PA PROPERTY CASUALTY LICENSE PRACTICE EXAM

PDF Download PA PROPERTY & CASUALTY LICENSE PRACTICE EXAM Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -100 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: A homeowners HO-4 form does not offer coverage for which of the following?

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Structures Question 2: Which section of an insurance policy details the obligations of the insurer in the event of a covered loss?

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The insuring agreement Question 3: 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.

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an Earth movement exclusion Question 4: 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.

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Rebating

Question 5: While on display at an industry convention, a business's prototype of a new product is critically damaged. Which commercial property coverage extension would provide insurance protection for this situation?

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Property off-premises Question 6: The insolvency of an insurer is one reason why a normally insured individual involved in a car accident will be considered to be...

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an uninsured motorist Question 7: States that there must be an adequate spread of risk for insurance to be effective.

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Law of Large #s Question 8: An individual whose position and responsibilities involve a high degree of trust and confidence (trustees, guardians, and executors).

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Fiduciary Question 9: 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.

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Full Disclosure

Question 10: When does coverage from a builder's risk coverage form end?

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The property is accepted by the purchaser Question 11: If an individual causes property damage while working as a valet driver for a private parking garage, will her liability be covered by coverage B of her personal auto policy?

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No

Question 12: A means of transferring the risk of loss

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Insurance Question 13: Which of the following is not one of the six classes of property that can be covered under a marine policy?

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Public property floater risks

Question 14: A resident producers license must meet what 2 requirements?

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1.) May either reside in PA -or- 2.) Have their principal place of business in PA Question 15: Deciding not to produce a produce due to serious potential side effects.

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Avoidance (avoid the risk of being sued) Question 16: 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?

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State Worker's Insurance Fund Question 17: Which Home Owner's form covers damage to a condo owner's PROPERTY that occurs as the result of any event that is not specifically excluded in the policy.

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HO-6 Unit Owner's Form Question 18: When a personal fire insurance policy is cancelled because the insured's acts increased the hazard insured against, how many days notice must be provided to the insured.

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30 days

Question 19: Who regulates insurance rates to avoid excessive, inadequate, or unfairly discriminatory rates?

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Casualty & Surety Rate Regulatory Act Question 20: A Changes provision in a commercial package policy allows the first named insured to make alterations to the policy through which of the following?

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Endorsements Question 21: Which of the following are included as "buildings" in a businessowners policy, as long as they are not covered by other insurance?

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Alterations to a building Question 22: Under what regulation in PA does it state that insurers must maintain a specific minimum levels of capital stock and surplus?

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Regulation of Insurer Solvency.Question 23: What is the loss ratio of an insurance company that, in the span of a year, pays out $35,900 in benefits and collects $69,550 in premiums? (Loss Ratio = (Benefits Paid Out / Premiums Collected) x 100)

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51.6 Question 24: Which of the following is not a power and duty of the insurance commissioner?

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Issuing a cease and desist order, prosecuting producers who violate state insurance laws, conducting complaint hearings, appointing examiners.Question 25: Which agency provides motor vehicle coverage insurance to those who would be otherwise un-insurable?

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PA Auto Assigned Risk Plan