PA Property & Casualty License
Questions with Verified Answers | 2026
Quiz_________________?
$1,000 per occurrence -
ANSWER✅
The insurer of a homeowners policy will pay, on replacement cost basis, up to
____________ for property damage to the property of others caused by an insured.
Quiz_________________?
$10,000 -
ANSWER✅
A car crashes into a storage container which holds industrial waste materials located at a
factory. As a result, a large amount of industrial waste ends up being released onto the
property. The cost to clean up the waste totals $23,000. If the owner of the factory has a
commercial property policy with additional coverage for pollutant clean-up and removal,
how much does the insurance policy pay out to insured?
Quiz_________________?
$1000 -
ANSWER✅
1
, How much does a Personal Injury endorsement attached to a homeowners policy add in
loss assessment coverage for the named personal injury offenses?
Quiz_________________?
$17,000 -
ANSWER✅
The owner of courier service establishes an insurance policy for the vans used by the
business. The insurer has a requirement that insurance for any vehicle used for commercial
purposes should be insured for 75% of its value. The owner of the courier service decides
to cut costs by purchasing a policy that only cover 60% of the van's value. The van ends up
in a major traffic accident that results in $25,000 in damage and liability costs. If the policy
has a $15,000 deductible and the van was worth $80,000, how mush does the owner of the
van end up paying out of pocket? (Value of the Policy = .6 x $80,000) (Required Value of the
Policy = .75 x $80,000) (Insurer's Reimbursement = (Value of the Policy / Required Value of
the Policy) x (Total Loss - Deductible)) (Out of Pocket Payment = Total Loss - Insurer's
Reimbursement)
Quiz_________________?
$250 -
ANSWER✅
In addition to the limits of bodily injury liability set forth in the policy declarations, the policy
will also pay out up to _____ for the cost of bail bonds required because of an accident.
Quiz_________________?
0.88 -
ANSWER✅
The owner of a small clothing store is examining expenses related to the workers
compensation insurance for the 5 employees of the store. The job classification fund rate
for retail is determined to be $2.58 for every $100 dollars of payroll. If the store paid
$17,250 in payroll during the previous year policy period, and the worker's compensation
2
, premium is estimated to be $391.64, what is the store's experience modifier? (Classification
Rate x Payroll x Experience Modifier = Premium)
Quiz_________________?
1.) May either reside in PA -or-
2.) Have their principal place of business in PA -
ANSWER✅
A resident producers license must meet what 2 requirements?
Quiz_________________?
1.) The licensee who has limited underwriting authority - or-
2.) A manager or agent who has started before Dec. 22, 1965 -
ANSWER✅
In what 2 situations is it not required to be a licensed as a manager or exclusive general
agent?
Quiz_________________?
11000 -
ANSWER✅
A car covered by a personal auto policy with collision coverage is damaged when it crashes
into a telephone pole. If the policy has a $5,000 deductible, the cost to repair the vehicle is
$16,000, and the actual cash value of the auto is $21,000, how much does the insured
receive in reimbursement from the insurer?
Quiz_________________?
1140740 -
3
, ANSWER✅
A bungalow that was purchased 12 years ago for $465,500 is nearly destroyed during a
hurricane. The building was expected to depreciate by 9% each year. If the insurer
determines that the actual cash value of the bungalow was $638,000 at the time of the loss,
what was the replacement cost of the building? (Purchase Cost x Rate of Depreciation =
Annual Depreciation) (Annual Depreciation x # of Years Owned = Total Depreciation)
(Replacement Cost - Total Depreciation = Actual Cash Value)
Quiz_________________?
15 days -
ANSWER✅
If an insured's drivers license has been suspended, the insurer may cancel the auto insurance
policy by giving how many days notice?
Quiz_________________?
15/30/5
$15,000 per person bodily injury
$30,000 per accident for bodily injury
$5,000 per accident for property damage -
ANSWER✅
What are the minimum limits of liability any individual must provide for bodily injury and
property damage?
Quiz_________________?
2500 -
ANSWER✅
Coverage C of a homeowners policy has special limits on certain types of personal property.
What is limit on reimbursement for a theft of firearms?
4
Questions with Verified Answers | 2026
Quiz_________________?
$1,000 per occurrence -
ANSWER✅
The insurer of a homeowners policy will pay, on replacement cost basis, up to
____________ for property damage to the property of others caused by an insured.
Quiz_________________?
$10,000 -
ANSWER✅
A car crashes into a storage container which holds industrial waste materials located at a
factory. As a result, a large amount of industrial waste ends up being released onto the
property. The cost to clean up the waste totals $23,000. If the owner of the factory has a
commercial property policy with additional coverage for pollutant clean-up and removal,
how much does the insurance policy pay out to insured?
Quiz_________________?
$1000 -
ANSWER✅
1
, How much does a Personal Injury endorsement attached to a homeowners policy add in
loss assessment coverage for the named personal injury offenses?
Quiz_________________?
$17,000 -
ANSWER✅
The owner of courier service establishes an insurance policy for the vans used by the
business. The insurer has a requirement that insurance for any vehicle used for commercial
purposes should be insured for 75% of its value. The owner of the courier service decides
to cut costs by purchasing a policy that only cover 60% of the van's value. The van ends up
in a major traffic accident that results in $25,000 in damage and liability costs. If the policy
has a $15,000 deductible and the van was worth $80,000, how mush does the owner of the
van end up paying out of pocket? (Value of the Policy = .6 x $80,000) (Required Value of the
Policy = .75 x $80,000) (Insurer's Reimbursement = (Value of the Policy / Required Value of
the Policy) x (Total Loss - Deductible)) (Out of Pocket Payment = Total Loss - Insurer's
Reimbursement)
Quiz_________________?
$250 -
ANSWER✅
In addition to the limits of bodily injury liability set forth in the policy declarations, the policy
will also pay out up to _____ for the cost of bail bonds required because of an accident.
Quiz_________________?
0.88 -
ANSWER✅
The owner of a small clothing store is examining expenses related to the workers
compensation insurance for the 5 employees of the store. The job classification fund rate
for retail is determined to be $2.58 for every $100 dollars of payroll. If the store paid
$17,250 in payroll during the previous year policy period, and the worker's compensation
2
, premium is estimated to be $391.64, what is the store's experience modifier? (Classification
Rate x Payroll x Experience Modifier = Premium)
Quiz_________________?
1.) May either reside in PA -or-
2.) Have their principal place of business in PA -
ANSWER✅
A resident producers license must meet what 2 requirements?
Quiz_________________?
1.) The licensee who has limited underwriting authority - or-
2.) A manager or agent who has started before Dec. 22, 1965 -
ANSWER✅
In what 2 situations is it not required to be a licensed as a manager or exclusive general
agent?
Quiz_________________?
11000 -
ANSWER✅
A car covered by a personal auto policy with collision coverage is damaged when it crashes
into a telephone pole. If the policy has a $5,000 deductible, the cost to repair the vehicle is
$16,000, and the actual cash value of the auto is $21,000, how much does the insured
receive in reimbursement from the insurer?
Quiz_________________?
1140740 -
3
, ANSWER✅
A bungalow that was purchased 12 years ago for $465,500 is nearly destroyed during a
hurricane. The building was expected to depreciate by 9% each year. If the insurer
determines that the actual cash value of the bungalow was $638,000 at the time of the loss,
what was the replacement cost of the building? (Purchase Cost x Rate of Depreciation =
Annual Depreciation) (Annual Depreciation x # of Years Owned = Total Depreciation)
(Replacement Cost - Total Depreciation = Actual Cash Value)
Quiz_________________?
15 days -
ANSWER✅
If an insured's drivers license has been suspended, the insurer may cancel the auto insurance
policy by giving how many days notice?
Quiz_________________?
15/30/5
$15,000 per person bodily injury
$30,000 per accident for bodily injury
$5,000 per accident for property damage -
ANSWER✅
What are the minimum limits of liability any individual must provide for bodily injury and
property damage?
Quiz_________________?
2500 -
ANSWER✅
Coverage C of a homeowners policy has special limits on certain types of personal property.
What is limit on reimbursement for a theft of firearms?
4
