Pennsylvania Personal Lines Insurance License Exam — All Questions

What minimum auto liability limits must a Pennsylvania personal auto policy carry?

• a.$25,000 per person / $50,000 per accident bodily injury and $25,000 property damage
• b.$15,000 per person / $30,000 per accident bodily injury and $5,000 property damage✓
• c.$30,000 per person / $60,000 per accident bodily injury and $10,000 property damage
• d.$50,000 per person / $100,000 per accident bodily injury and $50,000 property damage

Pennsylvania requires minimum auto liability limits of 15/30/5 — $15,000 bodily injury per person, $30,000 bodily injury per accident, and $5,000 property damage. These are minimums; producers should offer higher limits. Source: Pennsylvania Insurance Department auto insurance guidance (https://www.pa.gov/agencies/insurance).

What minimum first-party medical benefits coverage must a Pennsylvania auto policy include?

• a.$1,000
• b.$2,500
• c.$5,000✓
• d.$25,000

Pennsylvania requires at least $5,000 in first-party medical benefits coverage on a personal auto policy, which pays the insured's accident-related medical expenses regardless of fault. Higher medical-benefit limits can be purchased. Source: Pennsylvania Insurance Department auto insurance guidance (https://www.pa.gov/agencies/insurance).

Pennsylvania requires drivers to choose between two tort options that affect the right to sue for pain and suffering. What are they?

• a.No-fault only or fault only
• b.Comparative or contributory negligence
• c.Named-peril or open-peril
• d.Full tort or limited tort✓

Pennsylvania is a choice no-fault state: drivers select 'full tort' (keeps the unrestricted right to sue for pain and suffering, usually at a higher premium) or 'limited tort' (lower premium but restricts non-economic damage claims except in serious cases). Producers must explain this choice clearly. Source: Pennsylvania Insurance Department (https://www.pa.gov/agencies/insurance).

How are cancellation and nonrenewal of a personal auto or homeowners policy regulated in Pennsylvania?

• a.An insurer may cancel any personal policy at any time for any reason with no notice
• b.Only the policyholder may ever cancel; insurers can never cancel mid-term
• c.There are no notice rules; cancellation is governed solely by the contract
• d.State law limits the reasons an insurer may cancel or nonrenew and requires advance written notice to the insured; confirm the exact notice period with the Pennsylvania Insurance Department✓

Pennsylvania restricts mid-term cancellation of personal auto and homeowners policies to specified reasons (such as nonpayment or material misrepresentation) and requires advance written notice of cancellation or nonrenewal. The exact number of days varies by reason and line — verify current Pennsylvania notice periods with the Pennsylvania Insurance Department.

Which best describes the body that writes and enforces Pennsylvania's insurance regulations affecting personal lines policies?

• a.The Pennsylvania Insurance Department, a state agency led by an appointed Insurance Commissioner✓
• b.A private trade association of insurers with no government authority
• c.The federal Department of Insurance in Washington, D.C.
• d.The county recorder's office where the policy is issued

Insurance in Pennsylvania is regulated at the state level by the Pennsylvania Insurance Department. There is no federal department of insurance; each state supervises its own market, licenses producers, and enforces cancellation, rating, and coverage rules. Source: Pennsylvania Insurance Department (https://www.pa.gov/agencies/insurance).