MINNESOTA STATE INSURANCE
LICENSING EXAM 400 QUESTIONS
AND CORRECT DETAILED ANSWERS
UPDATE ALREADY A GRADED|NEW!!
Leave the first rating
Save
Terms in this set (350)
Someone who acts on behalf of another
What is an agent?
(producer)
Party for whom action is taken (insurance
What is a principal?
company)
Legal agreement that establishes the
What is an agency relationship between the principal and
agreement? agent; outlines powers and responsibilities
of agents.
What is Express Powers given to agent as part of agency
authority? agreement(written)
Powers not given by the agency
What is implied agreement, but necessary to complete
authority? the functions allowed in the agency
agreement
, Powers not given by the agency
What is apparent agreement, but that a reasonable person
authority? would presume the agent has (between
you and consumer)
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
What are producer
2. Must also uphold high standards of
responsibilities?
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 Individual states, not federal gov,
McCarran-Ferguson responsible for regulating insurance
Act? industry.
Who oversee the Department of Commerce
MN insurance
industry?
Who direct the dept Headed by commissioner of commerce
of commerce? who is appointed by the governor
, -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
What does the Dept
any person or entity engaged in regulated
of Commerce do?
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 Once every 5 years
insurance
companies audited?
How much notice 30 days notice identifying scope of
does an insurance investigation.
company get of an
audit?
What happens if Company's policies remain valid, but
insurance company company faces severe penalties.
fails to obtain a
license to sell
insurance?
An admitted or authorized carrier must
What is a certificate
obtain a cert of authority to transact
of authority?
business.
Used to grant producers authority to
What is a company
solicit insurance business for admitted
appointment?
carriers
LICENSING EXAM 400 QUESTIONS
AND CORRECT DETAILED ANSWERS
UPDATE ALREADY A GRADED|NEW!!
Leave the first rating
Save
Terms in this set (350)
Someone who acts on behalf of another
What is an agent?
(producer)
Party for whom action is taken (insurance
What is a principal?
company)
Legal agreement that establishes the
What is an agency relationship between the principal and
agreement? agent; outlines powers and responsibilities
of agents.
What is Express Powers given to agent as part of agency
authority? agreement(written)
Powers not given by the agency
What is implied agreement, but necessary to complete
authority? the functions allowed in the agency
agreement
, Powers not given by the agency
What is apparent agreement, but that a reasonable person
authority? would presume the agent has (between
you and consumer)
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
What are producer
2. Must also uphold high standards of
responsibilities?
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 Individual states, not federal gov,
McCarran-Ferguson responsible for regulating insurance
Act? industry.
Who oversee the Department of Commerce
MN insurance
industry?
Who direct the dept Headed by commissioner of commerce
of commerce? who is appointed by the governor
, -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
What does the Dept
any person or entity engaged in regulated
of Commerce do?
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 Once every 5 years
insurance
companies audited?
How much notice 30 days notice identifying scope of
does an insurance investigation.
company get of an
audit?
What happens if Company's policies remain valid, but
insurance company company faces severe penalties.
fails to obtain a
license to sell
insurance?
An admitted or authorized carrier must
What is a certificate
obtain a cert of authority to transact
of authority?
business.
Used to grant producers authority to
What is a company
solicit insurance business for admitted
appointment?
carriers
