PENNSYLVANIA PROPERTY AND CASUALTY
LICENSING 2026 REVISION NOTES AND
STRUCTURED INSURANCE LICENSING
OVERVIEW GUIDE
◉ Within how many days must the Commissioner approve or
disapprove rates? Answer: 30
◉ The federal Fair Credit Reporting Act protects the rights of:
Answer: Consumers
◉ Larry submitted a claim under his homeowners insurance policy.
The insurance company has the burden of proof to show that the
loss is excluded; otherwise, it must pay Larry's claim. What causes of
loss are contained on Larry's policy. Answer: Open Perils
◉ Open Peril Answer: All perils except those specifically excluded
◉ Sara sustains a water damage loss to her home due to torrential
rains that flooded her neighborhood. She reports the loss to her
agent and says that according to the insuring agreement of her
policy, she is insured against risks of direct loss to her property. Is
she covered for this damage to her property? Answer: No, this kind
of loss is typically excluded.
,◉ Are losses by flood covered in homeowners policies? Answer: No,
this type of loss is specifically excluded in homeowners policies. It
can be obtained in some cases by endorsement or through the
National Flood Insurance Program (NFIP)
◉ Which of the following is NOT an example of a peril, or cause of
loss? Answer: Blocked exit in a burning building delaying entry to
firefighters (this is a hazard, not a peril)
◉ What is the maximum amount for which the Pennsylvania
Property and Casualty Insurance Guaranty Association can be liable
for on a covered claim? Answer: $300,000
◉ For a loss to be covered under a property insurance policy, a
covered peril must be a(n) Answer: Proximate cause of loss (cause
that sets in motion an unbroken chain of events leading to the loss;
may or may not be the immediate cause of the loss)
◉ If an insurer initiates a midterm cancellation of a commercial
property or casualty risk insurance policy, the unearned premium
must be returned to the insured within how many business days
after the effective date of termination? Answer: 10 days
,◉ If an insured initiates a midterm cancellation of a commercial
property or casualty risk insurance policy, the unearned premium
must be return to the insured within how many business days after
the effective date of termination? Answer: 30 days
◉ Martin's Music Shoppe submitted a claim to the insurance
company that provides insurance on its building. If the insurance
company denies the claim, what is the peril that caused the loss?
A. Lightning
B. Hail
C. Aircraft
D. Flood Answer: Flood
◉ Which of the following types of liability holds an insured legally
responsible if another party is injured or damage because its
operations, or other conditions pertaining to the insured, are
considered inherently dangerous? Answer: Strict Liability
◉ The term commercial property and casualty risk insurance does
not include insurance issued for Answer: Fidelity and Surety Bonds
, ◉ A fire insurance policy may be cancelled at any time at the request
of the Answer: Insured
◉ How much notice must an insurer give when cancelling a fire
policy? Answer: An insurer must give the insured five days' written
notice of cancellation
◉ The Insurance Consultation Services Exemption Act applies to all
insurance consultation services rendered incident to property or
casualty insurance policies. It does not include services performed
by an Answer: Insured's Attorney
◉ Wanda is governed by the Health Insurance Portability Act
(HIPAA), which requires her to protect the privacy of the health
information she' given by her clients and individuals applying for
insurance. Which of the following types of property and casualty
insurance is NOT subject to HIPAA? Answer: Fire Insurance
◉ Santucci Brothers Grocery employs a high school student to
deliver groceries on weekends. When the employee accidentally
runs over a customer's dog when pulling into the customer's
driveway one Saturday morning, which of the following terms BEST
describes Santucci Brothers' legal responsibility for the employee's
action? Answer: Vicariously liable
LICENSING 2026 REVISION NOTES AND
STRUCTURED INSURANCE LICENSING
OVERVIEW GUIDE
◉ Within how many days must the Commissioner approve or
disapprove rates? Answer: 30
◉ The federal Fair Credit Reporting Act protects the rights of:
Answer: Consumers
◉ Larry submitted a claim under his homeowners insurance policy.
The insurance company has the burden of proof to show that the
loss is excluded; otherwise, it must pay Larry's claim. What causes of
loss are contained on Larry's policy. Answer: Open Perils
◉ Open Peril Answer: All perils except those specifically excluded
◉ Sara sustains a water damage loss to her home due to torrential
rains that flooded her neighborhood. She reports the loss to her
agent and says that according to the insuring agreement of her
policy, she is insured against risks of direct loss to her property. Is
she covered for this damage to her property? Answer: No, this kind
of loss is typically excluded.
,◉ Are losses by flood covered in homeowners policies? Answer: No,
this type of loss is specifically excluded in homeowners policies. It
can be obtained in some cases by endorsement or through the
National Flood Insurance Program (NFIP)
◉ Which of the following is NOT an example of a peril, or cause of
loss? Answer: Blocked exit in a burning building delaying entry to
firefighters (this is a hazard, not a peril)
◉ What is the maximum amount for which the Pennsylvania
Property and Casualty Insurance Guaranty Association can be liable
for on a covered claim? Answer: $300,000
◉ For a loss to be covered under a property insurance policy, a
covered peril must be a(n) Answer: Proximate cause of loss (cause
that sets in motion an unbroken chain of events leading to the loss;
may or may not be the immediate cause of the loss)
◉ If an insurer initiates a midterm cancellation of a commercial
property or casualty risk insurance policy, the unearned premium
must be returned to the insured within how many business days
after the effective date of termination? Answer: 10 days
,◉ If an insured initiates a midterm cancellation of a commercial
property or casualty risk insurance policy, the unearned premium
must be return to the insured within how many business days after
the effective date of termination? Answer: 30 days
◉ Martin's Music Shoppe submitted a claim to the insurance
company that provides insurance on its building. If the insurance
company denies the claim, what is the peril that caused the loss?
A. Lightning
B. Hail
C. Aircraft
D. Flood Answer: Flood
◉ Which of the following types of liability holds an insured legally
responsible if another party is injured or damage because its
operations, or other conditions pertaining to the insured, are
considered inherently dangerous? Answer: Strict Liability
◉ The term commercial property and casualty risk insurance does
not include insurance issued for Answer: Fidelity and Surety Bonds
, ◉ A fire insurance policy may be cancelled at any time at the request
of the Answer: Insured
◉ How much notice must an insurer give when cancelling a fire
policy? Answer: An insurer must give the insured five days' written
notice of cancellation
◉ The Insurance Consultation Services Exemption Act applies to all
insurance consultation services rendered incident to property or
casualty insurance policies. It does not include services performed
by an Answer: Insured's Attorney
◉ Wanda is governed by the Health Insurance Portability Act
(HIPAA), which requires her to protect the privacy of the health
information she' given by her clients and individuals applying for
insurance. Which of the following types of property and casualty
insurance is NOT subject to HIPAA? Answer: Fire Insurance
◉ Santucci Brothers Grocery employs a high school student to
deliver groceries on weekends. When the employee accidentally
runs over a customer's dog when pulling into the customer's
driveway one Saturday morning, which of the following terms BEST
describes Santucci Brothers' legal responsibility for the employee's
action? Answer: Vicariously liable
