| Comprehensive Property & Casualty
Insurance Licensing Practice Questions &
Verified Answers | 2026–2027
,An exclusion that states that an insurer will not pay any an Earth movement exclusion
claim in which an individuals property is damaged as a
result of an earthquake, mudslide, landslide, or sinkhole.
An exclusion that states that an insurer will not pay any Neglect exclusion
claim in which an individuals property is damaged as a
result of the fact that the individual did not maintain the
property.
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.
Which Home Owner's form covers damage to a TENANT'S HO-4 Content's Broad Form
property that occurs as a result of an aircraft, civil
commotion, explosion, fire, nail, lightning, smoke, theft,
vandalism, vehicles and/or wind.
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 commotion,
explosion, fire, hail, lightning, smoke, theft, vandalism,
vehicles, and/or wind.
Which HO Form covers damage to the DWELLING & HO - 5 Comprehensive Form
PROPERTY inside the dwelling that occurs as an result of
any event that is not specifically excluded in the policy.
What means conducting business in accordance with Compliance
current rules and laws set by government regulatory
agencies and the courts.
Standards of conduct and moral judgement. Ethics
Legal term that describes the relationship between parties. Agency
What is the term to describe how an insurer appoints an Agency Contract
individual to act on its behalf.
An individual whose position and responsibilities involve a Fiduciary
high degree of trust and confidence (trustees, guardians,
and executors).
The name for the fact a producer must sell the kind of Needs Selling
policies that best fit the prospects needs and in amounts
that the prospects can afford.
What is given when the applicant pays the initial premium Conditional Receipt
at the time the application for a policy is signed.
What is the term for informing the prospect or client of all Full Disclosure
facts involving a specific policy or plan so that an informed
decision can be made.
, What is the name for the watchdog group whose member Insurance Standards Association (IMSA)
companies agree to adhere to and enforce ethical
principles.
What Act deals with the inappropriate use of advertising. Unfair Trade Practices Act
Any written or oral statement that does not accurately Misrepresentation
describe a policy's features, benefits, or coverage.
Any false, maliciously, critical or derogatory communication Defamation
that injures another's reputation, fame, or character.
What is the term if the buyer of an insurance policy Rebating
receives any part of the producers commission or anything
else of significant values as an inducement to purchase a
policy.
The unethical act of persuading a policy owner to drop a Twisting.
policy solely for the purpose of selling another policy
without regard to the possible disadvantages to the policy
owner.
A resident producers license must meet what 2 1.) May either reside in PA -or-
requirements? 2.) Have their principal place of business in PA
In what 2 situations is it not required to be a licensed as a 1.) The licensee who has limited underwriting authority - or-
manager or exclusive general agent? 2.) A manager or agent who has started before Dec. 22, 1965
Which of the following can not be issued a temp license? A person selling insurance for the estate of a deceased producer.
Which is NOT a reason for a licensed to be suspended or A.
revoked?
a.) Making factual by subjective comparisons of 2 policies.
b.) Intentionally violating a cease and desist order.
c.) Making false statements in a license application.
d.) Violating an insurance regulation.
Increases a chance for loss Hazard (i.e. leaving a door unlocked)
Chance of a loss Risk
A means of transferring the risk of loss Insurance
The cause of the loss Perils (i.e. Fire, Flood, Collision, Theft)