1 |Page
PENNSYLVANIA PROPERTY AND
CASUALTY LICENSING EXAM 2026
WITH QUESTIONS AND CORRECT
ANSWERS
Law of Large Numbers - correct answer-Recognizes that as the number of
exposure units increases, the more likely it is to predict accurately the
expected outcome.
What must an insurance producer do to apply for a nonresident license in
Pennsylvania? - correct 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? - correct 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? - correct
answer-Discrimination among risks
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Which law, act, or regulation governs how insurers and their producers
treat personal financial information from individuals? - correct answer-
Privacy of Consumer Financial Information Regulation
Retention - correct answer-"do nothing" option; a person becomes
personally responsible for the consequences of risk
Can an insurer change their assumed name? - correct answer-Yes, but
they must notify the Commissioner before using the assumed name?
Contract of Adhesion - correct 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? - correct
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? - correct answer-$20,000; A
fine of up to $10,000 for each violation of an order issued by the
commissioner.
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Admitted Insurer - correct 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? - correct
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? - correct answer-Transfer: the risk of loss is transferred from the
insured to the insurance company in exchange for a premium payment
Alien Insurer - correct answer-Incorporated in a country other than the
United States
What fine will the Commissioner impose for the practice of unfair methods
of competition? - correct 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? - correct 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)
, 4 |Page
Which of the following would NOT be considered misrepresentation of an
insurance policy? - correct answer-Enthusiastically promoting an insurance
product
Which of the following statements BEST describes the transfer of risk via
an insurance contract? - correct answer-Not all risks are transferable via
insurance contracts
Must the Commissioner conduct an examination of every foreign or alien
insurer licensed in Pennsylvania? - correct answer-The Commissioner may
choose to waive examinations under certain circumstances
Aleatory Contract - correct 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? - correct answer-No, he must apply for a
new license.
PENNSYLVANIA PROPERTY AND
CASUALTY LICENSING EXAM 2026
WITH QUESTIONS AND CORRECT
ANSWERS
Law of Large Numbers - correct answer-Recognizes that as the number of
exposure units increases, the more likely it is to predict accurately the
expected outcome.
What must an insurance producer do to apply for a nonresident license in
Pennsylvania? - correct 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? - correct 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? - correct
answer-Discrimination among risks
,2 |Page
Which law, act, or regulation governs how insurers and their producers
treat personal financial information from individuals? - correct answer-
Privacy of Consumer Financial Information Regulation
Retention - correct answer-"do nothing" option; a person becomes
personally responsible for the consequences of risk
Can an insurer change their assumed name? - correct answer-Yes, but
they must notify the Commissioner before using the assumed name?
Contract of Adhesion - correct 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? - correct
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? - correct answer-$20,000; A
fine of up to $10,000 for each violation of an order issued by the
commissioner.
,3 |Page
Admitted Insurer - correct 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? - correct
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? - correct answer-Transfer: the risk of loss is transferred from the
insured to the insurance company in exchange for a premium payment
Alien Insurer - correct answer-Incorporated in a country other than the
United States
What fine will the Commissioner impose for the practice of unfair methods
of competition? - correct 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? - correct 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)
, 4 |Page
Which of the following would NOT be considered misrepresentation of an
insurance policy? - correct answer-Enthusiastically promoting an insurance
product
Which of the following statements BEST describes the transfer of risk via
an insurance contract? - correct answer-Not all risks are transferable via
insurance contracts
Must the Commissioner conduct an examination of every foreign or alien
insurer licensed in Pennsylvania? - correct answer-The Commissioner may
choose to waive examinations under certain circumstances
Aleatory Contract - correct 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? - correct answer-No, he must apply for a
new license.
