State RegulationsPA specificDifficulty 2/5
An investigation by the Pennsylvania Insurance Department establishes that a licensee knowingly made false statements in documents filed with the department. What is the proper regulatory response?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
False statements in licensing matters are grounds for discipline: 40 P.S. § 310.11 lists the prohibited acts, and 40 P.S. § 310.91 authorizes the Pennsylvania Insurance Department to deny, nonrenew, suspend, or revoke licenses on proper grounds after the required process. Knowing falsehoods to the regulator strike at the licensing system itself, so they sit at the core of the disciplinary powers rather than at the edges.
Why the other options are wrong
- A) A warning is not the ceiling; 40 P.S. § 310.91 authorizes denial, nonrenewal, suspension, and revocation.
- B) Discipline of a state credential belongs to the Pennsylvania Insurance Department, not to the licensee's insurers.
- C) Licensing filings are squarely within the department's oversight under 40 P.S. § 310.11.
Memory hook
Lie to the department, lose the license — false filings are discipline bait.