State RegulationsPA specificDifficulty 2/5
A Pennsylvania sole-proprietor producer dies, leaving an active agency with policies in force. His spouse, who managed the office, wants to keep the business running. What does Pennsylvania law provide?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
40 P.S. § 310.9 directs the Pennsylvania Insurance Department to issue a temporary license to a surviving spouse or personal representative of a deceased or disabled licensee so the business can be maintained, sold, or wound up without abandoning its insurance transactions. The temporary license keeps policyowners served during the transition; it is not a permanent successor license and carries the statutory limits of the temporary category.
Why the other options are wrong
- B) An outright shutdown is not required; the statute supplies the temporary license precisely so coverage transactions can continue under 40 P.S. § 310.9.
- C) Insurers cannot license producers; the licensing power belongs to the Pennsylvania Insurance Department.
- D) No mentoring producer is required; the statute lists the surviving spouse or personal representative directly as a proper temporary licensee.
Memory hook
When the producer dies, the statute hands the spouse a bridge license.