Which of the following is a violation of Pennsylvania insurance law?

• A. Offering insurance contracts through unlicensed entities
• B. Advertising in compliance with regulations
• C. Selling policies without a premium
• D. Issuing policies with correct underwriting

Answer: (A)

In Pennsylvania, only licensed individuals or entities may solicit, sell, or negotiate insurance contracts. Offering insurance through unlicensed channels violates this requirement because it bypasses the credentialing and consumer protections that licensing provides, making it an illegal practice.

Advertising in compliance with regulations is exactly how insurers and producers should communicate with the public, so it’s proper. Policies that are issued without a premium or that are not properly funded would not be enforceable and would reflect improper practice, but the direct violation highlighted here is transacting insurance through unlicensed parties. Issuing policies with correct underwriting is standard, compliant practice.