(VERIFIED GUIDE) 1
PA PROPERTY & CASUALTY LICENSE PRACTICE
EXAM -2024- SET OF QUESTIONS AND CORRECT
VERIFIED ANSWERS
Which agency provides motor vehicle coverage insurance to those who would be otherwise un-
insurable?
PA Auto Assigned Risk Plan
When an employer must provide worker's compensation insurance but is unable to do so through
normal channels, which organization can provide the required coverage?
State Worker's Insurance Fund
What term describes a producer who converts premiums for his own use?
Breach of Fiduciary Duty
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, smoke, theft, vandalism, vehicles and/or
wind.
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.
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.
HO - 5 Comprehensive Form
What means conducting business in accordance with current rules and laws set by government
regulatory agencies and the courts.
, (VERIFIED GUIDE) 2
Compliance
Standards of conduct and moral judgement.
Ethics
Which of the following is not one of the criteria a risk has to meet in order to be classified as an
"insurable risk?"
Losses related to the risk must be predictable
An insurance policy is which type of contract?
A contract of adhesion
Legal term that describes the relationship between parties.
Agency
What is the term to describe how an insurer appoints an individual to act on its behalf.
Agency Contract
An individual whose position and responsibilities involve a high degree of trust and confidence
(trustees, guardians, and executors).
Fiduciary
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.
Needs Selling
What is given when the applicant pays the initial premium at the time the application for a policy
is signed.
Conditional Receipt
, (VERIFIED GUIDE) 3
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.
Full Disclosure
What is the name for the watchdog group whose member companies agree to adhere to and
enforce ethical principles.
Insurance Standards Association (IMSA)
What Act deals with the inappropriate use of advertising.
Unfair Trade Practices Act
Any written or oral statement that does not accurately describe a policy's features, benefits, or
coverage.
Misrepresentation
Any false, maliciously, critical or derogatory communication that injures another's reputation,
fame, or character.
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.
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.
Twisting.
A resident producers license must meet what 2 requirements?
1.) May either reside in PA -or-
2.) Have their principal place of business in PA
PA PROPERTY & CASUALTY LICENSE PRACTICE
EXAM -2024- SET OF QUESTIONS AND CORRECT
VERIFIED ANSWERS
Which agency provides motor vehicle coverage insurance to those who would be otherwise un-
insurable?
PA Auto Assigned Risk Plan
When an employer must provide worker's compensation insurance but is unable to do so through
normal channels, which organization can provide the required coverage?
State Worker's Insurance Fund
What term describes a producer who converts premiums for his own use?
Breach of Fiduciary Duty
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, smoke, theft, vandalism, vehicles and/or
wind.
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.
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.
HO - 5 Comprehensive Form
What means conducting business in accordance with current rules and laws set by government
regulatory agencies and the courts.
, (VERIFIED GUIDE) 2
Compliance
Standards of conduct and moral judgement.
Ethics
Which of the following is not one of the criteria a risk has to meet in order to be classified as an
"insurable risk?"
Losses related to the risk must be predictable
An insurance policy is which type of contract?
A contract of adhesion
Legal term that describes the relationship between parties.
Agency
What is the term to describe how an insurer appoints an individual to act on its behalf.
Agency Contract
An individual whose position and responsibilities involve a high degree of trust and confidence
(trustees, guardians, and executors).
Fiduciary
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.
Needs Selling
What is given when the applicant pays the initial premium at the time the application for a policy
is signed.
Conditional Receipt
, (VERIFIED GUIDE) 3
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.
Full Disclosure
What is the name for the watchdog group whose member companies agree to adhere to and
enforce ethical principles.
Insurance Standards Association (IMSA)
What Act deals with the inappropriate use of advertising.
Unfair Trade Practices Act
Any written or oral statement that does not accurately describe a policy's features, benefits, or
coverage.
Misrepresentation
Any false, maliciously, critical or derogatory communication that injures another's reputation,
fame, or character.
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.
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.
Twisting.
A resident producers license must meet what 2 requirements?
1.) May either reside in PA -or-
2.) Have their principal place of business in PA
