MN PROPERTY CASUALTY STATE
EXAMINATION TEST 2026 ACTUAL PAPER
CORRECT SOLUTIONS VERIFIED GRADED
A+
⩥ What is the commissioner empowered to do?
Answer: -enforce and create rules for enforcing insurance laws
- conduct investigations and hold hearings
examine and approve policy forms
-examine books, records, and documents of producers
- appoint staff to assist with enforcement
⩥ How often can a commissioner examine insurance companies?
Answer: as often as necessary but MUST be every 5 years
⩥ a commissioner can examine who?
Answer: - any company authorized to do business in MN
- any person involved in formation of insurer
-a licensed producer or solicitor
- a person engaged in business of adjusting losses or financial premiums
,⩥ Domestic Insurer
Answer: insurance company doing business within one state
⩥ Foreign Insurer
Answer: insurance company doing business outside its home state
⩥ Alien Insurer
Answer: like china doing business in the US
⩥ Reciprocal
Answer: members of unincorporated group insure eachother and share
losses. (Cover eachother, what goes around like a reciprocal)
⩥ Stock companies are owned by who?
Answer: Shareholders
⩥ Stock companies are managed by who?
Answer: Board of directors
⩥ Are stock companies profits taxable?
Answer: Yes
,⩥ Mutual Companies are managed by who?
Answer: board of directors
⩥ mutual companies are owned by?
Answer: policy holders
⩥ In mutual companies, what are insurance dividends considered as?
Answer: a refund of overpaid premium, not taxable
⩥ How do you get a nonresident license?
Answer: -they currently have a license and are in good standing within
their home state
-must file an address change
- no license application required
⩥ What does the Managing General Agency do?
Answer: -hires producers
-supervises a territory
- responsible for agent activities
- must be licensed as insurance producer
⩥ Surplus Lines
, Answer:
⩥ With bonds - A principal...
Answer: makes the promise
⩥ with bonds - an Obligee...
Answer: is party to whom the promise is made to
⩥ with bonds - a surety is..
Answer: the one who promises to pay if the promise is broken
⩥ surplus lines
Answer: allows producers to place insurance risks with eligible
nonadmitted surplus lines insurers
⩥ what would get your license revoked?
Answer: -providing incorrect, misleading, incomplete, or materially
untrue information on license application
-violating insurance laws
- attempting to obtain insurance license through fraud
-improperly withholding or converting money or property received in
course of doing insurance business
-misrepresenting a policy
EXAMINATION TEST 2026 ACTUAL PAPER
CORRECT SOLUTIONS VERIFIED GRADED
A+
⩥ What is the commissioner empowered to do?
Answer: -enforce and create rules for enforcing insurance laws
- conduct investigations and hold hearings
examine and approve policy forms
-examine books, records, and documents of producers
- appoint staff to assist with enforcement
⩥ How often can a commissioner examine insurance companies?
Answer: as often as necessary but MUST be every 5 years
⩥ a commissioner can examine who?
Answer: - any company authorized to do business in MN
- any person involved in formation of insurer
-a licensed producer or solicitor
- a person engaged in business of adjusting losses or financial premiums
,⩥ Domestic Insurer
Answer: insurance company doing business within one state
⩥ Foreign Insurer
Answer: insurance company doing business outside its home state
⩥ Alien Insurer
Answer: like china doing business in the US
⩥ Reciprocal
Answer: members of unincorporated group insure eachother and share
losses. (Cover eachother, what goes around like a reciprocal)
⩥ Stock companies are owned by who?
Answer: Shareholders
⩥ Stock companies are managed by who?
Answer: Board of directors
⩥ Are stock companies profits taxable?
Answer: Yes
,⩥ Mutual Companies are managed by who?
Answer: board of directors
⩥ mutual companies are owned by?
Answer: policy holders
⩥ In mutual companies, what are insurance dividends considered as?
Answer: a refund of overpaid premium, not taxable
⩥ How do you get a nonresident license?
Answer: -they currently have a license and are in good standing within
their home state
-must file an address change
- no license application required
⩥ What does the Managing General Agency do?
Answer: -hires producers
-supervises a territory
- responsible for agent activities
- must be licensed as insurance producer
⩥ Surplus Lines
, Answer:
⩥ With bonds - A principal...
Answer: makes the promise
⩥ with bonds - an Obligee...
Answer: is party to whom the promise is made to
⩥ with bonds - a surety is..
Answer: the one who promises to pay if the promise is broken
⩥ surplus lines
Answer: allows producers to place insurance risks with eligible
nonadmitted surplus lines insurers
⩥ what would get your license revoked?
Answer: -providing incorrect, misleading, incomplete, or materially
untrue information on license application
-violating insurance laws
- attempting to obtain insurance license through fraud
-improperly withholding or converting money or property received in
course of doing insurance business
-misrepresenting a policy
