MN Property & Casualty State Exam (2023)

Maximum penalty per offence for transacting insurance without a Certificate of Authority is? ($)

$1,000 dollars

For a dwelling policy, what is the coverage limit ($) for silver and silver-plated ware, gold, pewterware, trays, and trophies?

$2,500

In Commercial Auto Insurance, the Loss of Use Expenses will cover up to what dollar amount per/day and up to a maximums of?

$20 per day, $600 maximum.

For a homeowners policy, what is the coverage limit ($) for a coin collection?

$200

The Minimum Uninsured Motorist liability limits that must be provided in Minnesota is:

$25,000/$50,000

The regular National Flood Insurance Program would insure an eligible single-family dwelling for up to ($):

$250,000

The federal EMERGENCY flood insurance program would insure an eligible single-family dwelling for up to ($):

$35,000

Water Backup and Sump Pump Overflow: coverage is up to what dollar amount in damages subject to a $250 deductible?

$5,000

In a Township Mutual, what is the minimum property requirement?

$50,000

The FAIR plan term is how long?

1 year

Policies issued by a Township Mutual may be cancelled by the insurer with how many days advance notice?

10 days advance notice

In a BOP, the maximum square footing for an office building eligible for a Business Owners Policy is?

100,000 square feet

After appointing an agent, an insurer has to file a "Notice of Appointment" with the Commissioner within? (days)

15 days

All volcanic eruptions that occur within what time period is considered one occurrence?

168-hour period (7 days)

A temporary producer's license is effective for

180 days

A dwelling policy will pay loss of use due to Civil Authority for a maximum of? (Weeks)

2 Weeks

According to a dwelling policy, within how many years of a loss may an insured bring a lawsuit against an insurer?

2 years

In the event the Commissioner believes there has been a violation of insurance law, a hearing may be conducted. The hearing must occur no sooner than how many days from the date of hearing notice?

20 days

Minnesota Standard Fire Policy: In order to cancel a fire insurance policy that has been in place for less than 60 days, an insurer must provide an insured with a notice of cancellation at least how many days in advance?

20 days

How many hours of continuing education must be completed every 2 years?

24 hours

An insurance license must be renewed how often?

24 months

In a Township Mutual, what is the minimum number of citizens needed?

25 Citizens

Workers Compensation disability benefits begin after? (Days)

3 days

How many of the 24 hours of CE must be in the area of ethics?

3 hours

Insurers must keep records related to advertisements of insurance policies for? (Years)

3 years

Once an individual passes a licensing exam, results are valid for? (Years)

3 years

Policies issued through the Minnesota Automobile Insurance Plan must provide liability limits of at least:

30/60/10

How many hours of CE are needed every 24 months after being licensed in Long-Term Care?

4 hours

In the event of theft of a covered vehicle, transportation expense coverage in a PAP begins how many hours after the theft?

48 hours

For the FAIR plan, if a risk is to be rejected based on an inspection, a copy of the notice must be provided to the applicant within how many business days?

5 business days.

A Township Mutual must have at least __ but no more than __ members on its BOD.

5, 9

In a BOP for convenience stores with gas pumps, no more than what percentage of sales may come from gasoline?

50%

The FAIR plan must take action on acceptance or rejection of the risk within how many days of an application?

59 days

In a BOP for retail or service businesses, the maximum gross annual sales eligible for a Business Owners Policy is?

6 million dollars

To be eligible for a businessowners policy (BOP) coverage, an office building cannot be higher than (stories):

6 stories

After an insurance company examination, the Commissioner or the Examiner appointed by the Commissioner must file a written report of the examination within? (Days)

60 days

If an insurer meets all of the states requirements, their Certificate of Authority should arrive within? (Days)

60 days

Minnesota Standard Fire Policy: In the event of nonrenewal, a notice of how many days must be provided to an insured?

60 days

In a BOP for fast-food restaurants, what is the maximum square footage eligible for the policy?

7,500 square feet

How many initial hours of training must be needed to sell long-term care?

8 hours

In order for coinsurance to apply for full replacement cost, what percent coverage must an insured keep on a property?

80%

The required amount to pay damages or for property loss, which is calculated based on the property's current replacement value minus depreciation

Actual Cash Value (ACV)

A provision in an insurance policy that allows for more coverage for specific loss expense without increase in premium

Additional coverage

A property policy with a provision agreed upon by the insurer and insured as to the amount of insurance that represents a fair valuation for the property at the time the insurance is written

Agreed Value

This Value works best for items that do not fluctuate much in value:

Agreed Value

An insurance company that is incorporated outside the United States

Alien Insurer

Business Auto Coverage Form Symbol 1

Any auto, including owned, leased, hired, or borrowed autos

A person or entity that has possession of personal property entrusted to them by the owner

Bailee

An unfair trade practice in which one person refuses to do business with another until he or she agrees to certain conditions

Boycott

Homeowners HO-2 is what Form:

Broad Form

A commercial property form that covers buildings under construction

Builder's Risk Coverage Form

The termination of an in-force insurance policy by either the insured or the insurer prior to the expiration date shown in the policy

Cancellation

An unfair trade practice in which an insurer uses physical or mental force to persuade an applicant to buy insurance

Coercion

What are the two major sections of commercial crime policies?

Commercial entities and government entities

Homeowners HO-5 is what Form:

Comprehensive Form

The withholding of known facts which, if material, can void a contract

Concealment

The section of an insurance policy that indicates the general rules or procedures that the insurer and insured follow under the terms of the policy

Conditions

Homeowners HO-6 is what Form:

Condominium Form

The blind force in a contract that requires something of value to be exchanged for the transfer of risk

Consideration

The lessening of value of real and personal property due to age and wear and tear

Depreciation

What are the two types of losses?

Direct & Consequential

Under a compulsory Workers Compensation law, this doctrine bars injured employees from seeking damages outside Workers Compensation

Exclusive Remedy doctrine

This kind of bond is used to guarantee honesty and trust:

Fidelity bond

Business Auto Coverage Form Symbol 8

Hired autos only

This type of adjuster is a person or business that represents an insurer under contract in the claim settlement process. They are not employees.

Independent adjuster

The section of an insurance policy containing the insurer's promise to pay, the description of coverage provided and perils insured against

Insuring Agreement

A seldom used method of valuing a loss based upon the amount a willing buyer would pay to a willing seller for the property prior to the loss.

Market Value

Untrue and unintentional statements made on an application, that if discovered, would alter the underwriting decision is called a:

Material Misrepresentation

A producer who failed to comply with the state CE requirement is guilty of a

Misdemeanor

Business Auto Coverage Form Symbol 19

Mobile equipment

Homeowners HO-8 is what Form:

Modified Form

A policy written separately as a single coverage

Monoline Policy

Business Auto Coverage Form Symbol 9

Nonowned autos only

Business Auto Coverage Form Symbol 2

Owned autos only

Business Auto Coverage Form Symbol 6

Owned autos subject to a compulsory uninsured motorists law

Business Auto Coverage Form Symbol 5

Owned autos subject to no-fault

Business Auto Coverage Form Symbol 4

Owned autos, other than private passenger autos only (Commercial autos)

Business Auto Coverage Form Symbol 3

Owned private passenger autos only

The party to a surety or fidelity bond who promises to fulfill the obligation is the

Principal

This type of adjuster is an individual or business that charges a fee to the claimant for representation in the claims settlement process. They represent claimants.

Public adjuster

This includes salaries, wages, commissions, bonuses, noncash compensation, vacation pay, sick leave pay. This is called Payroll OR:

Remuneration

Homeowners HO-4 is what Form:

Renters or Tenants Form

When a policy is terminated as of its effective date, as though it never existed, the policy is:

Rescinded

The taking of property from another by using violence or the threat of violence

Robbery

Homeowners HO-3 is what Form:

Special

What are the two types of compensatory damages?

Special and general

Business Auto Coverage Form Symbol 7

Specifically described autos only (Scheduled autos)

This type of adjuster represents the insured either as an employee or contractor in the claims settlement process. This is an employee of the insurance company.

Staff Adjuster

The acquisition by an insurer of the insured's rights against any third party for indemnification of loss or other payment, to the extend that the insurer pays the loss.

Subrogation

A guarantee that debts and obligations will be carried out, and the benefits will be paid for losses caused by nonperformance.

Surety bond

This kind of bond guarantees the performance of someone else

Surety bond

For surety and fidelity bonds, the Surety is also known as:

The Guarantor

For surety and fidelity bonds, the Obligee is also known as:

The Insured

For surety and fidelity bonds, the Principal is also known as:

The Obligor

A form of misrepresentation in which an agent persuades an insured/owner to cancel, lapse, or switch policies, even when it's to the insured's disadvantage.

Twisting

A property that has contents or furnishings in it, but is not being used or lived in (going on an extended vacation).

Unoccupied

A material stipulation in the policy that if breached may void coverage

Warranty

Symbol 30 (Garage)

autos left with you for service. repair storage

Symbol 31 (Garage)

dealers autos

reinstatement provision

to determine the process for reactivating coverage once a policy has lapsed