Unit 21: PA Laws and Regulations Common to Property and Casualty Insurance Flashcards
Prelicensing education requirement
24 hours
Minimum age to obtain producer’s license
18 y/o
Length of temporary insurance producer license, without requiring an examination if a licensed producer dies, becomes disabled, or enters active military service
180 days
Producer licenses are issued for a term of
2 years
A lapsed producer’s license may be reinstated within ____ year(s) of the license renewal date
1 year
Producer’s time to notify the Commissioner of change of address, administrative actions, or criminal charges
30 days
Requirement for each 2-year Continuing Education requirement
24 hours and 3 hours of ethics
The Commissioner must give ___ days’ notice of a hearing
10 days
Maximum producer fine per violation of the insurance code
$5,000
Unfair Competition Act or Practice civil penalties
- $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
The Commissioner must examine rating organizations at least once every ___ years
5 years
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
$100
A person found guilty of insurance fraud is subject to the following civil penalties
- $5,000 for the first violation
- $10,000 for the second violation
- $15,000 for each subsequent violation
Insurers must acknowledge receipt of a claim within ___ working days
10 days
Insurers must respond to an inquiry from the Insurance Department within ___ working days
15 days
Insurers must provide an insured with an explanation if a claim investigation cannot be completed within ___ days
30 days
The PA P&C Guaranty Association’s maximum payment amount for a claim is $___
$300,000
The PA P&C Guaranty Association’s maximum payment for return of premium is up to $___
$10,000
Commerical policies - notice of cancellation or nonrenewal must be given:
- 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
At least ___ days’ advance notice must be given to the insured of an increase in commercial renewal premium
30 days
Residential policies - Notice of cancellation must be given:
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
Binders for temporary fire insurance may be for a period of up to ___ days
30 days
FAIR plan cancellation notices must be given to any policyholder at least ___ days prior to the cancellation
20 days
Auto Insurance - liability coverage minimum limits
$15,000
Auto Insurance - bodily injury or death of one person in any one accident
$30,000
Auto Insurance - bodily injury or death of two or more persons in any one accident
$5,000
Auto Insurance - property damage of others in any one accident
“15/30/5”
Auto Insurance - medical payments coverage minimum limit, unless rejected by the named insured
$5,000
Auto policies - notice of cancellation or nonrenewal must be given
- 60 days in advance for nonrenewal
- 15 days in advance for nonpayment of premium
- 15 days in advance for material misrepresentation
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.
full tort
Employers of agricultural workers must provide workmen’s compensation coverage for their employees if they;
- pay $1,200 or more to one employee during the calendar year; or
- employ one employee for 30 days or more
Disability benefit payments begin after a ___-day waiting period
7 day
If the disability persists ___ days or more, the employee is entitled to retroactive disability benefits dating to the first day of disability
14 days
Total disability benefits: ___% of the employee’s average weekly earnings
66&2/3%
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
66&2/3%
WC covers burial expenses up to $___
$7,000
WC notice of injury must be made by the injured employee to the employer within ___ days
21 days
WC the first compensation payment must be paid no later than ___ days after the employer has notice or knowledge of the employee’s disability
21 days
