MN PROPERTY & CASUALTY INSURANCE FINAL PAPER
2025/2026 QUESTIONS WITH SOLUTION GRADED A+
✔✔Additional Coverage - ✔✔Extra coverage added to the policy without an additional
premium
✔✔Named Insured - ✔✔Anyone listed on the declarations page
✔✔First Named Insured - ✔✔The person whose name is listed first. Has control of the
policy (cancel, renew, pay the premium, file claims)
✔✔Additional Insured - ✔✔Anyone not covered listed on the policy but covered by the
policy
✔✔Mortgage Clause - ✔✔A mortgagee, as the lender, has an insurable interest in the
property used as collateral, ensuring they are protected in case of damage or loss. The
clause ensures the mortgagee is paid for covered losses, continues coverage if the
policy is voided, and provides advance notice of policy cancellation.
✔✔Loss Payable Clause - ✔✔Lenders with a secured interest in property, like autos,
want to be listed as a loss payee on the property owner's policy. This clause ensures
the lender (loss payee) is included in any claim payment, typically by making the claim
check payable to both the insured and the loss payee.
✔✔No Benefits to Bailee - ✔✔This provision in a property insurance policy states that
the insurer will not cover property under the care of a bailee. Inland marine insurance,
specifically bailee coverage, is available to cover property held by a bailee.
✔✔Assignment Provision - ✔✔Insured is not allowed to transfer their policy without the
consent of the insurer
✔✔Cancellation - ✔✔Done during the policy period by either the insured or insurer
✔✔Nonrenewal - ✔✔At the policy expiration rate.
✔✔Policy Territory - ✔✔On the declarations page that details where coverage applies
✔✔Occurrence - ✔✔Continuous or repeated exposure
✔✔Accident - ✔✔Sudden, unplanned, and unexpected event
✔✔Liberalization Clause - ✔✔If an insurer broadens any type of coverage, the insured
will get it automatically without an extra premium
, ✔✔Policy Limits - ✔✔The maximum amount the insurer will pay for a loss. Maximum
amount the insured may collect
✔✔Deductibles - ✔✔The amount the insured will pay out of pocket before insurance
kicks in
✔✔Blanket Coverage - ✔✔One policy that covers multiple properties
✔✔Specific Coverage - ✔✔One policy that covers one property
✔✔Vacancy - ✔✔Nobody has been living or working. No property has been stored.
After 60 days the insured will lose coverage
✔✔Unoccupancy - ✔✔Nobody has been living or working but property has been stored.
✔✔Notice of Claim - ✔✔A form submitted by the insured to the insurer to notify them of
a loss
✔✔Proof of Loss - ✔✔A written document submitted to the insurer by the insured before
a loss is paid out
✔✔Obligation of the insurer - ✔✔Act fair in the underwriting decision. Pay out on
covered losses
✔✔Loss Settlement - ✔✔In liability professional policies, insurer need consent from the
insured before paying out on a liability claim.
✔✔Co-Insurance - ✔✔A clause that encourages the insured to insurer their property to
80% or more
✔✔Abandonment Provision - ✔✔The insured cannot abandon damaged property and
must repair or dispose of it unless the insurer agrees to handle it. The insurer is not
required to accept property that the insured has abandoned.
✔✔Salvage - ✔✔After paying for a total loss, the insurer has the right to recover, sell, or
dispose of the damaged property. If the repair costs exceed the value of the property,
like a badly damaged car, the insurer can recover some of its payment by selling the
salvage, such as to an auto junkyard for usable parts.
✔✔Subrogation - ✔✔Stops the insured from collecting twice after being paid out by the
insurer. Allows the insurer to go after the negligent third party.
✔✔Appraisal - ✔✔If the insurer and the insured can't agree on the value of a property,
either party can make a written request for an appraisal.
2025/2026 QUESTIONS WITH SOLUTION GRADED A+
✔✔Additional Coverage - ✔✔Extra coverage added to the policy without an additional
premium
✔✔Named Insured - ✔✔Anyone listed on the declarations page
✔✔First Named Insured - ✔✔The person whose name is listed first. Has control of the
policy (cancel, renew, pay the premium, file claims)
✔✔Additional Insured - ✔✔Anyone not covered listed on the policy but covered by the
policy
✔✔Mortgage Clause - ✔✔A mortgagee, as the lender, has an insurable interest in the
property used as collateral, ensuring they are protected in case of damage or loss. The
clause ensures the mortgagee is paid for covered losses, continues coverage if the
policy is voided, and provides advance notice of policy cancellation.
✔✔Loss Payable Clause - ✔✔Lenders with a secured interest in property, like autos,
want to be listed as a loss payee on the property owner's policy. This clause ensures
the lender (loss payee) is included in any claim payment, typically by making the claim
check payable to both the insured and the loss payee.
✔✔No Benefits to Bailee - ✔✔This provision in a property insurance policy states that
the insurer will not cover property under the care of a bailee. Inland marine insurance,
specifically bailee coverage, is available to cover property held by a bailee.
✔✔Assignment Provision - ✔✔Insured is not allowed to transfer their policy without the
consent of the insurer
✔✔Cancellation - ✔✔Done during the policy period by either the insured or insurer
✔✔Nonrenewal - ✔✔At the policy expiration rate.
✔✔Policy Territory - ✔✔On the declarations page that details where coverage applies
✔✔Occurrence - ✔✔Continuous or repeated exposure
✔✔Accident - ✔✔Sudden, unplanned, and unexpected event
✔✔Liberalization Clause - ✔✔If an insurer broadens any type of coverage, the insured
will get it automatically without an extra premium
, ✔✔Policy Limits - ✔✔The maximum amount the insurer will pay for a loss. Maximum
amount the insured may collect
✔✔Deductibles - ✔✔The amount the insured will pay out of pocket before insurance
kicks in
✔✔Blanket Coverage - ✔✔One policy that covers multiple properties
✔✔Specific Coverage - ✔✔One policy that covers one property
✔✔Vacancy - ✔✔Nobody has been living or working. No property has been stored.
After 60 days the insured will lose coverage
✔✔Unoccupancy - ✔✔Nobody has been living or working but property has been stored.
✔✔Notice of Claim - ✔✔A form submitted by the insured to the insurer to notify them of
a loss
✔✔Proof of Loss - ✔✔A written document submitted to the insurer by the insured before
a loss is paid out
✔✔Obligation of the insurer - ✔✔Act fair in the underwriting decision. Pay out on
covered losses
✔✔Loss Settlement - ✔✔In liability professional policies, insurer need consent from the
insured before paying out on a liability claim.
✔✔Co-Insurance - ✔✔A clause that encourages the insured to insurer their property to
80% or more
✔✔Abandonment Provision - ✔✔The insured cannot abandon damaged property and
must repair or dispose of it unless the insurer agrees to handle it. The insurer is not
required to accept property that the insured has abandoned.
✔✔Salvage - ✔✔After paying for a total loss, the insurer has the right to recover, sell, or
dispose of the damaged property. If the repair costs exceed the value of the property,
like a badly damaged car, the insurer can recover some of its payment by selling the
salvage, such as to an auto junkyard for usable parts.
✔✔Subrogation - ✔✔Stops the insured from collecting twice after being paid out by the
insurer. Allows the insurer to go after the negligent third party.
✔✔Appraisal - ✔✔If the insurer and the insured can't agree on the value of a property,
either party can make a written request for an appraisal.
