MN INSURANCE PROPERTY CASUALTY
CERTIFICATION BUNDLED TEST 2026
QUESTIONS AND SOLUTIONS GRADED A+
⩥ Who must be licensed?
Answer: - Producers
- Insurance companies
- Managing general agent
⩥ Express Authority
Answer: Powers given to the agent per agency agreement
⩥ Implied Authority
Answer: Authority not given in the agency agreement, but necessary to
complete functions allowed in the agency agreement.
⩥ 1935 Agent Disclosure Law
Answer: Requires that producers tell potential clients
-Name
-Insurance Company
-and Intent to sell insurance
,⩥ Fair Credit Reporting Act
Answer: When a credit report is ordered, applicant must be notified both
verbally and in writing. Applicant has a right to request a copy of the
report. Applicant has a right to challenge any of the info.
⩥ Gramm-Leach-Bliley Act
Answer: Companies to disclose their privacy policy and how a
customers personal info may be used.
⩥ Required Conduct of agents
Answer: Producers may accept loans from clients, in writing, all records
must be kept for at least 6 years after.
⩥ Decreasing Term
Answer: Premium remains level during the term, but death benefit
decreases with time. (Like a mortgage)
⩥ Increasing Term
Answer: Death benefit AND premium increase over the term of
coverage
⩥ Whole Life Insurance
Answer: Provides protection until age 100. Accumulates cash value over
time. It has higher premiums, but they remain level. Money needed from
, the death benefit comes from the cash value. Interest payments can be
deferred for up to 6 months.
⩥ Straight Line Premium
Answer: Policy owner pays the same annual premium until the insured
dies or reaches 100.
⩥ Limited Pay Whole Life Insurance
Answer: Makes payments for the first several years, then policy is paid
in full.
⩥ Endowment
Answer: Savings > Protection w/ accumulated cash values, TAX
DEFERRED
⩥ Universal Life Insurance
Answer: Permanent Insurance Protection w/ additional flexibility. Can
increase or decrease death benefit, but need proof of insurance to
increase. Guaranteed minimum interest rate will be paid on the cash
value regardless of market or economy.
⩥ Variable Whole Life
Answer: Guaranteed minimum life benefit, return based on investment
success, level premium. Requires securities license to sell.
CERTIFICATION BUNDLED TEST 2026
QUESTIONS AND SOLUTIONS GRADED A+
⩥ Who must be licensed?
Answer: - Producers
- Insurance companies
- Managing general agent
⩥ Express Authority
Answer: Powers given to the agent per agency agreement
⩥ Implied Authority
Answer: Authority not given in the agency agreement, but necessary to
complete functions allowed in the agency agreement.
⩥ 1935 Agent Disclosure Law
Answer: Requires that producers tell potential clients
-Name
-Insurance Company
-and Intent to sell insurance
,⩥ Fair Credit Reporting Act
Answer: When a credit report is ordered, applicant must be notified both
verbally and in writing. Applicant has a right to request a copy of the
report. Applicant has a right to challenge any of the info.
⩥ Gramm-Leach-Bliley Act
Answer: Companies to disclose their privacy policy and how a
customers personal info may be used.
⩥ Required Conduct of agents
Answer: Producers may accept loans from clients, in writing, all records
must be kept for at least 6 years after.
⩥ Decreasing Term
Answer: Premium remains level during the term, but death benefit
decreases with time. (Like a mortgage)
⩥ Increasing Term
Answer: Death benefit AND premium increase over the term of
coverage
⩥ Whole Life Insurance
Answer: Provides protection until age 100. Accumulates cash value over
time. It has higher premiums, but they remain level. Money needed from
, the death benefit comes from the cash value. Interest payments can be
deferred for up to 6 months.
⩥ Straight Line Premium
Answer: Policy owner pays the same annual premium until the insured
dies or reaches 100.
⩥ Limited Pay Whole Life Insurance
Answer: Makes payments for the first several years, then policy is paid
in full.
⩥ Endowment
Answer: Savings > Protection w/ accumulated cash values, TAX
DEFERRED
⩥ Universal Life Insurance
Answer: Permanent Insurance Protection w/ additional flexibility. Can
increase or decrease death benefit, but need proof of insurance to
increase. Guaranteed minimum interest rate will be paid on the cash
value regardless of market or economy.
⩥ Variable Whole Life
Answer: Guaranteed minimum life benefit, return based on investment
success, level premium. Requires securities license to sell.
