MN PROPERTY & CASUALTY INSURANCE 2025/2026
QUESTIONS WITH SOLUTION GRADED A+
✔✔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
✔✔___ credit hours per licensed producer - ✔✔24 credits
✔✔how many hours of continuing education must be in ethics? - ✔✔3
✔✔For an earthquake how many hours and how many deductibles - ✔✔168 hours and
only 1 deductible
✔✔How many years is a license period - ✔✔2 years
✔✔a temporary insurance producer license may be issued for up to ___ days - ✔✔180
days
✔✔a licensee's time to notify the commissioner of address change is __ days - ✔✔10
days
✔✔a license is suspended for any period no less than - ✔✔3 months
✔✔how many years can you reapply for a license when your license had been
revoked? - ✔✔2 years
✔✔when you license is revoked what must you obtain? - ✔✔a performance bond of
$20,000
✔✔the insurer must file a notice of appointment within __ days of the first sale by the
producer - ✔✔15 days
✔✔an insurance company that terminates an appointment must notify the commissioner
within ____ days - ✔✔30
QUESTIONS WITH SOLUTION GRADED A+
✔✔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
✔✔___ credit hours per licensed producer - ✔✔24 credits
✔✔how many hours of continuing education must be in ethics? - ✔✔3
✔✔For an earthquake how many hours and how many deductibles - ✔✔168 hours and
only 1 deductible
✔✔How many years is a license period - ✔✔2 years
✔✔a temporary insurance producer license may be issued for up to ___ days - ✔✔180
days
✔✔a licensee's time to notify the commissioner of address change is __ days - ✔✔10
days
✔✔a license is suspended for any period no less than - ✔✔3 months
✔✔how many years can you reapply for a license when your license had been
revoked? - ✔✔2 years
✔✔when you license is revoked what must you obtain? - ✔✔a performance bond of
$20,000
✔✔the insurer must file a notice of appointment within __ days of the first sale by the
producer - ✔✔15 days
✔✔an insurance company that terminates an appointment must notify the commissioner
within ____ days - ✔✔30
