PENNSYLVANIA PROPERTY AND CASUALTY
LICENSING FINAL PAPER 2026 COMPLETE
QUESTIONS AND ANSWERS
◉ What must an insurance producer do to apply for a nonresident
license in Pennsylvania. Answer: Prove that their license is in good
standing in their home state
◉ Which best describes the responsibilities an agent owes when
they sell a policy. Answer: To provide the agreed-upon insurance and
to place coverage with a solvent insurer
◉ Which of the following is not a prohibited marketing practice?.
Answer: Discrimination among risks
◉ Which law, act, or regulation governs how insurers and their
producers treat personal financial information from individuals?.
Answer: Privacy of Consumer Financial Information Regulation
◉ Retention. Answer: "do nothing" option; a person becomes
personally responsible for the consequences of risk
,◉ Can an insurer change their assumed name?. Answer: Yes, but
they must notify the Commissioner before using the assumed name?
◉ Contract of Adhesion. Answer: "take-it-or-leave-it," drafted by one
party; other party has no opportunity to negotiate terms and prices.
Party must "adhere" to provisions as presented
◉ Tad used unauthorized material to assist him on his examination
for his insurance producer license. He justified this by saying the
materials would be available to him in a real life situation. Which
statement is true?. Answer: Tad committed a prohibited act.
◉ What is the maximum fine that may be imposed upon a producer
for violating two of the Commissioner's orders?. Answer: $20,000; A
fine of up to $10,000 for each violation of an order issued by the
commissioner.
◉ Admitted Insurer. Answer: An insurance company authorized and
licensed to transact business in a particular state.
◉ Which of the following is not acting as an insurance producer?.
Answer: Brian, who is a VP at AllPro's human resources department
and does not receive commissions
,◉ Edwin has decided not to retain the risk of home ownership
himself. What method of risk does he choose when he purchases
homeowners insurance?. Answer: Transfer: the risk of loss is
transferred from the insured to the insurance company in exchange
for a premium payment
◉ Alien Insurer. Answer: Incorporated in a country other than the
United States
◉ What fine will the Commissioner impose for the practice of unfair
methods of competition?. Answer: Up to $5,000 for each violation
(but not more than $50,000 in a 6 month period)
◉ Which of the following is not an unfair claims settlement practice
if committed by an insurance company in Pennsylvania?. Answer:
Failing to promptly settle a claim for which liability is uncertain. (An
insurer is not obligated to settle a claim for which it's not clearly
liable)
◉ Which of the following would NOT be considered
misrepresentation of an insurance policy?. Answer: Enthusiastically
promoting an insurance product
◉ Which of the following statements BEST describes the transfer of
risk via an insurance contract?. Answer: Not all risks are
transferable via insurance contracts
, ◉ Must the Commissioner conduct an examination of every foreign
or alien insurer licensed in Pennsylvania?. Answer: The
Commissioner may choose to waive examinations under certain
circumstances
◉ Aleatory Contract. Answer: One party may receive a benefit that is
out of proportion to the consideration he or she paid for.
◉ Bill failed to satisfy the continuing education requirements to
keep his producer's license active in Pennsylvania. Two years later,
he decides to renew his license. Can he do so?. Answer: No, he must
apply for a new license.
◉ Which of the following is NOT the action of an agent considering
the best interests of an applicant or insured?. Answer: Making a
misrepresentation of the terms of a proposed policy
◉ Who is the head of the Pennsylvania Insurance Department?.
Answer: Insurance Commissioner
◉ May a producer charge a service fee for completing a consumer's
insurance application?. Answer: No
LICENSING FINAL PAPER 2026 COMPLETE
QUESTIONS AND ANSWERS
◉ What must an insurance producer do to apply for a nonresident
license in Pennsylvania. Answer: Prove that their license is in good
standing in their home state
◉ Which best describes the responsibilities an agent owes when
they sell a policy. Answer: To provide the agreed-upon insurance and
to place coverage with a solvent insurer
◉ Which of the following is not a prohibited marketing practice?.
Answer: Discrimination among risks
◉ Which law, act, or regulation governs how insurers and their
producers treat personal financial information from individuals?.
Answer: Privacy of Consumer Financial Information Regulation
◉ Retention. Answer: "do nothing" option; a person becomes
personally responsible for the consequences of risk
,◉ Can an insurer change their assumed name?. Answer: Yes, but
they must notify the Commissioner before using the assumed name?
◉ Contract of Adhesion. Answer: "take-it-or-leave-it," drafted by one
party; other party has no opportunity to negotiate terms and prices.
Party must "adhere" to provisions as presented
◉ Tad used unauthorized material to assist him on his examination
for his insurance producer license. He justified this by saying the
materials would be available to him in a real life situation. Which
statement is true?. Answer: Tad committed a prohibited act.
◉ What is the maximum fine that may be imposed upon a producer
for violating two of the Commissioner's orders?. Answer: $20,000; A
fine of up to $10,000 for each violation of an order issued by the
commissioner.
◉ Admitted Insurer. Answer: An insurance company authorized and
licensed to transact business in a particular state.
◉ Which of the following is not acting as an insurance producer?.
Answer: Brian, who is a VP at AllPro's human resources department
and does not receive commissions
,◉ Edwin has decided not to retain the risk of home ownership
himself. What method of risk does he choose when he purchases
homeowners insurance?. Answer: Transfer: the risk of loss is
transferred from the insured to the insurance company in exchange
for a premium payment
◉ Alien Insurer. Answer: Incorporated in a country other than the
United States
◉ What fine will the Commissioner impose for the practice of unfair
methods of competition?. Answer: Up to $5,000 for each violation
(but not more than $50,000 in a 6 month period)
◉ Which of the following is not an unfair claims settlement practice
if committed by an insurance company in Pennsylvania?. Answer:
Failing to promptly settle a claim for which liability is uncertain. (An
insurer is not obligated to settle a claim for which it's not clearly
liable)
◉ Which of the following would NOT be considered
misrepresentation of an insurance policy?. Answer: Enthusiastically
promoting an insurance product
◉ Which of the following statements BEST describes the transfer of
risk via an insurance contract?. Answer: Not all risks are
transferable via insurance contracts
, ◉ Must the Commissioner conduct an examination of every foreign
or alien insurer licensed in Pennsylvania?. Answer: The
Commissioner may choose to waive examinations under certain
circumstances
◉ Aleatory Contract. Answer: One party may receive a benefit that is
out of proportion to the consideration he or she paid for.
◉ Bill failed to satisfy the continuing education requirements to
keep his producer's license active in Pennsylvania. Two years later,
he decides to renew his license. Can he do so?. Answer: No, he must
apply for a new license.
◉ Which of the following is NOT the action of an agent considering
the best interests of an applicant or insured?. Answer: Making a
misrepresentation of the terms of a proposed policy
◉ Who is the head of the Pennsylvania Insurance Department?.
Answer: Insurance Commissioner
◉ May a producer charge a service fee for completing a consumer's
insurance application?. Answer: No
