PENNSYLVANIA PROPERTY AND CASUALTY
EXAM SCRIPT 2026 QUESTIONS WITH
ANSWERS
◉ Certificate Authority. Answer: A Certificate of Authority is a
license issued to an insurer by a department of insurance (or
equivalent state agency), which authorizes that company to conduct
insurance business in that particular state.
◉ Authorized insurers. Answer: Also known as admitted insurer's.
this is when a company is licensed and has a certificate of authority.
They can sell, place, and service most insurance contracts.
◉ Unauthorized insurer's. Answer: Also known as nonadmitted
insurer's or non-approved insurers.
they are insurance companies that do not have a certificate of
authority and are allowed to sell insurance to certain types of risks
called surplus lines. They sell surplus lines insurance products
◉ Domestic Insurer. Answer: An insurer doing business and its
home state
,◉ Foreign Insurer. Answer: An insurance company that is
incorporated in another state.
◉ Alien insurer. Answer: An insurance company that is incorporated
outside the United States. In a diffrent country
◉ Elements of a Legal Contract. Answer: CLOAC
Consideration
Legal Purpose
Offer
Acceptance
Competent Parties
◉ Consideration. Answer: Money and statements made on an
application
◉ Legal purpose. Answer: The purpose of the contract must be legal
and not against public policy.
Risk transfer doesn't violate the law
◉ Offer. Answer: A proposal made by one of the potential parties to
the contract
,◉ Acceptance. Answer: Acceptance of an offer must be
unconditional and unqualified
◉ counter offer. Answer: Any response to an offer (other than
outright rejection) which presents alternative terms for a contract.
◉ Campanet parties. Answer: The insured must be legal age usually
18 and be mentally competent (sane and sober) To make an
insurance contract
◉ Three types of authority. Answer: express, implied, apparent
◉ Express authority. Answer: The authority made explicit in a
producers written agency agreement with ensure. Express authority
is the wording in the contract that specifically tells the producer
what they can and cannot do.
◉ Implied Authority. Answer: It's not written in the agency contract,
but is assumed to be granted to an agent in accordance with general
business practices
◉ Apparent authority. Answer: Is authority the others believe the
agent has.
, ◉ Law of Agency. Answer: Contracts made by the agent are
considered to be contracts of the principle
◉ Agency. Answer: A relationship in which one person is authorized
to represent an ask for another person or for a corporation
◉ agent. Answer: The person authorized to act on behalf of the
other
◉ principal. Answer: The person on whose behalf the agent acts
◉ Reasonable expectation. Answer: The other party will not try and
conceal partinent information or otherwise act deceptively.
◉ Utmost Good Faith. Answer: The insured and insurance company
have a right to expect honesty from each other
◉ Indemnity. Answer: Meaning the contract is intended to restore
the insured to financial state. She enjoyed prior to the occurrence of
loss. No more no less pays for the loss with no gain
◉ fraud. Answer: Is an intentional Act designed to deceive and
induce another party to part with something of value
EXAM SCRIPT 2026 QUESTIONS WITH
ANSWERS
◉ Certificate Authority. Answer: A Certificate of Authority is a
license issued to an insurer by a department of insurance (or
equivalent state agency), which authorizes that company to conduct
insurance business in that particular state.
◉ Authorized insurers. Answer: Also known as admitted insurer's.
this is when a company is licensed and has a certificate of authority.
They can sell, place, and service most insurance contracts.
◉ Unauthorized insurer's. Answer: Also known as nonadmitted
insurer's or non-approved insurers.
they are insurance companies that do not have a certificate of
authority and are allowed to sell insurance to certain types of risks
called surplus lines. They sell surplus lines insurance products
◉ Domestic Insurer. Answer: An insurer doing business and its
home state
,◉ Foreign Insurer. Answer: An insurance company that is
incorporated in another state.
◉ Alien insurer. Answer: An insurance company that is incorporated
outside the United States. In a diffrent country
◉ Elements of a Legal Contract. Answer: CLOAC
Consideration
Legal Purpose
Offer
Acceptance
Competent Parties
◉ Consideration. Answer: Money and statements made on an
application
◉ Legal purpose. Answer: The purpose of the contract must be legal
and not against public policy.
Risk transfer doesn't violate the law
◉ Offer. Answer: A proposal made by one of the potential parties to
the contract
,◉ Acceptance. Answer: Acceptance of an offer must be
unconditional and unqualified
◉ counter offer. Answer: Any response to an offer (other than
outright rejection) which presents alternative terms for a contract.
◉ Campanet parties. Answer: The insured must be legal age usually
18 and be mentally competent (sane and sober) To make an
insurance contract
◉ Three types of authority. Answer: express, implied, apparent
◉ Express authority. Answer: The authority made explicit in a
producers written agency agreement with ensure. Express authority
is the wording in the contract that specifically tells the producer
what they can and cannot do.
◉ Implied Authority. Answer: It's not written in the agency contract,
but is assumed to be granted to an agent in accordance with general
business practices
◉ Apparent authority. Answer: Is authority the others believe the
agent has.
, ◉ Law of Agency. Answer: Contracts made by the agent are
considered to be contracts of the principle
◉ Agency. Answer: A relationship in which one person is authorized
to represent an ask for another person or for a corporation
◉ agent. Answer: The person authorized to act on behalf of the
other
◉ principal. Answer: The person on whose behalf the agent acts
◉ Reasonable expectation. Answer: The other party will not try and
conceal partinent information or otherwise act deceptively.
◉ Utmost Good Faith. Answer: The insured and insurance company
have a right to expect honesty from each other
◉ Indemnity. Answer: Meaning the contract is intended to restore
the insured to financial state. She enjoyed prior to the occurrence of
loss. No more no less pays for the loss with no gain
◉ fraud. Answer: Is an intentional Act designed to deceive and
induce another party to part with something of value
