PENNSYLVANIA PROPERTY AND CASUALTY
PRACTICE PAPER 2026 COMPLETE SOLUTIONS
◉ Insurers issuing liability policies covering motor vehicles in
Pennsylvania must offer all of the following coverages EXCEPT:
A) injuries incurred on the job.
B) accidental death benefit.
C) funeral benefit.
D) income loss benefit. Answer: A
◉ What is the maximum term of a temporary license that is issued
as a result of a licensee's death? Answer: 180 days
◉ How many credit hours of continuing education must an
insurance producer complete during each 2-year license period?
Answer: 24 hours
◉ Financial responsibility requires the ability of the insured to pay
how much for damage to the property of others from any single
accident? Answer: $5,000
,◉ What is the minimum age at which a person may apply for an
insurance producer's license? Answer: 18
◉ Upon the death of the named insured, a policy providing basic
property insurance must be continued until the property is sold or
for a minimum period of at least: Answer: 180 days after the death
occurs.
◉ To obtain a producer license, a person must comply with all of the
following EXCEPT:
A) complete a licensing application.
B) be at least 18 years old.
C) pass the licensing examination.
D) earn a college degree. Answer: D
◉ Suppose that to motivate a buyer to sign an application for
insurance, a producer promises a gift of one-half of the commission.
This is an example of: Answer: rebating
◉ Which one of the following statements regarding the Pennsylvania
Property and Casualty Insurance Guaranty Association is CORRECT?
A) The members of the association are the insurance-buying public.
, B) The association has a limit of $1,000,000 per any claim.
C) The association protects policyowners, insureds, and
beneficiaries against failure of an insurer due to insolvency.
D) The association covers insurers who provide workers
compensation coverage. Answer: D
◉ Before selling insurance policies for an insurer, a producer must
first:
A) be appointed by the insurer.
B) complete college.
C) register with the Commissioner.
D) issue a public statement of intent to sell insurance. Answer: A
◉ Which entity exists to pay covered claims and avoid financial loss
to claimants when an insurer becomes insolvent and to assist in the
detection and prevention of insurer insolvencies? Answer:
Pennsylvania Insurance Guaranty Association
◉ Which term refers to a nonadmitted insurance company which is
eligible to place business on risks in the state? Answer: Surplus lines
◉ The office of the Insurance Commissioner is filled by: Answer:
appointment by the governor
PRACTICE PAPER 2026 COMPLETE SOLUTIONS
◉ Insurers issuing liability policies covering motor vehicles in
Pennsylvania must offer all of the following coverages EXCEPT:
A) injuries incurred on the job.
B) accidental death benefit.
C) funeral benefit.
D) income loss benefit. Answer: A
◉ What is the maximum term of a temporary license that is issued
as a result of a licensee's death? Answer: 180 days
◉ How many credit hours of continuing education must an
insurance producer complete during each 2-year license period?
Answer: 24 hours
◉ Financial responsibility requires the ability of the insured to pay
how much for damage to the property of others from any single
accident? Answer: $5,000
,◉ What is the minimum age at which a person may apply for an
insurance producer's license? Answer: 18
◉ Upon the death of the named insured, a policy providing basic
property insurance must be continued until the property is sold or
for a minimum period of at least: Answer: 180 days after the death
occurs.
◉ To obtain a producer license, a person must comply with all of the
following EXCEPT:
A) complete a licensing application.
B) be at least 18 years old.
C) pass the licensing examination.
D) earn a college degree. Answer: D
◉ Suppose that to motivate a buyer to sign an application for
insurance, a producer promises a gift of one-half of the commission.
This is an example of: Answer: rebating
◉ Which one of the following statements regarding the Pennsylvania
Property and Casualty Insurance Guaranty Association is CORRECT?
A) The members of the association are the insurance-buying public.
, B) The association has a limit of $1,000,000 per any claim.
C) The association protects policyowners, insureds, and
beneficiaries against failure of an insurer due to insolvency.
D) The association covers insurers who provide workers
compensation coverage. Answer: D
◉ Before selling insurance policies for an insurer, a producer must
first:
A) be appointed by the insurer.
B) complete college.
C) register with the Commissioner.
D) issue a public statement of intent to sell insurance. Answer: A
◉ Which entity exists to pay covered claims and avoid financial loss
to claimants when an insurer becomes insolvent and to assist in the
detection and prevention of insurer insolvencies? Answer:
Pennsylvania Insurance Guaranty Association
◉ Which term refers to a nonadmitted insurance company which is
eligible to place business on risks in the state? Answer: Surplus lines
◉ The office of the Insurance Commissioner is filled by: Answer:
appointment by the governor
