9/9/25, 12:18 PM Minnesota State Insurance Licensing Exam
Minnesota State Insurance Licensing Exam LATEST
VERSION 2025-2026 ALL QUESTIONS AND DETAILED
CORRECT ANSWERS WITH RATIONALES ALREADY
GRADED A+
What is an agent? Someone who acts on behalf of another (producer)
What is a principal? Party for whom action is taken (insurance company)
Legal agreement that establishes the relationship
What is an agency agreement?
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)
Powers not given by the agency agreement, but
What is implied authority?
necessary to complete the functions allowed in the
agency agreement
Powers not given by the agency agreement, but that a
What is apparent authority?
reasonable person would presume the agent has
(between you and consumer)
1. Have a fiduciary (trust) responsibility to the insurer. Means the
producer must
What are producer always protect insurer's interests and follow any lawful
responsibilities? 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- Individual states, not federal gov, responsible for regulating
Ferguson Act? insurance industry.
Who oversee the MN Department of Commerce
insurance industry?
Who direct the dept of Headed by commissioner of commerce who is appointed by the
commerce? governor
/ 1/41
,9/9/25, 12:18 PM Minnesota State Insurance Licensing Exam
-Enforces all MN insurance laws
-Establishes rules & procedures to ensure the consistent
enforcement of the laws
-Conduct investigations and hold hearings
What does the Dept of
Commerce do? -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 Once every 5 years
insurance companies
audited?
How much notice does 30 days notice identifying scope of investigation.
an insurance company
get of an audit?
What happens if Company's policies remain valid, but company faces severe
insurance company fails penalties.
to obtain a license to
sell insurance?
What is a certificate of An admitted or authorized carrier must obtain a cert of authority
authority? to transact business.
What is a company Used to grant producers authority to solicit insurance business
appointment? for admitted carriers
What is a non-admitted Companies w/o cert of auth (unlicensed)
carrier?
/ 2/41
,9/9/25, 12:18 PM Minnesota State Insurance Licensing Exam
What are surplus lines May sell insurance in MN w/o a cert of authority, but may only
companies? transact business through a licensed surplus agent.
/ 3/41
, 9/9/25, 12:18 PM Minnesota State Insurance Licensing Exam
Who is required to have an Anyone who solicits, or appoints others to solicit
insurance license? insurance on behalf of insurance company.
Issued to a person who resides in MN or maintains
What is a resident producer?
person's principal place of business in MN.
Issued to a person if that person is already a licensed
What is a non-resident
producer? resident producer in good standing in the person's
home state.
Hires producers, supervises a territory, manages
What is a managing general
agent? producer activities. Must be licensed as an insurance
producer.
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
What is a temp license? -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
-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
What are the requirements w/online renewal app
for licensing a producer? -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
/ 4/41
Minnesota State Insurance Licensing Exam LATEST
VERSION 2025-2026 ALL QUESTIONS AND DETAILED
CORRECT ANSWERS WITH RATIONALES ALREADY
GRADED A+
What is an agent? Someone who acts on behalf of another (producer)
What is a principal? Party for whom action is taken (insurance company)
Legal agreement that establishes the relationship
What is an agency agreement?
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)
Powers not given by the agency agreement, but
What is implied authority?
necessary to complete the functions allowed in the
agency agreement
Powers not given by the agency agreement, but that a
What is apparent authority?
reasonable person would presume the agent has
(between you and consumer)
1. Have a fiduciary (trust) responsibility to the insurer. Means the
producer must
What are producer always protect insurer's interests and follow any lawful
responsibilities? 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- Individual states, not federal gov, responsible for regulating
Ferguson Act? insurance industry.
Who oversee the MN Department of Commerce
insurance industry?
Who direct the dept of Headed by commissioner of commerce who is appointed by the
commerce? governor
/ 1/41
,9/9/25, 12:18 PM Minnesota State Insurance Licensing Exam
-Enforces all MN insurance laws
-Establishes rules & procedures to ensure the consistent
enforcement of the laws
-Conduct investigations and hold hearings
What does the Dept of
Commerce do? -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 Once every 5 years
insurance companies
audited?
How much notice does 30 days notice identifying scope of investigation.
an insurance company
get of an audit?
What happens if Company's policies remain valid, but company faces severe
insurance company fails penalties.
to obtain a license to
sell insurance?
What is a certificate of An admitted or authorized carrier must obtain a cert of authority
authority? to transact business.
What is a company Used to grant producers authority to solicit insurance business
appointment? for admitted carriers
What is a non-admitted Companies w/o cert of auth (unlicensed)
carrier?
/ 2/41
,9/9/25, 12:18 PM Minnesota State Insurance Licensing Exam
What are surplus lines May sell insurance in MN w/o a cert of authority, but may only
companies? transact business through a licensed surplus agent.
/ 3/41
, 9/9/25, 12:18 PM Minnesota State Insurance Licensing Exam
Who is required to have an Anyone who solicits, or appoints others to solicit
insurance license? insurance on behalf of insurance company.
Issued to a person who resides in MN or maintains
What is a resident producer?
person's principal place of business in MN.
Issued to a person if that person is already a licensed
What is a non-resident
producer? resident producer in good standing in the person's
home state.
Hires producers, supervises a territory, manages
What is a managing general
agent? producer activities. Must be licensed as an insurance
producer.
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
What is a temp license? -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
-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
What are the requirements w/online renewal app
for licensing a producer? -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
/ 4/41
