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MN Property & Casualty Insurance Exam Questions and Answers (2025), Exams of Insurance Economics

A comprehensive set of questions and answers for the minnesota property and casualty insurance exam. it covers various aspects of insurance, including property valuation, coverage limits, policy types, and legal requirements. The questions are detailed and the answers are accurate, making it a valuable resource for students preparing for the exam. This resource is particularly useful for those studying insurance principles and practices.

Typology: Exams

2024/2025

Available from 05/08/2025

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MN Property & Casualty State Exam (2025)
In a BOP for convenience stores with gas pumps, no more than what
percentage of sales may come from gasoline? -Correct Answer โœ” โœ”
50%
In a BOP for fast-food restaurants, what is the maximum square
footage eligible for the policy? -Correct Answer โœ” โœ” 7,500 square
feet
Under a compulsory Workers Compensation law, this doctrine bars
injured employees from seeking damages outside Workers
Compensation -Correct Answer โœ” โœ” Exclusive Remedy doctrine
This includes salaries, wages, commissions, bonuses, noncash
compensation, vacation pay, sick leave pay. This is called Payroll OR: -
Correct Answer โœ” โœ” Remuneration
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Download MN Property & Casualty Insurance Exam Questions and Answers (2025) and more Exams Insurance Economics in PDF only on Docsity!

MN Property & Casualty State Exam (2025)

In a BOP for convenience stores with gas pumps, no more than what percentage of sales may come from gasoline? -Correct Answer โœ” โœ” 50%

In a BOP for fast-food restaurants, what is the maximum square footage eligible for the policy? -Correct Answer โœ” โœ” 7,500 square feet

Under a compulsory Workers Compensation law, this doctrine bars injured employees from seeking damages outside Workers Compensation -Correct Answer โœ” โœ” Exclusive Remedy doctrine

This includes salaries, wages, commissions, bonuses, noncash compensation, vacation pay, sick leave pay. This is called Payroll OR: - Correct Answer โœ” โœ” Remuneration

This kind of bond is used to guarantee honesty and trust: -Correct Answer โœ” โœ” Fidelity bond

This kind of bond guarantees the performance of someone else - Correct Answer โœ” โœ” Surety bond

The required amount to pay damages or for property loss, which is calculated based on the property's current replacement value minus depreciation -Correct Answer โœ” โœ” Actual Cash Value (ACV)

An insurance company that is incorporated outside the United States - Correct Answer โœ” โœ” Alien Insurer

A person or entity that has possession of personal property entrusted to them by the owner -Correct Answer โœ” โœ” Bailee

The termination of an in-force insurance policy by either the insured or the insurer prior to the expiration date shown in the policy -Correct Answer โœ” โœ” Cancellation

Untrue and unintentional statements made on an application, that if discovered, would alter the underwriting decision is called a: -Correct Answer โœ” โœ” Material Misrepresentation

In order for coinsurance to apply for full replacement cost, what percent coverage must an insured keep on a property? -Correct Answer โœ” โœ” 80%

All volcanic eruptions that occur within what time period is considered one occurrence? -Correct Answer โœ” โœ” 168-hour period (7 days)

For a dwelling policy, what is the coverage limit ($) for silver and silver-plated ware, gold, pewterware, trays, and trophies? -Correct Answer โœ” โœ” $2,

Homeowners HO-2 is what Form: -Correct Answer โœ” โœ” Broad Form

Homeowners HO-3 is what Form: -Correct Answer โœ” โœ” Special

Homeowners HO-4 is what Form: -Correct Answer โœ” โœ” Renters or Tenants Form

Homeowners HO-5 is what Form: -Correct Answer โœ” โœ” Comprehensive Form

Homeowners HO-6 is what Form: -Correct Answer โœ” โœ” Condominium Form

Homeowners HO-8 is what Form: -Correct Answer โœ” โœ” Modified Form

According to a dwelling policy, within how many years of a loss may an insured bring a lawsuit against an insurer? -Correct Answer โœ” โœ” 2 years

How long is the waiting period upon purchase of flood coverage through NFIP? -Correct Answer โœ” โœ” 30 days

The regular National Flood Insurance Program would insure an eligible single-family dwelling for up to ($): -Correct Answer โœ” โœ” $250,

The taking of property from another by using violence or the threat of violence -Correct Answer โœ” โœ” Robbery

A policy written separately as a single coverage -Correct Answer โœ” โœ” Monoline Policy

A seldom used method of valuing a loss based upon the amount a willing buyer would pay to a willing seller for the property prior to the loss. -Correct Answer โœ” โœ” Market Value

The section of an insurance policy containing the insurer's promise to pay, the description of coverage provided and perils insured against - Correct Answer โœ” โœ” Insuring Agreement

A provision in an insurance policy that allows for more coverage for specific loss expense without increase in premium -Correct Answer โœ” โœ” Additional coverage

A property policy with a provision agreed upon by the insurer and insured as to the amount of insurance that represents a fair valuation

for the property at the time the insurance is written -Correct Answer โœ” โœ” Agreed Value

An unfair trade practice in which one person refuses to do business with another until he or she agrees to certain conditions -Correct Answer โœ” โœ” Boycott

A commercial property form that covers buildings under construction -Correct Answer โœ” โœ” Builder's Risk Coverage Form

An unfair trade practice in which an insurer uses physical or mental force to persuade an applicant to buy insurance -Correct Answer โœ” โœ” Coercion

The withholding of known facts which, if material, can void a contract After an insurance company examination, the Commissioner or the Examiner appointed by the Commissioner must file a written report of the examination within? (Days) -Correct Answer โœ” โœ” 60 days

Workers Compensation disability benefits begin after? (Days) -Correct Answer โœ” โœ” 3 days

In the event of theft of a covered vehicle, transportation expense coverage in a PAP begins how many hours after the theft? -Correct Answer โœ” โœ” 48 hours

The Minimum Uninsured Motorist liability limits that must be provided in Minnesota is: -Correct Answer โœ” โœ” $25,000/$50,

Policies issued through the Minnesota Automobile Insurance Plan must provide liability limits of at least: -Correct Answer โœ” โœ” 30/60/

This Value works best for items that do not fluctuate must in value: - Correct Answer โœ” โœ” Agreed Value

A dwelling policy will pay loss of use due to Civil Authority for a maximum of? (Weeks) -Correct Answer โœ” โœ” 2 Weeks

In the event the Commissioner believes there has been a violation of insurance law, a hearing may be conducted. The hearing must occur no sooner than how many days from the date of hearing notice? - Correct Answer โœ” โœ” 20 days

How many hours of continuing education must be completed every 2 years? -Correct Answer โœ” โœ” 24 hours

How many of the 24 hours of CE must be in the area of ethics? - Correct Answer โœ” โœ” 3 hours

How many initial hours of training must be needed to sell long-term care? -Correct Answer โœ” โœ” 8 hours

How many hours of CE are needed every 24 months after being licensed in Long-Term Care? -Correct Answer โœ” โœ” 4 hours

An insurance license must be renewed how often? -Correct Answer โœ”

โœ” 24 months

Minnesota Standard Fire Policy: In the event of nonrenewal, a notice of how many days must be provided to an insured? -Correct Answer โœ” โœ” 60 days

In a Township Mutual, what is the minimum property requirement? - Correct Answer โœ” โœ” $50,

In a Township Mutual, what is the minimum number of citizens needed? -Correct Answer โœ” โœ” 25 Citizens

A Township Mutual must have at least __ but no more than __ members on its BOD. -Correct Answer โœ” โœ” 5, 9

The FAIR plan must take action on acceptance or rejection of the risk within how many days of an application? -Correct Answer โœ” โœ” 59 days

For the FAIR plan, if a risk is to be rejected based on an inspection, a copy of the notice must be provided to the applicant within how many business days? -Correct Answer โœ” โœ” 5 business days.

The FAIR plan term is how long? -Correct Answer โœ” โœ” 1 year

Policies issued by a Township Mutual may be cancelled by the insurer with how many days advance notice? -Correct Answer โœ” โœ” 10 days advance notice

When a policy is terminated as of its effective date, as though it never existed, the policy is: -Correct Answer โœ” โœ” Rescinded-Correct

Answer โœ” โœ” Concealment

The section of an insurance policy that indicates the general rules or procedures that the insurer and insured follow under the terms of the policy -Correct Answer โœ” โœ” Conditions

The blind force in a contract that requires something of value to be exchanged for the transfer of risk -Correct Answer โœ” โœ” Consideration

Business Auto Coverage Form Symbol 7 -Correct Answer โœ” โœ” Specifically described autos only (Scheduled autos)

Business Auto Coverage Form Symbol 8 -Correct Answer โœ” โœ” Hired autos only

Business Auto Coverage Form Symbol 9 -Correct Answer โœ” โœ” Nonowned autos only

Business Auto Coverage Form Symbol 19 -Correct Answer โœ” โœ” Mobile equipment

A producer who failed to comply with the state CE requirement is guilty of a -Correct Answer โœ” โœ” Misdemeanor

To be eligible for a businessowners policy (BOP) coverage, an office building cannot be higher than (stories): -Correct Answer โœ” โœ” 6 stories

The party to a surety or fidelity bond who promises to fulfill the obligation is the -Correct Answer โœ” โœ” Principal

For surety and fidelity bonds, the Principal is also known as: -Correct Answer โœ” โœ” The Obligor

For surety and fidelity bonds, the Obligee is also known as: -Correct Answer โœ” โœ” The Insured

For surety and fidelity bonds, the Surety is also known as: -Correct Answer โœ” โœ” The Guarantor

In Commercial Auto Insurance, the Loss of Use Expenses will cover up to what dollar amount per/day and up to a maximums of? -Correct Answer โœ” โœ” $20 per day, $600 maximum.

In a BOP, the maximum square footing for an office building eligible for a Business Owners Policy is? -Correct Answer โœ” โœ” 100, square feet

In a BOP for retail or service businesses, the maximum gross annual sales eligible for a Business Owners Policy is? -Correct Answer โœ” โœ” 6 million dollars