Pennsylvania Property & Casualty: Workers' Compensation and Other Property & Casualty Lines

Correct

The answer is D: $800,000

The auto policy pays its $300,000 limit, leaving $700,000 of the $1 million in damages for the umbrella. Because defense costs are included within the umbrella's limit, its $100,000 of defense comes out of the umbrella too: $700,000 plus $100,000 is $800,000, which fits inside the $1 million limit. Paying only $700,000 leaves out the defense costs, and $1,000,000 is the umbrella's full limit rather than what this loss uses.

Reviewed in our October 2026 Pennsylvania fact-check.

Correct

The answer is D: Coverage for the farmer's personal residence and attached structures.

The dwelling coverage of a farmowners policy covers the farmer's personal residence and its attached structures, such as a garage or porch. Farm machinery and equipment fall under farm personal property coverage or a schedule, livestock is covered separately from the dwelling, and liability from selling farm products belongs to the liability section, not the dwelling coverage.

Reviewed in our October 2026 Pennsylvania fact-check.

Correct

The answer is D: The miner's recovery is limited to workers' compensation benefits; the MSHA violation does not affect the exclusive remedy of the Pennsylvania Workers' Compensation Act.

The Pennsylvania Workers' Compensation Act provides the exclusive remedy for work-related injuries, meaning employees cannot sue employers for negligence regardless of federal safety violations. MSHA violations may result in federal penalties but do not alter the workers' compensation exclusivity or provide a separate damage remedy to the employee.

Reviewed in our October 2026 Pennsylvania fact-check.

Correct

The answer is C: The insurer nonrenews solely because of the owner's religion.

Nonrenewing solely because of the owner's religion is unfair discrimination in underwriting standards and eligibility under the Unfair Insurance Practices Act, which bars it between insureds of the same class and essentially the same hazard on grounds such as race, religion, age, sex or marital status (40 P.S. 1171.5(a)(7)(iii)). Nonpayment of premium, material misrepresentation on the application and a move into a higher-risk classification concern the insured's conduct or the hazard itself, so they are permitted reasons.

Reviewed in our October 2026 Pennsylvania fact-check.

Correct

The answer is A: The insurer nonrenews solely because the owner belongs to a particular ethnic group.

Nonrenewing solely because the owner belongs to a particular ethnic group is unfair discrimination in underwriting standards and eligibility under the Unfair Insurance Practices Act (40 P.S. 1171.5(a)(7)(iii), which names nationality or ethnic group, race, religion, age, sex and marital status among others), so it is not a valid reason. Nonpayment of premium, material misrepresentation and the insurer's decision to stop underwriting a high-risk industry are permitted reasons.

Reviewed in our October 2026 Pennsylvania fact-check.