Unit 21: PA Laws and Regulations Common to Property and Casualty Insurance

Question 1

Prelicensing education requirement

Answer 1

24 hours

Question 2

Minimum age to obtain producer’s license

Answer 2

18 y/o

Question 3

Length of temporary insurance producer license, without requiring an examination if a licensed producer dies, becomes disabled, or enters active military service

Answer 3

180 days

Question 4

Producer licenses are issued for a term of

Answer 4

2 years

Question 5

A lapsed producer’s license may be reinstated within ____ year(s) of the license renewal date

Answer 5

1 year

Question 6

Producer’s time to notify the Commissioner of change of address, administrative actions, or criminal charges

Answer 6

30 days

Question 7

Requirement for each 2-year Continuing Education requirement

Answer 7

24 hours and 3 hours of ethics

Question 8

The Commissioner must give ___ days’ notice of a hearing

Answer 8

10 days

Question 9

Maximum producer fine per violation of the insurance code

Answer 9

$5,000

Question 10

Unfair Competition Act or Practice civil penalties

Answer 10

• $1,000 per violation for nonwillful violations
• $10,000 aggregate penalty for nonwillful violations
• $5,000 per violation for willful violations
• $50,000 aggregate penalty for willful violations

Question 11

The Commissioner must examine rating organizations at least once every ___ years

Answer 11

5 years

Question 12

The amount of valuable consideration, other than money, an insurance producer may offer or give to an insured or a prospective insured, on an annual aggregate basis, that does not violate rebating statute

Answer 12

$100

Question 13

A person found guilty of insurance fraud is subject to the following civil penalties

Answer 13

• $5,000 for the first violation
• $10,000 for the second violation
• $15,000 for each subsequent violation

Question 14

Insurers must acknowledge receipt of a claim within ___ working days

Answer 14

10 days

Question 15

Insurers must respond to an inquiry from the Insurance Department within ___ working days

Answer 15

15 days

Question 16

Insurers must provide an insured with an explanation if a claim investigation cannot be completed within ___ days

Answer 16

30 days

Question 17

The PA P&C Guaranty Association’s maximum payment amount for a claim is $___

Answer 17

$300,000

Question 18

The PA P&C Guaranty Association’s maximum payment for return of premium is up to $___

Answer 18

$10,000

Question 19

Commerical policies - notice of cancellation or nonrenewal must be given:

Answer 19

• 60 days in advance for nonrenewal
• 15 days in advance for nonpayment of premium
• 15 days in advance for material misrepresentation of the risk insured

Question 20

At least ___ days’ advance notice must be given to the insured of an increase in commercial renewal premium

Answer 20

30 days

Question 21

Residential policies - Notice of cancellation must be given:

Answer 21

30 days in advance

Basic property insurance will continue for 180 days after the named insured’s death or until the sale of the property, whichever occurs first

Question 22

Binders for temporary fire insurance may be for a period of up to ___ days

Answer 22

30 days

Question 23

FAIR plan cancellation notices must be given to any policyholder at least ___ days prior to the cancellation

Answer 23

20 days

Question 24

Auto Insurance - liability coverage minimum limits

Answer 24

$15,000

Question 25

Auto Insurance - bodily injury or death of one person in any one accident

Answer 25

$30,000

Question 26

Auto Insurance - bodily injury or death of two or more persons in any one accident

Answer 26

$5,000

Question 27

Auto Insurance - property damage of others in any one accident

Answer 27

“15/30/5”

Question 28

Auto Insurance - medical payments coverage minimum limit, unless rejected by the named insured

Answer 28

$5,000

Question 29

Auto policies - notice of cancellation or nonrenewal must be given

Answer 29

• 60 days in advance for nonrenewal
• 15 days in advance for nonpayment of premium
• 15 days in advance for material misrepresentation

Question 30

PA automobile insureds have two tort options; full tort, and limited tort. If the insured does not respond to options, ___ tort is the default option.

Answer 30

full tort

Question 31

Employers of agricultural workers must provide workmen’s compensation coverage for their employees if they;

Answer 31

• pay $1,200 or more to one employee during the calendar year; or
• employ one employee for 30 days or more

Question 32

Disability benefit payments begin after a ___-day waiting period

Answer 32

7 day

Question 33

If the disability persists ___ days or more, the employee is entitled to retroactive disability benefits dating to the first day of disability

Answer 33

14 days

Question 34

Total disability benefits: ___% of the employee’s average weekly earnings

Answer 34

66&2/3%

Question 35

Partial disability benefits are ___% of the difference between the employee’s weekly earnings at the time of injury and the employee’s actual weekly earnings during the period of partial disability

Answer 35

66&2/3%

Question 36

WC covers burial expenses up to $___

Answer 36

$7,000

Question 37

WC notice of injury must be made by the injured employee to the employer within ___ days

Answer 37

21 days

Question 38

WC the first compensation payment must be paid no later than ___ days after the employer has notice or knowledge of the employee’s disability

Answer 38

21 days