Personal Lines (PA) Practice Exam Study Set
Questions with Correct Answers 2025/2026
If a person is using an auto with the belief that he is entitled to do so , subrogation rights under
a personal auto policy would apply to all coverages EXCEPT
A. No-fault medical payments
B. Liability
C. Physical damage
D. Uninsured motorist - CORRECT ANSWER -C. Physical Damage
A producer sold an insurance policy. Subsequently, his license was suspended. In this case, how
much of the commission will the producer receive? - CORRECT ANSWER -All.
True or False.
An insurance entity or licensee cannot pay a commission or fee to a person if the person's
license is suspended or revoked. - CORRECT ANSWER -True.
How much is the premium for the dwelling under construction endorsement under the dwelling
policy? - CORRECT ANSWER -The average amount of insurance during construction.
What is a binder? - CORRECT ANSWER -A temporary contract of insurance that places insurance
in effect prior to the policy being issued.
Which of the following is a mandatory part of an insurance policy that varies with each
individual policy? - CORRECT ANSWER -Declarations
,According to the privacy of consumer financial information regulation, if a consumer decides to
opt out, this means - CORRECT ANSWER -The consumer directs the licensee not to disclose the
consumer's nonpublic personal financial information to a third party.
The homeowners policy covers collapse caused by all of the following, except - CORRECT
ANSWER -Foundation cracks
An insurer neglects to pay a legitimate claim that is covered under the terms of the policy.
Which of the following insurance principles has the insurer violated? - CORRECT ANSWER -
Consideration
How long is a waiting period upon purchase of flood coverage through NFIP? - CORRECT
ANSWER -30 days
The authority granted to an agent through the agents contract is referred to as - CORRECT
ANSWER -Express Authority
What term best describes the act of withholding material information that would be crucial to
an underwriting decision? - CORRECT ANSWER -Concealment
What term refers to other insurance that is written on the same risk, but not the same coverage
basis? - CORRECT ANSWER -Nonconcurrency
A producer has successfully completed 52 hours of continuing education (CE). How many hours
can the producer apply to her current reporting period, and how many hours can she carry
toward the next reporting period? - CORRECT ANSWER -24 hours will be applied to the current
reporting period, and 24 can be applied to the period immediately following.
, When an insured purchases a private passenger automobile insurance policy with a $500
deductible for collision coverage, how will that affect the rate for collision coverage? - CORRECT
ANSWER -It will be reduced.
When an insurer cancels an auto policy for an allowable reason, they must give notice to the
named insured of possible eligibility for coverage through the Pennsylvania Auto Insurance Plan,
unless the reason for cancellation is - CORRECT ANSWER -Nonpayment of premium
What is the minimum required deductible that a private passenger automobile insurance policy
providing collision coverage must offer in the state? - CORRECT ANSWER -$500
According to the loss payment condition, in HO policies, losses must be paid within how many
days of the insurer receiving proof of loss? - CORRECT ANSWER -60 days.
Under which circumstance can financial institutions share insurance coverage information with
third parties, for the purpose of soliciting the purchase of insurance? - CORRECT ANSWER -If a
consumer does not sign and return the notice of disclosure within 30 days.
For how long after the death of the name insured must basic property insurance continue
coverage? - CORRECT ANSWER -180 days.
Which of the following would modify the original insurance contract by either adding or
removing coverage?
A. Endorsements
B. Additional coverage form
C. Conditions
D. Flexible policy - CORRECT ANSWER -Endorsements
Questions with Correct Answers 2025/2026
If a person is using an auto with the belief that he is entitled to do so , subrogation rights under
a personal auto policy would apply to all coverages EXCEPT
A. No-fault medical payments
B. Liability
C. Physical damage
D. Uninsured motorist - CORRECT ANSWER -C. Physical Damage
A producer sold an insurance policy. Subsequently, his license was suspended. In this case, how
much of the commission will the producer receive? - CORRECT ANSWER -All.
True or False.
An insurance entity or licensee cannot pay a commission or fee to a person if the person's
license is suspended or revoked. - CORRECT ANSWER -True.
How much is the premium for the dwelling under construction endorsement under the dwelling
policy? - CORRECT ANSWER -The average amount of insurance during construction.
What is a binder? - CORRECT ANSWER -A temporary contract of insurance that places insurance
in effect prior to the policy being issued.
Which of the following is a mandatory part of an insurance policy that varies with each
individual policy? - CORRECT ANSWER -Declarations
,According to the privacy of consumer financial information regulation, if a consumer decides to
opt out, this means - CORRECT ANSWER -The consumer directs the licensee not to disclose the
consumer's nonpublic personal financial information to a third party.
The homeowners policy covers collapse caused by all of the following, except - CORRECT
ANSWER -Foundation cracks
An insurer neglects to pay a legitimate claim that is covered under the terms of the policy.
Which of the following insurance principles has the insurer violated? - CORRECT ANSWER -
Consideration
How long is a waiting period upon purchase of flood coverage through NFIP? - CORRECT
ANSWER -30 days
The authority granted to an agent through the agents contract is referred to as - CORRECT
ANSWER -Express Authority
What term best describes the act of withholding material information that would be crucial to
an underwriting decision? - CORRECT ANSWER -Concealment
What term refers to other insurance that is written on the same risk, but not the same coverage
basis? - CORRECT ANSWER -Nonconcurrency
A producer has successfully completed 52 hours of continuing education (CE). How many hours
can the producer apply to her current reporting period, and how many hours can she carry
toward the next reporting period? - CORRECT ANSWER -24 hours will be applied to the current
reporting period, and 24 can be applied to the period immediately following.
, When an insured purchases a private passenger automobile insurance policy with a $500
deductible for collision coverage, how will that affect the rate for collision coverage? - CORRECT
ANSWER -It will be reduced.
When an insurer cancels an auto policy for an allowable reason, they must give notice to the
named insured of possible eligibility for coverage through the Pennsylvania Auto Insurance Plan,
unless the reason for cancellation is - CORRECT ANSWER -Nonpayment of premium
What is the minimum required deductible that a private passenger automobile insurance policy
providing collision coverage must offer in the state? - CORRECT ANSWER -$500
According to the loss payment condition, in HO policies, losses must be paid within how many
days of the insurer receiving proof of loss? - CORRECT ANSWER -60 days.
Under which circumstance can financial institutions share insurance coverage information with
third parties, for the purpose of soliciting the purchase of insurance? - CORRECT ANSWER -If a
consumer does not sign and return the notice of disclosure within 30 days.
For how long after the death of the name insured must basic property insurance continue
coverage? - CORRECT ANSWER -180 days.
Which of the following would modify the original insurance contract by either adding or
removing coverage?
A. Endorsements
B. Additional coverage form
C. Conditions
D. Flexible policy - CORRECT ANSWER -Endorsements
