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PA Property & Casualty License Practice Exam
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Any written or oral statement that does not accurately
describe a policy's features, benefits, or coverage. -
Answer-Misrepresentation
Any false, maliciously, critical or derogatory
communication that injures another's reputation, fame, or
character. - Answer-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. - Answer-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. - Answer-Twisting.
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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.
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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)
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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
An exclusion that states that an insurer will not pay any
claim in which an individuals property is damaged as a
result of an earthquake, mudslide, landslide, or sinkhole. -
Answer-an Earth movement exclusion
An exclusion that states that an insurer will not pay any
claim in which an individuals property is damaged as a
result of the fact that the individual did not maintain the
property. - Answer-Neglect exclusion
Which Home Owner's form covers damage to a condo
owner's PROPERTY that occurs as the result of any event
PA Property & Casualty License Practice Exam
||Verified Exam!!!|| Most Recent Exam Actual Complete
Real Exam Questions And Correct Answers (Verified
Answers) Already Graded A+ | Guaranteed Success!!
Brand New Exam!!!
Any written or oral statement that does not accurately
describe a policy's features, benefits, or coverage. -
Answer-Misrepresentation
Any false, maliciously, critical or derogatory
communication that injures another's reputation, fame, or
character. - Answer-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. - Answer-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. - Answer-Twisting.
,2|Page
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.
,3|Page
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)
, 4|Page
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
An exclusion that states that an insurer will not pay any
claim in which an individuals property is damaged as a
result of an earthquake, mudslide, landslide, or sinkhole. -
Answer-an Earth movement exclusion
An exclusion that states that an insurer will not pay any
claim in which an individuals property is damaged as a
result of the fact that the individual did not maintain the
property. - Answer-Neglect exclusion
Which Home Owner's form covers damage to a condo
owner's PROPERTY that occurs as the result of any event
