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Pennsylvania Unfair Practices, Replacement and Sales Disclosure: Practice Questions

20 free practice questions with explanations. Pick an answer for each, then check your score.

Exam weight: Unfair practices, advertising, replacement and disclosure rules in the 16-03 outline on the Pennsylvania Life, Accident and Health producer exam (16-03). Updated 2026-11-04.

Quick study guide

Two traps: the outline still cites 40 P.S. §§ 310.45 and 310.46 for rebating, but Act 62 of 2024 repealed both (effective January 2025) and moved the rules to 40 Pa.C.S. Chapter 51; and Pennsylvania's replacement numbers differ from other states'.

Unfair Insurance Practices Act (40 P.S. § 1171.5)

Unfair acts include misrepresenting policy terms or dividends, or misrepresenting to induce a lapse, surrender or conversion ((a)(1)); untrue or misleading advertising ((a)(2)); false or maliciously critical statements about a person's financial condition, calculated to injure, which is defamation ((a)(3)); an agreement or concerted action of boycott, coercion or intimidation that tends to restrain or monopolize the business ((a)(4)); unfair discrimination between people of the same class ((a)(7)); and rebating ((a)(8)). Twisting is a misrepresentation or incomplete comparison made to get a policyholder to drop a policy and buy similar coverage from another insurer (40 P.S. § 473; for producers § 310.48, a third-degree misdemeanor). Under 40 Pa.C.S. § 5102 a producer may give non-cash gifts, meals or charitable donations worth up to $125 per customer a year, and raffle prizes up to $125, never contingent on a purchase; advertisements may not use the words "free" or "no cost" (§ 5103).

Replacement and disclosure deadlines

Replacement covers lapse, surrender, reduced paid-up or extended term, reduced benefits, reissue with lower cash value, and pledging or borrowing more than 25% of the loan value in aggregate (31 Pa. Code § 81.2). Every application carries signed replacement statements from the applicant and the agent.

Rule	Pennsylvania requirement	Source
Notice Regarding Replacement	Signed by applicant and agent and left with the applicant no later than when the application is taken	81.4(b)(1)
Replacing insurer tells existing insurer	Within 5 working days of receiving the application or issuing the policy, whichever is sooner	81.6(a)(2)(ii)
Existing insurer's conservation material	Disclosure or ledger statement within 20 days of receiving the notice	81.6(b)
Refund right on a replacement policy	20 days from delivery, all premiums back (45 days if the old policy was with the same insurer group, 40 P.S. § 510C)	81.6(d)
Life insurance disclosure statement	No later than when the application is signed; agent certifies delivery	83.4, 83.4a
Surrender comparison index	Separate document on delivery, or earlier on request	83.55
Guaranty association summary document	Before or at delivery of the policy	991.1717(b)

Illustrations, delivery and the guaranty association

A producer may use only the insurer's illustration system and may not alter its results (40 P.S. § 625-7). Section 625-8 bans "vanishing premium" language and requires a signed illustration with the application, or a producer certification that none was used. For free-look purposes, a mailed policy is delivered on the mailing date (§ 625-4). The Life and Health Insurance Guaranty Association covers, per life, $300,000 in death benefits, $100,000 in cash value and $250,000 in annuity present value, and no one may use its existence to sell insurance (§§ 991.1703, 991.1717).

Practice questions

A Pennsylvania life agent tells a prospect she will hand back half of her first-year commission in cash if he buys a whole life policy through her. The policy says nothing about this payment. The offer is:
1. A.Permitted, as long as the cash handed back is less than $125
2. B.Permitted, because the money comes from the agent's commission, not the insurer
3. C.An illegal rebate, which Pennsylvania law treats as an unfair or deceptive act
4. D.Permitted, as long as the agent discloses the payment on the application
Show answer
Answer: C. 40 Pa.C.S. § 5102(a)(2) makes it an unfair or deceptive act to pay or offer, directly or indirectly, as an inducement to a policy a rebate of premiums or any valuable consideration not specified in the policy, and 40 P.S. § 1171.5(a)(8) says the same. Where the money comes from does not matter, and disclosure does not cure it. The $125 allowance in § 5102(c)(1) covers only non-cash gifts, items or services, so it does not permit a cash rebate. Act 62 of 2024 repealed the older producer rebating sections, 40 P.S. §§ 310.45 and 310.46.
Source: PA 16-03 outline 1.0: Unfair insurance practices, rebates and inducements (40 P.S. §§ 310.45, 310.46, 1171.5(a)(8)); 40 Pa.C.S. § 5102 (Act 62 of 2024, official text); 40 P.S. § 1171.5
Under Pennsylvania's rebating law as rewritten in 2024, which of these may a producer give an individual customer in connection with the sale or retention of insurance?
1. A.Cash of up to $125 a year, as long as the payment is reported to the insurer
2. B.A $100 gift given only to customers who sign an application that day
3. C.Non-cash gifts of any value, as long as every customer is offered the same gift
4. D.Non-cash gifts, meals or charitable donations totaling up to $125 a year, not tied to a purchase
Show answer
Answer: D. 40 Pa.C.S. § 5102(c)(1) lets an insurer or producer give non-cash gifts, items or services, including meals or charitable donations on a customer's behalf, up to $125 on an annual, aggregate basis; the offer must not be unfairly discriminatory and may not be contingent on buying or keeping insurance. A gift only for customers who sign an application is contingent on the purchase, a gift of unlimited value breaks the cap, and cash is not a non-cash gift. The Commissioner may raise the $125 figure by notice in the Pennsylvania Bulletin.
Source: PA 16-03 outline 1.0: Unfair insurance practices, rebates and inducements (40 P.S. §§ 310.45, 310.46, 1171.5(a)(8)); 40 Pa.C.S. § 5102 (Act 62 of 2024, official text)
An agent falsely tells a client that her existing life policy's cash value "will be wiped out next year," so that she will surrender it and buy a similar policy from the agent's insurer. This practice is:
1. A.Defamation
2. B.Twisting
3. C.Rebating
4. D.Coercion
Show answer
Answer: B. 40 P.S. § 473 bars any person acting for an insurer from making a misrepresentation or incomplete comparison of policies to induce a policyholder to lapse, forfeit or surrender a policy and take out similar coverage with another company; § 310.48 applies the same ban to producers and makes it a misdemeanor of the third degree, and § 1171.5(a)(1)(vi) lists it as an unfair practice. Rebating is an inducement of money or value, defamation is a false or malicious attack on a person's financial condition, and coercion involves pressure or intimidation rather than misstatement.
Source: PA 16-03 outline 1.0: Unfair insurance practices, twisting (40 P.S. § 473); 40 P.S. § 473; 40 P.S. § 310.48
To win new customers who are shopping for their first policy, a producer emails prospects a false claim that a competing insurer "is about to be seized by regulators." Under the Unfair Insurance Practices Act, this is best described as:
1. A.Unfair discrimination
2. B.Twisting
3. C.Defamation
4. D.Boycott
Show answer
Answer: C. 40 P.S. § 1171.5(a)(3) makes it an unfair practice to make or circulate any oral or written statement that is false or maliciously critical of or derogatory to the financial condition of any person and is calculated to injure that person. Twisting requires inducing an existing policyholder to drop a policy, which is not the case with first-time buyers. Unfair discrimination concerns treating people of the same class differently, and boycott is concerted action that restrains trade. The advertising regulation also bars disparaging competitors (31 Pa. Code § 51.34).
Source: PA 16-03 outline 1.0: Unfair insurance practices, defamation (40 P.S. § 1171.5(a)(3); 31 Pa. Code Ch. 51); 40 P.S. § 1171.5
Several insurance agencies agree with one another to stop placing any business with an insurer until it drops a new program that sells directly to consumers. Under 40 P.S. § 1171.5(a)(4), this agreement is:
1. A.An unfair practice: concerted boycott or coercion that tends to restrain the business of insurance
2. B.An unfair practice only if the targeted insurer is domiciled in Pennsylvania
3. C.Lawful unless all of the agencies are owned by the same parent company
4. D.Lawful, because every agency is free to choose which insurers it represents
Show answer
Answer: A. Section 1171.5(a)(4) makes it an unfair practice to enter into any agreement to commit, or by concerted action to commit, any act of boycott, coercion or intimidation resulting in or tending to result in unreasonable restraint of, or monopoly in, the business of insurance. What makes this unlawful is the agreement among agencies to pressure the insurer, not one agency's own business decision. The section has no domicile test, and common ownership is not what makes the conduct unlawful.
Source: PA 16-03 outline 1.0: Unfair insurance practices, boycott, coercion or intimidation (40 P.S. § 1171.5(a)(4)); 40 P.S. § 1171.5
Which practice does 31 Pa. Code § 145.4 prohibit as unfair discrimination based on sex or marital status?
1. A.Limiting dependent benefits to people who qualify as eligible dependents
2. B.Offering a policy rider to men but refusing it to women in the same class
3. C.Using sex in calculating how much insurance a given premium will buy
4. D.Using sex in calculating the settlement options under a life policy
Show answer
Answer: B. Section 145.4(b)(2) lists denying policy riders to members of one sex when they are available to the other as a prohibited practice. Section 145.4(a) expressly allows sex or marital status to be used in calculating the amount of insurance a given premium buys and in calculating settlement options or nonforfeiture benefits, and 145.4(b)(11) allows marital-status limits used to designate who is eligible for dependent benefits. The Unfair Insurance Practices Act separately bans unfair discrimination between individuals of the same class (40 P.S. § 1171.5(a)(7)).
Source: PA 16-03 outline 1.0: Unfair insurance practices, unfair discrimination (40 P.S. § 1171.5; 31 Pa. Code § 145.4); 31 Pa. Code § 145.4; 40 P.S. § 1171.5
The Insurance Commissioner finds satisfactory evidence that an agent issued a life policy that unfairly discriminates between individuals of the same class in premium rates. Under 40 P.S. § 477a, the Commissioner may:
1. A.Suspend or revoke the license, refuse a new license for up to one year, or impose up to $500 per act
2. B.Impose up to $5,000 per act and bar the agent from licensing for five years
3. C.Order only that the agent's commission be paid over to the insured
4. D.Take no action, because only a criminal court may act on a discrimination finding
Show answer
Answer: A. Section 477a prohibits unfair discrimination between individuals of the same class in premiums, rates, benefits or policy terms. On satisfactory evidence the Commissioner may suspend or revoke the license, refuse to issue a new license for up to one year, or impose a penalty of up to $500 for each violation; separately, a conviction is a misdemeanor with a fine of up to $500. The section names no $5,000 penalty or five-year bar, and the Commissioner does not need a criminal conviction to act.
Source: PA 16-03 outline 3.0: Company underwriting, selection criteria and unfair discrimination (40 P.S. § 477a); 40 P.S. § 477a
A client buys a new life policy from a different insurer and pays its first premium with a single loan of 15% of the loan value of his existing whole life policy. Under Pennsylvania's replacement rules, is this a replacement?
1. A.Yes, because buying any new policy while another is in force is a replacement
2. B.No, because policy loans can never make a transaction a replacement in Pennsylvania
3. C.Yes, because borrowing any part of the loan value to buy new coverage is a replacement
4. D.No, because borrowing counts only when it exceeds 25% of the loan value in aggregate
Show answer
Answer: D. 31 Pa. Code § 81.2 and 40 P.S. § 625-1 define replacement to include existing coverage pledged as collateral or subjected to borrowing, in a single loan or a schedule of loans over time, in amounts that in aggregate exceed 25% of the policy's loan value. A single 15% loan is under that threshold, so on these facts it is not a replacement, though further borrowing that pushes the total above 25% would be. Owning two policies is not itself a replacement; some other states treat borrowing any amount as a replacement, but Pennsylvania does not.
Source: PA 16-03 outline 1.0: Replacement (40 P.S. § 625; 31 Pa. Code Ch. 81); 31 Pa. Code § 81.2; 40 P.S. § 625-1
A Pennsylvania agent takes an application for an annuity that will replace the client's existing annuity. When and how must the agent give the Notice Regarding Replacement of Life Insurance and Annuities?
1. A.Within 5 working days after the application reaches the replacing insurer's home office
2. B.No later than when the application is taken, signed by the applicant and the agent and left with the applicant
3. C.Within 20 days after the existing insurer receives notice of the replacement
4. D.At policy delivery, in the same envelope as the surrender comparison index
Show answer
Answer: B. 31 Pa. Code § 81.4(b)(1) requires the agent to present the notice no later than at the time of taking the application, signed by both the applicant and the agent and left with the applicant. Under 81.4(b)(2) to (4) the agent also lists the policies being replaced, leaves copies of any sales material used, and sends a copy of the notice to the replacing insurer. The 5-working-day period is the replacing insurer's deadline to notify the existing insurer (81.6(a)(2)(ii)), and the 20-day period is for the existing insurer's conservation material (81.6(b)).
Source: PA 16-03 outline 1.0: Replacement (40 P.S. § 625; 31 Pa. Code Ch. 81); 31 Pa. Code § 81.4; 31 Pa. Code § 81.6
A replacing insurer receives, at its home office, an agent's life application that will replace a policy issued by another company. By when must the replacing insurer send the existing insurer written notice of the replacement?
1. A.Within 5 working days of receiving the application or issuing the policy, whichever is sooner
2. B.Only if the applicant asks the replacing insurer to notify the other company
3. C.Within 20 days after the new policy is delivered to the applicant
4. D.Within 30 days after the first premium on the new policy is paid
Show answer
Answer: A. 31 Pa. Code § 81.6(a)(2)(ii) requires the replacing insurer to send each existing insurer a written communication identifying the coverage being replaced, with a disclosure statement under § 83.3 or a ledger statement for life insurance (a ledger statement for an annuity), within 5 working days of receiving the application in its home or regional office or issuing the policy, whichever is sooner. The 20-day figure belongs to the existing insurer's conservation duty (81.6(b)) and the refund right (81.6(d)). Notice does not depend on the applicant's request.
Source: PA 16-03 outline 1.0: Replacement (40 P.S. § 625; 31 Pa. Code Ch. 81); 31 Pa. Code § 81.6
A client replaces a life policy issued by one company with a new policy from a different, unrelated insurer. Under 31 Pa. Code § 81.6(d), what notice must the replacing insurer print on the first page of the new policy, or attach to it?
1. A.That the old policy can be reinstated at any time within one year of the replacement
2. B.That the applicant may return it within 60 days from delivery for an unconditional refund
3. C.That the applicant may return it within 20 days from delivery for an unconditional refund of all premiums
4. D.That the applicant may return it within 10 days for its cash value minus any surrender charge
Show answer
Answer: C. 31 Pa. Code § 81.6(d) requires the replacing insurer to print prominently on the first page of the policy, or attach, a notice that the applicant has a right to an unconditional refund of all premiums paid, exercisable within 20 days from the date of delivery; the Appendix A replacement notice repeats the 20-day right. The insurance law sets the same 20-day minimum when the replaced coverage was with a different insurer, but at least 45 days when it was with the same insurer or insurer group (40 P.S. § 510C(a)(2), (3)). The refund is of all premiums, not cash value less charges. The 60-day period is New York's rule, not Pennsylvania's, and Chapter 81 gives no one-year reinstatement right.
Source: PA 16-03 outline 1.0: Replacement (40 P.S. § 625; 31 Pa. Code Ch. 81); 31 Pa. Code § 81.6; 40 P.S. § 510C
A terminally ill Pennsylvania resident sells his life policy to a licensed viatical settlement provider. How long does he have to rescind the viatical settlement contract?
1. A.15 days from the contract date only, with no right after he receives the proceeds
2. B.30 days from the contract date, and at least 15 calendar days from receiving the proceeds
3. C.10 days from the date he signed the viatical settlement application
4. D.No time at all once the insurer has recorded the change of ownership
Show answer
Answer: B. 40 P.S. § 626.8(h) requires every viatical settlement contract in Pennsylvania to give the viator an unconditional right to rescind for 30 days from the date of the contract and at least 15 calendar days from receipt of the proceeds; if the insured dies during that period, the contract is treated as rescinded, subject to repayment of the proceeds. Section 626.7(a)(5) requires this right to be disclosed, in a separate signed document, no later than when the application is signed by all parties. The 10-day figure and the other choices do not appear in the Act.
Source: PA 16-03 outline 3.0: Viatical and life settlements (40 P.S. §§ 626.2, 626.7, 626.8); 40 P.S. § 626.8; 40 P.S. § 626.7
Under 31 Pa. Code Chapter 83, when must a life agent give a prospective purchaser the written life insurance disclosure statement, and what must the agent send the insurer?
1. A.At policy delivery, plus the applicant's signed receipt, mailed to the Insurance Department
2. B.Within 10 days after the policy is issued, with no certification needed
3. C.No later than when the application is signed, plus a signed certification that it was given on time
4. D.Only if the applicant asks for it in writing before the medical examination
Show answer
Answer: C. Section 83.4 requires the disclosure statement no later than the time the applicant signs the application, and § 83.4a requires the agent to submit, with or as part of the application, a signed statement certifying that it was given on time. Under § 83.4b the insurer keeps that certification for at least 3 years or until its next regular examination, whichever is later, and a missing certification is prima facie evidence that no statement was given. The rule does not apply to annuities, group or credit life, variable life or policies of $1,000 or less (§ 83.2(b)).
Source: PA 16-03 outline 3.0: Producer responsibilities, life insurance disclosure statement (31 Pa. Code Ch. 83); 31 Pa. Code § 83.4; 31 Pa. Code § 83.4a
Which statement about Pennsylvania's surrender comparison index is correct?
1. A.It must be given with the application and is calculated by the traditional net cost method
2. B.It uses the interest-adjusted method at 5% over 10 and 20 years and is given on delivery or earlier on request
3. C.It is required for term policies but not for whole life policies
4. D.It compares the policy's death benefit with model rates published by the Insurance Department
Show answer
Answer: B. 31 Pa. Code § 83.51 requires the interest-adjusted method at 5% to produce 10-year and 20-year surrender comparison indexes per $1,000 of face amount, and § 83.55(a) requires the disclosure as a separate document on delivery of the policy, or earlier if the applicant asks. Section 83.54 prohibits traditional net cost comparisons. Section 83.52(b) excludes term policies, along with annuities, variable life, policies under $5,000 and several other kinds of coverage.
Source: PA 16-03 outline 3.0: Life insurance surrender comparison index disclosure (31 Pa. Code Ch. 83.51-.57); 31 Pa. Code § 83.51; 31 Pa. Code § 83.55; 31 Pa. Code § 83.52
A producer sells a life policy using the insurer's basic illustration, and the client applies for the policy exactly as illustrated. Which requirement applies under Pennsylvania's illustration law?
1. A.No signatures are needed, because the policy is being applied for exactly as illustrated
2. B.The illustration is attached to the issued policy and becomes part of the contract
3. C.A signed copy goes to the insurer with the application, and the applicant gets a copy by the time of signing
4. D.The producer may raise the illustrated interest rate if the client asks for a more optimistic projection
Show answer
Answer: C. 40 P.S. § 625-8(e)(1)(i) requires a copy of the illustration, signed by the applicant and producer as § 625-8(c)(4) prescribes, to be submitted to the insurer no later than when the application is sent, and a copy to be given to the applicant no later than when the application is signed. Section 625-7(a) bars a producer from altering or modifying the results of the insurer's illustration system, and § 625-7(b) says illustrations may not be made part of the policy issued.
Source: PA 16-03 outline 3.0: Producer responsibilities, illustrations (40 P.S. § 625.7-625.8); 40 P.S. § 625-8; 40 P.S. § 625-7
An insurer mails an individual life policy to its owner on 3 March, and it arrives on 6 March. Under 40 P.S. § 625-4, from what date does the owner's period to examine and return the policy begin?
1. A.The date the owner signs and returns a delivery receipt
2. B.6 March, the date the policy arrived
3. C.3 March, the date the insurer mailed the policy
4. D.The date the agent next meets the owner to review the policy
Show answer
Answer: C. Section 625-4(a) fixes the delivery date that starts any statutory right to examine or return an individual policy or annuity: the date of mailing if sent by mail or another postal system, the date a representative of the insurer physically hands it over, or the date of a properly made electronic transmission. Under 625-4(b), in a dispute the insurer bears the burden of proving delivery and meets it by showing, to the Department's satisfaction, that it sent the policy in the normal course of business. Arrival date, a later agent meeting or a signed receipt does not control.
Source: PA 16-03 outline 3.0: Field underwriting, delivery receipt requirement (40 P.S. § 625.4); 40 P.S. § 625-4
An insurer advertises a permanent life policy to people aged 50 and older. The policy pays a reduced death benefit if death occurs during the first policy years. Under 40 P.S. § 1171.5(a)(13), the advertisement must:
1. A.Show the policy's 10-year and 20-year surrender comparison indexes
2. B.Carry the words "Paid Endorsement" next to the death benefit
3. C.Disclose the reduction in the face amount payable and the period it applies
4. D.Be approved in advance by the Insurance Commissioner before publication
Show answer
Answer: C. Section 1171.5(a)(13) makes it an unfair practice to advertise permanent life insurance to persons fifty or older without accompanying disclosure of any applicable reduction in the face amount payable and the period of the reduction. "Paid Endorsement" is required only when someone is paid for a testimonial (31 Pa. Code § 51.31(c)). The surrender comparison index is a delivery disclosure under Chapter 83, and Chapter 51 requires filing only for accident and health mail-order solicitations, though the Department may review any advertisement (§ 51.2).
Source: PA 16-03 outline 3.0: Producer responsibilities, advertising (31 Pa. Code Ch. 51.1-.36, .42); 1.0 false advertising (40 P.S. § 1171.5); 40 P.S. § 1171.5; 31 Pa. Code § 51.31
While selling an annuity, an agent reassures a nervous client: "Don't worry about the company. The state guaranty association backs this contract." Under 40 P.S. § 991.1717, this statement is:
1. A.Permitted, because it accurately describes Pennsylvania law
2. B.Prohibited, because no agent may use the association's existence to sell or induce a purchase
3. C.Permitted, if the agent also hands over the association's summary document
4. D.Prohibited only in printed advertising, not in a spoken conversation
Show answer
Answer: B. Section 991.1717(a) bars any person, including a member insurer or its agent, from making any advertisement, announcement or statement, written or oral, that uses the existence of the Life and Health Insurance Guaranty Association for sales, solicitation or inducement to purchase covered insurance. The required summary document itself must warn that the association may not cover the contract or that coverage is subject to substantial limits and exclusions, and that agents are prohibited from using the association to sell (991.1717(c)). Handing over the document does not make the sales pitch lawful.
Source: PA 16-03 outline 3.0: Producer responsibilities, Life and Health Insurance Guaranty Association (40 P.S. § 991.1717); 40 P.S. § 991.1717
Under 40 P.S. § 991.1703, which limits apply with respect to any one life when a member insurer becomes insolvent?
1. A.$300,000 in death benefits, $100,000 in cash surrender values, $250,000 in annuity present value
2. B.$500,000 in death benefits, $100,000 in cash surrender values, $300,000 in annuity present value
3. C.$100,000 in death benefits, $50,000 in cash surrender values, $100,000 in annuity present value
4. D.$250,000 in death benefits, $250,000 in cash surrender values, $100,000 in annuity present value
Show answer
Answer: A. Section 991.1703(c)(1)(ii)(A) limits coverage for one life, however many policies, to $300,000 in life insurance death benefits but no more than $100,000 in net cash surrender and withdrawal values, and $250,000 in the present value of annuity benefits. The association is never liable for more than the insurer's contractual obligation, and its aggregate limit for one individual is $300,000, or $500,000 where health benefit plans are involved (991.1703(c)(1)(ii)(E)). Portions of a contract not guaranteed by the insurer, such as investment risk borne by the owner, are not covered (991.1703(b)(2)(i)).
Source: PA 16-03 outline 3.0: Producer responsibilities, Life and Health Insurance Guaranty Association (40 P.S. § 991.1717); 40 P.S. § 991.1703
Under 40 P.S. § 991.1717, when must a member insurer give a policy owner the Life and Health Insurance Guaranty Association's summary document?
1. A.Only if the policy owner asks for it in writing
2. B.Only after the insurer has been declared impaired or insolvent
3. C.Prior to or at the time the policy or contract is delivered
4. D.Within 30 days after the first premium is received
Show answer
Answer: C. Section 991.1717(b) bars a member insurer from delivering a policy or contract unless the summary document is delivered to the owner, certificate holder or enrollee prior to or at the time of delivery; it must also be available on request. Receiving it does not mean the policy would be covered, and failing to receive it gives no greater rights. Under 991.1717(d) the insurer keeps evidence of compliance for as long as the policy remains in effect.
Source: PA 16-03 outline 3.0: Producer responsibilities, Life and Health Insurance Guaranty Association (40 P.S. § 991.1717); 40 P.S. § 991.1717

Where these questions come from: Pennsylvania Life, Accident and Health producer exam outline (series 16-03, PSI, effective 1 Mar 2026), section 1.0: Insurance Regulation (21%), unfair insurance practices and replacement; section 3.0: Life, Accident, and Health Insurance Basics (14%), viatical settlements, producer responsibilities and field underwriting. See how we write questions.