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MINNESOTA LAWS, RULES, AND
REGULATIONS
An individual producer whose license lapses may, within _____ _________ from the due date of the renewal fee, reinstate the license without having to pass a written exam.
Rebating -Correct Answer โ โ Trade Practices
Offering or giving any rebate of premiums, dividends, stock, bonds or securities, or anything else of value as an inducement to buy insurance.
Twisting -Correct Answer โ โ Trade Practices
Replacing insurance to the detriment of the insured.
six years -Correct Answer โ โ Agent Conduct
Producers may accept a loan from an individual with whom the producer met in the course of the producer's business, provided the loan agreement is in writing. All records relating to the loan must be kept on file for at least _____ ________ after repayment.
30 working days -Correct Answer โ โ Agent Conduct
Policies must be delivered or mailed to the insured within _____ ________ ______ of the producer's receipt from the insurer.
10 working days -Correct Answer โ โ Agent Conduct
A producer who is convicted of a felony, gross misdemeanor, or misdemeanor involving moral turpitude must report it to the Commissioner within ____ _________ ______ of the conviction.
Policy forms, applications, and advertising must be retained for _______ ________ after the effective date.
three years -Correct Answer โ โ Insurance Company Conduct
Claim records must be retained for _______ _________ after the claim is paid or declined.
30 days -Correct Answer โ โ Insurance Company Conduct
Upon policy termination, all unearned premium must be delivered to the insured within ____ _______ following the insurer's receipt of the insured's cancellation request.
seven years -Correct Answer โ โ Fair Credit Reporting Act
Most adverse information remains in a credit report for ________ ________. Bankruptcy information remains in the report for 10 years.
Gramm-Leach-Billey Act -Correct Answer โ โ Required
Disclosures
Requires insurance companies to disclose their privacy policy, and how a customer's personal (non-public) information may be used and shared with affiliates and third parties. The Act requires companies to provide their privacy policy when a policy is issued, and at least once a year thereafter.
Guaranty Association -Correct Answer โ โ Required Disclosures
The purpose of the Minnesota Insurance ____________ ______________ is to protect policyholders from an insurer's inability to pay claims due to insolvency or bankruptcy.
The Commissioner is empowered to_________________. (1 of 8 things)
five years -Correct Answer โ โ Powers and Duties of
Commissioner
The Commissioner shall examine the affairs and conditions of every insurer licensed in Minnesota at least once every ________ ________.
the company being examined -Correct Answer โ โ Powers and
Duties of Commissioner
When conducting an examination, the Commissioner may retain attorneys, appraisers, independent actuaries, or independent certified public accountants as examiners; the cost is paid by_______________.
examination report -Correct Answer โ โ Powers and Duties of Commissioner
Once the records have been examined, the Commissioner will issue an _____________ _____________. Once issued, this report can be used as evidence in any legal proceeding.
$10,000 for each day -Correct Answer โ โ Powers and Duties of
Commissioner
Any person who violates or aids and abets any violation of a written order may be fined up to _______________ the violation continues.
30 days -Correct Answer โ โ Powers and Duties of Commissioner
If the insurer (or producer) disagrees with the Commissioner's findings, the insurer (or producer) has the right to request a hearing within _____ ________ of the order. Once the hearing has been requested, the Commissioner has another 30 days to hold the hearing.
A _____________ ____________ ____________ is not for profit and exists solely for the benefit of its members.
Admitted Carrier -Correct Answer โ โ Definitions
An insurance company that has obtained a certificate of authority.
certificate of authority -Correct Answer โ โ Definitions
Insurance companies must obtain a ______________ ___ ____________ to transact business in the state of Minnesota.
three years -Correct Answer โ โ Prelicensing
Exam results are valid for ________ ________ from the date of the exam.
two years after -Correct Answer โ โ Prelicensing
Minnesota law now requires both resident and nonresident accident/health insurance producers selling long-term care policies in Minnesota to complete a one-time, eight-hour partnership course and a four-hour refresher course every ________ _______ _________ the initial training.
24 credit hours -Correct Answer โ โ Continuing Education
Producers must complete a minimum of ____ _________ ________ of commissioner-approved courses during each two-year licensing period. At least THREE of those hours must be in a class or classes in the are of ethics.
half -Correct Answer โ โ Continuing Education
Subsequent license periods are two years, and the license expires on the _____________________________.
18 years old -Correct Answer โ โ Types of Licenses
You must be ______ ________ _____ to obtain a producer's license.
10 days -Correct Answer โ โ Types of Licenses
A nonresident producer who moves from one state to another must file a change of address and provide certification from the new resident state within ____ ______ of legal residence. No fee or license application is required.
Managing General Agent (MGA) -Correct Answer โ โ Types of Licenses
Hires producers, supervises a territory, is responsible for agent activities, and must be licensed as an insurance producer.
30 days -Correct Answer โ โ When Commissioner non-renews or
denies a license application
The license applicant or licensee has ____ _______ to file a written request for a hearing to determine the reasonableness of the Commissioner's action.
30 days -Correct Answer โ โ When Commissioner non-renews or
denies a license application
The hearing must be held within _____ _______, and will be in front of an administrative law judge.
As a condition of reapplication the producer must obtain a performance bond of at least _________ with the state of Minnesota as obligee.
$10,000 per violation -Correct Answer โ โ Revocation or
Suspension of License
In addition to taking action against a producer's license, the Commissioner may fine a producer up to __________ _____ ___________.
15 days -Correct Answer โ โ Appointment
A licensed insurance producer shall not transact insurance business on behalf of an insurer unless the producer has the insurer's permission to transact business on its behalf and obtains an appointment within ____ ______ after submitting the first application to the insurer.
15 days -Correct Answer โ โ Appointment
To appoint a producer as its agent, the insurer must file a notice of appointment within ____ ______ from the date the agency contract is executed or submission of the firsts insurance application.
five days -Correct Answer โ โ Appointment
Upon receipt of the notice of appointment, the Commissioner will verify within 30 days that the producer is eligible for appointment. If the producer is ineligible for appointment, the Commissioner shall notify the insurer within ______ ______.
30 days -Correct Answer โ โ Termination of Appointment
Any insurer that fails to file a company appointment is penalized _____ _____ _________.
$300 -Correct Answer โ โ Termination of Appointment
The maximum penalty per unappointed producer ______.
10 days -Correct Answer โ โ Termination of Appointment
If the insurer fails to pay a penalty within _____ _______ after notice from the Commissioner, the insurer's authority to transact business in Minnesota will be revoked until the penalty is paid.
24 months -Correct Answer โ โ Maintenance and Duration of License
Insurance producer licenses are valid for a period of ____ _________.
10 days -Correct Answer โ โ Notification Requirements
The producer must notify the Commissioner within ____ _______ of a change of name, address, or any other information that was provided on the initial license application.
30 days -Correct Answer โ โ Notification Requirements
The producer must notify the Commissioner of any administrative action taken against the producer in another jurisdiction, or by another Minnesota governmental agency within ____ _____ of the final disposition of the matter.
30 days -Correct Answer โ โ Notification Requirements
