Minnesota Personal Lines Insurance License Exam — All Questions

How does Minnesota handle recovery of medical and income-loss benefits after an auto accident?

• a.It is a pure at-fault (tort) state; the injured party always sues the other driver for medical bills
• b.It bans all auto injury claims and routes them through a state fund
• c.It is a no-fault state; the injured person turns first to his or her own policy's PIP (basic economic loss benefits), regardless of fault✓
• d.It requires no medical coverage on auto policies at all

Minnesota is a no-fault auto state. After a crash, an injured person's own PIP (basic economic loss benefits) pays medical and income-loss benefits regardless of fault. Every Minnesota auto policy must include these benefits. Source: Minn. Stat. 65B.44; verify current figures with the Minnesota Department of Commerce.

Under Minn. Stat. 65B.44, what is the minimum total PIP (basic economic loss) benefit per person on a Minnesota auto policy?

• a.$10,000, all for medical expense
• b.$40,000 per person — $20,000 for medical expense and $20,000 for income loss and other economic loss✓
• c.$100,000 combined single limit
• d.There is no PIP requirement in Minnesota

Minn. Stat. 65B.44 sets basic economic loss (PIP) benefits at $40,000 per person: $20,000 for medical expense loss and $20,000 for income loss, replacement services, funeral, and survivor's benefits. Source: Minn. Stat. 65B.44; verify current figures with the Minnesota Department of Commerce.

What are the minimum residual liability limits a Minnesota auto policy must carry under Minn. Stat. 65B.49?

• a.$15,000 per person / $30,000 per accident bodily injury and $5,000 property damage
• b.$25,000 per person / $50,000 per accident bodily injury and $25,000 property damage
• c.$50,000 per person / $100,000 per accident bodily injury and $25,000 property damage
• d.$30,000 per person / $60,000 per accident bodily injury and $10,000 property damage✓

Minnesota requires residual liability of at least $30,000 per person, $60,000 per accident bodily injury, and $10,000 property damage (30/60/10). Source: Minn. Stat. 65B.49; verify current figures with the Minnesota Department of Commerce.

Which coverage does Minnesota require on every auto policy that many other states only require insurers to OFFER?

• a.Uninsured AND underinsured motorist (UM/UIM) coverage, at minimum limits of $25,000 per person / $50,000 per accident✓
• b.Collision coverage on the insured's own vehicle
• c.Gap coverage for leased vehicles
• d.Roadside assistance

Minnesota mandates both uninsured and underinsured motorist coverage on every auto policy, at minimum limits of 25/50 ($25,000 per person / $50,000 per accident). Many states only require insurers to offer UM/UIM. Source: Minn. Stat. 65B.49; verify current figures with the Minnesota Department of Commerce.

How are cancellation and nonrenewal of a personal auto or homeowners policy regulated in Minnesota?

• a.An insurer may cancel any personal policy at any time for any reason with no notice
• b.Only the policyholder may ever cancel; insurers can never cancel mid-term
• c.There are no notice rules; cancellation is governed solely by the contract
• d.State law limits the reasons an insurer may cancel or nonrenew and requires advance written notice to the insured; confirm the exact notice period with the Minnesota Department of Commerce✓

Minnesota, like other states, restricts mid-term cancellation of personal auto and homeowners policies to specified reasons (such as nonpayment or material misrepresentation) and requires advance written notice of cancellation or nonrenewal. The exact number of days varies by reason and line — verify the current Minnesota notice periods with the Minnesota Department of Commerce.