10 exam-style questions with answers and explanations, straight from our 1,030-question bank. Tap an answer to check yourself. When you're ready, take the scored version in the free practice test.
The PA-PC exam has 150 questions and runs 2 hours 50 minutes.
These 10 free PA-PC questions are organized by exam domain, so you can see how each part of the Pennsylvania Property & Casualty Insurance Producer Exam blueprint is tested. Reveal the answer and explanation under each question.
A Pennsylvania producer receives a final order suspending the producer's license in another state. The order is not stayed while an appeal is considered. When must the producer report the action to the Pennsylvania Insurance Department?
Correct answer: B - Within 30 days after final disposition
An insurer cannot reasonably complete its investigation of a Pennsylvania property claim within 30 days after receiving notice. What should the insurer do next?
Correct answer: C - Send a written delay explanation and 45-day status updates
The sole owner of a Pennsylvania insurance agency dies. The owner's unlicensed surviving spouse needs limited authority to service existing business while arranging an orderly transfer. The licensing mechanism designed for this situation is:
Correct answer: D - A temporary producer license for up to 180 days
A comparable commercial policy is readily available from admitted Pennsylvania insurers, but a nonadmitted insurer offers a lower premium. A producer proposes a surplus-lines placement solely to obtain the lower price. Which statement is accurate?
Correct answer: A - The placement is improper; price alone does not justify surplus lines
An insurer's loss ratio is 72% and its expense ratio is 25%. What does the combined ratio show?
Correct answer: D - 97%; an underwriting gain
A commercial building is valued at $1,000,000 and is subject to an 80% coinsurance requirement. The insured carries a $600,000 limit. A covered partial loss is $200,000, and the deductible is $5,000. What is the loss payment?
Correct answer: B - $145,000
Defective electrical wiring, excluded as faulty workmanship, overheats and causes a fire. The property policy covers fire and preserves coverage for an ensuing covered loss. Which coverage conclusion is best?
Correct answer: A - Resulting fire damage may be covered; the defective wiring is not
After firefighters release a damaged store, a broken window leaves covered inventory exposed to incoming rain. The adjuster cannot arrive until the next day. Which action best satisfies the insured's policy duties?
Correct answer: C - Board the window, document the expense, keep receipts, and notify the insurer
At a dwelling insured under an unendorsed DP-3, a resident accidentally drops a heavy pan, cracking a permanently installed countertop and destroying a laptop resting on it. No exclusion applies to the countertop damage. How should the two losses be analyzed?
Correct answer: B - Countertop potentially covered; laptop not covered
A condominium unit owner needs coverage for personal property, interior building items the bylaws require the owner to insure, loss of use, and personal liability. The homeowners form that most directly fits the exposure is:
Correct answer: D - HO-6 Unit-Owners Form
The PA-PC exam also covers these domains. Drill them in the full free practice test:
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