PENNSYLVANIA PROPERTY & CASUALTY
LICENSE PRACTICE EXAM QUESTIONS WITH
VERIFIED SOLUTIONS
What means conducting business in accordance with current rules and laws set
by government regulatory agencies and the courts. --CORRECT ANSWER--
Compliance
Standards of conduct and moral judgement. --CORRECT ANSWER--Ethics
Legal term that describes the relationship between parties. --CORRECT
ANSWER--Agency
What is the term to describe how an insurer appoints an individual to act on its
behalf. --CORRECT ANSWER--Agency Contract
An individual whose position and responsibilities involve a high degree of trust
and confidence (trustees, guardians, and executors). --CORRECT ANSWER--
Fiduciary
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,The name for the fact a producer must sell the kind of policies that best fit the
prospects needs and in amounts that the prospects can afford. --CORRECT
ANSWER--Needs Selling
What is given when the applicant pays the initial premium at the time the
application for a policy is signed. --CORRECT ANSWER--Conditional Receipt
What is the term for informing the prospect or client of all facts involving a
specific policy or plan so that an informed decision can be made. --CORRECT
ANSWER--Full Disclosure
An exclusion that states that an insurer will not pay any claim in which an
individuals property is damaged as a result of an earthquake, mudslide,
landslide, or sinkhole. --CORRECT ANSWER--an Earth movement exclusion
An exclusion that states that an insurer will not pay any claim in which an
individuals property is damaged as a result of the fact that the individual did not
maintain the property. --CORRECT ANSWER--Neglect exclusion
Which Home Owner's form covers damage to a condo owner's PROPERTY that
occurs as the result of any event that is not specifically excluded in the policy. --
CORRECT ANSWER--HO-6 Unit Owner's Form
Which Home Owner's form covers damage to a TENANT'S property that
occurs as a result of an aircraft, civil commotion, explosion, fire, nail, lightning,
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,smoke, theft, vandalism, vehicles and/or wind. --CORRECT ANSWER--HO-4
Content's Broad Form
Which HO form covers damage to the DWELLING that occurs as the result of
any event that is not specifically excluded in the policy and damage to the
property inside the dwelling that results of an aircraft, civil commotion,
explosion, fire, hail, lightning, smoke, theft, vandalism, vehicles, and/or wind. --
CORRECT ANSWER--HO-3 Special Form
Which HO Form covers damage to the DWELLING & PROPERTY inside the
dwelling that occurs as an result of any event that is not specifically excluded in
the policy. --CORRECT ANSWER--HO - 5 Comprehensive Form
What is the name for the watchdog group whose member companies agree to
adhere to and enforce ethical principles. --CORRECT ANSWER--Insurance
Standards Association (IMSA)
What Act deals with the inappropriate use of advertising. --CORRECT
ANSWER--Unfair Trade Practices Act
Any written or oral statement that does not accurately describe a policy's
features, benefits, or coverage. --CORRECT ANSWER--Misrepresentation
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, Any false, maliciously, critical or derogatory communication that injures
another's reputation, fame, or character. --CORRECT ANSWER--Defamation
What is the term if the buyer of an insurance policy receives any part of the
producers commission or anything else of significant values as an inducement
to purchase a policy. --CORRECT ANSWER--Rebating
The unethical act of persuading a policy owner to drop a policy solely for the
purpose of selling another policy without regard to the possible disadvantages to
the policy owner. --CORRECT ANSWER--Twisting.
A resident producers license must meet what 2 requirements? --CORRECT
ANSWER--1.) May either reside in PA -or-
2.) Have their principal place of business in PA
In what 2 situations is it not required to be a licensed as a manager or exclusive
general agent? --CORRECT ANSWER--1.) The licensee who has limited
underwriting authority - or-
2.) A manager or agent who has started before Dec. 22, 1965
Which of the following can not be issued a temp license? --CORRECT
ANSWER--A person selling insurance for the estate of a deceased producer.
Which is NOT a reason for a licensed to be suspended or revoked?
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LICENSE PRACTICE EXAM QUESTIONS WITH
VERIFIED SOLUTIONS
What means conducting business in accordance with current rules and laws set
by government regulatory agencies and the courts. --CORRECT ANSWER--
Compliance
Standards of conduct and moral judgement. --CORRECT ANSWER--Ethics
Legal term that describes the relationship between parties. --CORRECT
ANSWER--Agency
What is the term to describe how an insurer appoints an individual to act on its
behalf. --CORRECT ANSWER--Agency Contract
An individual whose position and responsibilities involve a high degree of trust
and confidence (trustees, guardians, and executors). --CORRECT ANSWER--
Fiduciary
Page 1 of 37
,The name for the fact a producer must sell the kind of policies that best fit the
prospects needs and in amounts that the prospects can afford. --CORRECT
ANSWER--Needs Selling
What is given when the applicant pays the initial premium at the time the
application for a policy is signed. --CORRECT ANSWER--Conditional Receipt
What is the term for informing the prospect or client of all facts involving a
specific policy or plan so that an informed decision can be made. --CORRECT
ANSWER--Full Disclosure
An exclusion that states that an insurer will not pay any claim in which an
individuals property is damaged as a result of an earthquake, mudslide,
landslide, or sinkhole. --CORRECT ANSWER--an Earth movement exclusion
An exclusion that states that an insurer will not pay any claim in which an
individuals property is damaged as a result of the fact that the individual did not
maintain the property. --CORRECT ANSWER--Neglect exclusion
Which Home Owner's form covers damage to a condo owner's PROPERTY that
occurs as the result of any event that is not specifically excluded in the policy. --
CORRECT ANSWER--HO-6 Unit Owner's Form
Which Home Owner's form covers damage to a TENANT'S property that
occurs as a result of an aircraft, civil commotion, explosion, fire, nail, lightning,
Page 2 of 37
,smoke, theft, vandalism, vehicles and/or wind. --CORRECT ANSWER--HO-4
Content's Broad Form
Which HO form covers damage to the DWELLING that occurs as the result of
any event that is not specifically excluded in the policy and damage to the
property inside the dwelling that results of an aircraft, civil commotion,
explosion, fire, hail, lightning, smoke, theft, vandalism, vehicles, and/or wind. --
CORRECT ANSWER--HO-3 Special Form
Which HO Form covers damage to the DWELLING & PROPERTY inside the
dwelling that occurs as an result of any event that is not specifically excluded in
the policy. --CORRECT ANSWER--HO - 5 Comprehensive Form
What is the name for the watchdog group whose member companies agree to
adhere to and enforce ethical principles. --CORRECT ANSWER--Insurance
Standards Association (IMSA)
What Act deals with the inappropriate use of advertising. --CORRECT
ANSWER--Unfair Trade Practices Act
Any written or oral statement that does not accurately describe a policy's
features, benefits, or coverage. --CORRECT ANSWER--Misrepresentation
Page 3 of 37
, Any false, maliciously, critical or derogatory communication that injures
another's reputation, fame, or character. --CORRECT ANSWER--Defamation
What is the term if the buyer of an insurance policy receives any part of the
producers commission or anything else of significant values as an inducement
to purchase a policy. --CORRECT ANSWER--Rebating
The unethical act of persuading a policy owner to drop a policy solely for the
purpose of selling another policy without regard to the possible disadvantages to
the policy owner. --CORRECT ANSWER--Twisting.
A resident producers license must meet what 2 requirements? --CORRECT
ANSWER--1.) May either reside in PA -or-
2.) Have their principal place of business in PA
In what 2 situations is it not required to be a licensed as a manager or exclusive
general agent? --CORRECT ANSWER--1.) The licensee who has limited
underwriting authority - or-
2.) A manager or agent who has started before Dec. 22, 1965
Which of the following can not be issued a temp license? --CORRECT
ANSWER--A person selling insurance for the estate of a deceased producer.
Which is NOT a reason for a licensed to be suspended or revoked?
Page 4 of 37
