MINNESOTA STATE INSURANCE LICENSING EXAM
PRACTICE WITH QUESTIONS AND ANSWERS ALREADY
GRADED WITH 100% GUARANTEE PASS!!!
What is an agent? - CORRECT ANSWER-Someone who acts on behalf of another (producer)
What is a principal? - CORRECT ANSWER-Party for whom action is taken (insurance company)
What is an agency agreement? - CORRECT ANSWER-Legal agreement that establishes the relationship
between the principal and agent; outlines powers and responsibilities of agents.
What is apparent authority? - CORRECT 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? - CORRECT 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 Express authority? - CORRECT ANSWER-Powers given to agent as part of agency
agreement(written)
What is implied authority? - CORRECT ANSWER-Powers not given by the agency agreement, but
necessary to complete the functions allowed in the agency agreement
What is the McCarran-Ferguson Act? - CORRECT ANSWER-Individual states, not federal gov,
responsible for regulating insurance industry.
Who oversee the MN insurance industry? - CORRECT ANSWER-Department of Commerce
Who direct the dept of commerce? - CORRECT ANSWER-Headed by commissioner of commerce who is
appointed by the governor
What does the Dept of Commerce do? - CORRECT 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? - CORRECT ANSWER-Once every 5 years
How much notice does an insurance company get of an audit? - CORRECT ANSWER-30 days notice
identifying scope of investigation.
,What happens if insurance company fails to obtain a license to sell insurance? - CORRECT ANSWER-
Company's policies remain valid, but company faces severe penalties.
What is a certificate of authority? - CORRECT ANSWER-An admitted or authorized carrier must obtain a
cert of authority to transact business.
What is a company appointment? - CORRECT ANSWER-Used to grant producers authority to solicit
insurance business for admitted carriers
What is a non-admitted carrier? - CORRECT ANSWER-Companies w/o cert of auth (unlicensed)
What are surplus lines companies? - CORRECT 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? - CORRECT ANSWER-Anyone who solicits, or appoints
others to solicit insurance on behalf of insurance company.
What is a resident producer? - CORRECT 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? - CORRECT 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? - CORRECT ANSWER-Hires producers, supervises a territory,
manages producer activities. Must be licensed as an insurance producer.
What is a temp license? - CORRECT 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
What are the requirements for licensing a producer? - CORRECT ANSWER--18 years old
-Complete ed requirements- 20 hours of ed per major line of authorization
-Pass licensing exam
-Complete license application online w/Sircon
-Pay applicable license fee- $50 per line and added tech fee of up to $40
-Apply for perm insurance license within 3 years of passing exam
-License lasts 2 years
-License fee of $50 per line plus tech fee must be remitted w/online renewal app
-Indiv producer license expires on last day of producer's birth month
-License issued to business entity expire on 10/31 of renewal year
-24 hours of continuing ed required during each licensing period (No more than 1/2 of required creds
may come from courses offered by, sponsored by or affiliated w/an insurance company or its producers.
-Must obtain 3 hours per licensing period from class/classes in area of ethics
-Can't carry over credits from one license period to another
-Licensing courses don't count towards continuing ed credit.
-Can take classes via classroom/online
-Sales & marketing, motivation, specific company product knowledge, office management, use of
calculators/machines
How long do you have to notify dept of commerce of agent's change of name/address? - CORRECT
ANSWER-10 days
How long do you have to notify dept of commerce of administration action taken against producer by
another MN gov agency? - CORRECT ANSWER-30 days of the final disposition of the matter- must
include copy of order and any other relevant legal docs
PRACTICE WITH QUESTIONS AND ANSWERS ALREADY
GRADED WITH 100% GUARANTEE PASS!!!
What is an agent? - CORRECT ANSWER-Someone who acts on behalf of another (producer)
What is a principal? - CORRECT ANSWER-Party for whom action is taken (insurance company)
What is an agency agreement? - CORRECT ANSWER-Legal agreement that establishes the relationship
between the principal and agent; outlines powers and responsibilities of agents.
What is apparent authority? - CORRECT 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? - CORRECT 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 Express authority? - CORRECT ANSWER-Powers given to agent as part of agency
agreement(written)
What is implied authority? - CORRECT ANSWER-Powers not given by the agency agreement, but
necessary to complete the functions allowed in the agency agreement
What is the McCarran-Ferguson Act? - CORRECT ANSWER-Individual states, not federal gov,
responsible for regulating insurance industry.
Who oversee the MN insurance industry? - CORRECT ANSWER-Department of Commerce
Who direct the dept of commerce? - CORRECT ANSWER-Headed by commissioner of commerce who is
appointed by the governor
What does the Dept of Commerce do? - CORRECT 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? - CORRECT ANSWER-Once every 5 years
How much notice does an insurance company get of an audit? - CORRECT ANSWER-30 days notice
identifying scope of investigation.
,What happens if insurance company fails to obtain a license to sell insurance? - CORRECT ANSWER-
Company's policies remain valid, but company faces severe penalties.
What is a certificate of authority? - CORRECT ANSWER-An admitted or authorized carrier must obtain a
cert of authority to transact business.
What is a company appointment? - CORRECT ANSWER-Used to grant producers authority to solicit
insurance business for admitted carriers
What is a non-admitted carrier? - CORRECT ANSWER-Companies w/o cert of auth (unlicensed)
What are surplus lines companies? - CORRECT 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? - CORRECT ANSWER-Anyone who solicits, or appoints
others to solicit insurance on behalf of insurance company.
What is a resident producer? - CORRECT 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? - CORRECT 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? - CORRECT ANSWER-Hires producers, supervises a territory,
manages producer activities. Must be licensed as an insurance producer.
What is a temp license? - CORRECT 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
What are the requirements for licensing a producer? - CORRECT ANSWER--18 years old
-Complete ed requirements- 20 hours of ed per major line of authorization
-Pass licensing exam
-Complete license application online w/Sircon
-Pay applicable license fee- $50 per line and added tech fee of up to $40
-Apply for perm insurance license within 3 years of passing exam
-License lasts 2 years
-License fee of $50 per line plus tech fee must be remitted w/online renewal app
-Indiv producer license expires on last day of producer's birth month
-License issued to business entity expire on 10/31 of renewal year
-24 hours of continuing ed required during each licensing period (No more than 1/2 of required creds
may come from courses offered by, sponsored by or affiliated w/an insurance company or its producers.
-Must obtain 3 hours per licensing period from class/classes in area of ethics
-Can't carry over credits from one license period to another
-Licensing courses don't count towards continuing ed credit.
-Can take classes via classroom/online
-Sales & marketing, motivation, specific company product knowledge, office management, use of
calculators/machines
How long do you have to notify dept of commerce of agent's change of name/address? - CORRECT
ANSWER-10 days
How long do you have to notify dept of commerce of administration action taken against producer by
another MN gov agency? - CORRECT ANSWER-30 days of the final disposition of the matter- must
include copy of order and any other relevant legal docs
