MN INSURANCE EXAMS EVALUATION 2025/2026 ALL
QUESTIONS AND SOLUTIONS GRADED A+ TIP
✔✔Speculative Risk - ✔✔A situation where either profit or loss in possible. Example
would be betting on a horse race or investing in real estate. This type of risk in not
insurable.
✔✔Static Risk - ✔✔These factors are historical factors that do no frequently fluctuate.
They result from "static" or "unchanging" environment. Example would be an area that
may only flood every 100 years. This type of risk is insurable.
✔✔Dynamic Risk - ✔✔This is associated with chance. Example would be a new and
fatal virus spontaneously erupting into society. This is not insurable.
✔✔Waiver - ✔✔Generally defined as the voluntary or intentional relinquishment of a
know right. An example would be an insured who fails to report a claim in a timely
manner. There are two types; Expressed and Implied.
✔✔Expressed Waiver - ✔✔Occurs when the insurer the insurer or its representatives
purposely gives up known right under the contract.
✔✔Implied Waiver - ✔✔May result from some kind of neglect on the part of the agent or
adjuster.
✔✔Replacement Cost - ✔✔The current cost to purchase new, the item that was lost,
with no deduction or depreciation. The full value will be paid up to the limit of the policy
less any deductible.
✔✔Occurence - ✔✔A sudden and unforeseen event resulting in financial loss. It may
also be continuous or repeated exposure to an event that results in financial loss.
✔✔Insuring Agreement - ✔✔Describes the covered perils, or risks assumed, or nature
of coverage, or makes some reference to the contractual agreement between insurer
and insured. In package policies each different coverage form includes its own insuring
agreement.
✔✔Negligence - ✔✔Caused by improper product design, improper assembly of the
product, failure to inspect or test the product, etc.
✔✔Single Limit - ✔✔Pays up to one amount as the maximum limit of liability of the
insurer with respect to any one accident/occurrence involving either or both bodily injury
and property damage.
, ✔✔Split Limits - ✔✔Expressed by two figures. There may be a limit representing the
max payable for each person injured per occurrence for bodily injury and another limit
applicable to the claims of all persons injured in the accident or occurrence.
✔✔Aggregate Limit - ✔✔Limit stated in the policy representing the total amount for all
claims paid during the policy period. Once this limit has been met, the insured is without
coverage.
✔✔Duties of the Insured - ✔✔The insured is required by the policy provisions to report a
claim to the company as soon as practical. The insured must also preserve the
undamaged property to the best of his/her ability to avoid additional loss.
✔✔Proof of loss - ✔✔A formal statement made by the insured to the insurance
company regarding a loss. The purpose of this is to place before the company sufficient
information concerning the loss to enable it to determine its liability under the policy or
bond.
✔✔Actual Cash Value - ✔✔Method for placing value on property as of the time of its
loss or damage. It may be determined as replacement cost less depreciation. The
market value of an item may be used to help determine this.
✔✔Replacement Cost - ✔✔Covers property - both building a contents - on the basis of
fill replacement cost without deduction for depreciation of any loss sustained, subject to
the terms of the co-insurance clause.
✔✔Appraisal Process - ✔✔In case of losses involving property, it is often nessecary to
obtain estimates of the damaged property before payment can be made. This involves
all types of property losses such as automobiles, structures, and their contents. Special
appraisers or estimators may be required for fine arts, stained glass or other items that
require a higher level of expertise.
✔✔The commissioner examines each insurer every __ years - ✔✔5
✔✔$___ fine per day if a person violates, aides, or abets a written cease and desist
order - ✔✔$10,000
✔✔Licensee may request a hearing within __ days of commissioners order after
hearing request, the commissioner has ___ to hold the hearing - ✔✔30 and 30
✔✔___ prelicensing hours per major line of authority - ✔✔20 hours
✔✔number of years licensing exam results are valid - ✔✔3 years
✔✔$___ per line of authority for an applicaton fee - ✔✔$50
QUESTIONS AND SOLUTIONS GRADED A+ TIP
✔✔Speculative Risk - ✔✔A situation where either profit or loss in possible. Example
would be betting on a horse race or investing in real estate. This type of risk in not
insurable.
✔✔Static Risk - ✔✔These factors are historical factors that do no frequently fluctuate.
They result from "static" or "unchanging" environment. Example would be an area that
may only flood every 100 years. This type of risk is insurable.
✔✔Dynamic Risk - ✔✔This is associated with chance. Example would be a new and
fatal virus spontaneously erupting into society. This is not insurable.
✔✔Waiver - ✔✔Generally defined as the voluntary or intentional relinquishment of a
know right. An example would be an insured who fails to report a claim in a timely
manner. There are two types; Expressed and Implied.
✔✔Expressed Waiver - ✔✔Occurs when the insurer the insurer or its representatives
purposely gives up known right under the contract.
✔✔Implied Waiver - ✔✔May result from some kind of neglect on the part of the agent or
adjuster.
✔✔Replacement Cost - ✔✔The current cost to purchase new, the item that was lost,
with no deduction or depreciation. The full value will be paid up to the limit of the policy
less any deductible.
✔✔Occurence - ✔✔A sudden and unforeseen event resulting in financial loss. It may
also be continuous or repeated exposure to an event that results in financial loss.
✔✔Insuring Agreement - ✔✔Describes the covered perils, or risks assumed, or nature
of coverage, or makes some reference to the contractual agreement between insurer
and insured. In package policies each different coverage form includes its own insuring
agreement.
✔✔Negligence - ✔✔Caused by improper product design, improper assembly of the
product, failure to inspect or test the product, etc.
✔✔Single Limit - ✔✔Pays up to one amount as the maximum limit of liability of the
insurer with respect to any one accident/occurrence involving either or both bodily injury
and property damage.
, ✔✔Split Limits - ✔✔Expressed by two figures. There may be a limit representing the
max payable for each person injured per occurrence for bodily injury and another limit
applicable to the claims of all persons injured in the accident or occurrence.
✔✔Aggregate Limit - ✔✔Limit stated in the policy representing the total amount for all
claims paid during the policy period. Once this limit has been met, the insured is without
coverage.
✔✔Duties of the Insured - ✔✔The insured is required by the policy provisions to report a
claim to the company as soon as practical. The insured must also preserve the
undamaged property to the best of his/her ability to avoid additional loss.
✔✔Proof of loss - ✔✔A formal statement made by the insured to the insurance
company regarding a loss. The purpose of this is to place before the company sufficient
information concerning the loss to enable it to determine its liability under the policy or
bond.
✔✔Actual Cash Value - ✔✔Method for placing value on property as of the time of its
loss or damage. It may be determined as replacement cost less depreciation. The
market value of an item may be used to help determine this.
✔✔Replacement Cost - ✔✔Covers property - both building a contents - on the basis of
fill replacement cost without deduction for depreciation of any loss sustained, subject to
the terms of the co-insurance clause.
✔✔Appraisal Process - ✔✔In case of losses involving property, it is often nessecary to
obtain estimates of the damaged property before payment can be made. This involves
all types of property losses such as automobiles, structures, and their contents. Special
appraisers or estimators may be required for fine arts, stained glass or other items that
require a higher level of expertise.
✔✔The commissioner examines each insurer every __ years - ✔✔5
✔✔$___ fine per day if a person violates, aides, or abets a written cease and desist
order - ✔✔$10,000
✔✔Licensee may request a hearing within __ days of commissioners order after
hearing request, the commissioner has ___ to hold the hearing - ✔✔30 and 30
✔✔___ prelicensing hours per major line of authority - ✔✔20 hours
✔✔number of years licensing exam results are valid - ✔✔3 years
✔✔$___ per line of authority for an applicaton fee - ✔✔$50
