MN Property & Casualty Insurance, MN Insurance Exam Property & Casualty 2024-2025. Grade A, Exams of Insurance law

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MN Property & Casualty Insurance, MN

Insurance Exam Property & Casualty

2024-2025. Questions and Correct,

Verified Answers. Graded A+

___ credit hours per licensed producer - ANS24 credits ___ prelicensing hours per major line of authority - ANS20 hours $__ for property damage of others in any one accident - ANS$10, $___ fine per day if a person violates, aides, or abets a written cease and desist order - ANS$10, $___ for bodily injury to one person in any one accident - ANS$30, $___ for bodily injury to two or more persons in any one accident - ANS$60, $___ for income loss, funeral expense, and survivor's loss - ANS$20, $___ per line of authority for an applicaton fee - ANS$ a FAIR plan inspection report is due within __ business days after the inspection - ANS10 days a homeowners policy in effect for less than 60 days can be cancelled for any reason with at least ___ days notice of cancellation - ANS20 days a lapsed licensee can reinstate license within ___ months - ANS12 months a license is suspended for any period no less than - ANS3 months a licensee's time to notify the commissioner of address change is __ days - ANS10 days a non at-fault claimant may sue the at-fault party if the disability lasts for __ days - ANS60 days a person entitled to basic economic loss benefits must notify the insurer within __ months of the date of accident - ANS6 months a promotional advertising item or gift of $___ or less per year is not a rebate - ANS$

a temporary insurance producer license may be issued for up to ___ days - ANS days Abandonment - ANSThe insured cannot simply abandon the property to the insurance company in exchange for the full-insured value. Actual Cash Value - ANSMethod for placing value on property as of the time of its loss or damage. It may be determined as replacement cost less depreciation. The market value of an item may be used to help determine this. Adverse information remains in a credit report for ___ years. - ANS7 years after - ANS after a total of $___ of permanent total disability benefits have been paid, the amount of benefits paid by the employer are reduced by the amount of any government disability benefits, including SS benefits - ANS$25, After getting the notice of termination, how many days can the producer file written comments concerning the termination with the commissioner? - ANS30 days Aggregate Limit - ANSLimit stated in the policy representing the total amount for all claims paid during the policy period. Once this limit has been met, the insured is without coverage. an insurance company must complete the claim investigation within __ days - ANS days an insurance company that terminates an appointment must notify the commissioner within ____ days - ANS Annual Transit Policy - ANScovers all shipments during the year Appraisal Process - ANSIn case of losses involving property, it is often nessecary to obtain estimates of the damaged property before payment can be made. This involves all types of property losses such as automobiles, structures, and their contents. Special appraisers or estimators may be required for fine arts, stained glass or other items that require a higher level of expertise. Bailee Liability - ANS- Covers damage to customer's property

• Pays customer claim records must be retained for ___ years after the claim is paid or denied - ANS years complaint records must be retained for ___ years after the date received - ANS4 years

Conditions - ANSSet provisions, rules of conduct, duties and obligations for the parties. A number of common insurance conditions describe such things as the policy period and territory. It also includes the insured's obligation to provide proof of loss, how settlements are handles when other insurance is involved, and the right of each party to cancel the policy. Declarations - ANSPolicy includes the identity and address of the name insured, the policy term or period, the amount of insurance or limits of liability, the policy premium, and any applicable deductibles. Will also include either a property description or a schedule of coverage parts, and a list of any endorsements. Definition of the Insured - ANSThose that have insurable interest in the property who would suffer a financial loss if the property were damaged by an insured peril can be considered an insured. In personal insurance, this can include family members without listing their names on the declarations page of the policy. Additional insureds such as a lien holder. disability benefits are equal to ___% of the employees gross weekly wage up to a maximum of ___% of the statewide average weekly wage - ANS66 2/3% and 102% Domestic shipments can only be covered by - ANStruck, train, air or mail Duties of the Insured - ANSThe insured is required by the policy provisions to report a claim to the company as soon as practical. The insured must also preserve the undamaged property to the best of his/her ability to avoid additional loss. Dynamic Risk - ANSThis is associated with chance. Example would be a new and fatal virus spontaneously erupting into society. This is not insurable. each insurer must retain a record of all non renewals and company initiated cancellations for ___ years - ANS each insurer must retain a record of all non renewals and company inititaed cancelalltions except those for nonpayment of premium for __ years - ANS3 years Exclusions - ANSMay describe property, perils, hazards, or losses arising from specific causes that are not covered by the policy. Expressed Waiver - ANSOccurs when the insurer the insurer or its representatives purposely gives up known right under the contract. FAIR - if the inspection reveils that the applicant is not eligible, the plan must inform the applicant within __ days of the inception of the policy - ANS59 days

FAIR - the plan must make an underwriting decision within __ business days of receiving the completed application - ANS5 days FAIR plan cancellations require at least __ days written notice to be insured - ANS days FAIR plan policy term is - ANS1 year financial and complain records must be kept on file for ___ years - ANS First violation for violating MN nonrenewal statutes - ANS$ for a nonrenewal, notice must be mailed to the insured at least __ days before the effective date - ANS60 days For an earthquake how many hours and how many deductibles - ANS168 hours and only 1 deductible For personal injury protection, how much is the minimum per person? - ANS$40, for reasonable and necessary medical expenses what is the amount? - ANS$20, for underinsured, $___ minimum limit because of the injury or death of one person in any accident - ANS$25, funeral and burial benefits shall be reasonable expenses not to exceed $___ - ANS$5, Hazard - ANSAny condition that increases the possibility of a loss How many days does an insurer have to reply to customer claims and inquries? - ANS10 days How many days does the insurance company get to send a written notice to the commissioner about termination to the producer? - ANS15 days how many hours of continuing education must be in ethics? - ANS how many years can you reapply for a license when your license had been revoked? - ANS2 years How many years is a license period - ANS2 years how many years must bankruptcy information remain in the credit report for - ANS years

How much is the penalty for failing to appoint a producer? and up to? - ANS$25 up to $ how much must a township mutual maintain? - ANSminimum of $300, Implied Waiver - ANSMay result from some kind of neglect on the part of the agent or adjuster. Income loss benefits provide compensation for % of gross income to a maximum of $_ per week - ANS85% and $ Insurable Interest - ANSBefore a person can obtain an insurance policy, they must have this in the property being insured. A person is deemed to have this in property when he has a lawful, substantial, economic interest in the preservation of the property. The term "person" includes an individual, company, insurer, association, organization, reciprocal, partnership, or any other legal entity. Insurance company must give __ days notice of homeowners cancellation - ANS days insured's lawsuits against the insurance company must be initiated within __ years after the loss - ANS2 years insurer must give __ days cancellation notice, if due to nonpayment of premium - ANS20 days Insuring Agreement - ANSDescribes the covered perils, or risks assumed, or nature of coverage, or makes some reference to the contractual agreement between insurer and insured. In package policies each different coverage form includes its own insuring agreement. Licensee may request a hearing within __ days of commissioners order after hearing request, the commissioner has ___ to hold the hearing - ANS30 and 30 Limitations - ANSMay eliminate or reduce coverage, but only under certain circumstances or when specified conditions apply. Moral Hazard - ANSA condition of morals or habits that increases the probability of a loss from peril. Morale Hazard - ANSHazard arising out of an insured's indifference to loss because of the existence of insurance. Motor truck cargo - ANStruckers form covers the insureds bailee responsibility (carrying someone elsed stuff)

Named Peril - ANSThis form lists the specific perils to be covered in the policy. Negligence - ANSCaused by improper product design, improper assembly of the product, failure to inspect or test the product, etc. non at fault claim may sue the at fault party if medical expenses excees $___ - ANS$4, notice of cancellation for car insurance is __ days in advance if the policy is being cancelled for any other reason - ANS30 days notice of cancellation for car insurance is __ days in advance if the reason is non payment of premium - ANS10 days notice of nonrenewal of car insurance is __ days - ANS60 days number of years licensing exam results are valid - ANS3 years Occurance form - ANScoverage triggered by bodily injury or physical damage that occurs during the policy period Occurence - ANSA sudden and unforeseen event resulting in financial loss. It may also be continuous or repeated exposure to an event that results in financial loss. once a loss has been settled, payment for the claim must be made within __ business days - ANS5 days Open Peril - ANSDoes not list the perils but provides broader coverage. oral binders must be put in writing to the insured within ___ business days - ANS Peril - ANSActual cause of a loss (fire, windstorm, hail) Policies must be delivered to the insured within __ working days of the producer's receipt from the insurer - ANS30 days Policy forms, applications, and advertising must be retained for __ years after the effective date - ANS3 years premium refunds must be sent to the insured within ___ days of the producers receipt from the insurer - ANS5 days Proof of loss - ANSA formal statement made by the insured to the insurance company regarding a loss. The purpose of this is to place before the company sufficient information concerning the loss to enable it to determine its liability under the policy or bond.

Property policy begins at : standard time - ANS12:01AM Pure Risk - ANSA situation where there is only the possibility of a loss. Example would be catastrophic medical expenses, liability law suit, damage to property by fire. This type of risk is insurable. Rehab treatment must be reported to the insurer within ___ days - ANS60 days Replacement Cost - ANSCovers property - both building a contents - on the basis of fill replacement cost without deduction for depreciation of any loss sustained, subject to the terms of the co-insurance clause. Replacement Cost - ANSThe current cost to purchase new, the item that was lost, with no deduction or depreciation. The full value will be paid up to the limit of the policy less any deductible. Risk - ANSPossibility that a loss might occur and is the reason that people buy insurance. Salvage - ANSIf the insurer pays a loss on behalf of the insured, the insurer is entitled to the salvage to reduce the claim second violation for violating MN nonrenewal statutes - ANS$ Single Limit - ANSPays up to one amount as the maximum limit of liability of the insurer with respect to any one accident/occurrence involving either or both bodily injury and property damage. Speculative Risk - ANSA situation where either profit or loss in possible. Example would be betting on a horse race or investing in real estate. This type of risk in not insurable. Split Limits - ANSExpressed by two figures. There may be a limit representing the max payable for each person injured per occurrence for bodily injury and another limit applicable to the claims of all persons injured in the accident or occurrence. Static Risk - ANSThese factors are historical factors that do no frequently fluctuate. They result from "static" or "unchanging" environment. Example would be an area that may only flood every 100 years. This type of risk is insurable. Subrogation Clause - ANSUsed when the insurer has paid a covered claim on the behalf of the insured that is caused by another party. The insurance company is entitled to the insured's right of recovery from the negligent party. This is sometimes called the "Transfer of Right of Recovery Against Other to Us"

survivors economic loss benefits are subject to a maximum of $___ per week - ANS$ the applicant has the right to challenge any erroneous information contains in the consumer report within __ days - ANS The commissioner examines each insurer every __ years - ANS the insurance company must give the insured notice of how it will handle the loss within __ days after receipt of proof of loss - ANS30 days the insurer must file a notice of appointment within __ days of the first sale by the producer - ANS15 days the penalty for rebating is $___ to $___ per violation - ANS$60 - $ the producer must notify the commissioner of any administrative action take or criminal prosecution against the producer within ___ days - ANS30 days the producer must notify the commissioner within ___ days of any felony or gross misdemeanor conviction, guilty plea, or plea of no contest - ANS10 days the standard underwriting experience period in MN is __ years - ANS3 years third violation for violating MN nonrenewal statutes - ANS$ Trip transit - ANSCovers a single shipment-one time, one way unearned premium refund to be issued within ___ days - ANS30 days Unoccupancy - ANSThe premises are void of people. Vacany - ANSThe building is void of contents and people. The building is simply not being used. In most cases the insured can purchase Vacancy permit coverage restored for an additional premium. Waiver - ANSGenerally defined as the voluntary or intentional relinquishment of a know right. An example would be an insured who fails to report a claim in a timely manner. There are two types; Expressed and Implied. what covers the insured own goods in the insureds own trucks - ANSowners form when is the property value determined? - Inland Marine - ANSat the time of loss when you license is revoked what must you obtain? - ANSa performance bond of $20,

Workers comp- no disability benefits are paid for the first __ calendar days after the disability - ANS3 days