MN PROPERTY & CASUALTY INSURANCE EXAM SCRIPT 2025/2026
QUESTIONS WITH SOLUTION GRADED A+
✔✔Endorsement - ✔✔A document which is attached to the policy and modifies or
changes the original policy in some way.
✔✔Errors and Omissions - ✔✔A Professional Liability coverage which protects the
insured against liability when professional negligence causes monetary damages.
✔✔Exclusions - ✔✔The section of the insurance policy which lists property, perils,
persons, or situations which are not covered under the policy.
✔✔Exclusive Agent - ✔✔An agent, employed by a direct writer or general agent, who
markets insurance for a single company.
✔✔Extended Coverage Endorsement - ✔✔An endorsement which extends the fire
policy to cover loss by windstorm, hail, explosion, riot, attending strike, civil commotion,
aircraft, vehicles and smoke.
✔✔Extended Reporting Period - ✔✔A period of time allowed for making claims after the
expiration of a "claims-made" liability policy. Also known as a "tail".
✔✔Extra Expense Coverage Form - ✔✔A Time Element coverage which covers
additional expenses incurred by the insured business to continue operations following a
direct loss by a peril insured against.
✔✔Fair Plan - ✔✔A program established by law which makes property insurance
available and affordable to insureds who might otherwise be uninsurable because of
"environmental hazards".
✔✔Federal Crime Insurance - ✔✔A federally administered program which makes crime
insurance available and affordable to risks that might otherwise have found coverage
difficult to obtain.
✔✔Fidelity Bond - ✔✔Bonds that are written to protect the insured from the dishonest
acts of his or her employees.
✔✔Fiduciary - ✔✔A person or institution which has responsibility for the money,
property or financial affairs of another.
✔✔Financial Responsibility Laws - ✔✔State laws which require owners or operators of
autos to provide evidence that they have the funds to pay for automobile losses for
which they might become liable. Insurance is the typical method for providing this
evidence to the state, but others exist.
, ✔✔First Named Insured - ✔✔In commercial insurance, the insured that is held
responsible for certain obligations found in the Common Policy Conditions.
✔✔Flat Cancellation - ✔✔Cancellation of the policy, by the insurer, as of the effective
date.
✔✔Flood Insurance - ✔✔Insurance designed to reimburse property owners for loss due
to flood or to flood-related erosion.
✔✔Foreign Company - ✔✔Refers to an insurance company operating in a state other
than its home state.
✔✔Fraud - ✔✔Committed with the intent to obtain some benefit or advantage to which
they are not otherwise entitled or someone knowingly denies some benefit that is due
and to which someone is entitled.
✔✔Garage Policy - ✔✔An easy-to-read auto insurance policy which provides coverage
for companies such as dealerships, service stations, parking lots, shops etc. Includes
coverage for liability, physical damage and losses arising out of owned, non-owned, and
hired autos.
✔✔General Average - ✔✔An Ocean Marine term used to indicate a partial loss resulting
from a sacrifice of cargo to save remaining property (jettison). Each party shares in the
loss in proportion to their total interest in property being transported.
✔✔Gross Earnings Form - ✔✔A form of Business Interruption Insurance which covers a
business for loss of earnings when a direct loss forces the operations to close down.
Used in insuring large businesses, instead of the simpler Earnings form which is used
for smaller businesses.
✔✔Hazard - ✔✔Something that increases the chance of loss.
✔✔Hired Auto - ✔✔An auto which, for a fee, is given to others for temporary use.
✔✔Improvements and Betterments - ✔✔Permanent alterations which a tenant makes to
the rented property which will not be removed when the tenant leaves.
✔✔Indemnity - ✔✔A principle of insurance which provides that when a loss occurs, the
insured should be restored to the same financial condition occupied before the loss
occurred.
✔✔Indirect Loss - ✔✔Loss which is a result or consequence of a direct loss.
QUESTIONS WITH SOLUTION GRADED A+
✔✔Endorsement - ✔✔A document which is attached to the policy and modifies or
changes the original policy in some way.
✔✔Errors and Omissions - ✔✔A Professional Liability coverage which protects the
insured against liability when professional negligence causes monetary damages.
✔✔Exclusions - ✔✔The section of the insurance policy which lists property, perils,
persons, or situations which are not covered under the policy.
✔✔Exclusive Agent - ✔✔An agent, employed by a direct writer or general agent, who
markets insurance for a single company.
✔✔Extended Coverage Endorsement - ✔✔An endorsement which extends the fire
policy to cover loss by windstorm, hail, explosion, riot, attending strike, civil commotion,
aircraft, vehicles and smoke.
✔✔Extended Reporting Period - ✔✔A period of time allowed for making claims after the
expiration of a "claims-made" liability policy. Also known as a "tail".
✔✔Extra Expense Coverage Form - ✔✔A Time Element coverage which covers
additional expenses incurred by the insured business to continue operations following a
direct loss by a peril insured against.
✔✔Fair Plan - ✔✔A program established by law which makes property insurance
available and affordable to insureds who might otherwise be uninsurable because of
"environmental hazards".
✔✔Federal Crime Insurance - ✔✔A federally administered program which makes crime
insurance available and affordable to risks that might otherwise have found coverage
difficult to obtain.
✔✔Fidelity Bond - ✔✔Bonds that are written to protect the insured from the dishonest
acts of his or her employees.
✔✔Fiduciary - ✔✔A person or institution which has responsibility for the money,
property or financial affairs of another.
✔✔Financial Responsibility Laws - ✔✔State laws which require owners or operators of
autos to provide evidence that they have the funds to pay for automobile losses for
which they might become liable. Insurance is the typical method for providing this
evidence to the state, but others exist.
, ✔✔First Named Insured - ✔✔In commercial insurance, the insured that is held
responsible for certain obligations found in the Common Policy Conditions.
✔✔Flat Cancellation - ✔✔Cancellation of the policy, by the insurer, as of the effective
date.
✔✔Flood Insurance - ✔✔Insurance designed to reimburse property owners for loss due
to flood or to flood-related erosion.
✔✔Foreign Company - ✔✔Refers to an insurance company operating in a state other
than its home state.
✔✔Fraud - ✔✔Committed with the intent to obtain some benefit or advantage to which
they are not otherwise entitled or someone knowingly denies some benefit that is due
and to which someone is entitled.
✔✔Garage Policy - ✔✔An easy-to-read auto insurance policy which provides coverage
for companies such as dealerships, service stations, parking lots, shops etc. Includes
coverage for liability, physical damage and losses arising out of owned, non-owned, and
hired autos.
✔✔General Average - ✔✔An Ocean Marine term used to indicate a partial loss resulting
from a sacrifice of cargo to save remaining property (jettison). Each party shares in the
loss in proportion to their total interest in property being transported.
✔✔Gross Earnings Form - ✔✔A form of Business Interruption Insurance which covers a
business for loss of earnings when a direct loss forces the operations to close down.
Used in insuring large businesses, instead of the simpler Earnings form which is used
for smaller businesses.
✔✔Hazard - ✔✔Something that increases the chance of loss.
✔✔Hired Auto - ✔✔An auto which, for a fee, is given to others for temporary use.
✔✔Improvements and Betterments - ✔✔Permanent alterations which a tenant makes to
the rented property which will not be removed when the tenant leaves.
✔✔Indemnity - ✔✔A principle of insurance which provides that when a loss occurs, the
insured should be restored to the same financial condition occupied before the loss
occurred.
✔✔Indirect Loss - ✔✔Loss which is a result or consequence of a direct loss.
