PA PROPERTY AND CASUALTY EXAM 2026
COMPREHENSIVE STUDY GUIDE COMPLETE
ANSWERS
◉ Licensing prerequisites Answer: 24 credit hours of study in approved
course (must have 3hrs ethics). Once your certificate is obtained you
have 1yr to pass your exam followed by 1yr to have your license issued.
*Passing does not guarantee you will get your license.
◉ What are the qualifications of an applicant? Answer: -18yrs old;
Read/write in English; Paid all fees; Pass exam; No acts committed
against insurance regulation; Maintain business or legal address in PA;
Fingerprinted; Integrity
◉ What is the licensing fee for an individual resident and an individual
non-resident? Answer: Resident=$55; Non-resident=$110
*non-refundable
◉ What are the four types of licenses issued? Answer: Resident; Non
Resident; Temporary; Managers and Exclusive General Agents
◉ Who qualifies for a temporary license? Answer: The surviving spouse
or representative of a deceased individual producer or who becomes
mentally or physically disabled. *Can not exceed 180 days
,◉ How do you maintain an insurance license? Answer: Issued for 2yr
periods
Must complete 24hrs of approved CE for each 2yr period
Renewal fees - R-$55;NR-$110;Lapsed-$165
*Failure will result in voluntary termination of license
◉ What are the timeframes for reporting criminal convictions and
address changes? Answer: 30 days
◉ How does license lapse and reinstatement work? Answer: Once
lapsed you have within 1yr of the renewal date to request reinstatement.
If requested within the first 60 days - retroactive reinstatement back to
date of renewal
If requested more than 60 days - Reinstated with Gap in activity
*Non-renewal within 1yr must reapply under initial license guidelines
◉ Waiver requirement for active military and other extenuating
circumstances Answer: Licensee who is unable to timely comply with
requirements may request department to waive CE and pay lapse fees
◉ Disciplinary actions from the Insurance Department Answer: Acting
as a producer w/o a license; Doing business w/ unlicensed persons;
Representing or advertising as a producers for a non-admitted insurer;
Soliciting applications or insurance for non-existent entities; Rebating;
Misrepresenting (twisting & illegal inducement); Larceny
,◉ What are enforcement options for the Insurance Department? Answer:
Notice; Hearing; Evidence; Penalties
◉ What is a consent agreement? Answer: A written agreement in which
the accused person does not admit nor deny the charges but consents to
payment of the civil penalty
◉ What are the three acts that require someone to have a producers
license? Answer: Negotiate; Sell; Solicit
◉ What are the general duties and responsibilities of the Insurance
Commissioner? Answer: Issue; Suspend; Revoke;Non-Renew Licenses;
Regulate Companies for Solvency; Investigate Complaints; Regulate
Rates, Rating Plans Forms; Collect Fees; Regulate Trade Practices and
Claim Practices; Report Illegalities to the Attorney General
◉ What is a Certificate of Authority and what does it do? Answer:
Needed before an Insurance company can transact Insurance. Failure to
do so results in payments of not more then $500 per policy written
◉ What are the three rules in rate making? Answer: Adequate; Not
Excessive; Not Unfairly Discriminatory
, ◉ What is the process companies must follow in filling rates and forms
in PA? Answer: All insurers must file w/ the PA Insurance Commissioner
every manual, class rate, rating schedule or rating plan and any
modification it uses. Must state the proposed effective date and indicate
the extent of coverage contemplated
*PA is a prior approval state (IC must approve prior to use)
◉ What is a producers fiduciary responsibility? Answer: Producers are
required to act honestly and faithfully w/ all premiums collected. Must
keep all premiums separate from producers personal funds. Must keep
accurate accounting of funds
◉ Who is allowed to be paid commissions and fees? Answer: Only
licensed persons w/ the exception of:
-A referral fee to unlicensed person
-Renewal commission to a person who was licensed at the time the
policy was written but has since expired
◉ Company appointment fee Answer: Annual fee of $12.50 for each
producer
◉ Who does a license need to register with if they desire to do business
under an assumed or fictitious name in PA? Answer: Department of the
State
COMPREHENSIVE STUDY GUIDE COMPLETE
ANSWERS
◉ Licensing prerequisites Answer: 24 credit hours of study in approved
course (must have 3hrs ethics). Once your certificate is obtained you
have 1yr to pass your exam followed by 1yr to have your license issued.
*Passing does not guarantee you will get your license.
◉ What are the qualifications of an applicant? Answer: -18yrs old;
Read/write in English; Paid all fees; Pass exam; No acts committed
against insurance regulation; Maintain business or legal address in PA;
Fingerprinted; Integrity
◉ What is the licensing fee for an individual resident and an individual
non-resident? Answer: Resident=$55; Non-resident=$110
*non-refundable
◉ What are the four types of licenses issued? Answer: Resident; Non
Resident; Temporary; Managers and Exclusive General Agents
◉ Who qualifies for a temporary license? Answer: The surviving spouse
or representative of a deceased individual producer or who becomes
mentally or physically disabled. *Can not exceed 180 days
,◉ How do you maintain an insurance license? Answer: Issued for 2yr
periods
Must complete 24hrs of approved CE for each 2yr period
Renewal fees - R-$55;NR-$110;Lapsed-$165
*Failure will result in voluntary termination of license
◉ What are the timeframes for reporting criminal convictions and
address changes? Answer: 30 days
◉ How does license lapse and reinstatement work? Answer: Once
lapsed you have within 1yr of the renewal date to request reinstatement.
If requested within the first 60 days - retroactive reinstatement back to
date of renewal
If requested more than 60 days - Reinstated with Gap in activity
*Non-renewal within 1yr must reapply under initial license guidelines
◉ Waiver requirement for active military and other extenuating
circumstances Answer: Licensee who is unable to timely comply with
requirements may request department to waive CE and pay lapse fees
◉ Disciplinary actions from the Insurance Department Answer: Acting
as a producer w/o a license; Doing business w/ unlicensed persons;
Representing or advertising as a producers for a non-admitted insurer;
Soliciting applications or insurance for non-existent entities; Rebating;
Misrepresenting (twisting & illegal inducement); Larceny
,◉ What are enforcement options for the Insurance Department? Answer:
Notice; Hearing; Evidence; Penalties
◉ What is a consent agreement? Answer: A written agreement in which
the accused person does not admit nor deny the charges but consents to
payment of the civil penalty
◉ What are the three acts that require someone to have a producers
license? Answer: Negotiate; Sell; Solicit
◉ What are the general duties and responsibilities of the Insurance
Commissioner? Answer: Issue; Suspend; Revoke;Non-Renew Licenses;
Regulate Companies for Solvency; Investigate Complaints; Regulate
Rates, Rating Plans Forms; Collect Fees; Regulate Trade Practices and
Claim Practices; Report Illegalities to the Attorney General
◉ What is a Certificate of Authority and what does it do? Answer:
Needed before an Insurance company can transact Insurance. Failure to
do so results in payments of not more then $500 per policy written
◉ What are the three rules in rate making? Answer: Adequate; Not
Excessive; Not Unfairly Discriminatory
, ◉ What is the process companies must follow in filling rates and forms
in PA? Answer: All insurers must file w/ the PA Insurance Commissioner
every manual, class rate, rating schedule or rating plan and any
modification it uses. Must state the proposed effective date and indicate
the extent of coverage contemplated
*PA is a prior approval state (IC must approve prior to use)
◉ What is a producers fiduciary responsibility? Answer: Producers are
required to act honestly and faithfully w/ all premiums collected. Must
keep all premiums separate from producers personal funds. Must keep
accurate accounting of funds
◉ Who is allowed to be paid commissions and fees? Answer: Only
licensed persons w/ the exception of:
-A referral fee to unlicensed person
-Renewal commission to a person who was licensed at the time the
policy was written but has since expired
◉ Company appointment fee Answer: Annual fee of $12.50 for each
producer
◉ Who does a license need to register with if they desire to do business
under an assumed or fictitious name in PA? Answer: Department of the
State
