Pennsylvania Insurance Regulations and Statutes Cram Sheet

Comprehensive vocabulary review flashcards covering Pennsylvania state insurance law, licensing standards, deadlines, fines, cancellation requirements, personal auto minimums, and workers' compensation thresholds.

Prelicensing Education

24 hours of prelicensing education required to qualify for an insurance license.

Minimum Producer Age

18 years of age required to obtain a producer license.

Temporary Producer License

Valid for up to 180 days without requiring an examination under specific listed circumstances.

Producer License Term

2 years in duration before renewal.

Lapsed License Reinstatement

A lapsed producer license may be reinstated within 1 year of the renewal date.

Reporting Changes, Actions, or Charges

Must notify the Insurance Commissioner within 30 days of an address change, administrative action, or criminal charge.

Continuing Education (CE)

24 hours required every 2-year license term.

Ethics Continuing Education

3 hours required, which are included within the total 24-hour CE requirement.

CE Carry-Forward

Up to 24 excess continuing education hours may be carried forward into the next licensing term.

Commissioner Hearing Notice

10 days advance written notice required prior to a hearing.

Maximum Producer Fine

$5,000 per violation of the insurance code.

Unfair Practice Penalties (Nonwillful)

Civil penalties of $1,000 per violation, up to an aggregate maximum of $10,000.

Unfair Practice Penalties (Willful)

Civil penalties of $5,000 per violation, up to an aggregate maximum of $50,000.

Rating Organization Examination Frequency

The Commissioner must examine rating organizations at least once every 5 years.

Rate Filing Period

Rates must be filed with the Insurance Department 30 days prior to their use.

Licensed Insurers Examination Frequency

The Commissioner must examine licensed insurers at least once every 5 years.

Permitted Valuable Consideration

Up to $100 in annual aggregate value, provided it is not contingent upon the purchase of insurance.

Insurance Fraud Penalties

$5,000 for the first violation, $10,000 for the second violation, and $15,000 for each subsequent violation.

Claim Acknowledgment Deadline

Insurers must acknowledge receipt of a claim within 10 working days.

Insurance Department Inquiry Response Deadline

Insurers must respond to inquiries from the Insurance Department within 15 working days.

Incomplete Claim Investigation Explanation Deadline

Insurers must provide an explanation within 30 days if an investigation cannot be completed in that time.

PA P&C Guaranty Association Claim Limit

$300,000 maximum claim payment covered by the Pennsylvania Property and Casualty Insurance Guaranty Association.

PA P&C Guaranty Association Return Premium Limit

$10,000 maximum return premium payment covered.

Commercial Nonrenewal Notice

Requires 60 days advance written notice.

Commercial Nonpayment Cancellation Notice

Requires 15 days advance notice of cancellation for nonpayment of premium.

Commercial Material Misrepresentation Cancellation Notice

Requires 15 days advance notice of cancellation due to material misrepresentation.

Commercial Renewal Premium Increase Notice

Requires 30 days advance notice before increasing the renewal premium.

Residential Cancellation Notice

Requires 30 days advance notice to cancel residential insurance coverage.

Property Coverage After Named Insured Death

Basic property insurance coverage continues for 180 days after death or until the property is sold, whichever occurs first.

Temporary Fire Binder Duration

Valid for a maximum duration of 30 days.

FAIR Plan Cancellation Notice

Must be provided at least 20 days prior to cancellation.

Pennsylvania Auto Minimum Liability Limits

15/30/5 ($15,000 for bodily injury per person, $30,000 for bodily injury per accident for two or more persons, and $5,000 for property damage).

Pennsylvania Auto Medical Payments

$5,000 minimum medical payments benefit limit, unless rejected in writing by the named insured.

Pennsylvania Auto Nonrenewal Notice

Requires 60 days advance written notice.

Pennsylvania Auto Nonpayment Cancellation Notice

Requires 15 days advance notice of cancellation for nonpayment.

Pennsylvania Auto Material Misrepresentation Cancellation Notice

Requires 15 days advance notice of cancellation for material misrepresentation.

Pennsylvania Auto Default Tort Option

Full tort, which applies by default if the insured fails to make an election among tort options.

Agricultural Workers' Compensation Threshold

Mandatory coverage applies if an employer pays one employee $1,200 or more in a calendar year, OR employs one employee for 30 or more days.

Workers' Compensation Disability Waiting Period

7 days of disability before benefits begin.

Retroactive Workers' Compensation Disability Period

If disability lasts 14 or more days, benefit payments date back retroactively to the first day of disability.

Total Disability Benefit (Workers' Compensation)

$66\frac{2}{3}\%$ of average weekly earnings, subject to statutory state minimum and maximum limits.

Partial Disability Benefit (Workers' Compensation)

$66\frac{2}{3}\%$ of the difference between pre-injury average weekly earnings and actual post-injury earnings during partial disability.

Burial Expenses (Workers' Compensation)

Up to $7,000 in allowable burial expenses.

Employee Injury Notice Deadline

An injured worker must give notice of an injury to their employer within 21 days.

First Compensation Payment Deadline (Workers' Compensation)

Must be paid within 21 days after the employer has notice or knowledge of the disability.