Minnesota State Insurance Licensing Exam – Practice
Questions & 100% Verified Answers | Complete
Insurance License Exam Prep | 2026–2027
,What is an agent? Someone who acts on behalf of another (producer)
What is a principal? Party for whom action is taken (insurance company)
What is an agency agreement? Legal agreement that establishes the relationship between the principal and agent;
outlines powers and responsibilities of agents.
What is Express authority? Powers given to agent as part of agency agreement(written)
What is implied authority? Powers not given by the agency agreement, but necessary to complete the
functions allowed in the agency agreement
What is apparent authority? Powers not given by the agency agreement, but that a reasonable person would
presume the agent has (between you and consumer)
What are producer responsibilities? 1. Have a fiduciary (trust) responsibility to the insurer. Means the producer must
always protect insurer's interests and follow any lawful instructions from the insurer
2. Must also uphold high standards of commercial honor when dealing w/applicant.
Must act fairly and honestly, and disclose all info needed by the applicant to make
well-informed buying decision.
What is the McCarran-Ferguson Act? Individual states, not federal gov, responsible for regulating insurance industry.
Who oversee the MN insurance industry? Department of Commerce
Who direct the dept of commerce? Headed by commissioner of commerce who is appointed by the governor
What does the Dept of Commerce do? -Enforces all MN insurance laws
-Establishes rules & procedures to ensure the consistent enforcement of the laws
-Conduct investigations and hold hearings
-Examine books, records, documents of any person or entity engaged in regulated
activities at anytime w/no court order
-Publish info collected from investigations, hearings, and examinations
-Require reports of all sales/transactions that are regulated
How frequently are insurance companies audited? Once every 5 years
How much notice does an insurance company get of an 30 days notice identifying scope of investigation.
audit?
What happens if insurance company fails to obtain a Company's policies remain valid, but company faces severe penalties.
license to sell insurance?
, What is a certificate of authority? An admitted or authorized carrier must obtain a cert of authority to transact
business.
What is a company appointment? Used to grant producers authority to solicit insurance business for admitted carriers
What is a non-admitted carrier? Companies w/o cert of auth (unlicensed)
What are surplus lines companies? May sell insurance in MN w/o a cert of authority, but may only transact business
through a licensed surplus agent.
Who is required to have an insurance license? Anyone who solicits, or appoints others to solicit insurance on behalf of insurance
company.
What is a resident producer? Issued to a person who resides in MN or maintains person's principal place of
business in MN.
What is a non-resident producer? Issued to a person if that person is already a licensed resident producer in good
standing in the person's home state.
What is a managing general agent? Hires producers, supervises a territory, manages producer activities. Must be
licensed as an insurance producer.
What is a temp license? A temp 180-day license may be used by commissioner for:
-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
What are the requirements for licensing a producer? -18 years old
-Complete ed requirements- 20 hours of ed per major line of authorization
-Pass licensing exam
-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
management, use of calculators/machines
How long do you have to notify dept of commerce of 10 days
agent's change of name/address?
Questions & 100% Verified Answers | Complete
Insurance License Exam Prep | 2026–2027
,What is an agent? Someone who acts on behalf of another (producer)
What is a principal? Party for whom action is taken (insurance company)
What is an agency agreement? Legal agreement that establishes the relationship between the principal and agent;
outlines powers and responsibilities of agents.
What is Express authority? Powers given to agent as part of agency agreement(written)
What is implied authority? Powers not given by the agency agreement, but necessary to complete the
functions allowed in the agency agreement
What is apparent authority? Powers not given by the agency agreement, but that a reasonable person would
presume the agent has (between you and consumer)
What are producer responsibilities? 1. Have a fiduciary (trust) responsibility to the insurer. Means the producer must
always protect insurer's interests and follow any lawful instructions from the insurer
2. Must also uphold high standards of commercial honor when dealing w/applicant.
Must act fairly and honestly, and disclose all info needed by the applicant to make
well-informed buying decision.
What is the McCarran-Ferguson Act? Individual states, not federal gov, responsible for regulating insurance industry.
Who oversee the MN insurance industry? Department of Commerce
Who direct the dept of commerce? Headed by commissioner of commerce who is appointed by the governor
What does the Dept of Commerce do? -Enforces all MN insurance laws
-Establishes rules & procedures to ensure the consistent enforcement of the laws
-Conduct investigations and hold hearings
-Examine books, records, documents of any person or entity engaged in regulated
activities at anytime w/no court order
-Publish info collected from investigations, hearings, and examinations
-Require reports of all sales/transactions that are regulated
How frequently are insurance companies audited? Once every 5 years
How much notice does an insurance company get of an 30 days notice identifying scope of investigation.
audit?
What happens if insurance company fails to obtain a Company's policies remain valid, but company faces severe penalties.
license to sell insurance?
, What is a certificate of authority? An admitted or authorized carrier must obtain a cert of authority to transact
business.
What is a company appointment? Used to grant producers authority to solicit insurance business for admitted carriers
What is a non-admitted carrier? Companies w/o cert of auth (unlicensed)
What are surplus lines companies? May sell insurance in MN w/o a cert of authority, but may only transact business
through a licensed surplus agent.
Who is required to have an insurance license? Anyone who solicits, or appoints others to solicit insurance on behalf of insurance
company.
What is a resident producer? Issued to a person who resides in MN or maintains person's principal place of
business in MN.
What is a non-resident producer? Issued to a person if that person is already a licensed resident producer in good
standing in the person's home state.
What is a managing general agent? Hires producers, supervises a territory, manages producer activities. Must be
licensed as an insurance producer.
What is a temp license? A temp 180-day license may be used by commissioner for:
-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
What are the requirements for licensing a producer? -18 years old
-Complete ed requirements- 20 hours of ed per major line of authorization
-Pass licensing exam
-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
management, use of calculators/machines
How long do you have to notify dept of commerce of 10 days
agent's change of name/address?
