PA Property & Casualty License Practice Exam
Study online at https://quizlet.com/_v4p5l
1. An exclusion that states that an insurer will not pay an Earth movement exclu-
any claim in which an individuals property is damaged sion
as a result of an earthquake, mudslide, landslide, or
sinkhole.
2. An exclusion that states that an insurer will not pay Neglect exclusion
any claim in which an individuals property is damaged
as a result of the fact that the individual did not main-
tain the property.
3. Which Home Owner's form covers damage to a condo HO-6 Unit Owner's Form
owner's PROPERTY that occurs as the result of any
event that is not specifically excluded in the policy.
4. Which Home Owner's form covers damage to a TEN- HO-4 Content's Broad
ANT'S property that occurs as a result of an aircraft, Form
civil commotion, explosion, fire, nail, lightning, smoke,
theft, vandalism, vehicles and/or wind.
5. Which HO form covers damage to the DWELLING that HO-3 Special Form
occurs as the result of any event that is not specifically
excluded in the policy and damage to the property
inside the dwelling that results of an aircraft, civil com-
motion, explosion, fire, hail, lightning, smoke, theft,
vandalism, vehicles, and/or wind.
6. Which HO Form covers damage to the DWELLING & HO - 5 Comprehensive
PROPERTY inside the dwelling that occurs as an result Form
of any event that is not specifically excluded in the
policy.
7. Compliance
, PA Property & Casualty License Practice Exam
Study online at https://quizlet.com/_v4p5l
What means conducting business in accordance with
current rules and laws set by government regulatory
agencies and the courts.
8. Standards of conduct and moral judgement. Ethics
9. Legal term that describes the relationship between Agency
parties.
10. What is the term to describe how an insurer appoints Agency Contract
an individual to act on its behalf.
11. An individual whose position and responsibilities in- Fiduciary
volve a high degree of trust and confidence (trustees,
guardians, and executors).
12. The name for the fact a producer must sell the kind Needs Selling
of policies that best fit the prospects needs and in
amounts that the prospects can afford.
13. What is given when the applicant pays the initial pre- Conditional Receipt
mium at the time the application for a policy is signed.
14. What is the term for informing the prospect or client Full Disclosure
of all facts involving a specific policy or plan so that an
informed decision can be made.
15. What is the name for the watchdog group whose Insurance Standards As-
member companies agree to adhere to and enforce sociation (IMSA)
ethical principles.
16. What Act deals with the inappropriate use of advertis- Unfair Trade Practices Act
ing.
, PA Property & Casualty License Practice Exam
Study online at https://quizlet.com/_v4p5l
17. Any written or oral statement that does not accurately Misrepresentation
describe a policy's features, benefits, or coverage.
18. Any false, maliciously, critical or derogatory commu- Defamation
nication that injures another's reputation, fame, or
character.
19. What is the term if the buyer of an insurance policy Rebating
receives any part of the producers commission or any-
thing else of significant values as an inducement to
purchase a policy.
20. The unethical act of persuading a policy owner to drop Twisting.
a policy solely for the purpose of selling another policy
without regard to the possible disadvantages to the
policy owner.
21. A resident producers license must meet what 2 re- 1.) May either reside in PA
quirements? -or-
2.) Have their principal
place of business in PA
22. In what 2 situations is it not required to be a licensed 1.) The licensee who has
as a manager or exclusive general agent? limited underwriting au-
thority - or-
2.) A manager or agent
who has started before
Dec. 22, 1965
23. Which of the following can not be issued a temp li- A person selling insurance
cense? for the estate of a de-
ceased producer.
, PA Property & Casualty License Practice Exam
Study online at https://quizlet.com/_v4p5l
24. Which is NOT a reason for a licensed to be suspended A.
or revoked?
a.) Making factual by subjective comparisons of 2 poli-
cies.
b.) Intentionally violating a cease and desist order.
c.) Making false statements in a license application.
d.) Violating an insurance regulation.
25. Increases a chance for loss Hazard (i.e. leaving a door
unlocked)
26. Chance of a loss Risk
27. A means of transferring the risk of loss Insurance
28. The cause of the loss Perils (i.e. Fire, Flood, Col-
lision, Theft)
29. States that there must be an adequate spread of risk Law of Large #s
for insurance to be effective.
30. Installing an automatic sprinkler system is an example Reduction (can not avoid
of risk but can reduce it)
31. Deciding not to produce a produce due to serious Avoidance (avoid the risk
potential side effects. of being sued)
32. Person in good health cancels health insurance poli- Retention (retaining the
cy...What is risk management risk)
33. Under what regulation in PA does it state that insurers Regulation of Insurer Sol-
must maintain a specific minimum levels of capital vency.
stock and surplus?
Study online at https://quizlet.com/_v4p5l
1. An exclusion that states that an insurer will not pay an Earth movement exclu-
any claim in which an individuals property is damaged sion
as a result of an earthquake, mudslide, landslide, or
sinkhole.
2. An exclusion that states that an insurer will not pay Neglect exclusion
any claim in which an individuals property is damaged
as a result of the fact that the individual did not main-
tain the property.
3. Which Home Owner's form covers damage to a condo HO-6 Unit Owner's Form
owner's PROPERTY that occurs as the result of any
event that is not specifically excluded in the policy.
4. Which Home Owner's form covers damage to a TEN- HO-4 Content's Broad
ANT'S property that occurs as a result of an aircraft, Form
civil commotion, explosion, fire, nail, lightning, smoke,
theft, vandalism, vehicles and/or wind.
5. Which HO form covers damage to the DWELLING that HO-3 Special Form
occurs as the result of any event that is not specifically
excluded in the policy and damage to the property
inside the dwelling that results of an aircraft, civil com-
motion, explosion, fire, hail, lightning, smoke, theft,
vandalism, vehicles, and/or wind.
6. Which HO Form covers damage to the DWELLING & HO - 5 Comprehensive
PROPERTY inside the dwelling that occurs as an result Form
of any event that is not specifically excluded in the
policy.
7. Compliance
, PA Property & Casualty License Practice Exam
Study online at https://quizlet.com/_v4p5l
What means conducting business in accordance with
current rules and laws set by government regulatory
agencies and the courts.
8. Standards of conduct and moral judgement. Ethics
9. Legal term that describes the relationship between Agency
parties.
10. What is the term to describe how an insurer appoints Agency Contract
an individual to act on its behalf.
11. An individual whose position and responsibilities in- Fiduciary
volve a high degree of trust and confidence (trustees,
guardians, and executors).
12. The name for the fact a producer must sell the kind Needs Selling
of policies that best fit the prospects needs and in
amounts that the prospects can afford.
13. What is given when the applicant pays the initial pre- Conditional Receipt
mium at the time the application for a policy is signed.
14. What is the term for informing the prospect or client Full Disclosure
of all facts involving a specific policy or plan so that an
informed decision can be made.
15. What is the name for the watchdog group whose Insurance Standards As-
member companies agree to adhere to and enforce sociation (IMSA)
ethical principles.
16. What Act deals with the inappropriate use of advertis- Unfair Trade Practices Act
ing.
, PA Property & Casualty License Practice Exam
Study online at https://quizlet.com/_v4p5l
17. Any written or oral statement that does not accurately Misrepresentation
describe a policy's features, benefits, or coverage.
18. Any false, maliciously, critical or derogatory commu- Defamation
nication that injures another's reputation, fame, or
character.
19. What is the term if the buyer of an insurance policy Rebating
receives any part of the producers commission or any-
thing else of significant values as an inducement to
purchase a policy.
20. The unethical act of persuading a policy owner to drop Twisting.
a policy solely for the purpose of selling another policy
without regard to the possible disadvantages to the
policy owner.
21. A resident producers license must meet what 2 re- 1.) May either reside in PA
quirements? -or-
2.) Have their principal
place of business in PA
22. In what 2 situations is it not required to be a licensed 1.) The licensee who has
as a manager or exclusive general agent? limited underwriting au-
thority - or-
2.) A manager or agent
who has started before
Dec. 22, 1965
23. Which of the following can not be issued a temp li- A person selling insurance
cense? for the estate of a de-
ceased producer.
, PA Property & Casualty License Practice Exam
Study online at https://quizlet.com/_v4p5l
24. Which is NOT a reason for a licensed to be suspended A.
or revoked?
a.) Making factual by subjective comparisons of 2 poli-
cies.
b.) Intentionally violating a cease and desist order.
c.) Making false statements in a license application.
d.) Violating an insurance regulation.
25. Increases a chance for loss Hazard (i.e. leaving a door
unlocked)
26. Chance of a loss Risk
27. A means of transferring the risk of loss Insurance
28. The cause of the loss Perils (i.e. Fire, Flood, Col-
lision, Theft)
29. States that there must be an adequate spread of risk Law of Large #s
for insurance to be effective.
30. Installing an automatic sprinkler system is an example Reduction (can not avoid
of risk but can reduce it)
31. Deciding not to produce a produce due to serious Avoidance (avoid the risk
potential side effects. of being sued)
32. Person in good health cancels health insurance poli- Retention (retaining the
cy...What is risk management risk)
33. Under what regulation in PA does it state that insurers Regulation of Insurer Sol-
must maintain a specific minimum levels of capital vency.
stock and surplus?
