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 โ โ 50%
In a BOP for fast-food restaurants, what is the maximum square footage eligible for the policy? -Correct Answer โ โ 7,500 square feet
Under a compulsory Workers Compensation law, this doctrine bars injured employees from seeking damages outside Workers Compensation -Correct Answer โ โ Exclusive Remedy doctrine
This includes salaries, wages, commissions, bonuses, noncash compensation, vacation pay, sick leave pay. This is called Payroll OR: - Correct Answer โ โ Remuneration
This kind of bond is used to guarantee honesty and trust: -Correct Answer โ โ Fidelity bond
This kind of bond guarantees the performance of someone else - Correct Answer โ โ 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 โ โ Actual Cash Value (ACV)
An insurance company that is incorporated outside the United States - Correct Answer โ โ Alien Insurer
A person or entity that has possession of personal property entrusted to them by the owner -Correct Answer โ โ 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 โ โ Cancellation
Untrue and unintentional statements made on an application, that if discovered, would alter the underwriting decision is called a: -Correct Answer โ โ Material Misrepresentation
In order for coinsurance to apply for full replacement cost, what percent coverage must an insured keep on a property? -Correct Answer โ โ 80%
All volcanic eruptions that occur within what time period is considered one occurrence? -Correct Answer โ โ 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 โ โ $2,
Homeowners HO-2 is what Form: -Correct Answer โ โ Broad Form
Homeowners HO-3 is what Form: -Correct Answer โ โ Special
Homeowners HO-4 is what Form: -Correct Answer โ โ Renters or Tenants Form
Homeowners HO-5 is what Form: -Correct Answer โ โ Comprehensive Form
Homeowners HO-6 is what Form: -Correct Answer โ โ Condominium Form
Homeowners HO-8 is what Form: -Correct Answer โ โ Modified Form
According to a dwelling policy, within how many years of a loss may an insured bring a lawsuit against an insurer? -Correct Answer โ โ 2 years
How long is the waiting period upon purchase of flood coverage through NFIP? -Correct Answer โ โ 30 days
The regular National Flood Insurance Program would insure an eligible single-family dwelling for up to ($): -Correct Answer โ โ $250,
The taking of property from another by using violence or the threat of violence -Correct Answer โ โ Robbery
A policy written separately as a single coverage -Correct Answer โ โ 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 โ โ 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 โ โ Insuring Agreement
A provision in an insurance policy that allows for more coverage for specific loss expense without increase in premium -Correct Answer โ โ 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 โ โ 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 โ โ Boycott
A commercial property form that covers buildings under construction -Correct Answer โ โ 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 โ โ 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 โ โ 60 days
Workers Compensation disability benefits begin after? (Days) -Correct Answer โ โ 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 โ โ 48 hours
The Minimum Uninsured Motorist liability limits that must be provided in Minnesota is: -Correct Answer โ โ $25,000/$50,
Policies issued through the Minnesota Automobile Insurance Plan must provide liability limits of at least: -Correct Answer โ โ 30/60/
This Value works best for items that do not fluctuate must in value: - Correct Answer โ โ Agreed Value
A dwelling policy will pay loss of use due to Civil Authority for a maximum of? (Weeks) -Correct Answer โ โ 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 โ โ 20 days
How many hours of continuing education must be completed every 2 years? -Correct Answer โ โ 24 hours
How many of the 24 hours of CE must be in the area of ethics? - Correct Answer โ โ 3 hours
How many initial hours of training must be needed to sell long-term care? -Correct Answer โ โ 8 hours
How many hours of CE are needed every 24 months after being licensed in Long-Term Care? -Correct Answer โ โ 4 hours
An insurance license must be renewed how often? -Correct Answer โ
โ 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 โ โ 60 days
In a Township Mutual, what is the minimum property requirement? - Correct Answer โ โ $50,
In a Township Mutual, what is the minimum number of citizens needed? -Correct Answer โ โ 25 Citizens
A Township Mutual must have at least __ but no more than __ members on its BOD. -Correct Answer โ โ 5, 9
The FAIR plan must take action on acceptance or rejection of the risk within how many days of an application? -Correct Answer โ โ 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 โ โ 5 business days.
The FAIR plan term is how long? -Correct Answer โ โ 1 year
Policies issued by a Township Mutual may be cancelled by the insurer with how many days advance notice? -Correct Answer โ โ 10 days advance notice
When a policy is terminated as of its effective date, as though it never existed, the policy is: -Correct Answer โ โ Rescinded-Correct
Answer โ โ 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 โ โ Conditions
The blind force in a contract that requires something of value to be exchanged for the transfer of risk -Correct Answer โ โ Consideration
Business Auto Coverage Form Symbol 7 -Correct Answer โ โ Specifically described autos only (Scheduled autos)
Business Auto Coverage Form Symbol 8 -Correct Answer โ โ Hired autos only
Business Auto Coverage Form Symbol 9 -Correct Answer โ โ Nonowned autos only
Business Auto Coverage Form Symbol 19 -Correct Answer โ โ Mobile equipment
A producer who failed to comply with the state CE requirement is guilty of a -Correct Answer โ โ Misdemeanor
To be eligible for a businessowners policy (BOP) coverage, an office building cannot be higher than (stories): -Correct Answer โ โ 6 stories
The party to a surety or fidelity bond who promises to fulfill the obligation is the -Correct Answer โ โ Principal
For surety and fidelity bonds, the Principal is also known as: -Correct Answer โ โ The Obligor
For surety and fidelity bonds, the Obligee is also known as: -Correct Answer โ โ The Insured
For surety and fidelity bonds, the Surety is also known as: -Correct Answer โ โ 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 โ โ $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 โ โ 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 โ โ 6 million dollars
