Pennsylvania insurance licensing law practice questions
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Section 1.0 Insurance Regulation is 14% of the Pennsylvania Life exam and 13% of the Accident and Health exam. Its first topics are licensing, keeping a license, disciplinary actions, producer regulation and appointment procedures, with citations to 40 P.S. 310.x. [1] Those sections come from the Insurance Department Act of 1921, sections 601-A and following. This page lists the key rules and 12 practice questions, based on the act's current text.
Key rules
- License required: a person may not sell, solicit or negotiate insurance in Pennsylvania without a producer license for that line of authority. (IDA 603-A(a)) [2]
- Exam first: before applying for a license, an individual must pass the licensing exam for the lines wanted. (IDA 604-A(a)) [2]
- License term: not more than two years, nontransferable, in one or more lines of authority. (IDA 607-A) [2]
- Renewal: a renewal form, the fee and proof of the required continuing education. (IDA 608-A(a)) [2]
- Continuing education: 24 credit hours each two-year license period, at least 3 on ethics; up to 24 extra hours can carry forward. (IDA 608-A(b)) [2]
Practice questions
1. A producer moves and gets a new phone number and email. How long do they have to tell the Insurance Department?
A. 10 days
B. 15 days
C. 30 days
D. 60 days
Answer: C. Failing to notify the department of a change of address, telephone number and email address within 30 days is a prohibited act. (IDA 611-A(19)) [2]
2. Which of these is a prohibited act for a licensee?
A. Taking an exam for a second line of authority
B. Cheating on a producer licensing exam
C. Carrying forward extra CE hours
D. Asking for a license renewal
Answer: B. (IDA 611-A(10)) [2]
3. A producer moves a client's coverage to a different insurer without the client's consent. Is that allowed?
Answer: No. Transferring coverage to an insurer other than the one the insured chose, without the insured's consent, is a prohibited act. (IDA 611-A(18)) [2]
4. A producer knowingly accepts business sold by an unlicensed person. Is that a violation?
Answer: Yes. (IDA 611-A(11)) [2]
5. Can a producer act on behalf of an insurer without an appointment?
Answer: No. A producer may not act on behalf of or represent an insurer unless appointed by that insurer. A producer not acting for an insurer does not need an appointment. (IDA 671-A(a)) [2]
6. A producer represents a consumer for a fee. What must happen first?
Answer: A written agreement with the consumer, before acting for them, that describes the services and fully discloses the fee. (IDA 671-A(b)) [2]
7. What is the annual appointment fee billed to the insurer for each appointed producer?
Answer: $12.50, billed annually, payable within 30 days. (IDA 671-A(e)) [2]
8. An insurer ends a producer's appointment. When must it notify the department?
Answer: Within 30 days after the termination takes effect. (IDA 671.1-A(a)) [2]
9. After receiving a copy of a termination notice, how long does the licensee have to file written comments?
Answer: 30 days. (IDA 671.1-A(d)(2)) [2]
10. A licensee is charged with criminal conduct. When must they report it?
Answer: Within 30 days of being charged. Administrative actions in another jurisdiction must be reported within 30 days of the final disposition. (IDA 678-A) [2]
11. A licensee does not answer a written department inquiry. What happens?
Answer: After notice, they have 15 days to correct it. If they do not, the department may fine them up to $100 per day per violation. A response is due within 30 days of receiving the inquiry. (IDA 612-A) [2]
12. After a hearing finds a violation of the act, what can the commissioner impose?
Answer: Any combination of denial, suspension, refusal to renew or revocation of the license; a civil penalty of up to $5,000 for each violation; a cease and desist order; and other conditions. The hearing notice must give at least ten days. (IDA 691-A) [2]
Study tips
- Most deadlines here are 30 days: address changes, termination notices, comments on a termination, and reporting criminal charges or final actions.
- The odd ones out: 15 days to fix a missed inquiry, $100 a day fines after that, $12.50 appointment fee, $5,000 civil penalty, and ten days of hearing notice.
More questions are in the free Pennsylvania insurance law practice test.
Prep Retention is independent and is not affiliated with PSI or the state.
Sources
- PSI, Pennsylvania outlines 16-01xx and 16-02xx (effective 3/1/2026): https://proctor2.psionline.com/media/programs/PAINS/16-01xx.pdf , https://proctor2.psionline.com/media/programs/PAINS/16-02xx.pdf
- Insurance Department Act of 1921 (Act of May 17, 1921, P.L. 789, No. 285), current text, PA General Assembly: https://www.palegis.us/statutes/unconsolidated/law-information/view-statute?iFrame=true&txtType=HTM&SessYr=1921&SessInd=0&ActNum=0285