Pennsylvania Property & Casualty Insurance License Exam — All Questions
3 questions
Which agency regulates insurance and licenses resident property and casualty producers in Pennsylvania?
- a.The Pennsylvania Department of Transportation (PennDOT)
- b.The Pennsylvania Secretary of the Commonwealth
- c.The Pennsylvania Insurance Department✓
- d.The Pennsylvania Public Utility Commission
Pennsylvania regulates insurance through the Pennsylvania Insurance Department, led by the Insurance Commissioner (confirmed at pa.gov/agencies/insurance). The department licenses producers, reviews forms and rates, and enforces the insurance laws. On the exam, remember it is the Insurance Department, not the Secretary of the Commonwealth or PennDOT, that licenses producers.
A Pennsylvania producer offers to rebate part of the commission to a client as an inducement to buy a policy. Under Pennsylvania law this is:
- a.Permitted if the insurer approves
- b.Permitted for commercial clients only
- c.Prohibited rebating under the Unfair Insurance Practices Act✓
- d.Required to be reported but otherwise lawful
Giving any part of the premium or commission, or other valuable consideration not stated in the policy, as an inducement to buy is prohibited rebating under Pennsylvania's Unfair Insurance Practices Act and can bring fines and license action by the Pennsylvania Insurance Department.
After a Pennsylvania personal auto or homeowners policy is past its initial period, an insurer's mid-term cancellation is generally allowed only:
- a.For specific statutory grounds such as nonpayment of premium or fraud, with required advance written notice stating the reason✓
- b.For any reason, with no notice
- c.Only during the first 24 hours of the policy
- d.Never, once the policy is issued
Pennsylvania limits mid-term cancellation of seasoned personal-lines policies to defined grounds such as nonpayment, fraud, or suspension of the insured's driver's license, and requires advance written notice stating the reason so the insured can replace coverage. The exact notice day-counts are set by statute and can change; verify current figures with the Pennsylvania Insurance Department.