PENNSYLVANIA PROPERTY AND CASUALTY
LICENSING ACTUAL EXAM PAPER 2026
QUESTIONS WITH SOLUTIONS GRADED A+
◉ BI. Answer: bodily injury
◉ PD. Answer: Property damage
◉ Liability/casualty. Answer: what you pay the other guy
◉ personal lines insurance. Answer: cover needs of individual or
family (auto,boat,camper,rv)
◉ commercial lines insurance. Answer: needs of a business
◉ direct loss. Answer: example - house burns down
◉ indirect loss. Answer: example - additional money you will have to
spend to live somewhere else while house is being rebuilt. Out of
pocket expenses.
, ◉ indemnify. Answer: to make whole again - no better no worse
◉ predetermined loss limit. Answer: based upon the rule of the 4Ls -
you get the lower of the loss or the limit up to the level of your
insurable loss.
◉ inherent vice. Answer: loss results from an inherent property not
fortuitous, not covered
◉ CPC. Answer: catastrophic, predictable, covered elsewhere
◉ endorsement. Answer: written modification to your policy
designed to accommodate your specific needs - sometimes called a
rider
◉ mutual company. Answer: earning called surplus, not taxable,
dividend
◉ reinsurance treaty. Answer: % risk transferred and fees involved
for entire class
◉ surplus lines producer. Answer: agent authorized to sell contracts
from nonadmitted company if desired policy is unavailable from
admitted company
LICENSING ACTUAL EXAM PAPER 2026
QUESTIONS WITH SOLUTIONS GRADED A+
◉ BI. Answer: bodily injury
◉ PD. Answer: Property damage
◉ Liability/casualty. Answer: what you pay the other guy
◉ personal lines insurance. Answer: cover needs of individual or
family (auto,boat,camper,rv)
◉ commercial lines insurance. Answer: needs of a business
◉ direct loss. Answer: example - house burns down
◉ indirect loss. Answer: example - additional money you will have to
spend to live somewhere else while house is being rebuilt. Out of
pocket expenses.
, ◉ indemnify. Answer: to make whole again - no better no worse
◉ predetermined loss limit. Answer: based upon the rule of the 4Ls -
you get the lower of the loss or the limit up to the level of your
insurable loss.
◉ inherent vice. Answer: loss results from an inherent property not
fortuitous, not covered
◉ CPC. Answer: catastrophic, predictable, covered elsewhere
◉ endorsement. Answer: written modification to your policy
designed to accommodate your specific needs - sometimes called a
rider
◉ mutual company. Answer: earning called surplus, not taxable,
dividend
◉ reinsurance treaty. Answer: % risk transferred and fees involved
for entire class
◉ surplus lines producer. Answer: agent authorized to sell contracts
from nonadmitted company if desired policy is unavailable from
admitted company
