Pennsylvania Property and Casualty
Licensing 2025/2026 Exam Questions
and Answers | A+ Score Assured
Law of Large Numbers - 🧠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? - 🧠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? -
🧠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? - 🧠ANSWER
✔✔Discrimination among risks
,Which law, act, or regulation governs how insurers and their producers treat
personal financial information from individuals? - 🧠ANSWER ✔✔Privacy of
Consumer Financial Information Regulation
Retention - 🧠ANSWER ✔✔"do nothing" option; a person becomes personally
responsible for the consequences of risk
Can an insurer change their assumed name? - 🧠ANSWER ✔✔Yes, but they must
notify the Commissioner before using the assumed name?
Contract of Adhesion - 🧠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? - 🧠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? - 🧠ANSWER ✔✔$20,000; A fine of up to $10,000
for each violation of an order issued by the commissioner.
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
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STATEMENT. ALL RIGHTS RESERVED
,Admitted Insurer - 🧠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? - 🧠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? - 🧠ANSWER
✔✔Transfer: the risk of loss is transferred from the insured to the insurance
company in exchange for a premium payment
Alien Insurer - 🧠ANSWER ✔✔Incorporated in a country other than the United
States
What fine will the Commissioner impose for the practice of unfair methods of
competition? - 🧠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? - 🧠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)
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
3
STATEMENT. ALL RIGHTS RESERVED
, Which of the following would NOT be considered misrepresentation of an
insurance policy? - 🧠ANSWER ✔✔Enthusiastically promoting an insurance
product
Which of the following statements BEST describes the transfer of risk via an
insurance contract? - 🧠ANSWER ✔✔Not all risks are transferable via insurance
contracts
Must the Commissioner conduct an examination of every foreign or alien insurer
licensed in Pennsylvania? - 🧠ANSWER ✔✔The Commissioner may choose to
waive examinations under certain circumstances
Aleatory Contract - 🧠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? - 🧠ANSWER ✔✔No, he must apply for a new license.
Which of the following is NOT the action of an agent considering the best interests
of an applicant or insured? - 🧠ANSWER ✔✔Making a misrepresentation of the
terms of a proposed policy
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
4
STATEMENT. ALL RIGHTS RESERVED
Licensing 2025/2026 Exam Questions
and Answers | A+ Score Assured
Law of Large Numbers - 🧠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? - 🧠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? -
🧠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? - 🧠ANSWER
✔✔Discrimination among risks
,Which law, act, or regulation governs how insurers and their producers treat
personal financial information from individuals? - 🧠ANSWER ✔✔Privacy of
Consumer Financial Information Regulation
Retention - 🧠ANSWER ✔✔"do nothing" option; a person becomes personally
responsible for the consequences of risk
Can an insurer change their assumed name? - 🧠ANSWER ✔✔Yes, but they must
notify the Commissioner before using the assumed name?
Contract of Adhesion - 🧠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? - 🧠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? - 🧠ANSWER ✔✔$20,000; A fine of up to $10,000
for each violation of an order issued by the commissioner.
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
2
STATEMENT. ALL RIGHTS RESERVED
,Admitted Insurer - 🧠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? - 🧠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? - 🧠ANSWER
✔✔Transfer: the risk of loss is transferred from the insured to the insurance
company in exchange for a premium payment
Alien Insurer - 🧠ANSWER ✔✔Incorporated in a country other than the United
States
What fine will the Commissioner impose for the practice of unfair methods of
competition? - 🧠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? - 🧠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)
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
3
STATEMENT. ALL RIGHTS RESERVED
, Which of the following would NOT be considered misrepresentation of an
insurance policy? - 🧠ANSWER ✔✔Enthusiastically promoting an insurance
product
Which of the following statements BEST describes the transfer of risk via an
insurance contract? - 🧠ANSWER ✔✔Not all risks are transferable via insurance
contracts
Must the Commissioner conduct an examination of every foreign or alien insurer
licensed in Pennsylvania? - 🧠ANSWER ✔✔The Commissioner may choose to
waive examinations under certain circumstances
Aleatory Contract - 🧠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? - 🧠ANSWER ✔✔No, he must apply for a new license.
Which of the following is NOT the action of an agent considering the best interests
of an applicant or insured? - 🧠ANSWER ✔✔Making a misrepresentation of the
terms of a proposed policy
COPYRIGHT©JOSHCLAY 2025/2026. YEAR PUBLISHED 2025. COMPANY REGISTRATION NUMBER: 619652435. TERMS OF USE. PRIVACY
4
STATEMENT. ALL RIGHTS RESERVED
