Evergreen Insurance Prep

Pennsylvania Property & Casualty Insurance License, Practice Exams

Pennsylvania Property & Casualty producer licensing (PSI Series 16-06). National P&C insurance knowledge plus Pennsylvania insurance law (auto/MVFRL, property and homeowners, workers' compensation), authored from public-domain statutes.
Content last updated 2 July 2026

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Each module is scored separately here so you know exactly where you stand. To pass the real Pennsylvania exam you need 70%.

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Unlock the full question bank

The free sample gives you about 20 questions per module. The full bank contains every question — general insurance plus state law — with written, statute-cited explanations. $49, one time, lifetime access on up to 3 devices — every state and line we add later included.

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Frequently asked questions

How is the Pennsylvania producer licensing exam structured?

Pennsylvania licenses Property & Casualty producers through PSI (the Series 16-06 exam): 150 scored questions, 170 minutes, and 70% to pass. This bank covers the national property & casualty material plus Pennsylvania law - auto (the Motor Vehicle Financial Responsibility Law and full/limited tort), property and homeowners, and workers' compensation.

What score do I need to pass?

You need 70%. Revise each module to that level in Revision Mode, then run the full exam simulation in Exam Mode before your test date.

Are these real exam questions?

No vendor publishes the live exam. Every question here is original, written to the official content outline and grounded in public-domain sources — including the Pennsylvania statutes (75 Pa. C.S., 77 P.S., 40 P.S.) for the state-law questions, with the statute section cited in each explanation.

How many practice questions are included?

The full Pennsylvania bank contains 1041 questions (general insurance plus Pennsylvania law), with written, source-cited explanations. The free sample gives you about 20 questions per module.

What does access cost?

$49, one time, for lifetime access — and it includes every state and line we add later, at no extra charge. No subscription.

Can I use it on more than one device?

Yes. One purchase works on up to 3 of your devices, for example your laptop, phone and tablet, so you can practise wherever you are. Your progress is saved on each device.

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No. The practice tests run in your browser with no signup. Your score history is saved on your own device.

Sample Pennsylvania Property & Casualty Insurance License practice questions

A selection of free questions with answers and explanations. Use the interactive modules above for timed, scored drills.

A statement that is guaranteed to be true and becomes part of the contract is a:

  1. Concealment
  2. Representation
  3. Warranty ✓
  4. Waiver

Why: A warranty is a statement that is guaranteed true and becomes part of the policy; its breach can void coverage.

The FAIR Plan Act is particularly aimed at stabilizing the property insurance market for property located in what type of area?

  1. High-elevation areas
  2. Coastal areas
  3. Urban areas of the Commonwealth ✓
  4. Rural farming areas

Why: 40 P.S. §1600.102(1) states the purpose of encouraging stability in the property insurance market for property located in urban areas of the Commonwealth.

A provision allowing the insured to transfer policy rights and duties to another party, generally only with insurer consent, is the:

  1. Liberalization clause
  2. Assignment clause ✓
  3. Salvage clause
  4. Subrogation clause

Why: The assignment clause requires the insurer's written consent before the insured can transfer the policy to another party.

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When an employer is held responsible for the negligent acts of an employee committed within the scope of employment, this is:

  1. Contributory negligence
  2. Vicarious liability ✓
  3. Absolute liability
  4. Strict liability

Why: Vicarious liability holds one party (e.g., an employer) responsible for the actions of another (e.g., an employee acting within the scope of employment).

Binders or temporary contracts for fire insurance in Pennsylvania may be made orally or in writing for a period not exceeding how many days?

  1. Sixty days
  2. Fifteen days
  3. Ninety days
  4. Thirty days ✓

Why: 40 P.S. §636(5)(d) permits binders for temporary insurance, oral or written, for a period not exceeding thirty days.

An 'impairment rating' in workers' compensation is used primarily to:

  1. Decide which state's law applies
  2. Measure the degree of permanent loss of function for benefit determination ✓
  3. Set the employer's premium classification
  4. Calculate the experience modification factor in that particular circumstance

Why: An impairment rating, often expressed as a percentage, measures the extent of permanent physical impairment and is used to determine permanent disability benefits.

Because insurance contracts are drafted by the insurer and the insured must accept them as written, they are characterized as contracts of:

  1. Utmost good faith
  2. Adhesion ✓
  3. Indemnity
  4. Aleatory nature

Why: A contract of adhesion is prepared by one party, the insurer, and offered on a take-it-or-leave-it basis; ambiguities are construed against the drafter.

An individual currently licensed as a resident producer in another state applies in Pennsylvania for the equivalent lines. What does Section 310.10 require the individual to submit?

  1. Proof of 24 hours of Pennsylvania continuing education
  2. Fingerprints and a new background investigation only
  3. A completed application, proof of the home state license, and the required fee ✓
  4. A passing score on the Pennsylvania producer examination under the policy's terms

Why: Section 310.10(a)(1) requires the individual to submit a completed (or updated home state) application indicating the desired lines, proof of the current home state license, and the required license fee.

The Information Page of the Workers Compensation policy is most analogous to which component of other commercial policies?

  1. The endorsement schedule
  2. The declarations page ✓
  3. The exclusions section
  4. The conditions section

Why: The Information Page functions like a declarations page, showing the insured, policy period, listed states, classifications, premium basis, and limits for Part Two.

Garage coverage (now largely the Auto Dealers Coverage Form) is designed for:

  1. Private homeowners with a detached garage unless an exception clearly applies for the coverage that is in force
  2. Trucking fleets only
  3. Businesses in the auto sales/service trade, covering their operations and inventory exposures ✓
  4. Personal motorcycle owners

Why: Garage/Auto Dealers coverage addresses the unique liability and physical damage exposures of dealers, repair shops, and service stations, including dealers' inventory.

Under the standard fire policy 'Pro rata liability' provision, when other insurance covers the same property against the peril involved, the company is liable only for:

  1. Half of the total loss
  2. The full loss up to its policy limit
  3. The proportion of the loss its amount bears to the whole insurance on the property ✓
  4. Nothing, because other insurance is prohibited unless an exception clearly applies for the coverage that is in force

Why: 40 P.S. §636 provides the company is not liable for a greater proportion of any loss than its amount of insurance bears to the whole insurance covering the property against the peril, whether collectible or not.

An insurer must make first-party MEDICAL benefits available for purchase up to at least what limit under §1715?

  1. $100,000 ✓
  2. $25,000
  3. $177,500
  4. $50,000

Why: Section 1715 requires medical benefits be made available for purchase up to at least $100,000.

Under the FCRA, a consumer who is the subject of an adverse action based on a consumer report has the right to:

  1. Demand the agent's license
  2. Receive a free insurance policy unless an exception clearly applies for the coverage that is in force
  3. Sue the federal government
  4. Obtain a free copy of the report and dispute inaccurate information ✓

Why: The FCRA gives consumers the right to a free copy of the report that led to an adverse action and the right to dispute inaccurate or incomplete information.

A producer license is described in Section 310.7 as having which characteristic?

  1. Automatically renewing each year
  2. Nontransferable ✓
  3. Issued only in electronic form
  4. Limited to a single line of authority

Why: Section 310.7(3) states the producer license is nontransferable; it may be issued in paper or electronic form and in one or more lines of authority.

A farmowners-ranchowners policy is best described as a package that combines:

  1. Crop insurance only unless an exception clearly applies for the coverage that is in force according to the insurer's rules
  2. Property and liability coverage for the farm dwelling, farm structures, and farming operations ✓
  3. Auto coverage only
  4. Only farm liability

Why: The farmowners-ranchowners policy is a package combining homeowners-type property and liability coverage with coverage for farm structures, equipment, and operations.

Which of the following is true about how WC indemnity benefits interact with maximum and minimum limits?

  1. There are no statutory limits on weekly benefits unless an exception clearly applies for the coverage that is in force
  2. Weekly benefits are subject to statutory maximums and minimums tied to the state average wage ✓
  3. Only a maximum, never a minimum, applies
  4. Benefits always equal 100% of wages

Why: Indemnity benefits are generally a percentage of average weekly wage but capped by a statutory maximum and floored by a minimum, often tied to the statewide average weekly wage.

Knowingly filing with a supervisory official a false material statement of fact as to a person's financial condition, or knowingly making a false entry of a material fact in a book or report, is prohibited as what?

  1. Twisting according to the applicable statutory provision
  2. Defamation according to the applicable statutory provision
  3. False financial statements ✓
  4. Coercion according to the applicable statutory provision

Why: Section 1171.5(a)(5) prohibits knowingly filing or making false material statements as to financial condition, knowingly making a false entry of a material fact in any book/report/statement, or knowingly omitting a true entry of a material fact.

The Gramm-Leach-Bliley Act (GLBA) requires financial institutions, including insurers, to:

  1. Sell crop insurance
  2. Provide flood coverage unless an exception clearly applies for the coverage that is in force according to the insurer's rules in that particular circumstance under the policy's terms
  3. Join a FAIR Plan
  4. Protect the privacy of nonpublic personal financial information and give consumers notice and an opt-out right before sharing it with nonaffiliated third parties ✓

Why: GLBA's privacy provisions require notice of information-sharing practices and, in many cases, allow consumers to opt out of having their nonpublic personal financial information shared with nonaffiliated third parties.

A producer who handles premium funds belonging to the insurer and the insured holds those funds in a:

  1. Fiduciary capacity ✓
  2. Personal capacity
  3. Reciprocal capacity
  4. Speculative capacity

Why: A producer holding others' money, such as premiums, acts in a fiduciary capacity and must handle those funds with trust and care.

A retail employee sues the company for sexual harassment and wrongful termination. Which policy is designed to respond?

  1. Workers Compensation in most situations
  2. CGL Coverage A
  3. Commercial Property
  4. Employment Practices Liability (EPLI) ✓

Why: Harassment and wrongful termination are employment practices claims handled by EPLI, not the CGL.

Which exclusion applies under PAP Part A — Liability?

  1. Damage to property owned by or being transported by the insured ✓
  2. Injury caused by an insured family member
  3. Bodily injury to a pedestrian struck by the insured
  4. Liability arising from a borrowed friend's car

Why: Part A excludes property owned by, rented to, used by, or in the care of the insured, which is why the insured's own/handled property is not covered.

Under the standard fire policy 'Concealment, fraud' provision, the entire policy is void if the insured willfully conceals or misrepresents a material fact:

  1. Only if the concealment relates to occupancy
  2. Only before a loss occurs
  3. Whether before or after a loss ✓
  4. Only after a loss occurs

Why: 40 P.S. §636 voids the entire policy for willful concealment or misrepresentation of a material fact, whether before or after a loss.

The Accounts Receivable floater covers loss resulting from:

  1. Customers refusing to pay valid invoices in that particular circumstance
  2. Bad credit decisions
  3. Market downturns
  4. Inability to collect because records were destroyed by a covered peril ✓

Why: Accounts Receivable coverage pays for sums the insured cannot collect because receivable records were lost or destroyed by a covered cause of loss, plus extra collection and reconstruction costs.

A producer moves and gets a new phone number and email. Within what time must the producer notify the department of these changes?

  1. Within 30 days ✓
  2. Within 10 days
  3. Within 60 days
  4. Within 15 days

Why: Section 310.11(19) makes it a prohibited act to fail to notify the department of a change of address, telephone number and email address within 30 days.

A stock insurer is owned by its:

  1. Stockholders ✓
  2. State insurance department
  3. Policyholders
  4. Board of agents

Why: A stock insurer is owned by stockholders, who supply capital and receive dividends; policyholders are not owners.

Personal watercraft, such as jet skis, are typically:

  1. Insured under crop policies
  2. Automatically covered with no limits under a homeowners policy unless an exception clearly applies for the coverage that is in force
  3. Covered only by NFIP flood policies
  4. Excluded or sharply limited under a homeowners policy and better insured under a watercraft or boatowners policy ✓

Why: Homeowners forms severely limit or exclude watercraft liability and physical damage, so personal watercraft are best covered by a separate watercraft policy.

When a named insured dies, Pennsylvania law requires that basic property insurance be continued for how long after the death (or until sale of the property, whichever is first), provided premiums are paid?

  1. 90 days
  2. One year
  3. 180 days ✓
  4. 30 days

Why: 40 P.S. §636.1(a) continues basic property insurance for 180 days after the named insured's death or until sale of the property, whichever occurs first, if premiums are paid.

A hazard is best defined as:

  1. Any condition or situation that increases the likelihood or severity of a loss ✓
  2. The cause of a loss
  3. The financial harm resulting from a loss
  4. The uncertainty about whether a loss will occur according to the insurer's rules

Why: A hazard is a condition that increases the chance that a peril will occur or the severity of a resulting loss.

A civilian working for a U.S. defense contractor on a military base overseas is injured. Which act most likely provides workers' compensation coverage?

  1. The Jones Act
  2. FECA
  3. FELA
  4. The Defense Base Act ✓

Why: The Defense Base Act extends LHWCA-style workers' compensation benefits to civilian employees of U.S. government contractors working on overseas military bases and similar locations.

In a surety bond, the company that guarantees the principal's performance is the:

  1. Surety ✓
  2. Obligee
  3. Indemnitor
  4. Principal

Why: The surety is the entity guaranteeing that the principal will fulfill its obligation to the obligee.