PLAHI - Pennsylvania Life Accident and Health Insurance Exam

Question 1: The head of Pennsylvania's insurance regulatory agency administers the state's insurance laws, issues regulations, holds hearings, and may order a person to stop an unfair practice. Which of the following titles belongs to the official who carries out these duties?

The Insurance Commissioner

The Attorney General

The Secretary of Banking

The Insurance Fraud Prevention Authority

Question 2: A domestic life insurer in Allentown has not been examined by the Insurance Department for several years and its officers wonder how often the law compels a review of its affairs. Which of the following states the Pennsylvania minimum examination cycle?

Once every ten years

Once every three years

At least once every five years

Only when a complaint is filed

Question 3: An insurer organized in Ohio wants to begin writing life policies for Pennsylvania residents and asks its counsel what document the Commonwealth requires before any policy may be issued here. Which of the following must the insurer obtain first?

A surplus lines eligibility listing

A certificate of authority

A producer license for its officers

A guaranty association membership card

Question 4: A Pennsylvania applicant wants a resident producer license for life and health lines. She has passed the state examination, is nineteen years old, and has completed fingerprinting. Which of the following additional requirements must she satisfy under current Pennsylvania law?

General fitness, competence, and reliability

Twenty-four hours of prelicensing education

Two years of insurance employment

Sponsorship by an appointing insurer

Question 5: A Pittsburgh bank teller confers directly with a customer about the benefits and terms of a life policy, urges the customer to apply, and then places the coverage. Which of the following describes the acts that make a Pennsylvania license necessary?

Underwriting, rating, and reserving

Soliciting, negotiating, and selling insurance

Adjusting and investigating claims

Advertising and mailing brochures only

Question 6: A licensed producer in Erie dies suddenly, and his surviving spouse needs authority to service the book of business while the agency is sold. Which of the following describes the temporary license Pennsylvania may issue in that circumstance?

Permanent, once the estate is settled

Valid for two years, examination waived

Freely transferable to any buyer

Valid up to one hundred eighty days

Question 7: A producer licensed and residing in New Jersey wants to write Pennsylvania business without moving. She holds an active home state license in good standing. Which of the following best describes how Pennsylvania treats her request for authority here?

She must establish Pennsylvania residency first

She is barred from writing here

She may hold a nonresident license

She must retake the Pennsylvania examination

Question 8: An unlicensed individual in Scranton sells several annuity contracts to neighbors and collects premium for them. The Insurance Department learns of the activity and refers the matter for prosecution. Which of the following describes the grading of that offense in Pennsylvania?

A summary offense

A third-degree felony

A civil violation only

A second-degree misdemeanor

Question 9: A Bethlehem insurer knowingly accepts applications from a person it knows has no producer license and issues the resulting policies. The Department opens an enforcement file against the company itself. Which of the following civil exposure does the insurer face for each violation?

Up to one thousand dollars

No penalty, only the producer is liable

Automatic loss of its certificate of authority

Up to five thousand dollars

Question 10: A Lancaster firm contracts to manage the Pennsylvania operations of an insurer as its exclusive general agent but never registers with the Department. Which of the following describes both the filing deadline missed and the exposure for continuing to operate?

Ten days; misdemeanor with daily fines

Thirty days; felony of the third degree

Sixty days; civil penalty only

No deadline; license revocation only

Question 11: An individual producer in York is planning ahead and asks her compliance officer when her Pennsylvania license comes up for renewal and how long each license period runs. Which of the following correctly describes the renewal cycle Pennsylvania applies to an individual producer license?

Annually on the first of January

Every three years on the issue date

Every two years, keyed to birth month

Every five years after examination

Question 12: A producer in Reading overlooks her renewal notice and lets the license expire. She files the renewal forty days after the expiration date and pays the required lapsed-license fee. Which of the following describes how Pennsylvania treats her reinstated license?

Reinstated retroactively to the expiration date

Reinstated only from the reinstatement date forward

Denied, requiring a full new application

Reinstated only after a new examination

Question 13: A Pennsylvania producer holding only life and health lines of authority is planning her continuing education for the current license period. Which of the following states the credit hours she must complete and the minimum devoted to ethics?

Twelve hours, including one ethics hour

Sixteen hours, with no ethics requirement

Forty hours, including four ethics hours

Twenty-four hours, including three ethics hours

Question 14: A diligent producer in Altoona completes far more continuing education than her license period requires and asks whether the surplus can count toward the next period. Which of the following describes Pennsylvania's treatment of excess continuing education credits?

Excess credits are forfeited at renewal

Excess credits transfer to another licensee

Excess credits carry forward, capped at twenty-four

Excess credits reduce the renewal fee

Question 15: A Pennsylvania producer is charged with a crime in another state, and months later that matter reaches a final administrative disposition before a sister insurance department. Which of the following describes when each event must be reported to the Commissioner?

Only convictions, within ninety days

Only administrative actions, at renewal

Neither, unless the license is suspended

Both, within thirty days of each event

Question 16: A producer in Wilkes-Barre moves his office and home to a new borough and updates his clients but never tells the Insurance Department. Which of the following describes the deadline Pennsylvania sets for notifying the Department of a change of address?

Within thirty days of the change

Within six months of the change

At the next license renewal

Only if the producer changes counties

Question 17: After a formal hearing, the Commissioner finds that a Philadelphia producer violated several provisions of the licensing article while placing coverage for elderly clients. Which of the following describes the range of sanctions Pennsylvania allows the Commissioner to impose for that conduct?

License revocation and nothing else

A written reprimand only

Any combination of suspension, penalty, and order

Criminal sentencing by the Commissioner

Question 18: The Commissioner intends to hold a disciplinary hearing on a producer's alleged violations of the licensing article and must first send notice fixing the hearing date. Which of the following describes the minimum notice Pennsylvania requires before that hearing?

Twenty-four hours

At least ten days

At least ninety days

No advance notice is required

Question 19: The Insurance Department sends a written inquiry to a producer in Harrisburg about a consumer complaint, and the producer simply ignores it for weeks. Which of the following describes the administrative fine Pennsylvania authorizes for that failure to respond?

A flat five hundred dollar fine

No fine, only a warning letter

A fine equal to the renewal fee

Up to one hundred dollars per day

Question 20: A producer in Bethel Park collects premium from clients and deposits it into the same checking account she uses for her personal expenses, without asking the insurers. Which of the following Pennsylvania duties does this handling of funds violate?

The advertising standards for producers

The fiduciary duty barring commingling

The appointment filing requirement

The continuing education requirement

PLAHI Pennsylvania Life Accident and Health Insurance Exam - Set 1 - Part 1