PSI PA PROPERTY AND CASUALTY
EXAM GUIDE Q AND A
Brokervy-vyanswer--Accordingvytovythevyinsurancevylaw,vywhovyisvythevyprincipal?
90vydaysvy-vyanswer--
Anvyapplicationvyasvyavyresidentvyagentvymustvybevymadevyinvyhowvymanyvydaysvyifvyanvyindi
vidualvyestablishesvyavyprincipalvyplacevyofvyresidencevywithinvyPavyfromvyanothervystate?
avytemporaryvylicensevy-vyanswer--
issuedvyforvy180vydaysvyforvysurvivingvyspouse,vysurvivingvyinactivevyofficervyorvypartner,vyl
egalvyrepresentative.vyCanvybevyusedvyuponvydeathvyorvyincompetencyvyofvyproducer,vyorvy
whenvyindividualsvyarevyservingvyinvythevymilitary.
EndorsevyInsurersvy-vyanswer--Commissionervycanvydovyallvyofvythevyfollowingvyexcept?
providesvyincorrectvyorvymisleadingvyinfo,vybeenvydeniedvyinvyanothervystatevyorvyviolatedvyc
ommonwealthvyinsurancevylaws.vy-vyanswer--
Insurancevydepartmentvycanvydenyvyanvyapplicationvyifvythevyapplicant....
Ceasevy&vyDesistvyordervy-vyanswer--
thevyinsurancevydepartmentvymayvyissuevythisvywhichvyrequiresvythevyinsurervyorvypersonvyt
ovystopvyactivityvyinvyquestion
thevyGovernorvy-vyanswer--Insurancevycommissionervyisvyappointedvyby...
GuarantyvyFundvy-vyanswer--
administeredvybyvyavyU.S.vystatevytovyprotectvypolicyholdersvyinvythevyeventvythatvyanvyinsur
ancevycompanyvydefaultsvyonvybenefitvypaymentsvyorvybecomesvyinsolvent.vyProducersvya
revyprohibitedvytovyadvertisevyit'svyexistencevytovysecurevybusiness.
RatevyRegulationvy-vyanswer--
Performedvybyvycommissionervytovyprohibitvyratesvythatvyarevyexcessive,vyinadequatevyorvy
unfairly;yvydiscriminatory.
10vyworkingvydaysvy-vyanswer--
Insurancevycompanyvyshouldvyacknowledgevyreceiptvyofvyclaimvywithin...
15vydaysvy-vyanswer--
Insurancevyshouldvyrespondvytovyinsurancevydepartmentvyinquiryvywithin...
Rebatingvy-vyanswer--Bribery,vyreturningvyavyportionvyofvythevypremiumvyorvythevyagent's/
broker'svycommissionvyonvythevypremiumvytovythevyinsuredvyorvyothervyINDUCEMENTSvyto
vyplacevybusinessvywithvyavyspecificvyinsurer.
,Misrepresentationvy-vyanswer--Whenvyproducervymakesvyfalsevystatements
Twistingvy-vyanswer--
Whenvyinsurancevyagentvymakesvyincompletevycomparisonsvyasvyanvyinducementvytovyter
minate,vysurrendervyone'svypolicyvyforvyanothervyofvysimilarvyrisks
FalsevyAdvertisingvy-vyanswer--usingvymediavywithvydeliberatevydeceitvytovydefraud
Coercionvy-vyanswer--
persuadingvysomeonevytovybuyvyinsurancevythroughvythevyusevyofvythreats
Misappropriationvyofvyfundsvy-vyanswer--
impropervyholding,vybreakingvyfiduciaryvyobligations
Defamationvy-vyanswer--
makingvyfalsevyorvyderogatoryvystatementsvyasvytovyinsurancevycompany'svyfinancialvyposi
tion
Redliningvy-vyanswer--
unfairvydiscriminationvybasedvyonvylocationvyofvyinsured'svyhomevyorvybusiness
Comminglingvyfundsvy-vyanswer--
whenvyavyproducervyisvycollectingvypremiumsvyfromvyapplicantsvyandvyaddingvyitvytovytheirvy
personalvyfunds,vyholdingvyoutvypremium
Fiduciaryvyresponsibilityvy-vyanswer--
isvyavyproducer'svyobligationvytovyhandlevyfundsvyofvythevyinsuredvyinvyavyresponsiblevyandvy
ethicalvymanner
ThevyInsurervy-vyanswer--Whovycanvyterminatevyavyproducersvyappointment
InsurancevyProducervy-vyanswer--meansvyanyvyperson/
entityvywhovyorvywhichvyisvylicensedvytovysolicit,vynegotiate,vyorvysellvyinsurance.
thevydepartmentvyofvyinsurancevy-vyanswer--
Whovyisvyallowedvytovyconductvyasvymanyvyexaminationsvyofvyinsurancevyagencies/
agentsvyasvytheyvywant
Commissionsvy-vyanswer--
canvybevysharedvywhenvy2vyproducersvyarevyinvythevysamevyauthority
ConsultingvyFeesvy-vyanswer--
allowed,vymustvyincludevyavywrittenvyadvancevynoticevyofvythevyfeevydisclosedvytovythevypers
onvyandvymustvybevyreasonablevyinvyrelationshipvytovyservicevyprovided
Gramm-Leach-BaileyvyActvy-vyanswer--
purposevyisvytovyprotectvythevyprivacyvyofvyconsumervyfinancialvyinfovy(customersvycanvyoptv
youtvyandvyprohibitvyinsurancevyagencyvyfromvydisseminatingvynonpublicvypersonalvyinfovyt
ovynon-affiliatedvythirdvyparty)
, $5000/$10000/$15000vy-vyanswer--
InsurancevyFraudvyRegulation,vycriminalvyprosecutionvyandvycivilvypenaltyvyupvyto?
vy(amounts)
FairvyCreditvyReportingvyActvy-vyanswer--
establishedvytovyprotectvyconsumersvyfromvyunfairvyandvyinaccuratevyinfo,vymaxvypenaltyvy
ofvy$2500vyand/orvy2vyyearsvyinvyprison
protectvyagainstvythevycirculationvyofvyinaccuratevyorvyobsoletevypersonalvyorvyfinancialvyinf
o.vy-vyanswer--
QOT:vyPrimaryvypurposevyofvythevyFCRAvy(fairvycreditvyreport.vyact)vyisvyto...?
$50,000vyand/orvy10-15vyyearsvyinvyprisonvy-vyanswer--Fraudvy&vyFalsevystatements---
fraudvythatvyaffectsvyinterstatevycommercevysuffersvymaxvypenaltyvyof...
Riskvy-vyanswer--exposurevytovyorvyuncertaintyvyofvyloss
PurevyRiskvy-vyanswer--
onlyvycanvybevynovychargevyorvyloss,vyonlyvytypevyofvyriskvyinsurancevycoversvy(novyfinancialv
ygain)
SpeculativevyRiskvy-vyanswer--
canvyeithervybevylostvyorvyhavevythevychancevytovywinvyfromvyavyriskvy(ex.vyGambling)
Hazardsvy-vyanswer--conditionsvythatvyincreasevythevyprobabilityvyofvyanvyinsuredvyloss
PhysicalvyHazardvy-vyanswer--
individualvycharacteristicsvythatvyincreasevythevychancesvyofvythevycausevyofvyloss---
(physicalvycondition,vypastvymedicalvyhistory,vybirthvydefect,vyblindness)
MoralvyHazardvy-vyanswer--tendenciesvytowardsvyincreasedvyriskvy(character/reputation)
MoralevyHazardsvy-vyanswer--
arisevyfromvystatevyofvymindvythatvycausesvyindifferencevytovylossvy(carelessness)
Elementsvyofvyinsurablevyriskvy-vyanswer--
mustvybevydefinable,vyaccidental,vypredictable,vylawvyofvylargevy#svyshouldvyapply,vycreatevy
financialvyhardship,vyreasonablevypremiums,vynotvycatastrophic
Exposurevy-vyanswer--
unitvyofvymeasurementvyusedvytovydeterminevyratesvychargedvyforvyinsurancevycoverage
Homogeneousvy-vyanswer--
largevy#vyofvyunitsvyhavingvythevysamevyorvysimilarvyexposurevytovyloss
Insurancevy-vyanswer--
transfersvythevyriskvyofvylossvyfromvyindividualvyorvyentityvytovyinsurancevycompany,vywhichvy
spreadsvythevycostsvyofvyunexpectedvylossesvytovymanyvyindividuals,vyincludesvysolicitatio
n,vynegotiations,vysale,vyandvyadvisingvyonvyindividualvyconcerns,vycoveragevyorvyclaims
EXAM GUIDE Q AND A
Brokervy-vyanswer--Accordingvytovythevyinsurancevylaw,vywhovyisvythevyprincipal?
90vydaysvy-vyanswer--
Anvyapplicationvyasvyavyresidentvyagentvymustvybevymadevyinvyhowvymanyvydaysvyifvyanvyindi
vidualvyestablishesvyavyprincipalvyplacevyofvyresidencevywithinvyPavyfromvyanothervystate?
avytemporaryvylicensevy-vyanswer--
issuedvyforvy180vydaysvyforvysurvivingvyspouse,vysurvivingvyinactivevyofficervyorvypartner,vyl
egalvyrepresentative.vyCanvybevyusedvyuponvydeathvyorvyincompetencyvyofvyproducer,vyorvy
whenvyindividualsvyarevyservingvyinvythevymilitary.
EndorsevyInsurersvy-vyanswer--Commissionervycanvydovyallvyofvythevyfollowingvyexcept?
providesvyincorrectvyorvymisleadingvyinfo,vybeenvydeniedvyinvyanothervystatevyorvyviolatedvyc
ommonwealthvyinsurancevylaws.vy-vyanswer--
Insurancevydepartmentvycanvydenyvyanvyapplicationvyifvythevyapplicant....
Ceasevy&vyDesistvyordervy-vyanswer--
thevyinsurancevydepartmentvymayvyissuevythisvywhichvyrequiresvythevyinsurervyorvypersonvyt
ovystopvyactivityvyinvyquestion
thevyGovernorvy-vyanswer--Insurancevycommissionervyisvyappointedvyby...
GuarantyvyFundvy-vyanswer--
administeredvybyvyavyU.S.vystatevytovyprotectvypolicyholdersvyinvythevyeventvythatvyanvyinsur
ancevycompanyvydefaultsvyonvybenefitvypaymentsvyorvybecomesvyinsolvent.vyProducersvya
revyprohibitedvytovyadvertisevyit'svyexistencevytovysecurevybusiness.
RatevyRegulationvy-vyanswer--
Performedvybyvycommissionervytovyprohibitvyratesvythatvyarevyexcessive,vyinadequatevyorvy
unfairly;yvydiscriminatory.
10vyworkingvydaysvy-vyanswer--
Insurancevycompanyvyshouldvyacknowledgevyreceiptvyofvyclaimvywithin...
15vydaysvy-vyanswer--
Insurancevyshouldvyrespondvytovyinsurancevydepartmentvyinquiryvywithin...
Rebatingvy-vyanswer--Bribery,vyreturningvyavyportionvyofvythevypremiumvyorvythevyagent's/
broker'svycommissionvyonvythevypremiumvytovythevyinsuredvyorvyothervyINDUCEMENTSvyto
vyplacevybusinessvywithvyavyspecificvyinsurer.
,Misrepresentationvy-vyanswer--Whenvyproducervymakesvyfalsevystatements
Twistingvy-vyanswer--
Whenvyinsurancevyagentvymakesvyincompletevycomparisonsvyasvyanvyinducementvytovyter
minate,vysurrendervyone'svypolicyvyforvyanothervyofvysimilarvyrisks
FalsevyAdvertisingvy-vyanswer--usingvymediavywithvydeliberatevydeceitvytovydefraud
Coercionvy-vyanswer--
persuadingvysomeonevytovybuyvyinsurancevythroughvythevyusevyofvythreats
Misappropriationvyofvyfundsvy-vyanswer--
impropervyholding,vybreakingvyfiduciaryvyobligations
Defamationvy-vyanswer--
makingvyfalsevyorvyderogatoryvystatementsvyasvytovyinsurancevycompany'svyfinancialvyposi
tion
Redliningvy-vyanswer--
unfairvydiscriminationvybasedvyonvylocationvyofvyinsured'svyhomevyorvybusiness
Comminglingvyfundsvy-vyanswer--
whenvyavyproducervyisvycollectingvypremiumsvyfromvyapplicantsvyandvyaddingvyitvytovytheirvy
personalvyfunds,vyholdingvyoutvypremium
Fiduciaryvyresponsibilityvy-vyanswer--
isvyavyproducer'svyobligationvytovyhandlevyfundsvyofvythevyinsuredvyinvyavyresponsiblevyandvy
ethicalvymanner
ThevyInsurervy-vyanswer--Whovycanvyterminatevyavyproducersvyappointment
InsurancevyProducervy-vyanswer--meansvyanyvyperson/
entityvywhovyorvywhichvyisvylicensedvytovysolicit,vynegotiate,vyorvysellvyinsurance.
thevydepartmentvyofvyinsurancevy-vyanswer--
Whovyisvyallowedvytovyconductvyasvymanyvyexaminationsvyofvyinsurancevyagencies/
agentsvyasvytheyvywant
Commissionsvy-vyanswer--
canvybevysharedvywhenvy2vyproducersvyarevyinvythevysamevyauthority
ConsultingvyFeesvy-vyanswer--
allowed,vymustvyincludevyavywrittenvyadvancevynoticevyofvythevyfeevydisclosedvytovythevypers
onvyandvymustvybevyreasonablevyinvyrelationshipvytovyservicevyprovided
Gramm-Leach-BaileyvyActvy-vyanswer--
purposevyisvytovyprotectvythevyprivacyvyofvyconsumervyfinancialvyinfovy(customersvycanvyoptv
youtvyandvyprohibitvyinsurancevyagencyvyfromvydisseminatingvynonpublicvypersonalvyinfovyt
ovynon-affiliatedvythirdvyparty)
, $5000/$10000/$15000vy-vyanswer--
InsurancevyFraudvyRegulation,vycriminalvyprosecutionvyandvycivilvypenaltyvyupvyto?
vy(amounts)
FairvyCreditvyReportingvyActvy-vyanswer--
establishedvytovyprotectvyconsumersvyfromvyunfairvyandvyinaccuratevyinfo,vymaxvypenaltyvy
ofvy$2500vyand/orvy2vyyearsvyinvyprison
protectvyagainstvythevycirculationvyofvyinaccuratevyorvyobsoletevypersonalvyorvyfinancialvyinf
o.vy-vyanswer--
QOT:vyPrimaryvypurposevyofvythevyFCRAvy(fairvycreditvyreport.vyact)vyisvyto...?
$50,000vyand/orvy10-15vyyearsvyinvyprisonvy-vyanswer--Fraudvy&vyFalsevystatements---
fraudvythatvyaffectsvyinterstatevycommercevysuffersvymaxvypenaltyvyof...
Riskvy-vyanswer--exposurevytovyorvyuncertaintyvyofvyloss
PurevyRiskvy-vyanswer--
onlyvycanvybevynovychargevyorvyloss,vyonlyvytypevyofvyriskvyinsurancevycoversvy(novyfinancialv
ygain)
SpeculativevyRiskvy-vyanswer--
canvyeithervybevylostvyorvyhavevythevychancevytovywinvyfromvyavyriskvy(ex.vyGambling)
Hazardsvy-vyanswer--conditionsvythatvyincreasevythevyprobabilityvyofvyanvyinsuredvyloss
PhysicalvyHazardvy-vyanswer--
individualvycharacteristicsvythatvyincreasevythevychancesvyofvythevycausevyofvyloss---
(physicalvycondition,vypastvymedicalvyhistory,vybirthvydefect,vyblindness)
MoralvyHazardvy-vyanswer--tendenciesvytowardsvyincreasedvyriskvy(character/reputation)
MoralevyHazardsvy-vyanswer--
arisevyfromvystatevyofvymindvythatvycausesvyindifferencevytovylossvy(carelessness)
Elementsvyofvyinsurablevyriskvy-vyanswer--
mustvybevydefinable,vyaccidental,vypredictable,vylawvyofvylargevy#svyshouldvyapply,vycreatevy
financialvyhardship,vyreasonablevypremiums,vynotvycatastrophic
Exposurevy-vyanswer--
unitvyofvymeasurementvyusedvytovydeterminevyratesvychargedvyforvyinsurancevycoverage
Homogeneousvy-vyanswer--
largevy#vyofvyunitsvyhavingvythevysamevyorvysimilarvyexposurevytovyloss
Insurancevy-vyanswer--
transfersvythevyriskvyofvylossvyfromvyindividualvyorvyentityvytovyinsurancevycompany,vywhichvy
spreadsvythevycostsvyofvyunexpectedvylossesvytovymanyvyindividuals,vyincludesvysolicitatio
n,vynegotiations,vysale,vyandvyadvisingvyonvyindividualvyconcerns,vycoveragevyorvyclaims
