State RegulationsPA specificDifficulty 3/5
A Pennsylvania producer misses the timely renewal deadline for his license but submits his renewal during the lapsed period that follows. Which outcome is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The Pennsylvania Insurance Department's license matrix charges $165 for a lapsed renewal — as against the $55 timely renewal — and a late renewal affects the new term, which is shortened. The lapsed period runs for one year; a producer who lets even that window pass must reapply as a new applicant. The design prices lateness visibly: more money now, less term later, and no escape hatch after the lapsed year.
Why the other options are wrong
- B) No automatic waiver exists; the lapsed renewal carries the higher $165 fee under the department's matrix.
- C) The license is not lost at the deadline; renewal remains available throughout the one-year lapsed period.
- D) The $55 figure is the timely renewal price; lateness moves the producer to the $165 lapsed schedule.
Memory hook
Miss the birthday, pay $165 and lose term length — one year of grace, then start over.