Pennsylvania Property and Casualty Insurance Exam
2026 Practice Questions with Verified Answer
Explanations
All |0f |the |f0ll0wing |are |requirements |t0 |be |licensed |in |PA |except:
-C0mplete |a |f0ur-week |l0ng |pre-licensing |c0urse
-Pass |the |appr0priate |exam
-Apply |f0r |a |license |with |the |insurance |department |and |pay |the |appr0priate |fee
-Have |y0ur |fingerprints |taken |and |submitted |- |ANSWER-C0mplete |a |f0ur-week |l0ng |pre-licensing
|c0urse
All |0f |the |f0ll0wing |statements |are |c0rrect |except:
-An |applicant |has |up |t0 |0ne |year |t0 |be |licensed |after |successfully |passing |the |exam
-The |fee |f0r |the |PA |Pr0perty-casualty |license |is |$55 |f0r |tw0 |years
-An |Insurance |Agency |d0es |n0t |need |t0 |be |licensed |if |they |are |a |c0rp0rati0n
-Y0u |must |be |at |least |18 |years |0f |age |t0 |be |licensed |- |ANSWER-An |Insurance |Agency |d0es |n0t |need |t0
|be |licensed |if |they |are |a |c0rp0rati0n
Which |statement |is |false?
-A |resident |pr0ducer |must |b0th |live |and |w0rk |in |Pennsylvania
-The |maximum |limit |f0r |a |temp0rary |license |is |180 |days
-An |insurance |c0mpany's |license |is |called |a |certificate |0f |auth0rity
-A |pr0ducer |must |be |licensed |t0 |sell, |s0licit, |0r |neg0tiate |c0ntracts |0f |insurance |- |ANSWER-A |resident
|pr0ducer |must |b0th |live |and |w0rk |in |Pennsylvania
Which |time |peri0d |is |inc0rrect?
-30 |days |t0 |rep0rt |a |change |0f |address
-30 |days |t0 |rep0rt |a |criminal |c0nduct |0f |being |charged
-60 |days |t0 |reinstate |a |lapsed |license |retr0actively
,-F0ur |years |t0 |c0mplete |24 |h0urs |0f |c0ntinuing |educati0n |- |ANSWER-F0ur |years |t0 |c0mplete |24 |h0urs |0f
|c0ntinuing |educati0n
P0ssible |insurance |department |penalties |f0r |insurance |law |vi0lati0ns |include |all |0f |the |f0ll0wing |except:
-Fines
-Rev0king |a |license
-Increased |requirement |0f |CE |h0urs
-Issuance |0f |an |0rder |t0 |cease |and |desist |- |ANSWER-Increased |requirement |0f |CE |h0urs
All |0f |the |f0ll0wing |are |general |duties |and |p0wers |0f |the |insurance |c0mmissi0ner |except:
-Pr0secute |the |individual |in |a |c0urt |0f |law
-C0llect |fees
-Investigate |c0mplaints
-Regulate |rates |- |ANSWER-Pr0secute |the |individual |in |a |c0urt |0f |law
Rate |regulat0ry |law |requires |rates |t0 |be |all |0f |the |f0ll0wing |except:
-N0t |excessive
-Equal |f0r |all |p0licy |h0lders
-Adequate
-N0t |unfairly |discriminat0ry |- |ANSWER-Equal |f0r |all |p0licy |h0lders
Which |statement |is |false?
-The |insurance |c0mmissi0ner |is |app0inted |by |the |g0vern0r |
-All |rates |must |be |filed |and |appr0ved |bef0re |they |can |be |used
-Maximum |jail |term |f0r |an |insurance |vi0lati0n |is |six |m0nths
-Illegal |inducement |is |d0ing |business |with |unlicensed |pers0ns |- |ANSWER-Illegal |inducement |is |d0ing
|business |with |unlicensed |pers0ns
Which |activity |w0uld |be |a |pr0hibited |practice |under |the |unfair |claims |practices |law?
,-Failing |t0 |act |pr0mptly |0n |a |c0mmunicati0n |dealing |with |a |claim
-Rep0rting |the |claim |t0 |the |insurance |c0mpany |0nline
-Denying |payment |0f |a |claim |that |is |n0t |c0vered |by |the |p0licy
-Assigning |an |adjuster |t0 |investigate |the |claim |bef0re |payment |- |ANSWER-Failing |t0 |act |pr0mptly |0n |a
|c0mmunicati0n |dealing |with |a |claim
Which |activity |w0uld |n0t |be |a |pr0hibited |practice |under |the |Unfair |Trade |Practice |Law?
-Intenti0nally |misrepresenting |c0verage |terms |in |the |p0licy
-F0rging |a |client's |signature |0n |an |applicati0n
-N0t |remembering |y0ur |clients |birthday
-C0mmitting |a |fel0ny |- |ANSWER-N0t |remembering |y0ur |clients |birthday
Misrepresentati0n |call |be |all |0f |the |f0ll0wing |except:
-Twisting
-Sharing |part |0f |y0ur |0wn |c0mmissi0n |with |a |client
-Misrepresenting |benefits, |terms |0r |c0nditi0ns
-Misrepresenting |in |advertisements |- |ANSWER-Sharing |part |0f |y0ur |0wn |c0mmissi0n |with |a |client
All |0f |the |f0ll0wing |are |Unfair |Trade |Practices |activities |except:
-C0mingling |0f |funds
-Rebating
-Defamati0n
-B0yc0tt, |c0erci0n, |0r |intimidati0n |- |ANSWER-C0mingling |0f |funds
The |Fair |Credit |Rep0rting |Act |requires |all |0f |the |f0ll0wing |except:
-N0tificati0n |0f |a |credit |investigati0n |at |time |0f |applicati0n
-A |c0py |0f |the |rep0rt |sent |t0 |the |client
-The |name |and |address |0f |the |credit |rep0rting |agency |given |t0 |the |client
-N0tice |must |be |in |writing |- |ANSWER-A |c0py |0f |the |rep0rt |sent |t0 |the |client
, The |Gramm-Leach-Bliley |Act |requires |all |0f |the |f0ll0wing |except:
-Annual |privacy |n0tificati0n |given |t0 |all |cust0mers
-Cust0mers |given |the |0pti0n |t0 |0pt |0ut |0f |sharing |inf0 |t0 |0thers
-Insurers |must |pr0tect |the |security |0f |financial |inf0rmati0n
-An |annual |rep0rt |must |be |sent |t0 |the |federal |g0vernment |- |ANSWER-An |annual |rep0rt |must |be |sent
|t0 |the |federal |g0vernment
Which |statement |is |false |c0ncerning |the |Federal |Terr0rism |Risk |Insurance |Act |(TRIA)?
-It |applies |t0 |all |lines |0f |insurance, |b0th |pers0nal |and |c0mmercial
-The |premium |must |be |sh0wn |t0 |the |client |with |the |0pp0rtunity |t0 |reject |c0verage
-It |pr0vides |c0verage |f0r |acts |0f |terr0rism
-The |federal |g0vernment |shares |in |payment |0f |c0vered |l0sses |with |insurance |industry |- |ANSWER-It
|applies |t0 |all |lines |0f |insurance, |b0th |pers0nal |and |c0mmercial
Bef0re |federal |funds |are |made |available |under |TRIA |the |f0ll0wing |must |certify |an |act |0f |terr0rism
-The |president |& |c0ngress
-Secretary |0f |the |Treasury |and |Secretary |0f |H0meland |Security
-The |att0rney |general |and |c0ngress
-The |FBI |- |ANSWER-Secretary |0f |the |Treasury |and |Secretary |0f |H0meland |Security
The |M0t0r |Carrier |act |0f |1980 |was |passed |t0 |deal |with:
-Unlicensed |trucks |traveling |interstate
-Uninsured |carg0 |traveling |interstate
-Transp0rting |hazard0us |carg0 |causing |p0lluti0n |accidents
-Unlicensed |drivers |0f |m0t0r |vehicles |- |ANSWER-Transp0rting |hazard0us |carg0 |causing |p0lluti0n
|accidents
Under |the |m0t0r |carrier |act |0f |1980 |the |minimum |limit |0f |liability |required |when |transp0rting
|hazard0us |carg0 |is:
2026 Practice Questions with Verified Answer
Explanations
All |0f |the |f0ll0wing |are |requirements |t0 |be |licensed |in |PA |except:
-C0mplete |a |f0ur-week |l0ng |pre-licensing |c0urse
-Pass |the |appr0priate |exam
-Apply |f0r |a |license |with |the |insurance |department |and |pay |the |appr0priate |fee
-Have |y0ur |fingerprints |taken |and |submitted |- |ANSWER-C0mplete |a |f0ur-week |l0ng |pre-licensing
|c0urse
All |0f |the |f0ll0wing |statements |are |c0rrect |except:
-An |applicant |has |up |t0 |0ne |year |t0 |be |licensed |after |successfully |passing |the |exam
-The |fee |f0r |the |PA |Pr0perty-casualty |license |is |$55 |f0r |tw0 |years
-An |Insurance |Agency |d0es |n0t |need |t0 |be |licensed |if |they |are |a |c0rp0rati0n
-Y0u |must |be |at |least |18 |years |0f |age |t0 |be |licensed |- |ANSWER-An |Insurance |Agency |d0es |n0t |need |t0
|be |licensed |if |they |are |a |c0rp0rati0n
Which |statement |is |false?
-A |resident |pr0ducer |must |b0th |live |and |w0rk |in |Pennsylvania
-The |maximum |limit |f0r |a |temp0rary |license |is |180 |days
-An |insurance |c0mpany's |license |is |called |a |certificate |0f |auth0rity
-A |pr0ducer |must |be |licensed |t0 |sell, |s0licit, |0r |neg0tiate |c0ntracts |0f |insurance |- |ANSWER-A |resident
|pr0ducer |must |b0th |live |and |w0rk |in |Pennsylvania
Which |time |peri0d |is |inc0rrect?
-30 |days |t0 |rep0rt |a |change |0f |address
-30 |days |t0 |rep0rt |a |criminal |c0nduct |0f |being |charged
-60 |days |t0 |reinstate |a |lapsed |license |retr0actively
,-F0ur |years |t0 |c0mplete |24 |h0urs |0f |c0ntinuing |educati0n |- |ANSWER-F0ur |years |t0 |c0mplete |24 |h0urs |0f
|c0ntinuing |educati0n
P0ssible |insurance |department |penalties |f0r |insurance |law |vi0lati0ns |include |all |0f |the |f0ll0wing |except:
-Fines
-Rev0king |a |license
-Increased |requirement |0f |CE |h0urs
-Issuance |0f |an |0rder |t0 |cease |and |desist |- |ANSWER-Increased |requirement |0f |CE |h0urs
All |0f |the |f0ll0wing |are |general |duties |and |p0wers |0f |the |insurance |c0mmissi0ner |except:
-Pr0secute |the |individual |in |a |c0urt |0f |law
-C0llect |fees
-Investigate |c0mplaints
-Regulate |rates |- |ANSWER-Pr0secute |the |individual |in |a |c0urt |0f |law
Rate |regulat0ry |law |requires |rates |t0 |be |all |0f |the |f0ll0wing |except:
-N0t |excessive
-Equal |f0r |all |p0licy |h0lders
-Adequate
-N0t |unfairly |discriminat0ry |- |ANSWER-Equal |f0r |all |p0licy |h0lders
Which |statement |is |false?
-The |insurance |c0mmissi0ner |is |app0inted |by |the |g0vern0r |
-All |rates |must |be |filed |and |appr0ved |bef0re |they |can |be |used
-Maximum |jail |term |f0r |an |insurance |vi0lati0n |is |six |m0nths
-Illegal |inducement |is |d0ing |business |with |unlicensed |pers0ns |- |ANSWER-Illegal |inducement |is |d0ing
|business |with |unlicensed |pers0ns
Which |activity |w0uld |be |a |pr0hibited |practice |under |the |unfair |claims |practices |law?
,-Failing |t0 |act |pr0mptly |0n |a |c0mmunicati0n |dealing |with |a |claim
-Rep0rting |the |claim |t0 |the |insurance |c0mpany |0nline
-Denying |payment |0f |a |claim |that |is |n0t |c0vered |by |the |p0licy
-Assigning |an |adjuster |t0 |investigate |the |claim |bef0re |payment |- |ANSWER-Failing |t0 |act |pr0mptly |0n |a
|c0mmunicati0n |dealing |with |a |claim
Which |activity |w0uld |n0t |be |a |pr0hibited |practice |under |the |Unfair |Trade |Practice |Law?
-Intenti0nally |misrepresenting |c0verage |terms |in |the |p0licy
-F0rging |a |client's |signature |0n |an |applicati0n
-N0t |remembering |y0ur |clients |birthday
-C0mmitting |a |fel0ny |- |ANSWER-N0t |remembering |y0ur |clients |birthday
Misrepresentati0n |call |be |all |0f |the |f0ll0wing |except:
-Twisting
-Sharing |part |0f |y0ur |0wn |c0mmissi0n |with |a |client
-Misrepresenting |benefits, |terms |0r |c0nditi0ns
-Misrepresenting |in |advertisements |- |ANSWER-Sharing |part |0f |y0ur |0wn |c0mmissi0n |with |a |client
All |0f |the |f0ll0wing |are |Unfair |Trade |Practices |activities |except:
-C0mingling |0f |funds
-Rebating
-Defamati0n
-B0yc0tt, |c0erci0n, |0r |intimidati0n |- |ANSWER-C0mingling |0f |funds
The |Fair |Credit |Rep0rting |Act |requires |all |0f |the |f0ll0wing |except:
-N0tificati0n |0f |a |credit |investigati0n |at |time |0f |applicati0n
-A |c0py |0f |the |rep0rt |sent |t0 |the |client
-The |name |and |address |0f |the |credit |rep0rting |agency |given |t0 |the |client
-N0tice |must |be |in |writing |- |ANSWER-A |c0py |0f |the |rep0rt |sent |t0 |the |client
, The |Gramm-Leach-Bliley |Act |requires |all |0f |the |f0ll0wing |except:
-Annual |privacy |n0tificati0n |given |t0 |all |cust0mers
-Cust0mers |given |the |0pti0n |t0 |0pt |0ut |0f |sharing |inf0 |t0 |0thers
-Insurers |must |pr0tect |the |security |0f |financial |inf0rmati0n
-An |annual |rep0rt |must |be |sent |t0 |the |federal |g0vernment |- |ANSWER-An |annual |rep0rt |must |be |sent
|t0 |the |federal |g0vernment
Which |statement |is |false |c0ncerning |the |Federal |Terr0rism |Risk |Insurance |Act |(TRIA)?
-It |applies |t0 |all |lines |0f |insurance, |b0th |pers0nal |and |c0mmercial
-The |premium |must |be |sh0wn |t0 |the |client |with |the |0pp0rtunity |t0 |reject |c0verage
-It |pr0vides |c0verage |f0r |acts |0f |terr0rism
-The |federal |g0vernment |shares |in |payment |0f |c0vered |l0sses |with |insurance |industry |- |ANSWER-It
|applies |t0 |all |lines |0f |insurance, |b0th |pers0nal |and |c0mmercial
Bef0re |federal |funds |are |made |available |under |TRIA |the |f0ll0wing |must |certify |an |act |0f |terr0rism
-The |president |& |c0ngress
-Secretary |0f |the |Treasury |and |Secretary |0f |H0meland |Security
-The |att0rney |general |and |c0ngress
-The |FBI |- |ANSWER-Secretary |0f |the |Treasury |and |Secretary |0f |H0meland |Security
The |M0t0r |Carrier |act |0f |1980 |was |passed |t0 |deal |with:
-Unlicensed |trucks |traveling |interstate
-Uninsured |carg0 |traveling |interstate
-Transp0rting |hazard0us |carg0 |causing |p0lluti0n |accidents
-Unlicensed |drivers |0f |m0t0r |vehicles |- |ANSWER-Transp0rting |hazard0us |carg0 |causing |p0lluti0n
|accidents
Under |the |m0t0r |carrier |act |0f |1980 |the |minimum |limit |0f |liability |required |when |transp0rting
|hazard0us |carg0 |is:
