PPCI - Pennsylvania Property and Casualty Insurance Exam

Question 1: Pennsylvania law directs the Insurance Commissioner to review the affairs of licensed companies on a fixed schedule rather than only when trouble surfaces. At a minimum, how often must the Commissioner examine every insurer licensed to do business in the Commonwealth?

At least once every ten years

At least once every three years

At least once every five years

Only after a solvency complaint

Question 2: After holding a hearing under the Unfair Insurance Practices Act, the Commissioner concludes that an insurer has been using an unfair method of competition. Which written order is the Commissioner authorized to issue to make the insurer stop that conduct?

A cease and desist order

A certificate of authority

A consent to rate filing

A subrogation demand

Question 3: An individual sells several property insurance policies to Pennsylvania residents while holding no license of any kind, collects the premiums, and forwards them to an insurer. Under Act One Hundred Forty-Seven, how does Pennsylvania grade this conduct?

A summary offense

A civil violation only

A felony of the third degree

A misdemeanor of the second degree

Question 4: An applicant wants a Pennsylvania resident producer license for property and casualty lines. She has already passed the licensing examination, submitted her fingerprints and disclosed no criminal history. Which additional requirement listed in the qualifications section of the licensing article must she also satisfy?

Two years of prior insurance employment

Sponsorship by an appointing insurer

Residence in Pennsylvania for one year

Being at least eighteen years of age

Question 5: A candidate studying older Pennsylvania exam material reads that twenty-four credit hours of approved education must be completed before sitting for the licensing examination. What change did Act One Hundred Forty-Two of Two Thousand Twenty-Four make to that requirement?

It raised the requirement to forty hours

It shifted the hours to renewal

It eliminated the pre-licensing education requirement

It limited the requirement to nonresidents

Question 6: A licensed Pennsylvania producer dies suddenly, and his surviving spouse needs authority to service the existing book of business while the agency is sold. What is the maximum period the Commissioner may grant under a temporary producer license?

One hundred eighty days

Thirty days

Sixty days

Ninety days

Question 7: A Pennsylvania resident producer wants to know when her individual license comes up for renewal so she can schedule her continuing education courses in advance. Which statement correctly describes both the term of her license and the renewal timing that applies to it?

One year, renewed each January

Three years, renewed on the issue date

Five years, renewed on request

Two years, keyed to her birth month

Question 8: A producer misses her renewal deadline and then files the renewal application with the required fee forty days after her license expired. Under the Pennsylvania licensing regulation, what happens to the effective date of the license once it is reinstated?

It takes effect on the reinstatement date

She must reapply as a new applicant

It is retroactive to the expiration date

It takes effect after a waiting period

Question 9: A producer allowed his Pennsylvania license to expire and then did nothing about it for eighteen months. He now wants to resume selling property and casualty insurance in the Commonwealth. What does the licensing regulation require him to do first?

Reapply as a new applicant

Pay a late fee and resume immediately

File a written request for Commissioner review

Obtain a temporary license first

Question 10: A Pennsylvania producer moves her office across town and updates her stationery, her website and her voicemail greeting. Under the prohibited acts section of the licensing article, what must she also do about the move, and how quickly?

Notify her appointing insurers within ten days

Notify the Department before the move occurs

Report the move at her next renewal

Notify the Department within thirty days

Question 11: A Pennsylvania producer is planning her continuing education for the current two-year license period. Under the law as amended effective April of Two Thousand Twenty-Five, how many total credit hours must she complete, and how many of those must cover ethics?

Twelve hours, including two ethics hours

Twenty-four hours, including three ethics hours

Twenty hours, including five ethics hours

Thirty hours, including four ethics hours

Question 12: Two Pennsylvania producers compare their continuing education plans. One holds life and health lines only, and the other holds property and casualty lines. Which additional subject requirement applies to the property and casualty producer but not to the other?

At least four hours in annuity suitability

At least three hours in life insurance

At least six hours in claims handling

At least two hours in flood insurance

Question 13: A Pennsylvania producer also holds a nonresident license in another state, where the insurance department has just entered a final order suspending that license. What duty does the Pennsylvania licensing article impose on her, and on what timetable?

Report to the Commissioner within thirty days

Surrender the Pennsylvania license immediately

Report at the next Pennsylvania renewal

Notify only her appointing insurers

Question 14: A Pennsylvania producer is arrested and formally charged with theft by deception arising out of an unrelated business matter. His attorney expects the prosecution to take a year. Which statement correctly describes the reporting duty he owes the Commissioner?

No duty arises unless he is convicted

He must report within ten business days

He must report within thirty days

He must report only felony charges

Question 15: A Pennsylvania producer wants to represent a particular insurer, bind coverage on its behalf and be treated as its agent in dealings with applicants. Beyond holding a producer license, what does the licensing article require before she may act that way?

A separate managing general agent license

An appointment filed by that insurer

A surety bond posted with the Department

Written consent from each applicant

Question 16: An insurer discovers that one of its appointed Pennsylvania producers has been forging signatures on applications and terminates the appointment for cause. What is the insurer's first reporting obligation, and how much time does it have to meet it?

Notify the producer within five days

Notify the Commissioner within ten days

Notify the Department within thirty days

Notify the producer's other insurers promptly

Question 17: An insurer has already notified the Pennsylvania Insurance Department that it terminated one of its producers for cause. Under the licensing article, what must the insurer do next with respect to that producer, and within what period must it act?

Mail him a copy within fifteen days

Nothing further, since the Department notifies him

Deliver a copy within thirty days

Publish the termination in a trade journal

Question 18: A Pennsylvania producer receives a certified copy of an insurer's for-cause termination notice and believes the insurer's account of events is wrong. What does the licensing article give him the right to do, and how long does he have?

Demand a hearing within ten days

Appeal to the insurer within twenty days

Sue the insurer within sixty days

File written comments within thirty days

Question 19: A Pennsylvania producer collects premium from several clients on a Friday and plans to remit it to the insurers the following week. Which statement correctly describes his obligations concerning those funds under the fiduciary provision of the licensing article?

He may keep the interest earned

He may not commingle without insurer consent

He must open one account per insurer

He may use them for operating expenses

Question 20: An agency wants to pay a referral source a percentage of the commission on every property policy she sends its way. The referral source has never held an insurance license of any kind. What does Pennsylvania law say about that arrangement?

The payment is allowed if disclosed

The payment is allowed under ten percent

The payment is prohibited

The payment is allowed after registration

PPCI Pennsylvania Property and Casualty Insurance Exam - Set 1 - Part 1