All of the following are characteristics of a Mutual Insurance Company, except:
Stockholders have ownership
Which of the following is true regarding the restoration period under the BOP?
It begins 72 hours after the time of the direct physical loss and ends when repairs are completed or when business resumes at a new physical location
While traveling by train, a marketing director for a watch manufacturer discovers that someone has stolen her briefcase while she was away from her seat. The briefcase contained sample watches valued at $2,000, marketing materials valued at $200, and misc
Zero
Which statement about the BOP's Hired Auto and Non-owned Auto endorsement is correct?
Business auto coverage for a vehicle the insured rents is added to the coverage
M has a liability policy insuring her flower shop. After M sells the shop, the buyer asks if she can transfer her liability policy as part of the sale. Which provision prevents M from making this transfer without the insurer's consent?
Assignment
Which of the following is true about specialty or professional liability insurance?
They are written on non-standard forms
Under a Building and Personal Property Coverage Form, up to what percent of a partial loss would be available for debris removal?
25%
Which of the following would not covered by a Business Auto Policy?
An employee is injured while driving a covered auto
In bonding, the surety is also known as the:
Guarantor (The three main parties to a surety bond are the obligee -- the person who will be indemnified, the principal -- the person whose performance is being insured, and the surety -- the party that guarantees payment to the obligee if the principal f
Which of the following best describes the Towing and Labor Costs endorsement to the Personal Auto Policy?
It provides payment for towing to a garage, or for labor that is performed at the site of a mechanical disablement
Workers' Compensation does not cover which of the following?
Pain and suffering
Which of the following is true concerning Workers' Compensation benefits?
Benefits are be paid to employees for their on-the-job injuries, regardless of negligence an anyone's part
The spouse of which named insured is not eligible as an insured under the BOP?
Trustee (In a sole proprietorship, joint venture, or partnership, spouses of named insureds are considered insured parties. Spouses of trustees are not considered an insured.)
Choose the false statement regarding the Value Reporting Form.
The insured is only required to report up to 80% of value of the property (Reporting of 100% of values is required to guarantee that adequate insurance is being provided and charged.)
Under Section II of the Homeowners Policy, a one or two family dwelling where the insured resides in one of the units, including other structures and grounds at that location, is defined as:
The Residence Premises
Choose the false statement regarding the application of coverage under the Products Exposure Liability Coverage.
Coverage applies to damage to the product itself (Products Liability Coverage as relates to Commercial General Liability Insurance covers damage or injuries caused by the product, but does not include damage to the product itself.)
Which commercial crime policy will cover any occurrence that took place during policy period, even if it was not immediately discovered?
Loss-Sustained form (The Loss-Sustained Form provides coverage for losses that both take place and are discovered during the policy period, or that are discovered within one year of the termination of the policy period.)
Under a Commercial Crime policy written on a discovery form, what is the latest date that a covered loss can be discovered?
The policy expiration date
Which of the following is covered under a Personal Auto Policy?
A vehicle driven with permission by an unlicensed driver
Under Coverage A of a Dwelling Policy, all of the following are covered, except:
Land, including the land on which the dwelling is located
Which statement regarding the Businessowners Policy is not correct?
The Damage to Premises Rented to You limit is written on a per person basis (Damage to Premises Rented to You is written on a per occurrence (fire or explosion) basis.)
Which of the following describes the loss settlement basis for a fire damage claim to a dwelling insured under a DP-3 policy?
Replacement cost up to the Coverage A limit (The dwelling is covered under Coverage A. Losses to the dwelling and other structures are paid on a replacement cost basis, and losses to personal property are paid on an actual cash value basis.)
An insurer will not pay which of the following in the event of a Workers' Compensation claim?
Loss of insured's earnings because the insurer requested the insured come to court
The Homeowners Policy provides coverage for all of the following, except:
A motorized golf car being driven on a public beach (In order for coverage to apply, a motorized golf car must be used on a golfing facility or within a private residential community for approved purposes.)
Which of the following vehicles is not considered an uninsured vehicle under Part C of the PAP?
A vehicle owned by the government (Other vehicles that are not uninsured vehicles are company cars, self-insured, operate on rails or crawler treads, off-road vehicles, and those used as a residence.)
Under what circumstances may a licensee charge a reasonable fee in addition to a commission for the sale, solicitation, or negotiation of a contract of commercial lines insurance?
The fee is disclosed in advance in writing
While driving in another state with higher coverage requirements, which of the following sections of the PAP automatically provides the required coverage?
Out of State Coverage
The BOP's optional coverage for money and securities will cover which of the following?
Money and securities against theft, disappearance or destruction
Supplementary payments under Part A of the Personal Auto Policy will pay which of the following?
$250 for bail bonds
Which of the following coverage statements is correct about the Fine Arts Floater?
Coverage is automatic on newly acquired items for 90 days
Under the Voluntary Compensation Endorsement to a Workers' Compensation Policy, an employer must provide which of the following?
The class of employees to be covered
Which coverage is not provided under Section II of a Homeowners Policy?
Medical expense of a boarder
An insurer organized in another state than the state in which it is authorized to do business is known as which type of insurer?
Foreign
Which type of coverage does the BOP provide for preservation of property?
Open perils coverage for 30 days
Which coverage form may not be added to the Commercial Property Coverage Part?
Homeowners Special Form
Which of the following is true about a stock insurance company?
A stock insurance company is run by officers and directors and has a stated amount of capital stock owned by stockholders (A stock insurance company is owned by its stockholders.)
Under the Building and Personal Property Coverage Form, a building is considered vacant, unless at least what percentage of square footage is rented or used to conduct operations?
31%
Choose the false statement regarding Flood Insurance.
Coverage is provided for damage to growing crops
Which of the following is considered a hostile fire?
An uncontrolled campfire in the woods
All of the following are true of torts, except:
They must be committed intentionally (Torts can be intentional or unintentional.)
All of the following are true of a Businessowners Coverage Form, except:
Employee dishonesty is automatically included in each policy (Employee Dishonesty is not automatic. It is an option that must be selected.)
All of the following are true about liability, except:
Liability policies pay costs incurred by an insured to sue negligent third parties (Liability policies pay the cost to defend the insured against suits by third parties. They do not cover the costs of lawsuits initiated by the insured against negligent th
A flood damages a home that is in a community in early stages of participation in NFIP, but are not yet considered a participating community. What is the maximum a resident may receive for damages to personal property?
$10,000 (The home is covered under the Emergency Program and is eligible for contents coverage for up to $10,000.)
Which of the following is correct regarding coverage under the Farm Property Coverage Form?
For coverage to apply, there must be a limit shown in the Declarations
Medical expenses of the Farm Liability Coverage Form provide coverage if the accident is reported within:
3 years
A Building and Personal Property Coverage Form, will pay up to what percentage of the building coverage for debris removal?
25% (The policy will pay up to a maximum of 25% of the coverage applying to the loss, and in the event of a total loss, the policy will pay up to an additional $10,000 for debris removal.)
All of the following must be listed on Form MCS-90, except:
The policy premium amount (Form MCS-90 must be carried in the cabin of the vehicle and must show: The names of the motor carrier and the insurance company; The policy number and policy dates; Whether the insurance providing coverage is primary or excess;
Which of the following forms is not one of the 8 primary Commercial Crime policy forms?
Extortion (Extortion coverage can be added as an endorsement to another crime form.)
The limit of liability of Coverage D, Damage to Your Auto, under the Personal Auto Policy states that:
The limit of liability is the lesser of the actual cash value (ACV) of the vehicle or the amount necessary to repair or replace the vehicle with another of like kind and quality (Generally, the maximum limit of liability is equal to the actual cash value
Farm property loss conditions include which of the following?
Loss to pairs or sets (Other loss conditions include abandonment, appraisal, duties, other insurance, legal action against the insurer, loss payment, recovered property, subrogation, and unoccupancy and vacancy.)
Which of the following may be insured on a replacement cost basis under the National Flood Insurance Program?
1- to 4-family residences and residential condominiums (Under the National Flood Insurance Program, property is insured on an actual cash value basis, except one- to four- family residences and residential condominiums may be insured on a replacement cost
Policyholder L has a DP-1 with a Coverage A amount of $300,000. Following a severe storm, she suffers a covered loss to the dwelling of $275,000 and a covered loss to a detached swimming pool of $30,000. How much will L's policy pay?
$300,000 (The pool is covered under Coverage B, which pays up to 10% of Coverage A, or $30,000. However, because L's policy is written on the DP-1 form, the Coverage B limit is included in, not additional to, the Coverage A limit. Therefore, the most the
All of the following are additional coverages under the Building and Personal Property Coverage Form, except:
Peak season
Which injury would be covered by a CGL policy?
A customer injured while standing in an area marked 'For Employees Only' (A customer injured on the premises is covered under a CGL. Employees are covered under Workers' Compensation and a sole proprietor's spouse is considered an insured and is not cover
Hull Coverage and Cargo Coverage under Ocean Marine Insurance are generally written on which basis?
Full Value
Which of the following is not an exclusion under the Umbrella policy?
Personal injury
A fire sprinkler system installed in a factory is considered which of the following methods of managing risk?
Reduction
Coverage D of the Dwelling Policy provides coverage for:
Fair Rental Value (Loss of Rental Income is an indirect loss sustained by the insured when the dwelling is rendered uninhabitable by a direct loss. Coverage D provides protection for this indirect loss.)
The Watercraft Liability endorsement provides which coverage?
Property damage arising out of the racing of sailing vessels (The watercraft liability exclusion for racing does not apply to sailing vessels. Bodily injury sustained by an employee in the course of employment, damage arising out of boats rented to others
Which of the following is correct regarding Umbrella Liability policies?
They are designed to cover losses excluded by the underlying policy (Umbrella Liability policies are generally broader in coverage than the underlying policies and they often provide worldwide coverage.)
The standard policy structure for insurance policies includes all of the following sections, except:
Duties (The duties of the insured and the insurer are found in the policy conditions.)
Under Coverage A of the Homeowners Policy, all of the following are covered, except:
The land on which the dwelling is located
All of the following types of property may be covered by a Personal Articles Floater, except:
Buildings
Under which of the following circumstances would the Limited Theft Coverage endorsement be used?
The insured dwelling is tenant-occupied (The Limited Theft Coverage endorsement must be used if the dwelling is tenant occupied. No VMM coverage applies if the dwelling was vacant for more than 60 consecutive days immediately before the loss. There is no
What is the name of the uniform document that common carriers are required to issue to the shipper of the goods being transported?
Bill of Lading (The Bill of Lading is a receipt for the goods being shipped that sets forth the basic agreement between the carrier and the shipper.)
Which of the following will be paid by Supplementary Payments under Part A of the Personal Auto Policy?
A $250 bail bond
Which of the following statements about medical payments is false?
Medical payments cover personal injury (Medical payments pays for bodily injury without regard as to fault by the insured. Personal injury expenses are not covered.)
Which of the following would be covered under the Damage to Property of Others additional coverage of the Homeowners Policy?
Damage caused intentionally by the insured's 10-year-old son (Intentional damage by a child under age 13 is covered.)
Aircraft All Risk coverage includes which of the following levels?
On the ground, taxiing, and in flight
All of the following perils are included under the Dwelling Broad Form, except:
Smoke damage from industrial operations (Smoke damage is a covered peril of the Dwelling Broad Form. However, the description of the peril specifically excludes smoke from agricultural smudging or industrial operations.)
Which of the following is an eligible risk under the BOP?
Fast food restaurant (Fast-food and limited cooking restaurants are eligible for coverage.)
A bond that protects an employer against loss caused by the employee's dishonesty is called a:
Fidelity bond
Which of the following would not be covered under Coverage B?
Grain silo (No coverage is provided for other structures used for farming purposes.)
Which of the following statements about medical payments is true?
Payments are made regardless of fault or negligence (Medical payments coverage provides payment of medical and medically associated expenses on a voluntary basis, without regard to negligence or fault on the part of the insured.)
The Equipment Dealer's Coverage Form covers which of the following?
The equipment dealer's stock, primarily consisting of mobile agriculture and construction equipment, such as forklifts (This form covers the Equipment Dealer's stock of mobile agricultural and construction equipment held for sale, and similar property of
When an insured's boat is in storage, which warranty allows for a return on premium?
Lay Up (A 'Lay Up Warranty' applies when the insured boat is in storage and allows for a return of premium due to the reduced risk of the boat not being used when laid up. If the insured operates the yacht during the lay-up period (or lives on it), no cov
Which of the following would not be covered under an Installation Floater?
Construction equipment (The Installation Floater is designed to cover materials that will be installed in a newly constructed or renovated building. Construction equipment owned any maintained by the installer would be covered under the Equipment Dealers
Which of the following businesses would not be eligible for coverage under the Garage Coverage Form?
Rental car agency (The Garage Coverage Form provides automobile liability and physical damage coverage, as well as General Liability Protection for businesses in the sale, service, or storage of automobiles.)
Which DP form does not cover burglar damage?
Basic Form (DP-1) (Damage by burglars is covered only in the broader Forms DP-2 and DP-3.)
The Scheduled Articles Floater provides which of the following coverages to described property?
Open Perils
Under the Personal Auto Policy, when the insured and the insurer do not agree on the insured's legal right to recovery of damages or the amount recoverable by the insured, what system is used to resolve the disagreement?
Arbitration
Which clause broadens coverage of an existing policy with no increase in premium?
Liberalization
Which Commercial Property form provides coverage for an indirect loss?
Business Income Coverage Form (The two indirect loss forms to the Commercial Property Coverage Part are the Business Income Coverage Form and the Extra Expense Coverage Form.)
Which of the following is not true of the value reporting form under a Commercial Property policy?
The insured is only required to report up to 80% of value of the property (must report 100%)
A disability that prevents an employee from doing any work, and from which the employee is expected to recover is known as a:
Temporary total disability
Which of the following statements regarding deductibles is true?
Deductibles help reduce the number of frivolous or small claims (The Deductible is the amount of each loss that the insured must bear before the policy responds to the loss. Deductibles eliminate the expense of processing small claims, resulting in reduce
Part E of the Personal Auto Policy states that after a loss the insured must:
Protect the auto from further damage (In the event of a covered loss, Persons submitting claims to the insurance company are required to: Notify the insurer promptly about how, when, and where the accident or loss occurred; Cooperate with the investigatio
M and C both have Personal Auto policies with liability limits of 20/30/10. If M borrows C's car and injures a pedestrian, causing injuries that will cost $5,000 to treat, which policy will provide coverage for the injured party?
C's policy (The owner's coverage is primary (insurance follows the car not the driver). Coverage for a non-owned vehicle is excess.)
Structures on the premises separated by clear space from the dwelling are covered under which part of the Homeowners Policy?
Coverage B (Coverage B is the coverage for 'other structures' that are separated or detached from the dwelling. Structures attached to the dwelling are included under Coverage A.)
Bodily injury liability coverage includes all of the following, except:
Breach of contract (Bodily Injury coverage covers physical injury, sickness or disease sustained by a person including death resulting from any of these. Breach of contract does not fall under this definition.)
What is the term for the first event in the unbroken chain of events, that resulted in a loss?
The Proximate Cause (The proximate cause is the primary cause of loss in a sequence of events resulting in a claim.)
Z is a distributor of natural gas. While connecting gas to B's house, an explosion occurs and the house is destroyed. Z's defense is that B did not turn off the pilot light on her furnace before the hookup as instructed by the company. The court ruled tha
Absolute liability (Some activities are so inherently dangerous that they are bound by the principle of Absolute Liability, which states that no degree of care taken by the insured can defend against a charge of negligence.)
The Basic Causes of Loss Form under the Commercial Property Coverage Part would not cover which of the following?
Steam boiler explosion (It is necessary to purchase Boiler and Machinery insurance to obtain coverage for steam boiler explosion.)
Which source of liability would a trucker be liable for under a Motor Truck Cargo form?
Cargo damage from overturn (The Motor Carrier Coverage Form provides Trailer Interchange Coverage, which protects against physical damage such as comprehensive and/or collision coverage.)
Which of the following types of liability limits allow the most to be paid for a single occurrence without regard for the number of claimants?
Combined Single Limit (Under a Combined Single Limit policy, the policy will pay both bodily injury and property damage claims without regard to the number of claimants.)
Which of the following best describes the Debris Removal coverage under the Homeowners policy?
The policy will pay the insured for removing debris from a covered loss (Debris removal provides payment of the named insured's reasonable expenses for the removal of debris of covered property if a covered loss occurs.)
D does not agree with the insurance company's value of his property damaged as a result of his recent property loss. Which of the following establishes the procedure D and the insurance company must use to settle this issue?
Appraisal Clause (The Appraisal Clause of the insurance policy provides a method of settling disputes between the insurer and the insured as an alternative to legal action.)
All of the following are true, except:
A)Home schooling is permitted under a Homeowners Policy
B) A Homeowners Policy will not cover theft of a boat away from premises
C) Coverage D of a Homeowners Policy includes loss of income from an incidental business***
D) Coverage D of a Homeowners Poli
The Mobile Agricultural Machinery and Equipment Coverage Form does not include coverage for:
Irrigation equipment
All of the following are true of a Homeowners Policy, except:
The HO-2 provides open perils coverage on the dwelling (The HO-2 covers the dwelling and contents against the Broad Form Perils.)
All true:
- Personal property of an insured's daughter while at college would be covered
- The HO-4 form is also called the T
The Pennsylvania Department of Insurance may issue a non-transferable temporary insurance license for up to ____ days to certain persons in specified circumstances.
150
The time period in which a lawsuit may be filed after the occurrence of a claim is referred to as:
Statute of limitations (Statute of limitations is the length of time from the date of claim that legal proceedings may be initiated. This time period is established by federal or state law)
The part of an insurance policy that states where the risk is located is the:
Declarations
Which of the following is true regarding a negligence claim?
The claimant must demonstrate that the wrongful actions of the insured were the direct or proximate cause of the claimed injury or damages
Insurer G decides to increase the first aid benefits for one of its insureds for no extra premium. What is the name of the provision which automatically applies this broader coverage without additional premium to all policies currently in effect by the sa
Liberalization
Which statement is true concerning Coverage D of the Homeowners Policy?
The coverage will pay for any increase in living expenses required to maintain the insured's normal standard of living (Coverage D is intended to pay only the increase in the insured's normal living expenses occasioned by the loss. Costs the insured was a
Which of the following is excluded under both the Limited Pollution Liability coverage form and Pollution Extension endorsement?
Clean up costs (Government imposed clean up costs incurred from environmental damage caused by a pollution incident are covered under the Pollution Liability coverage form, but not the Limited Pollution Liability coverage form or Pollution Extension endor
When firefighters extinguish a house fire with water, the water damage is considered a(n):
Direct loss (Water damage is a direct loss to the property.)
A tenant should buy which of the following Homeowner Policy Forms?
HO-4 (The HO-4 Form, providing Property Coverage C, is intended for tenants of rental dwellings and apartments.)
Temporary licenses are granted by the Commissioner in the following situations, excepts:
Prospective licensees can sell insurance while preparing to take the state licensing exam (The temporary license is designed to allow individuals to assume management of an insurance business on behalf of a deceased or disabled individual, or on behalf of
Which of the following best describes a hostile fire?
A fire caused by a spark escaping from a fireplace and igniting a carpet
Which statement is false concerning a Homeowners Policy?
The HO-4 covers the dwelling against the Broad Form Perils (There is no coverage for the dwelling under an HO-4, only contents coverage.)
The Pennsylvania laws governing the privacy of consumer information:
Allows disclosure of nonpublic the consumer is given both an initial notice and opt out notice, but does not opt out after a reasonable opportunity to do so (These laws apply to personal but not commercial purchases, and specifically deal with financial n
The continuing education laws of the Commonwealth of Pennsylvania require that:
Producers must complete 24 hours of CE credit every two years
Which of the following property is covered under the Homeowners Policy?
A model airplane (A model or hobby aircraft is covered unless it is designed to carry people or cargo.)
Under the BOP, the Money and Securities Optional Coverage would cover which of the following?
Theft of stock certificates (Personal property and valuable records are automatically covered under the policy. Theft of money and securities by an employee would be covered under the employee dishonesty optional coverage.)
Under the Homeowners Forms, Coverage C includes which type of coverage?
Contents and Personal Property
Which of the following constitutes the acceptance of an offer?
When an insurer issues a binder (The issuance of a binder is indication of the acceptance of an offer.)
A licensee or applicant for an insurance producer license must notify the Pennsylvania Department of Insurance of a change of address within ______ days.
30
Who is not an insured under the Commercial General Liability policy?
Members of a past partnership not listed in the Declarations (There may be several insureds other than those named in the Declarations. However, only the current members of a partnership or LLC are considered insureds.)
Under the CGL, which of the following would exclude from coverage the legal liability associated with a product?
Expected or intended injury (Liability arising out of expected or intended injury is not covered by the CGL policy.)
Which of the following would be found in Section I of a CGL?
Coverage for bodily injury and property damage (Coverage A provides coverage for bodily injury and property damage liability. The conditions are found in Section IV, the definitions are found in Section V, and Who Is An Insured is found in Section II.)
All of the following are true of the supplemental extended reporting period, except:
The insurer may cancel it after the premium has been paid by the insured (Once the premium has been paid, the Supplemental Extended Reporting Period Endorsement cannot be cancelled.)
The CGL's general aggregate limit does not cover which of the following?
Product recall (Coverage is excluded when a product is withdrawn from the market because of a defect. This is sometimes called the Sistership Exclusion.)
All of the following about the CGL's products liability coverage are correct, except:
Damage to the product itself is covered (Products liability coverage covers damage or injuries caused by the insured's product, but does not include damage to the product itself.)
Which of the following individuals would need to be licensed as a producer under the laws of Pennsylvania?
A salaried agency employee that contacts prospective buyers on behalf of a producer
An insurance producer may not act on behalf of an insurer unless the producer is _________ by the insurer.
Appointed
A person who sells, solicits, or negotiates a contract of insurance in Pennsylvania without being licensed as an insurance producer has committed a(n):
3rd degree felony
Which of the following individuals would need to be licensed as a producer under the laws of Pennsylvania?
A salaried agency employee that contacts prospective buyers on behalf of a producer
If a widow who is the beneficiary of a deceased worker remarries:
She receives a lump sum equal to 104 weeks of benefits (A widow receives a lump sum. 51% is the weekly death benefit for a widow without dependent children. 66 2/3%, which equals the rate for disability, is the maximum amount with dependents. 50% of the a
Which statements regarding fraud prevention efforts is not correct?
The Commissioner established a Section of Insurance Fraud to investigate and prosecute fraud (The Section of Insurance Fraud was established by the office of Attorney General. The Commissioner does not prosecute criminal activity, but instead refers it to
All of the following are licensee actions which may cause the Insurance Commissioner of the Pennsylvania Department of Insurance to suspend, deny, revoke, or nonrenew his/her license, except:
Complying with an administrative or court order imposing a child support obligation
The Pennsylvania Insurance Guaranty Association covers which of the following claims?
A $300,000 liability claim against an automobile policy (Employers liability is not covered; $300,000 is the maximum claim for damages not for unearned premiums, which is limited to $10,000. Claims are only covered if they arise within the first 30 days f
If an insurer terminates the relationship between them and an insurance producer, how many days does the insurer have in which to notify the licensee in writing, at his/her home address, from the time the insurer notifies the Department of Insurance?
15
Which of the following statements regarding the duration and termination of policies is correct?
Binders may be in force for up to 30 days (Binders may be in force for 30 days. Commercial policies require 60-day notice of cancellation, and personal lines require 30. All policies may be cancelled with 15 days notice for nonpayment of premiums.)
If the Commissioner has good reason to believe that any person is violating the law, he/she will be given _____ days' notice of a hearing, where he/she will have an opportunity to show cause why the Commissioner should not issue a Cease and Desist Order f
30
Producers that maintain a premium trust account:
May make voluntary deposits to maintain a minimum balance (Producers may make voluntary deposits to maintain a minimum balance or assure the adequacy of the account. Only one account for all insurers is needed if the source of funds can be clearly determi
Which of the following individuals would be covered by the Workers' Compensation program in the state of Pennsylvania?
A farm worker (A farm worker is covered if he or she earns more than $1,200 or works more than 30 days for an employer. The other individuals are either categorically exempt, or do not fall under the category of 'employee.')
An exclusive general agent is a licensee granted sole authority to act as a producer for a domestic insurer who produces business equal to or more than ______% of the surplus.
25
In addition to the penalties previously imposed by a court, what is the maximum penalty the Commissioner can impose?
$5,000
Insurance companies must update their do not call list at least once every _____ days.
31
Because Marilyn made statements that were false and maliciously critical of her competitor's company and its products while attempting to conserve several policies, she was fined for:
Defamation (The key here is that the remarks were both false and maliciously critical. They were not simply false or misleading, they are designed specifically to be an unjustified attack.)
Which of the following statements regarding the maintenance and duration of producer licenses is false?
The department will reinstate licenses retroactively for 30 days after the due date (The Department will actually retroactively reinstate licenses up to 60 days after the license expiration date. Licenses may be reinstated up to 1 year late. A license tha
T was under investigation for a violation of the regulations regarding the payment of fees and commissions because he was accused of:
Charging a fee for the process of completing insurance applications for prospective clients (Producers may not charge a fee for completing an application. They may pay commissions to retired agents that were previously licensed, as well as referral fees t
According to the Standard Fire Policy (SFP):
When more than one insurance policy is in force, coverage is allocated on a pro rata basis (The insurer is liable for no more than the proportion of any loss than its insurance bears to the total insurance in force. Appraisal determines amount not whether
All of the following acts are considered unfair or improper claim settlement practices in Pennsylvania, except:
Settling a claim by arbitration
The Pennsylvania Department of Insurance issues nontransferable insurance producer licenses for a maximum time period of _____ years.
2
The Commissioner has the power to do all of the following, except:
Establish new laws to regulate the business of insurance (The Commissioner can establish regulations in order to enforce the law, but laws themselves must be passed by the legislature.)
All of the following are unfair claims practices, except:
Paying claims without conducting an investigation based upon all information (There is no obligation to conduct an investigation if none is warranted. The unfair practice would be to not pay a claim without first investigating its merits. Also, claims set
ACV (Actual cash value) is generally used for which of the following types of claims?
Auto Physical Damage