Minnesota Property & Casualty Insurance License Exam — All Questions
4 questions
What are Minnesota's minimum auto liability limits for a private passenger vehicle?
- a.$15,000 / $30,000 / $10,000
- b.$25,000 / $50,000 / $25,000
- c.$30,000 / $60,000 / $10,000✓
- d.$50,000 / $100,000 / $25,000
Minnesota's minimum liability limits are 30/60/10: $30,000 bodily injury per person, $60,000 per accident, and $10,000 property damage. These are minimums set by state law and can change, so confirm current figures with the Minnesota Department of Commerce.
How is Minnesota's auto insurance system best characterized?
- a.A no-fault state that requires personal injury protection (PIP) basic economic loss benefits✓
- b.A pure tort state with no first-party benefits
- c.An add-on state with optional PIP only
- d.A state with no compulsory auto coverage
Minnesota is a no-fault state: a personal auto policy must include personal injury protection (PIP), also called basic economic loss benefits, which pays the insured's own medical and income-loss benefits regardless of fault. Verify the current required PIP amount with the Minnesota Department of Commerce.
In addition to liability and PIP, which coverage does Minnesota require on a personal auto policy?
- a.Collision and comprehensive
- b.Uninsured and underinsured motorist (UM/UIM) coverage✓
- c.Rental reimbursement
- d.Gap coverage
Minnesota requires uninsured and underinsured motorist (UM/UIM) coverage in addition to liability and no-fault PIP. UM/UIM protects the insured when the at-fault driver has no coverage or not enough. The required UM/UIM amounts are set by state law; verify current figures with the Minnesota Department of Commerce.
Because Minnesota is a no-fault state, when may an injured person step outside no-fault and sue the at-fault driver for pain and suffering (noneconomic loss)?
- a.Never, under any circumstances
- b.Any time, with no restriction
- c.Only when the injury meets a statutory threshold, such as a defined level of medical expense or a serious/permanent injury✓
- d.Only if the state agency grants written permission
Under Minnesota no-fault, lawsuits for noneconomic damages are allowed only when the injury crosses a statutory threshold, such as a set dollar amount of medical expense or a serious or permanent injury. Below the threshold, the injured person's own PIP responds. The exact threshold figures are set by statute; confirm current amounts with the Minnesota Department of Commerce.