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 1 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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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%. Practice each module to that level and run the full exam simulation 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.

Do I need to create an account?

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.

Which of the following is a statutory exception under §1705 that restores full tort rights to a limited tort insured?

  1. The insured's vehicle was more than ten years old
  2. The insured was not wearing a seatbelt
  3. The at-fault driver has not maintained the required financial responsibility ✓
  4. The accident occurred at night

Why: Section 1705(d) restores full tort rights where the person at fault has not maintained financial responsibility as required by the chapter (among other listed exceptions).

Under 40 P.S. § 310.48, what conduct by an insurance producer is prohibited and graded as a misdemeanor of the third degree?

  1. Failing to deliver a policy within 30 days
  2. Misrepresenting or making an incomplete comparison of contracts to induce an insured of another insurer to lapse, forfeit, or surrender coverage and replace it ✓
  3. Sharing commissions with an unlicensed person
  4. Charging a higher premium than the filed rate unless an exception clearly applies for the coverage that is in force according to the insurer's rules in that particular circumstance

Why: Section 310.48 prohibits a producer from misrepresenting or making an incomplete comparison of contracts to induce an insured of another insurer to lapse, forfeit, or surrender coverage and take out similar coverage with the producer's insurer; a violation is a misdemeanor of the third degree.

With respect to an employer's ongoing failure to secure workers' compensation coverage, the Act provides that:

  1. Every day's violation constitutes a separate offense ✓
  2. No offense occurs unless an employee is actually injured
  3. Only the first day of noncompliance is punishable
  4. Violations can be charged only once per calendar year

Why: Section 305(b) states that every day's violation constitutes a separate offense.

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Under TRIA, the federal government's share of insured terrorism losses applies only after the insurer pays:

  1. The full loss with no federal help
  2. Nothing
  3. A flat $1,000
  4. An insurer deductible based on a percentage of its prior-year premiums ✓

Why: Under TRIA, each insurer retains a deductible (a percentage of its prior-year direct earned premium) before the federal government shares in the remaining certified losses.

Fair dealing and good faith in claims handling require an insurer and producer to:

  1. Avoid all communication with the insured
  2. Pay only the largest claims
  3. Delay all claims as long as possible
  4. Treat the insured honestly, investigate fairly, and not unreasonably deny valid claims ✓

Why: The duty of good faith and fair dealing requires honest, prompt, and fair treatment of insureds and reasonable handling of valid claims.

A FAIR Plan is designed primarily to:

  1. Offer discounted auto insurance to good drivers
  2. Make property insurance available to applicants who cannot obtain it in the voluntary market ✓
  3. Insure government buildings
  4. Provide flood insurance in coastal areas

Why: FAIR (Fair Access to Insurance Requirements) Plans are state residual market mechanisms that provide property insurance to risks unable to buy it in the standard voluntary market.

What is the primary purpose of a coinsurance clause in commercial property insurance?

  1. To limit the deductible
  2. To encourage insureds to carry insurance close to the property's full value ✓
  3. To exclude catastrophic perils
  4. To require the insurer to share losses with reinsurers

Why: Coinsurance encourages insureds to insure to value; if they underinsure below the required percentage, the loss payment is reduced proportionally.

An employer operates in a monopolistic state fund jurisdiction and also wants protection against employee lawsuits not covered by the fund. The appropriate solution is:

  1. An assigned-risk placement
  2. A stop gap employers liability endorsement ✓
  3. A Defense Base Act policy
  4. A standard Part One policy from a private insurer

Why: Because monopolistic funds provide statutory benefits but not employers liability, a stop gap endorsement (employers liability) on the employer's general liability or WC policy fills that exposure.

A bond guaranteeing that the contractor will pay subcontractors, laborers, and material suppliers is a:

  1. Maintenance bond
  2. Performance bond
  3. Payment bond ✓
  4. Bid bond

Why: A payment bond guarantees that subcontractors and suppliers will be paid, protecting against liens.

An insured damages a friend's mailbox and fence while backing out of a driveway in the covered auto. This is covered under:

  1. Part A — Property Damage Liability ✓
  2. Part D — Collision
  3. Part B — Medical Payments
  4. Part C — Uninsured Motorists

Why: Damage to another person's property (mailbox, fence) for which the insured is legally liable is covered under Part A property damage liability.

Upon evidence of a violation, the department must give notice and fix a hearing. The hearing must be set for at least how long after the notice?

  1. At least thirty days thereafter
  2. At least twenty days thereafter
  3. At least ten days thereafter ✓
  4. At least five days thereafter

Why: Section 310.91(a) requires the notice to specify the alleged violation and fix a time and place, at least ten days thereafter, for the hearing.

A limited tort insured is injured by a driver who is later convicted of driving under the influence in that accident. What is the effect on the insured's tort rights?

  1. The insured must first exhaust first-party benefits
  2. The insured remains barred from noneconomic damages
  3. The insured may recover as if he had full tort coverage ✓
  4. The insured may recover only economic loss

Why: Section 1705(d) provides that a limited tort insured may recover as if full tort was elected when the at-fault driver is convicted of, or accepts ARD for, DUI in that accident.

For an injury to be compensable under workers' compensation, it generally must arise:

  1. Solely from the employer's negligence
  2. From a single sudden accident only
  3. During regularly scheduled hours only
  4. Out of and in the course of employment ✓

Why: The basic compensability test is that the injury must 'arise out of and in the course of employment' — connected to the work and occurring within the scope of the job.

Under 31 Pa. Code § 146.7, if the insurer needs more time to decide a first-party claim, it must notify the claimant within 15 working days of the proofs of loss and, if investigation remains incomplete, send further status letters at what interval?

  1. 30 days after initial notification and every 45 days thereafter ✓
  2. 15 days after initial notification and every 30 days thereafter
  3. 10 days after initial notification and every 20 days thereafter
  4. 60 days after initial notification and every 90 days thereafter

Why: Section 146.7(c)(1) requires the insurer that needs more time to notify the claimant within 15 working days of the proofs of loss, and if investigation remains incomplete, to send a letter 30 days from the initial notification and every 45 days thereafter stating the reasons more time is needed and when a decision may be expected.

An employer may be held liable to a third party for damages, contribution, or indemnity arising out of a work injury only when:

  1. Liability is expressly provided in a written contract entered before the occurrence ✓
  2. The employer was more than 50% at fault
  3. A workers' compensation judge so orders
  4. The third party demands it within 120 days

Why: Under §303(b), the employer is not liable to a third party for contribution or indemnity unless such liability is expressly provided in a written contract entered into before the date of the occurrence.

A Contractors Equipment floater typically covers:

  1. Completed buildings
  2. Mobile equipment and tools such as bulldozers and cranes used by a contractor ✓
  3. Office furniture only
  4. Accounts receivable

Why: The Contractors Equipment floater is an inland marine form covering mobile tools, machinery, and equipment a contractor uses at various job sites.

A 'per person' limit in a liability policy applies to:

  1. Property damage only
  2. The deductible
  3. The maximum payable for bodily injury to one individual ✓
  4. The total of all claims in the policy period

Why: A per-person limit caps the amount payable for bodily injury sustained by any single individual.

Unlike Part One, Part Two (Employers Liability) of the policy does include limits of liability. The three Part Two limits typically apply to:

  1. Medical, indemnity, and death benefits
  2. Temporary, permanent, and survivor benefits
  3. Per claim, per occurrence, and aggregate medical
  4. Bodily injury by accident, bodily injury by disease per employee, and bodily injury by disease policy limit ✓

Why: Part Two shows three limits: bodily injury by accident (each accident), bodily injury by disease (policy limit), and bodily injury by disease (each employee).

Under §1712, for the accidental death benefit to be payable, death resulting from the motor vehicle accident must occur within what period from the date of the accident?

  1. 36 months
  2. 12 months
  3. 24 months ✓
  4. 18 months

Why: The accidental death benefit is paid if injury resulting from the accident causes death within 24 months from the date of the accident.

Flood damage to a home is covered under a standard Homeowners policy:

  1. Only under HO-8
  2. Always
  3. Only under Coverage F
  4. Never; flood is excluded and covered through the NFIP or a separate flood policy ✓

Why: Flood is a standard exclusion in Homeowners policies; it must be insured separately, typically through the National Flood Insurance Program.

The chief purpose of insurance for the individual is to:

  1. Generate investment profit
  2. Eliminate physical hazards
  3. Avoid all possibility of loss
  4. Indemnify against the financial consequences of an unexpected loss ✓

Why: Insurance restores an insured who suffers a loss to the same financial condition as before the loss; it indemnifies rather than profits the insured.

How does a Combined Single Limit (CSL) differ from split limits in auto liability coverage?

  1. CSL doubles the per-person bodily injury limit
  2. CSL applies only to property damage
  3. CSL excludes coverage for bodily injury
  4. CSL provides one total limit for both BI and PD combined per accident ✓

Why: A combined single limit provides a single dollar amount that applies to the total of bodily injury and property damage liability arising from one accident.

A neighbor is injured by the insured's dog and incurs medical bills. Even though no lawsuit is filed and fault is unclear, payment may be available under:

  1. Coverage E — Personal Liability
  2. Coverage F — Medical Payments to Others ✓
  3. Coverage C — Personal Property
  4. Coverage D — Loss of Use

Why: Coverage F pays reasonable medical expenses for injured third parties on a no-fault, goodwill basis without requiring a finding of legal liability.

Glass breakage to a covered building under broad and special homeowners forms is generally:

  1. Covered only under DP-1
  2. Part of liability
  3. Excluded entirely
  4. Covered, though restricted if the dwelling has been vacant beyond the allowed period ✓

Why: Breakage of glass is a covered additional coverage/peril under broad and special forms, but coverage may be suspended when the dwelling has been vacant beyond the stated period.

Which of the following is NOT an element of an ideally insurable risk?

  1. The premium must be economically feasible
  2. The loss must be due to chance and accidental
  3. The loss must be catastrophic to the insurer ✓
  4. The loss must be definite and measurable

Why: Insurable losses should NOT be catastrophic to the insurer; insurers avoid risks that could cause simultaneous, ruinous losses across the pool.

Section 1171.5(a)(6) prohibits issuing or delivering agency company stock, benefit certificates, or advisory board contracts promising returns and profits for what purpose?

  1. To compel litigation by claimants
  2. To inflate the insurer's surplus on financial statements
  3. As an inducement to insurance ✓
  4. To unfairly discriminate among policyholders

Why: Section 1171.5(a)(6) prohibits issuing or delivering (or permitting agents/officers/employees to issue or deliver) capital stock, benefit certificates, securities, or advisory board contracts promising returns and profits as an inducement to insurance.

An insurer incorporated in the state where it is transacting business is classified as:

  1. Alien
  2. Domestic ✓
  3. Foreign
  4. Reciprocal

Why: A domestic insurer is one organized under the laws of the state in which it is doing business.

Under the BACF, coverage for autos the named insured does not own, hire, or borrow but that are used in the business by employees is most economically added through:

  1. Specified causes of loss
  2. Non-owned auto liability (Symbol 9), which carries no separate vehicle premium for owned units ✓
  3. Garagekeepers
  4. Symbol 1 on physical damage

Why: Symbol 9 non-owned liability is typically rated on a flat or employee/exposure basis rather than per scheduled auto, providing economical vicarious-liability protection.

The National Flood Insurance Program (NFIP) is administered by which federal agency?

  1. The U.S. Department of Agriculture
  2. The Department of Housing and Urban Development
  3. The Small Business Administration
  4. The Federal Emergency Management Agency (FEMA) ✓

Why: The NFIP is administered by FEMA, an agency within the Department of Homeland Security.

A worker suffers binaural (both-ear) occupational hearing loss. A claim for that specific loss must be filed within:

  1. One year of diagnosis
  2. Six months of leaving employment
  3. 120 days of the last exposure
  4. Three years of the date of last exposure ✓

Why: Section 306(c) provides that a claim for occupational binaural hearing loss must be filed within three years of the date of last exposure to hazardous occupational noise.