State RegulationsPA specificDifficulty 1/5
Which authority may examine the books, accounts, and records of a licensed insurance producer in Pennsylvania?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
40 P.S. § 323.3-4 authorizes the Insurance Commissioner to examine the books, accounts, and records of licensees, including producers, through the Pennsylvania Insurance Department. Record access is how the department verifies that a producer's transactions — premiums collected, commissions received, policies placed — match what the law requires. The examination power extends to producers' business premises, not merely to documents the producer volunteers.
Why the other options are wrong
- B) Appointing insurers may audit their own business through contract, but the statutory examination authority belongs to the Commissioner under 40 P.S. § 323.3-4.
- C) Competing producers have no oversight role over one another's records; industry peers cannot examine a licensee's books.
- D) County recorders keep public land records; they have no authority over insurance producer records.
Memory hook
The department reads your books — peers and insurers don't.