Pennsylvania Laws and Regulations

Question 1

Pre-Licensing education Requirement

Answer 1

24 hours

Question 2

Minimum age to obtain a producer’s license

Answer 2

Age 18

Question 3

Length of temporary insurance producer license, without requiring an examination if a licensed producer dies, becomes disabled, or enters active military service

Answer 3

180 days

Question 4

Producer licenses are issued for a term of how many years?

Answer 4

2 years

Question 5

A lapsed producer’s license may be reinstated within ___ year(s) of the license renewal date

Answer 5

1 year

Question 6

Producer’s time to notify the Commissioner of change to address, administrative actions, or criminal charges

Answer 6

30 days

Question 7

Continuing Education

Requirement for each 2 year CE term

Answer 7

24 hours

Question 8

Continuing Education

Includes ___hours of Ethics

Answer 8

3 hours

Question 9

Continuing Education

Number of hours that may be carried forward to next CE term

Answer 9

24 hours

Question 10

Insurance Commissioner

The Commissioner must give __ days’ notice of a hearing.

Answer 10

10 days

Question 11

Insurance Commissioner

Maximum producer fine per violation of the insurance code

Answer 11

$5,000

Question 12

Unfair Competition, Act, or Practice– Civil Penalties

$___ per violation for nonwillful violations

Answer 12

$1,000

Question 13

Unfair Competition, Act, or Practice– Civil Penalties

$____ aggregate penalty for nonwillful violations

Answer 13

$10,000

Question 14

Unfair Competition, Act, or Practice– Civil Penalties

$____ per violation for willful violations

Answer 14

$5,000

Question 15

Unfair Competition, Act, or Practice– Civil Penalties

$___ aggregate penalty for willful violations

Answer 15

$50,000

Question 16

The Commissioner must examine rating organizations at least once every ___ years

Rates must be filed ___ days before use

Answer 16

5 years

30 days

Question 17

Life, accident, or health insurance policy forms must be filed and approved by the Commissioner. Once the forms have been filed, they are considered approved after ____ days unless the Commissioner rejects them.

Answer 17

30 days

Question 18

The Commissioner must conduct and examination of every licensed insurer at least once every ___ years.

Answer 18

5 years

Question 19

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.

(NOTE: An insurance producer may not make receipt of anything of value contingent on the purchase of insurance)

Answer 19

$100

Question 20

Insurance Fraud Regulations
A person found guilty of insurance fraud is subject to the following civil penalty

$____ for the first violation

Answer 20

$5,000

Question 21

Insurance Fraud Regulations
A person found guilty of insurance fraud is subject to the following civil penalty

$____ for the second violation

Answer 21

$10,000

Question 22

Insurance Fraud Regulations
A person found guilty of insurance fraud is subject to the following civil penalty

$_____ for each subsequent voilation

Answer 22

$15,000

Question 23

Claims Settlement Practices
Insurers must

Acknowledge receipt of a claim within ___ working days

Answer 23

10 days

Question 24

Claims Settlement Practices
Insurers must

Respond to an inquiry from the Insurance Department within ___ working days.

Answer 24

15 days

Question 25

Claims Settlement Practices Insurers must provide an insured with an explanation if a claim investigation cannot be completed within ____ days.

Answer 25

30 days

Question 26

LIFE INSURANCE ONLY The replacing insurer and the existing insurer must keep replacement transaction records for ___ years after the transaction or until the next Commissioner's examination, whichever is sooner.

Answer 26

3 years

Question 27

Life Insurance Policy Provisions Maximum policy loan annual fixed interest rate

Answer 27

8%

Question 28

Life Insurance Policy Provisions Free Look Period

Answer 28

10 days

Question 29

Life Insurance Policy Provisions Free- look for internal (same insurer) replacement

Answer 29

45 days

Question 30

Life Insurance Policy Provisions free- look for external (other insurer) replacement

Answer 30

20 days

Question 31

Life Insurance Policy Provisions grace period to pay premium

Answer 31

30 days

Question 32

Life Insurance Policy Provisions An accelerated death benefit must be at least ___%, but no more than ____%, of the total death benefit

Answer 32

25%,100%

Question 33

Viatical Settlements Chronically ill is being unable to perform at least ____ activities of daily living (ADLs) or requiring substantial supervision due to severe cognitive impairment.

Answer 33

2 ADLs

Question 34

Terminally ill is having an illness that is expected to result in death in ___ months or less.

Answer 34

24 months

Question 35

The Viator has a right to rescind the contract for ___ days from the contract date and for at least ____ days after receiving the viatical settlement proceeds.

Answer 35

30 days, 15 days

Question 36

Accident and Health Insurance Only Maximum pre-existing condition exclusion period, if allowed: Individual and group policies subject to the ACA

Answer 36

Not Allowed

Question 37

Accident and Health Insurance Only Maximum pre-existing condition exclusion period, if allowed: Group policies not subject to the ACA

Answer 37

12 months

Question 38

Accident and Health Insurance Only Maximum pre-existing condition exclusion period, if allowed: Individual policies not subject to ACA

Answer 38

3 years

Question 39

Accident and Health Insurance Only Maximum pre-existing condition exclusion period, if allowed: Individual policies issued on a nonmedical basis

Answer 39

12 months

Question 40

Accident and Health Insurance Only Probationary periods must not exceed ___days

Answer 40

30 days

Question 41

Accident and Health Insurance Only Free-look for health insurance

Answer 41

10 days

Question 42

Accident and Health Insurance Only Free look for LTC insurance and medicare supplements

Answer 42

30 days

Question 43

Accident and Health Insurance Only Time limit on certain defenses (Incontestability) Health Policy provision

Answer 43

3 years

Question 44

Long Term Care (LTC) Minimum benefit period

Answer 44

12 months

Question 45

Minimum inflation protection percentage that must be offered

Answer 45

5%

Question 46

Long Term Care (LTC) Permitted compensation First year commissions may not be greater than ____% of the first year premium.

Answer 46

50%

Question 47

Long Term Care (LTC) permitted Compensation Renewal commissions may not exceed ___% of the renewal premium.

Answer 47

10%

Question 48

Long Term Care (LTC) Maximum Pre-existing conditional exclusion period

Answer 48

6 months

Question 49

The penalties for Violating LTC regulations are up to ___ times the amount of any commissions paid for each policy involved in the violation, or $___, whichever is greater

Answer 49

3, $10,000

Question 50

Medicare Supplements Permitted Compensation: Maximum First year compensation

Answer 50

No more than 200% of servicing compensation

Question 51

Medicare Supplements Open Enrollment within ____ of enrolling in Medicare part B, and being age 65 or older.

Answer 51

6 months

Question 52

Medicare Supplements Guaranteed issue is available to those who had prior group health coverage or Medicare Advantage who apply for a Medicare Supplement within ____ days after the date of termination or disenrollment of the prior coverage.

Answer 52

63 days.