MN INSURANCE EXAM PROPERTY AND
CASUALTY ACTUAL EXAMINATION 2026
QUESTIONS WITH VERIFIED ANSWERS
GRADED A+
⫸ Unauthorized insurance companies sell... Answer: surplus lines
insurance products
⫸ Nonconcurrency Answer: when there are two or more policies
covering the same property but providing different or non-identical
coverage.
⫸ Primary Coverage Answer: attaches immediately upon the occurrence
or loss
⫸ Excess coverage Answer: pays whatever is not paid by the primary
policy up to the amount of the loss or excess coverage limit, whichever
is less.
⫸ What is the commissioner empowered to do? Answer: -enforce and
create rules for enforcing insurance laws
- conduct investigations and hold hearings
examine and approve policy forms
-examine books, records, and documents of producers
- appoint staff to assist with enforcement
,⫸ How often can a commissioner examine insurance companies?
Answer: as often as necessary but MUST be every 5 years
⫸ Who appoints the commissioner of commerce? Answer: Governor
⫸ a commissioner can examine who? Answer: - any company
authorized to do business in MN
- any person involved in formation of insurer
-a licensed producer or solicitor
- a person engaged in business of adjusting losses or financial premiums
⫸ Domestic Insurer Answer: insurance company doing business within
one state
⫸ Foreign Insurer Answer: insurance company doing business outside
its home state
⫸ Alien Insurer Answer: like china doing business in the US
⫸ Reciprocal Answer: members of unincorporated group insure
eachother and share losses. (Cover eachother, what goes around like a
reciprocal)
⫸ Stock companies are owned by who? Answer: Shareholders
,⫸ Stock companies are managed by who? Answer: Board of directors
⫸ Are stock companies profits taxable? Answer: Yes
⫸ Mutual Companies are managed by who? Answer: board of directors
⫸ mutual companies are owned by? Answer: policy holders
⫸ In mutual companies, what are insurance dividends considered as?
Answer: a refund of overpaid premium, not taxable
⫸ How do you get a nonresident license? Answer: -they currently have
a license and are in good standing within their home state
-must file an address change
- no license application required
⫸ What does the Managing General Agency do? Answer: -hires
producers
-supervises a territory
- responsible for agent activities
- must be licensed as insurance producer
⫸ Surplus Lines Answer:
, ⫸ With bonds - A principal... Answer: makes the promise
⫸ Direct Writing Companies Answer: - Companies whose products are
sold by employees, not independent contractors.
- This type of producer may be compensated by a salary, commission, or
both.
- The insurance company owns the renewals of the policies sold on their
behalf.
⫸ with bonds - an Obligee... Answer: is party to whom the promise is
made to
⫸ with bonds - a surety is.. Answer: the one who promises to pay if the
promise is broken
⫸ surplus lines Answer: - allows producers to place insurance risks with
eligible nonadmitted surplus lines insurers
- Can only be sold to certain high-risk insureds
- Cannot be sold solely for a cheaper rate than licensed/admitted insurers
⫸ what would get your license revoked? Answer: -providing incorrect,
misleading, incomplete, or materially untrue information on license
application
-violating insurance laws
CASUALTY ACTUAL EXAMINATION 2026
QUESTIONS WITH VERIFIED ANSWERS
GRADED A+
⫸ Unauthorized insurance companies sell... Answer: surplus lines
insurance products
⫸ Nonconcurrency Answer: when there are two or more policies
covering the same property but providing different or non-identical
coverage.
⫸ Primary Coverage Answer: attaches immediately upon the occurrence
or loss
⫸ Excess coverage Answer: pays whatever is not paid by the primary
policy up to the amount of the loss or excess coverage limit, whichever
is less.
⫸ What is the commissioner empowered to do? Answer: -enforce and
create rules for enforcing insurance laws
- conduct investigations and hold hearings
examine and approve policy forms
-examine books, records, and documents of producers
- appoint staff to assist with enforcement
,⫸ How often can a commissioner examine insurance companies?
Answer: as often as necessary but MUST be every 5 years
⫸ Who appoints the commissioner of commerce? Answer: Governor
⫸ a commissioner can examine who? Answer: - any company
authorized to do business in MN
- any person involved in formation of insurer
-a licensed producer or solicitor
- a person engaged in business of adjusting losses or financial premiums
⫸ Domestic Insurer Answer: insurance company doing business within
one state
⫸ Foreign Insurer Answer: insurance company doing business outside
its home state
⫸ Alien Insurer Answer: like china doing business in the US
⫸ Reciprocal Answer: members of unincorporated group insure
eachother and share losses. (Cover eachother, what goes around like a
reciprocal)
⫸ Stock companies are owned by who? Answer: Shareholders
,⫸ Stock companies are managed by who? Answer: Board of directors
⫸ Are stock companies profits taxable? Answer: Yes
⫸ Mutual Companies are managed by who? Answer: board of directors
⫸ mutual companies are owned by? Answer: policy holders
⫸ In mutual companies, what are insurance dividends considered as?
Answer: a refund of overpaid premium, not taxable
⫸ How do you get a nonresident license? Answer: -they currently have
a license and are in good standing within their home state
-must file an address change
- no license application required
⫸ What does the Managing General Agency do? Answer: -hires
producers
-supervises a territory
- responsible for agent activities
- must be licensed as insurance producer
⫸ Surplus Lines Answer:
, ⫸ With bonds - A principal... Answer: makes the promise
⫸ Direct Writing Companies Answer: - Companies whose products are
sold by employees, not independent contractors.
- This type of producer may be compensated by a salary, commission, or
both.
- The insurance company owns the renewals of the policies sold on their
behalf.
⫸ with bonds - an Obligee... Answer: is party to whom the promise is
made to
⫸ with bonds - a surety is.. Answer: the one who promises to pay if the
promise is broken
⫸ surplus lines Answer: - allows producers to place insurance risks with
eligible nonadmitted surplus lines insurers
- Can only be sold to certain high-risk insureds
- Cannot be sold solely for a cheaper rate than licensed/admitted insurers
⫸ what would get your license revoked? Answer: -providing incorrect,
misleading, incomplete, or materially untrue information on license
application
-violating insurance laws
