PENNSYLVANIA PROPERTY AND CASUALTY
LICENSING PRACTICE PAPER 2026 COMPLETE
SOLUTIONS
◉ Who regulates insurance rates to avoid excessive, inadequate, or
unfairly discriminatory rates? Answer: Casualty & Surety Rate
Regulatory Act
◉ Who must an insurer notify when they terminate a producer's
appointment? Answer: The Commissioner and producer.
◉ Which of the following is not a power and duty of the insurance
commissioner? Answer: Issuing a cease and desist order,
prosecuting producers who violate state insurance laws, conducting
complaint hearings, appointing examiners.
◉ What unfair practices is when a producer offers, promises, allows,
gives, sets off, or pays a rebate on the contract of insurance. Answer:
Rebating
◉ What unfair insurance practice is the purchase of insurance from
a financial institution or from a designated insurer or producer as a
condition of any loan or deposited transaction. Answer: Tie-In Sales
,◉ Non-public personal financial information about individuals.
Answer: Privacy of Consumer's Financial information
◉ Term for instruction by the consumer to the licensee no to
disclose non-public personal financial information about the
consumer to a non-affiliated third party. Answer: opt-out
◉ When a producer shares a commission with an unlicensed person.
Answer: If a license was held at a time of sale; Referring a person can
receive a one time nominal set fee
◉ When a personal fire insurance policy is cancelled because the
insured's acts increased the hazard insured against, how many days
notice must be provided to the insured. Answer: 30 days
◉ When a auto policy is cancelled for a reason other than non-
payment of premium, how many days notice must be provided to the
insured? Answer: 30 days
◉ If an insured's drivers license has been suspended, the insurer
may cancel the auto insurance policy by giving how many days
notice? Answer: 15 days
◉ What are the minimum limits of liability any individual must
provide for bodily injury and property damage? Answer: 15/30/5
,$15,000 per person bodily injury
$30,000 per accident for bodily injury
$5,000 per accident for property damage
◉ Purchased in the normal of standard market. Answer: PA Fair Plan
Act
◉ After an accident, what is the waiting period before the insured
can apply for income loss benefits? Answer: 5 working days
◉ What must occur in order to pay for funeral expenses? Answer:
Death within 24 hours of accident
◉ An insurer must notify an insured at least how many days before
increasing the premium on a commercial casualty insurance policy.
Answer: 30 days
◉ Which agency provides motor vehicle coverage insurance to those
who would be otherwise un-insurable? Answer: PA Auto Assigned
Risk Plan
◉ When an employer must provide worker's compensation
insurance but is unable to do so through normal channels, which
, organization can provide the required coverage? Answer: State
Worker's Insurance Fund
◉ What term describes a producer who converts premiums for his
own use? Answer: Breach of Fiduciary Duty
◉ What insurance option lets the insured seek recovery for all
medical and other out-of-pocket damages, pain & suffering, and
other non-monetary damages as a result of injuries caused by other
drivers? Answer: Full Tort Option
◉ What percent can crops be insured of their expected value?
Answer: 75%
◉ A car crashes into a storage container which holds industrial
waste materials located at a factory. As a result, a large amount of
industrial waste ends up being released onto the property. The cost
to clean up the waste totals $23,000. If the owner of the factory has a
commercial property policy with additional coverage for pollutant
clean-up and removal, how much does the insurance policy pay out
to insured? Answer: $10,000
◉ Coverage E of a homeowners policy deals with which of the
following? Answer: Personal Liability
LICENSING PRACTICE PAPER 2026 COMPLETE
SOLUTIONS
◉ Who regulates insurance rates to avoid excessive, inadequate, or
unfairly discriminatory rates? Answer: Casualty & Surety Rate
Regulatory Act
◉ Who must an insurer notify when they terminate a producer's
appointment? Answer: The Commissioner and producer.
◉ Which of the following is not a power and duty of the insurance
commissioner? Answer: Issuing a cease and desist order,
prosecuting producers who violate state insurance laws, conducting
complaint hearings, appointing examiners.
◉ What unfair practices is when a producer offers, promises, allows,
gives, sets off, or pays a rebate on the contract of insurance. Answer:
Rebating
◉ What unfair insurance practice is the purchase of insurance from
a financial institution or from a designated insurer or producer as a
condition of any loan or deposited transaction. Answer: Tie-In Sales
,◉ Non-public personal financial information about individuals.
Answer: Privacy of Consumer's Financial information
◉ Term for instruction by the consumer to the licensee no to
disclose non-public personal financial information about the
consumer to a non-affiliated third party. Answer: opt-out
◉ When a producer shares a commission with an unlicensed person.
Answer: If a license was held at a time of sale; Referring a person can
receive a one time nominal set fee
◉ When a personal fire insurance policy is cancelled because the
insured's acts increased the hazard insured against, how many days
notice must be provided to the insured. Answer: 30 days
◉ When a auto policy is cancelled for a reason other than non-
payment of premium, how many days notice must be provided to the
insured? Answer: 30 days
◉ If an insured's drivers license has been suspended, the insurer
may cancel the auto insurance policy by giving how many days
notice? Answer: 15 days
◉ What are the minimum limits of liability any individual must
provide for bodily injury and property damage? Answer: 15/30/5
,$15,000 per person bodily injury
$30,000 per accident for bodily injury
$5,000 per accident for property damage
◉ Purchased in the normal of standard market. Answer: PA Fair Plan
Act
◉ After an accident, what is the waiting period before the insured
can apply for income loss benefits? Answer: 5 working days
◉ What must occur in order to pay for funeral expenses? Answer:
Death within 24 hours of accident
◉ An insurer must notify an insured at least how many days before
increasing the premium on a commercial casualty insurance policy.
Answer: 30 days
◉ Which agency provides motor vehicle coverage insurance to those
who would be otherwise un-insurable? Answer: PA Auto Assigned
Risk Plan
◉ When an employer must provide worker's compensation
insurance but is unable to do so through normal channels, which
, organization can provide the required coverage? Answer: State
Worker's Insurance Fund
◉ What term describes a producer who converts premiums for his
own use? Answer: Breach of Fiduciary Duty
◉ What insurance option lets the insured seek recovery for all
medical and other out-of-pocket damages, pain & suffering, and
other non-monetary damages as a result of injuries caused by other
drivers? Answer: Full Tort Option
◉ What percent can crops be insured of their expected value?
Answer: 75%
◉ A car crashes into a storage container which holds industrial
waste materials located at a factory. As a result, a large amount of
industrial waste ends up being released onto the property. The cost
to clean up the waste totals $23,000. If the owner of the factory has a
commercial property policy with additional coverage for pollutant
clean-up and removal, how much does the insurance policy pay out
to insured? Answer: $10,000
◉ Coverage E of a homeowners policy deals with which of the
following? Answer: Personal Liability
