PSI PA Property and Casualty Exam Guide Newest 2025/2026
According to the insurance law, who is the
principal? - ANSWERS - Broker
Performed by commissioner to prohibit rates that
are excessive, inadequate or unfairly;y
An application as a resident agent must be made discriminatory. - ANSWERS - Rate
in how many days if an individual establishes a Regulation
principal place of residence within Pa from
another state? - ANSWERS - 90 days
Insurance company should acknowledge receipt
of claim within... - ANSWERS - 10 working
issued for 180 days for surviving spouse, days
surviving inactive officer or partner, legal
representative. Can be used upon death or
incompetency of producer, or when individuals Insurance should respond to insurance
are serving in the military. - ANSWERS - a department inquiry within... - ANSWERS -
temporary license 15 days
Commissioner can do all of the following except? Bribery, returning a portion of the premium or the
- ANSWERS - Endorse Insurers agent's/broker's commission on the premium to
the insured or other INDUCEMENTS to place
business with a specific insurer. -
Insurance department can deny an application if ANSWERS - Rebating
the applicant.... - ANSWERS - provides
incorrect or misleading info, been denied in
another state or violated commonwealth When producer makes false statements -
insurance laws. ANSWERS - Misrepresentation
the insurance department may issue this which When insurance agent makes incomplete
requires the insurer or person to stop activity in comparisons as an inducement to terminate,
question - ANSWERS - Cease & Desist surrender one's policy for another of similar risks
order - ANSWERS - Twisting
Insurance commissioner is appointed by... - using media with deliberate deceit to defraud -
ANSWERS - the Governor ANSWERS - False Advertising
administered by a U.S. state to protect persuading someone to buy insurance through
policyholders in the event that an insurance the use of threats - ANSWERS - Coercion
company defaults on benefit payments or
becomes insolvent. Producers are prohibited to
advertise it's existence to secure business. - improper holding, breaking fiduciary obligations -
ANSWERS - Guaranty Fund ANSWERS - Misappropriation of funds
, PSI PA Property and Casualty Exam Guide Newest 2025/2026
making false or derogatory statements as to purpose is to protect the privacy of consumer
insurance company's financial position - financial info (customers can opt out and prohibit
ANSWERS - Defamation insurance agency from disseminating nonpublic
personal info to non-affiliated third party) -
ANSWERS - Gramm-Leach-Bailey Act
unfair discrimination based on location of
insured's home or business - ANSWERS -
Redlining Insurance Fraud Regulation, criminal prosecution
and civil penalty up to? (amounts) -
ANSWERS - $5000/$10000/$15000
when a producer is collecting premiums from
applicants and adding it to their personal funds,
holding out premium - ANSWERS - established to protect consumers from unfair and
Commingling funds inaccurate info, max penalty of $2500 and/or 2
years in prison - ANSWERS - Fair Credit
Reporting Act
is a producer's obligation to handle funds of the
insured in a responsible and ethical manner -
ANSWERS - Fiduciary responsibility QOT: Primary purpose of the FCRA (fair credit
report. act) is to...? - ANSWERS - protect
against the circulation of inaccurate or obsolete
Who can terminate a producers appointment - personal or financial info.
ANSWERS - The Insurer
Fraud & False statements---fraud that affects
means any person/entity who or which is interstate commerce suffers max penalty of... -
licensed to solicit, negotiate, or sell insurance. - ANSWERS - $50,000 and/or 10-15 years in
ANSWERS - Insurance Producer prison
Who is allowed to conduct as many examinations exposure to or uncertainty of loss -
of insurance agencies/agents as they want - ANSWERS - Risk
ANSWERS - the department of insurance
only can be no charge or loss, only type of risk
can be shared when 2 producers are in the same insurance covers (no financial gain) -
authority - ANSWERS - Commissions ANSWERS - Pure Risk
allowed, must include a written advance notice of can either be lost or have the chance to win from
the fee disclosed to the person and must be a risk (ex. Gambling) - ANSWERS -
reasonable in relationship to service provided - Speculative Risk
ANSWERS - Consulting Fees
, PSI PA Property and Casualty Exam Guide Newest 2025/2026
the reduction, decrease, or disappearance of
conditions that increase the probability of an value of the person or property insured in a
insured loss - ANSWERS - Hazards policy, caused by a named peril -
ANSWERS - Loss
individual characteristics that increase the
chances of the cause of loss---(physical Methods of Handling Risk include... -
condition, past medical history, birth defect, ANSWERS - Avoidance, retention (reduce
blindness) - ANSWERS - Physical Hazard premiums), sharing, reduction, and transfer
tendencies towards increased risk eliminating exposure for loss (ex. avoid airplane
(character/reputation) - ANSWERS - Moral crash by not getting in airplane) -
Hazard ANSWERS - Avoidance
arise from state of mind that causes indifference planned assumption of risk by an insured through
to loss (carelessness) - ANSWERS - the use of deductibles, co-payments, or self
Morale Hazards insurance
Purposes are: 1) reduce expenses, improve cash
must be definable, accidental, predictable, law of flow 2) increase control of claim reserving and
large #s should apply, create financial hardship, claim settlements 3) fund for losses that cannot
reasonable premiums, not catastrophic - be insured - ANSWERS - Retention
ANSWERS - Elements of insurable risk
when insured accepts responsibility for loss
unit of measurement used to determine rates before the company pays - ANSWERS -
charged for insurance coverage - Self-Insurance
ANSWERS - Exposure
method of dealing with risk for a group of
large # of units having the same or similar individual persons or businesses with the same
exposure to loss - ANSWERS - similar exposure to loss to share the losses that
Homogeneous occur with that group - ANSWERS -
Sharing
transfers the risk of loss from individual or entity
to insurance company, which spreads the costs lessen the possibility or severity of a loss (ex.
of unexpected losses to many individuals, installing smoke detectors, physical to detect
includes solicitation, negotiations, sale, and health problems, life style change) -
advising on individual concerns, coverage or ANSWERS - Reduction
claims - ANSWERS - Insurance
most effective method of decreasing risk, risk or
According to the insurance law, who is the
principal? - ANSWERS - Broker
Performed by commissioner to prohibit rates that
are excessive, inadequate or unfairly;y
An application as a resident agent must be made discriminatory. - ANSWERS - Rate
in how many days if an individual establishes a Regulation
principal place of residence within Pa from
another state? - ANSWERS - 90 days
Insurance company should acknowledge receipt
of claim within... - ANSWERS - 10 working
issued for 180 days for surviving spouse, days
surviving inactive officer or partner, legal
representative. Can be used upon death or
incompetency of producer, or when individuals Insurance should respond to insurance
are serving in the military. - ANSWERS - a department inquiry within... - ANSWERS -
temporary license 15 days
Commissioner can do all of the following except? Bribery, returning a portion of the premium or the
- ANSWERS - Endorse Insurers agent's/broker's commission on the premium to
the insured or other INDUCEMENTS to place
business with a specific insurer. -
Insurance department can deny an application if ANSWERS - Rebating
the applicant.... - ANSWERS - provides
incorrect or misleading info, been denied in
another state or violated commonwealth When producer makes false statements -
insurance laws. ANSWERS - Misrepresentation
the insurance department may issue this which When insurance agent makes incomplete
requires the insurer or person to stop activity in comparisons as an inducement to terminate,
question - ANSWERS - Cease & Desist surrender one's policy for another of similar risks
order - ANSWERS - Twisting
Insurance commissioner is appointed by... - using media with deliberate deceit to defraud -
ANSWERS - the Governor ANSWERS - False Advertising
administered by a U.S. state to protect persuading someone to buy insurance through
policyholders in the event that an insurance the use of threats - ANSWERS - Coercion
company defaults on benefit payments or
becomes insolvent. Producers are prohibited to
advertise it's existence to secure business. - improper holding, breaking fiduciary obligations -
ANSWERS - Guaranty Fund ANSWERS - Misappropriation of funds
, PSI PA Property and Casualty Exam Guide Newest 2025/2026
making false or derogatory statements as to purpose is to protect the privacy of consumer
insurance company's financial position - financial info (customers can opt out and prohibit
ANSWERS - Defamation insurance agency from disseminating nonpublic
personal info to non-affiliated third party) -
ANSWERS - Gramm-Leach-Bailey Act
unfair discrimination based on location of
insured's home or business - ANSWERS -
Redlining Insurance Fraud Regulation, criminal prosecution
and civil penalty up to? (amounts) -
ANSWERS - $5000/$10000/$15000
when a producer is collecting premiums from
applicants and adding it to their personal funds,
holding out premium - ANSWERS - established to protect consumers from unfair and
Commingling funds inaccurate info, max penalty of $2500 and/or 2
years in prison - ANSWERS - Fair Credit
Reporting Act
is a producer's obligation to handle funds of the
insured in a responsible and ethical manner -
ANSWERS - Fiduciary responsibility QOT: Primary purpose of the FCRA (fair credit
report. act) is to...? - ANSWERS - protect
against the circulation of inaccurate or obsolete
Who can terminate a producers appointment - personal or financial info.
ANSWERS - The Insurer
Fraud & False statements---fraud that affects
means any person/entity who or which is interstate commerce suffers max penalty of... -
licensed to solicit, negotiate, or sell insurance. - ANSWERS - $50,000 and/or 10-15 years in
ANSWERS - Insurance Producer prison
Who is allowed to conduct as many examinations exposure to or uncertainty of loss -
of insurance agencies/agents as they want - ANSWERS - Risk
ANSWERS - the department of insurance
only can be no charge or loss, only type of risk
can be shared when 2 producers are in the same insurance covers (no financial gain) -
authority - ANSWERS - Commissions ANSWERS - Pure Risk
allowed, must include a written advance notice of can either be lost or have the chance to win from
the fee disclosed to the person and must be a risk (ex. Gambling) - ANSWERS -
reasonable in relationship to service provided - Speculative Risk
ANSWERS - Consulting Fees
, PSI PA Property and Casualty Exam Guide Newest 2025/2026
the reduction, decrease, or disappearance of
conditions that increase the probability of an value of the person or property insured in a
insured loss - ANSWERS - Hazards policy, caused by a named peril -
ANSWERS - Loss
individual characteristics that increase the
chances of the cause of loss---(physical Methods of Handling Risk include... -
condition, past medical history, birth defect, ANSWERS - Avoidance, retention (reduce
blindness) - ANSWERS - Physical Hazard premiums), sharing, reduction, and transfer
tendencies towards increased risk eliminating exposure for loss (ex. avoid airplane
(character/reputation) - ANSWERS - Moral crash by not getting in airplane) -
Hazard ANSWERS - Avoidance
arise from state of mind that causes indifference planned assumption of risk by an insured through
to loss (carelessness) - ANSWERS - the use of deductibles, co-payments, or self
Morale Hazards insurance
Purposes are: 1) reduce expenses, improve cash
must be definable, accidental, predictable, law of flow 2) increase control of claim reserving and
large #s should apply, create financial hardship, claim settlements 3) fund for losses that cannot
reasonable premiums, not catastrophic - be insured - ANSWERS - Retention
ANSWERS - Elements of insurable risk
when insured accepts responsibility for loss
unit of measurement used to determine rates before the company pays - ANSWERS -
charged for insurance coverage - Self-Insurance
ANSWERS - Exposure
method of dealing with risk for a group of
large # of units having the same or similar individual persons or businesses with the same
exposure to loss - ANSWERS - similar exposure to loss to share the losses that
Homogeneous occur with that group - ANSWERS -
Sharing
transfers the risk of loss from individual or entity
to insurance company, which spreads the costs lessen the possibility or severity of a loss (ex.
of unexpected losses to many individuals, installing smoke detectors, physical to detect
includes solicitation, negotiations, sale, and health problems, life style change) -
advising on individual concerns, coverage or ANSWERS - Reduction
claims - ANSWERS - Insurance
most effective method of decreasing risk, risk or
