Minnesota State Insurance Licensing Exam
Study online at https://quizlet.com/_8jbcgb
1. What is an agent? Someone who acts on behalf of another (producer)
2. What is a princi- Party for whom action is taken (insurance company)
pal?
3. What is an Legal agreement that establishes the relationship between the principal and
agency agree- agent; outlines powers and responsibilities of agents.
ment?
4. What is Express Powers given to agent as part of agency agreement(written)
authority?
5. What is implied Powers not given by the agency agreement, but necessary to complete the
authority? functions allowed in the agency agreement
6. What is apparent Powers not given by the agency agreement, but that a reasonable person would
authority? presume the agent has (between you and consumer)
7. What are pro- 1. Have a fiduciary (trust) responsibility to the insurer. Means the producer must
ducer responsi- always protect insurer's interests and follow any lawful instructions from the
bilities? insurer
2. Must also uphold high standards of commercial honor when dealing w/appli-
cant. Must act fairly and honestly, and disclose all info needed by the applicant to
make well-informed buying decision.
8. What is the Individual states, not federal gov, responsible for regulating insurance industry.
McCarran-Fergu-
son Act?
9. Who oversee the Department of Commerce
MN insurance in-
dustry?
10. Headed by commissioner of commerce who is appointed by the governor
, Minnesota State Insurance Licensing Exam
Study online at https://quizlet.com/_8jbcgb
Who direct the
dept of com-
merce?
11. What does the -Enforces all MN insurance laws
Dept of Com- -Establishes rules & procedures to ensure the consistent enforcement of the laws
merce do? -Conduct investigations and hold hearings
-Examine books, records, documents of any person or entity engaged in regulat-
ed activities at anytime w/no court order
-Publish info collected from investigations, hearings, and examinations
-Require reports of all sales/transactions that are regulated
12. How frequent- Once every 5 years
ly are insurance
companies audit-
ed?
13. How much no- 30 days notice identifying scope of investigation.
tice does an in-
surance compa-
ny get of an au-
dit?
14. What happens if Company's policies remain valid, but company faces severe penalties.
insurance com-
pany fails to ob-
tain a license to
sell insurance?
15. What is a certifi- An admitted or authorized carrier must obtain a cert of authority to transact
cate of authority? business.
16.
, Minnesota State Insurance Licensing Exam
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What is a compa- Used to grant producers authority to solicit insurance business for admitted
ny appointment? carriers
17. What is a non-ad- Companies w/o cert of auth (unlicensed)
mitted carrier?
18. What are surplus May sell insurance in MN w/o a cert of authority, but may only transact business
lines companies? through a licensed surplus agent.
19. Who is required Anyone who solicits, or appoints others to solicit insurance on behalf of insurance
to have an insur- company.
ance license?
20. What is a resi- Issued to a person who resides in MN or maintains person's principal place of
dent producer? business in MN.
21. What is Issued to a person if that person is already a licensed resident producer in good
a non-resident standing in the person's home state.
producer?
22. What is a man- Hires producers, supervises a territory, manages producer activities. Must be
aging general licensed as an insurance producer.
agent?
23. What is a temp li- A temp 180-day license may be used by commissioner for:
cense? -To surviving spouse, next of kin, admin/executor of the estate, employee, legal
guardian, court-appointed personal rep of deceased, disabled license producer
-To the designee of a licensed producer entering active service in armed forces
of US
-To an employee of a business entity (agency license) licensed as a producer, upon
the death or disability of the indiv designated on the license
-Any other circumstance that serves the public interest
-Can transition to a permanent or just use for transaction to sell policies
, Minnesota State Insurance Licensing Exam
Study online at https://quizlet.com/_8jbcgb
24. What are the re- -18 years old
quirements for li- -Complete ed requirements- 20 hours of ed per major line of authorization
censing a pro- -Pass licensing exam
ducer? -Complete license application online w/Sircon
-Pay applicable license fee- $50 per line and added tech fee of up to $40
-Apply for perm insurance license within 3 years of passing exam
-License lasts 2 years
-License fee of $50 per line plus tech fee must be remitted w/online renewal app
-Indiv producer license expires on last day of producer's birth month
-License issued to business entity expire on 10/31 of renewal year
-24 hours of continuing ed required during each licensing period (No more
than 1/2 of required creds may come from courses offered by, sponsored by or
affiliated w/an insurance company or its producers.
-Must obtain 3 hours per licensing period from class/classes in area of ethics
-Can't carry over credits from one license period to another
-Licensing courses don't count towards continuing ed credit.
-Can take classes via classroom/online
-Sales & marketing, motivation, specific company product knowledge, office man-
agement, use of calculators/machines
25. How long do 10 days
you have to
notify dept of
commerce of
agent's change
of name/ad-
dress?
26. How long do 30 days of the final disposition of the matter- must include copy of order and any
you have to no- other relevant legal docs
tify dept of com-
merce of admin-
Study online at https://quizlet.com/_8jbcgb
1. What is an agent? Someone who acts on behalf of another (producer)
2. What is a princi- Party for whom action is taken (insurance company)
pal?
3. What is an Legal agreement that establishes the relationship between the principal and
agency agree- agent; outlines powers and responsibilities of agents.
ment?
4. What is Express Powers given to agent as part of agency agreement(written)
authority?
5. What is implied Powers not given by the agency agreement, but necessary to complete the
authority? functions allowed in the agency agreement
6. What is apparent Powers not given by the agency agreement, but that a reasonable person would
authority? presume the agent has (between you and consumer)
7. What are pro- 1. Have a fiduciary (trust) responsibility to the insurer. Means the producer must
ducer responsi- always protect insurer's interests and follow any lawful instructions from the
bilities? insurer
2. Must also uphold high standards of commercial honor when dealing w/appli-
cant. Must act fairly and honestly, and disclose all info needed by the applicant to
make well-informed buying decision.
8. What is the Individual states, not federal gov, responsible for regulating insurance industry.
McCarran-Fergu-
son Act?
9. Who oversee the Department of Commerce
MN insurance in-
dustry?
10. Headed by commissioner of commerce who is appointed by the governor
, Minnesota State Insurance Licensing Exam
Study online at https://quizlet.com/_8jbcgb
Who direct the
dept of com-
merce?
11. What does the -Enforces all MN insurance laws
Dept of Com- -Establishes rules & procedures to ensure the consistent enforcement of the laws
merce do? -Conduct investigations and hold hearings
-Examine books, records, documents of any person or entity engaged in regulat-
ed activities at anytime w/no court order
-Publish info collected from investigations, hearings, and examinations
-Require reports of all sales/transactions that are regulated
12. How frequent- Once every 5 years
ly are insurance
companies audit-
ed?
13. How much no- 30 days notice identifying scope of investigation.
tice does an in-
surance compa-
ny get of an au-
dit?
14. What happens if Company's policies remain valid, but company faces severe penalties.
insurance com-
pany fails to ob-
tain a license to
sell insurance?
15. What is a certifi- An admitted or authorized carrier must obtain a cert of authority to transact
cate of authority? business.
16.
, Minnesota State Insurance Licensing Exam
Study online at https://quizlet.com/_8jbcgb
What is a compa- Used to grant producers authority to solicit insurance business for admitted
ny appointment? carriers
17. What is a non-ad- Companies w/o cert of auth (unlicensed)
mitted carrier?
18. What are surplus May sell insurance in MN w/o a cert of authority, but may only transact business
lines companies? through a licensed surplus agent.
19. Who is required Anyone who solicits, or appoints others to solicit insurance on behalf of insurance
to have an insur- company.
ance license?
20. What is a resi- Issued to a person who resides in MN or maintains person's principal place of
dent producer? business in MN.
21. What is Issued to a person if that person is already a licensed resident producer in good
a non-resident standing in the person's home state.
producer?
22. What is a man- Hires producers, supervises a territory, manages producer activities. Must be
aging general licensed as an insurance producer.
agent?
23. What is a temp li- A temp 180-day license may be used by commissioner for:
cense? -To surviving spouse, next of kin, admin/executor of the estate, employee, legal
guardian, court-appointed personal rep of deceased, disabled license producer
-To the designee of a licensed producer entering active service in armed forces
of US
-To an employee of a business entity (agency license) licensed as a producer, upon
the death or disability of the indiv designated on the license
-Any other circumstance that serves the public interest
-Can transition to a permanent or just use for transaction to sell policies
, Minnesota State Insurance Licensing Exam
Study online at https://quizlet.com/_8jbcgb
24. What are the re- -18 years old
quirements for li- -Complete ed requirements- 20 hours of ed per major line of authorization
censing a pro- -Pass licensing exam
ducer? -Complete license application online w/Sircon
-Pay applicable license fee- $50 per line and added tech fee of up to $40
-Apply for perm insurance license within 3 years of passing exam
-License lasts 2 years
-License fee of $50 per line plus tech fee must be remitted w/online renewal app
-Indiv producer license expires on last day of producer's birth month
-License issued to business entity expire on 10/31 of renewal year
-24 hours of continuing ed required during each licensing period (No more
than 1/2 of required creds may come from courses offered by, sponsored by or
affiliated w/an insurance company or its producers.
-Must obtain 3 hours per licensing period from class/classes in area of ethics
-Can't carry over credits from one license period to another
-Licensing courses don't count towards continuing ed credit.
-Can take classes via classroom/online
-Sales & marketing, motivation, specific company product knowledge, office man-
agement, use of calculators/machines
25. How long do 10 days
you have to
notify dept of
commerce of
agent's change
of name/ad-
dress?
26. How long do 30 days of the final disposition of the matter- must include copy of order and any
you have to no- other relevant legal docs
tify dept of com-
merce of admin-
