correct Answer ✔✔ A copy of the report sent to the client
The Gramm-Leach-Bliley Act requires all of the following except:
-Annual privacy notification given to all customers
-Customers given the option to opt out of sharing info to others
-Insurers must protect the security of financial information
-An annual report must be sent to the federal government - Correct Answer ✔✔ An
annual report must be sent to the federal government
Which statement is false concerning the Federal Terrorism Risk Insurance Act (TRIA)?
-It applies to all lines of insurance, both personal and commercial
-The premium must be shown to the client with the opportunity to reject coverage
-It provides coverage for acts of terrorism
-The federal government shares in payment of covered losses with insurance industry -
Correct Answer ✔✔ It applies to all lines of insurance, both personal and commercial
Before federal funds are made available under TRIA the following must certify an act of
terrorism
-The president & congress
-Secretary of the Treasury and Secretary of Homeland Security
-The attorney general and congress
-The FBI - Correct Answer ✔✔ Secretary of the Treasury and Secretary of Homeland
Security
The Motor Carrier act of 1980 was passed to deal with:
-Unlicensed trucks traveling interstate
-Uninsured cargo traveling interstate
-Transporting hazardous cargo causing pollution accidents
-Unlicensed drivers of motor vehicles - Correct Answer ✔✔ Transporting hazardous
cargo causing pollution accidents
Under the motor carrier act of 1980 the minimum limit of liability required when
transporting hazardous cargo is:
-$500,000
-$750,000
-$1,000,000
-$5,000,000 - Correct Answer ✔✔ $750,000
All of the following statements are correct concerning the MCS-90 endorsement except:
-It is not insurance protection
-It guarantees clean-up of a pollution spill
-It responds like a surety bond
, -The insured will not have to pay back costs even if they do not have pollution insurance
coverage for the spill - Correct Answer ✔✔ The insured will not have to pay back costs
even if they do not have pollution insurance coverage for the spill
The Telephone Consumer Protection Act requires all of the following except:
-The law does not apply to fax communications
-Telemarketers must maintain a do not call list
-No phone calls can take place before 8:00 A.M. or after 9:00 P.M.
-Prohibits artificial voice or recording - Correct Answer ✔✔ The law does not apply to
fax communications
The application fee for a resident producer is ___ and the non-resident producer is ___?
-$25, $30
-$55, $110
-$75, $125
-$65, $165 - Correct Answer ✔✔ $55, $110
Which person is not exempt from taking the appropriate exam:
-CPCU for Property-Casualty
-CISR for Property-Casualty
-CLU for Life-Health
-CIC for Property-Casualty - Correct Answer ✔✔ CISR for Property-Casualty
All of the following procedures would be required if a licensed producer is representing
a client in the procurement of insurance with a company with whom he is not licensed
as an authorized agent except:
-A written agreement with the client
-A disclosure of any fees to be charges to the client
-No fee charged for filling out an application
-All insurance quotes must be with a company rated A+ or better - Correct Answer ✔✔
All insurance quotes must be with a company rated A+ or better
A consent agreement:
-Is an agreement to settle an insurance claim
-Is a written agreement in which an accused personal does not admit or deny the
charges but consents to payment of civil liability
-Is the finances agreement to get married
-Is an agreement between an insurance company and a prospective agent - Correct
Answer ✔✔ Is a written agreement in which an accused personal does not admit or
deny the charges but consents to payment of civil liability
Commingling is defined as:
-Mixing two different agency's loss ratios together for reporting purposes
-Involves not keeping all insurance premiums separate from the agencies operating
account
-Inviting underwriters and agents to an annual meeting
