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PENNSYLVANIA PROPERTY AND CASUALTY LICENSING EXAM 2024 ACTUAL EXAM COMPLETE 250 QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT ANSWERS) / ALREADY GRADED A+ £11.29
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PENNSYLVANIA PROPERTY AND CASUALTY LICENSING EXAM 2024 ACTUAL EXAM COMPLETE 250 QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT ANSWERS) / ALREADY GRADED A+
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PENNSYLVANIA PROPERTY AND CASUALTY LICENSING EXAM 2024 ACTUAL EXAM COMPLETE 250 QUESTIONS WITH DETAILED VERIFIED ANSWERS (100% CORRECT ANSWERS) / ALREADY GRADED A+ Law of Large Numbers - ANSWER -Recognizes that as the number of exposure units increases, the more likely it is to predict accurat...

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  • December 9, 2024
  • 41
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers

Subjects

  • pennsylvania property and casualty licensing exam

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  • PENNSYLVANIA PROPERTY AND CASUALTY
  • PENNSYLVANIA PROPERTY AND CASUALTY

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PENNSYLVANIA PROPERTY AND CASUALTY LICENSING
EXAM 2024 ACTUAL EXAM COMPLETE 250 QUESTIONS
WITH DETAILED VERIFIED ANSWERS (100% CORRECT
ANSWERS) / ALREADY GRADED A+


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




Crafted for Academic Insight by ©Olivia GreenWays 2025. All rights reserved.

,2|Page


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.


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)


Which of the following would NOT be considered misrepresentation of an insurance policy? - ANSWER

✔✔-Enthusiastically promoting an insurance product




Crafted for Academic Insight by ©Olivia GreenWays 2025. All rights reserved.

,3|Page


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


Who is the head of the Pennsylvania Insurance Department? - ANSWER ✔✔-Insurance Commissioner


May a producer charge a service fee for completing a consumer's insurance application? - ANSWER ✔✔-

No


What must an insurance company do to employ someone as a producer? - ANSWER ✔✔-*File a notice of

appointment with the Department.* The department then will verify if the producer is eligible for

appointment. If ineligible, they will notify the insurer. The insurer pays a fee for every appointment.


To boost her insurance sales at the end of the year, Trudy started offering potential clients a $250 cash gift

card in exchange for purchasing an insurance policy. Which prohibited sales practice has she committed?

- ANSWER ✔✔-Rebating (offering anything of value in exchange for the purchase of insurance)


Within how many days must the Commissioner approve or disapprove rates? - ANSWER ✔✔-30




Crafted for Academic Insight by ©Olivia GreenWays 2025. All rights reserved.

, 4|Page


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




Crafted for Academic Insight by ©Olivia GreenWays 2025. All rights reserved.

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