Minnesota Property & Casualty Insurance License Exam — All Questions
3 questions
Which agency licenses resident property and casualty insurance producers in Minnesota?
- a.Minnesota Department of Public Safety
- b.Minnesota Department of Commerce✓
- c.Minnesota Department of Revenue
- d.Minnesota Attorney General's Office
Minnesota regulates insurers and licenses producers through the Minnesota Department of Commerce, led by the Commissioner of Commerce. The Department of Public Safety handles driver licensing and vehicle matters but does not license insurance producers.
A Minnesota producer gives a prospective client a gift card as an inducement to buy an auto policy, an amount not stated in the policy. Under Minnesota's unfair trade practices law this is:
- a.Permitted if the insurer approves
- b.Permitted for new clients only
- c.Prohibited rebating✓
- d.Required to be reported but otherwise lawful
Offering any part of the premium or commission, or other valuable consideration not stated in the policy, as an inducement to buy is prohibited rebating under Minnesota's unfair trade practices law and can bring fines and license action by the Minnesota Department of Commerce.
After a Minnesota personal auto or homeowners policy is past its initial underwriting period, mid-term cancellation by the insurer is generally permitted only:
- a.For specific statutory grounds such as nonpayment of premium, fraud, or a substantial increase in the hazard, with required advance written notice✓
- b.For any reason with no notice
- c.Only in the first week after issuance
- d.Never, under any circumstances
Minnesota limits mid-term cancellation of seasoned personal-lines policies to defined grounds such as nonpayment, fraud, or a material increase in the insured hazard, and requires advance written notice so the insured can replace coverage. The exact notice day-counts are set by statute; verify current figures with the Minnesota Department of Commerce.