PENNSYLVANIA PROPERTY AND CASUALTY
LICENSING 2026 EXAM PREPARATION PACK
KEY PROPERTY COVERAGE LIABILITY POLICIES
AND STATE REGULATIONS WITH SAMPLE
QUESTIONS
◉ A resident producers license must meet what 2 requirements?
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? 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? 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?
a.) Making factual by subjective comparisons of 2 policies.
b.) Intentionally violating a cease and desist order.
c.) Making false statements in a license application.
,d.) Violating an insurance regulation. Answer: A.
◉ Increases a chance for loss Answer: Hazard (i.e. leaving a door
unlocked)
◉ Chance of a loss Answer: Risk
◉ A means of transferring the risk of loss Answer: Insurance
◉ The cause of the loss Answer: Perils (i.e. Fire, Flood, Collision,
Theft)
◉ States that there must be an adequate spread of risk for insurance
to be effective. Answer: Law of Large #s
◉ Installing an automatic sprinkler system is an example of Answer:
Reduction (can not avoid risk but can reduce it)
◉ Deciding not to produce a produce due to serious potential side
effects. Answer: Avoidance (avoid the risk of being sued)
◉ Person in good health cancels health insurance policy...What is
risk management Answer: Retention (retaining the risk)
,◉ Under what regulation in PA does it state that insurers must
maintain a specific minimum levels of capital stock and surplus?
Answer: Regulation of Insurer Solvency.
◉ 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
LICENSING 2026 EXAM PREPARATION PACK
KEY PROPERTY COVERAGE LIABILITY POLICIES
AND STATE REGULATIONS WITH SAMPLE
QUESTIONS
◉ A resident producers license must meet what 2 requirements?
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? 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? 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?
a.) Making factual by subjective comparisons of 2 policies.
b.) Intentionally violating a cease and desist order.
c.) Making false statements in a license application.
,d.) Violating an insurance regulation. Answer: A.
◉ Increases a chance for loss Answer: Hazard (i.e. leaving a door
unlocked)
◉ Chance of a loss Answer: Risk
◉ A means of transferring the risk of loss Answer: Insurance
◉ The cause of the loss Answer: Perils (i.e. Fire, Flood, Collision,
Theft)
◉ States that there must be an adequate spread of risk for insurance
to be effective. Answer: Law of Large #s
◉ Installing an automatic sprinkler system is an example of Answer:
Reduction (can not avoid risk but can reduce it)
◉ Deciding not to produce a produce due to serious potential side
effects. Answer: Avoidance (avoid the risk of being sued)
◉ Person in good health cancels health insurance policy...What is
risk management Answer: Retention (retaining the risk)
,◉ Under what regulation in PA does it state that insurers must
maintain a specific minimum levels of capital stock and surplus?
Answer: Regulation of Insurer Solvency.
◉ 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
