Pennsylvania Property and Casualty Insurance Examination
The minimum age for obtaining an insurance producer's license in the state?
18
If an insurer changes a form that it uses to transact insurance, it must do which of the following?
File the form with the Commissioner for approval
Which of the following established the do-not-call-registry?
The federal Trade Commission
If another governmental agency takes legal action against a licensee, whose responsibility is it to report the action?
licensee
How soon after the due date should the insurer pay the agent appointment fees?
within 30 days
Which of the following would be considered an illegal inducement to purchase insurance
Confirming future dividends in a life insurance proposal
Prior to license renewal, all insurance producers must successfully complete a minimum of
24 credit hours of CE.
If an insurer terminates a producer's appointment, the Commissioner must be notified within how many days?
30 days
Within how many days must a producer respond to an inquiry from the commissioner
30 days
All of the following would be considered rebating EXCEPT:
An agent misrepresents policy benefits to convince a policyowner to replace policies.
An insurer publishes intimidating brochures that portray the insurer's competition as financially and professionally unstable. Which of the following best describes this act?
Illegal under any circumstances
Which of the following acts created a federal program that would share the risk of loss from potential terrorist attacks with the insurance industry
TRIA
Which of the following acts created a federal program that would share the risk of loss from potential terrorists attacks with the insurance industry?
TRIA
Which of the following is an example of a producer being involved in an unfair trade practice of rebating?
Telling a client that his first premium will be waived if he purchased the insurance policy today
Within how many days of requesting an investigative consumer report must an insurer notify the consumer in writing that the report will be obtained
3 days
Which of the following does a produce not have the authority to do?
Issue polices
What was created to keep telemarketers from calling consumers who do not wish contacted?
National Do Not Call Registry
All of the following are unfair claims settlement practices EXCEPT:
Suggesting negotiations in settling the claim
Which of the following is term used when a person in a fiduciary position has used assets in manner for which they were not intended such as the wrongful taking or use of money belonging to another?
misappropriation of funds
A producer licensed in Pennsylvania must notify the Insurance Department of any change of address in their address within how many days?
30 days
Licensees must make a report of any action taken against them in another jurisdiction or by another governmental agency in Pennsylvania within how many days of the final disposition of the matter?
30 days
When a producer holding a certificate or a brokers license has a change in his/her residence or business address, he/she must notify the Department of Insurance and any company for which the producer holds an appointment within
30 days
Which of the following would be required to be licensed as an insurance producer
A salaried employee who advertises and solicits insurance
Which of the following authorities monitors the financial strength of insurers?
Department of Insurance
After a hearing, if he commissioner finds that a licensee is in violation of the state insurance laws, the commissioner can do any of the following except:
Imprison the licensee
Which of the following licensees is classified as a representative of the insurance company and not allowed to represent an insured or claimant?
producer
An individual was just caught acting as an exclusive general agent - even though he is not properly licensed. Assuming that this occurred in a single day, what is the maximum penalty he faces?
A third degree misdemeanor and a $1,000 fine
When a provider was reviewing a potential customer's coverage written by another company, the producer made several remarks that were malicious critical of that insurer. The producer could be found guilty of
Defamation
If an insurer appoints a producer, which authority must be notified?
Department of Insurance
How often must the commissioner examine rating organizations
every 5 years
I'm order for a foreign insurer to do business in this state, it must apply for and obtain
A certificate of authority
Which if the following statements is incorrect?
A licensee is barred from charging a fee in addition to commission to a person for the sale, solicitation or negotiation of a contact of insurance for commercial business
Which of the following persons is required to hold a producers license
A person who negotiates insurance contracts
Which of the following is an example of a producers fiduciary responsibilities
A producer promptly forwarding premiums to the insurance company
If an insurance company wishes to order a consumer report on an applicant to assist in the underwriting process, and if a notice of insurance information practices has been provided, the report may contain all of the following information EXCEPT the applicant's
Ancestry
Should an insured company deny a claim submitted by an insured without providing to that insured a prompt and reasonable explanation of the claim denial, the insurer would be in violation of
Unfair claims methods and practices regulations
Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce
Without receiving written consent from an insurance regulatory authority.
A producer sold an insurance policy. Subsequently, his license was suspended. In this case, how much of the commission will the producer receive?
all
A banker is ready to close on a customer's loan. The bank is prepared to offer the loan but only if the customer purchases a life insurance policy from the bank in the amount of the loan. This is an example of
coercion
Which of the following entities must approve all continuing education courses in this state?
commissioner
Which of the following terms describes making false statements about the financial condition of any insurer that are intended to injure any person engaged in the business of insurance
defamation
In which of the following situations would punishment include imprisonment?
Omission of a material fact with intent to embezzle funds
Which of the following is not correct regarding false statements by a person engaged in the business of insurance?
Only written statements can be considered fraud
All of the following violations may result in an agent's imprisonment EXCEPT
Failing to report the department a criminal prosecution taken against the agent in another jurisdiction
Which of the following includes information regarding a person's credit, character, reputation, and habits?
Consumer report
What is the maximum penalty for habitual willful noncompliance with the fair credit reporting act?
$2,500 An individual who willfully violates this Act enough to constitute a general pattern or business practice will be subject to a penalty of up to $2,500.
A producer has successfully completed 52 hours of continuing education (CE). How many hours can the producer apply to her current reporting period, and how many hours can she carry toward the next reporting period?
24 hours will be applied to the current reporting period, and 24 can be applied to the period immediately following
A person applying for manager or exclusive general agent license must meet all of the following criteria except
Be responsible for at least 25% of total commissions collected by the office that he or she manages.
Which of the following would not be considered an exception to the a national do not call list?
Calls based from outside of the United States
Which of the following would not be considered an unfair and deceptive practice?
Controlled business
Under which of the following circumstances can finicial institutions share insurance coverage information with third parties l, for the purpose of soliciting the purchase of insurance?
If a consumer does. It sign and return the notice of disclosure within 30 days
Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report
Must be informed of the source of the report
With regards to premium rates, which of the following statements is not true?
The Commissioner sets all insurance premium rates used in Pennsylvania.
If a licensee wants to transact insurance under a different name than that listed on his or her producer's license, which of the following must occur?
The change must be reported to the Commissioner.
A licensee serving in the military is unable to fulfill her continuing education requirement. What would the license have to do to renew the license?
The licensee may submit a request to the department to have requirements and fees waived. The department will then determine if the request is permissible
Insurers are required to keep records. When may the Department examine these records
at any time
State law specifically prohibits using illegal inducements in the marketing of insurance. All of the following would be considered illegal inducements EXCEPT
Inviting prospective clients to the grand opening of the company's new office.
Who is responsible for paying the producer appointment fee?
The appointing insurer
National Do Not Call Registry was created to regulate
Telemarketers
According tot he fair credit reporting act, all of the following would be considered negative information except
Disputes regarding consumer report information
Which of the following an example of an unfair claims settlement practice?
Failure to promptly settle a claim when liability has been clearly established
An applicant is denied insurance because of information found on a consumer report. Which of the following requires that the insurance company supply the applicant with the name and address of the consumer reporting company?
Fair Credit Reporting Act
A producer has become disabled. In order to keep his business going, what may his designee do?
Obtain a temporary license
All of the following are requirements for producer license renewal except:
Renewal examination
Insurance producers that does not have company appointments are considered a/an
Representative of the consumer
All of the following are true regarding rebates except
Rebates are allowed if it's in the best interest of the client.
A producer licensed in another state wants to become a producer in Pennsylvania. The other state gives the same privileges to Pennsylvania producers wanting to be licensed in that state as it does it's own agents. Pennsylvania, therefore, extends the privileges of its agents to the prospective agent of the other state. What is this called?
Reciprocity
The Federal Fair Credit Reporting Act
Regulates consumer reports
Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency must
Respond to the consumer's complaint.
Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as
Rebating
Once it has been reasonably proven that a person has knowingly violated the Insurance Code regarding unfair methods of competition, the Department may impose a civil penalty of
$5,000 for each violation
In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?
The customer's associates, friends, and neighbors provide the report's data.
an insurance company assures it's new policyholders that their premium costs will not increase for a period of at least five years. However, due to increasing financial strain, they plan to raise premium costs for all insureds by 10% over the next two years. What term best describes this act?
Fraud
Any license person whose activities affect interstate commerce and who knowingly makes false material statements related to the business of insurance may be imprisoned up to
10 years
When a producer died, his surviving spouse needed to maintain the insurance agency until it could be sold. Without passing an examination, she could qualify for a temporary license for a maximum period of
180 days
According to the telemarketing sales rules, what are the permissible calling hours for telemarketing calls?
8am until 9pm
A licensed producer moving to Pennsylvania may become licensed as a resident if the producer submits a completed application within how many days of establishing residence in Pennsylvania with proof of licensing from their prior home state?
90
According to the privacy of consumer financial information regulation, if a consumer decides to opt out, this means
The consumer directs the licensee not to disclose the consumer's nonpublic personal financial information to a third party.
Which of the following authorities is authorized to issue a temporary insurance producer's license?
Commissioner
The Gramm-Leach-Bliley Act was passed to
Protect private customer information filed with a financial institution.
ABC insurance company wishes to begin transacting business in Pennsylvania. Before it can do so, it must do which of the following?
Obtain a certificate of authority
