MINNESOTA STATE INSURANCE
LICENSING EXAM 2026 ALL
QUESTIONS AND VERIFIED ANSWERS
| RATED A + | NEW AND REVISED
What is an agent? - ANSWER- Someone who acts on behalf of another
(producer)
What is a principal? - ANSWER- Party for whom action is taken
(insurance company)
What is an agency agreement? - ANSWER- Legal agreement that
establishes the relationship between the principal and agent; outlines
powers and responsibilities of agents.
What is Express authority? - ANSWER- Powers given to agent as part
of agency agreement(written)
What is implied authority? - ANSWER- Powers not given by the agency
agreement, but necessary to complete the functions allowed in the
agency agreement
What is apparent authority? - ANSWER- 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? - ANSWER- 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? - ANSWER- Individual states, not
federal gov, responsible for regulating insurance industry.
Who oversee the MN insurance industry? - ANSWER- Department of
Commerce
Who direct the dept of commerce? - ANSWER- Headed by
commissioner of commerce who is appointed by the governor
What does the Dept of Commerce do? - ANSWER- -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? - ANSWER- Once
every 5 years
How much notice does an insurance company get of an audit? -
ANSWER- 30 days notice identifying scope of investigation.
What happens if insurance company fails to obtain a license to sell
insurance? - ANSWER- Company's policies remain valid, but company
faces severe penalties.
What is a certificate of authority? - ANSWER- An admitted or
authorized carrier must obtain a cert of authority to transact business.
What is a company appointment? - ANSWER- Used to grant producers
authority to solicit insurance business for admitted carriers
What is a non-admitted carrier? - ANSWER- Companies w/o cert of
auth (unlicensed)
What are surplus lines companies? - ANSWER- 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? - ANSWER- Anyone who
solicits, or appoints others to solicit insurance on behalf of insurance
company.
What is a resident producer? - ANSWER- Issued to a person who
resides in MN or maintains person's principal place of business in MN.
What is a non-resident producer? - ANSWER- 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? - ANSWER- Hires producers,
supervises a territory, manages producer activities. Must be licensed as
an insurance producer.
What is a temp license? - ANSWER- 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
LICENSING EXAM 2026 ALL
QUESTIONS AND VERIFIED ANSWERS
| RATED A + | NEW AND REVISED
What is an agent? - ANSWER- Someone who acts on behalf of another
(producer)
What is a principal? - ANSWER- Party for whom action is taken
(insurance company)
What is an agency agreement? - ANSWER- Legal agreement that
establishes the relationship between the principal and agent; outlines
powers and responsibilities of agents.
What is Express authority? - ANSWER- Powers given to agent as part
of agency agreement(written)
What is implied authority? - ANSWER- Powers not given by the agency
agreement, but necessary to complete the functions allowed in the
agency agreement
What is apparent authority? - ANSWER- 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? - ANSWER- 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? - ANSWER- Individual states, not
federal gov, responsible for regulating insurance industry.
Who oversee the MN insurance industry? - ANSWER- Department of
Commerce
Who direct the dept of commerce? - ANSWER- Headed by
commissioner of commerce who is appointed by the governor
What does the Dept of Commerce do? - ANSWER- -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? - ANSWER- Once
every 5 years
How much notice does an insurance company get of an audit? -
ANSWER- 30 days notice identifying scope of investigation.
What happens if insurance company fails to obtain a license to sell
insurance? - ANSWER- Company's policies remain valid, but company
faces severe penalties.
What is a certificate of authority? - ANSWER- An admitted or
authorized carrier must obtain a cert of authority to transact business.
What is a company appointment? - ANSWER- Used to grant producers
authority to solicit insurance business for admitted carriers
What is a non-admitted carrier? - ANSWER- Companies w/o cert of
auth (unlicensed)
What are surplus lines companies? - ANSWER- 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? - ANSWER- Anyone who
solicits, or appoints others to solicit insurance on behalf of insurance
company.
What is a resident producer? - ANSWER- Issued to a person who
resides in MN or maintains person's principal place of business in MN.
What is a non-resident producer? - ANSWER- 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? - ANSWER- Hires producers,
supervises a territory, manages producer activities. Must be licensed as
an insurance producer.
What is a temp license? - ANSWER- 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
