MN Insurance Exam Property and Casualty Updated Questions and Answers 100% Already Graded A+ Excel

MN Insurance Exam Property and Casualty Updated Questions and Answers 100% Already Graded A+ Excel Who appoints the commissioner of commerce? - CORRECT ANSWER-Governor What is the commissioner empowered to do? - CORRECT 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? - CORRECT ANSWER-as often as necessary but MUST be every 5 years a commissioner can examine who? - CORRECT 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 - CORRECT ANSWER-insurance company doing business within one state Foreign Insurer - CORRECT ANSWER-insurance company doing business outside its home state Alien Insurer - CORRECT ANSWER-like china doing business in the US Reciprocal - CORRECT ANSWER-members of unincorporated group insure eachother and share losses. (Cover eachother, what goes around like a reciprocal) Stock companies are owned by who? - CORRECT ANSWER-Shareholders Stock companies are managed by who? - CORRECT ANSWER-Board of directors Are stock companies profits taxable? - CORRECT ANSWER-Yes Mutual Companies are managed by who? - CORRECT ANSWER-board of directors mutual companies are owned by? - CORRECT ANSWER-policy holders In mutual companies, what are insurance dividends considered as? - CORRECT ANSWER-a refund of overpaid premium, not taxable How do you get a nonresident license? - CORRECT 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? - CORRECT ANSWER--hires producers -supervises a territory - responsible for agent activities - must be licensed as insurance producer Surplus Lines - CORRECT ANSWER- With bonds - A principal... - CORRECT ANSWER-makes the promise with bonds - an Obligee... - CORRECT ANSWER-is party to whom the promise is made to with bonds - a surety is.. - CORRECT ANSWER-the one who promises to pay if the promise is broken surplus lines - CORRECT ANSWER-allows producers to place insurance risks with eligible nonadmitted surplus lines insurers what would get your license revoked? - CORRECT ANSWER--providing incorrect, misleading, incomplete, or materially untrue information on license application -violating insurance laws - attempting to obtain insurance license through fraud -improperly withholding or converting money or property received in course of doing insurance business -misrepresenting a policy -being convicted of a felony or misdemeanor -committing unfair trade practice Rebating - CORRECT ANSWER-offering something to help sell misrep - CORRECT ANSWER-making false statement regarding dividends or financial condition of the insurer Twisting - CORRECT ANSWER-taking an insured from another company Forgery - CORRECT ANSWER-The fraudulent making or altering of any writing in a way that changes the legal rights and liabilities of another. Advertising includes - CORRECT ANSWER-- printed and published material - letters -billboards -radio and TV What is not allowed in advertising - CORRECT ANSWER--deceptive words - using words like: all, full, comprehensive, complete, unlimited, up to, or as high as -no exaggeration what does the MN insurance guaranty association do? - CORRECT ANSWER-protects insured form insurers inability to pay claims due to bankruptcy FAIR plan does what? - CORRECT ANSWER-assists applicants in securing property or liability insurance what is eligible under the FAIR plan? - CORRECT ANSWER-homes, businesses, apartments, condos, factories, and farms who have been denied insurance reasons one would be eligible under the FAIR plan? - CORRECT ANSWER-poor credit history, high number of claims, property condition When can an insured cancel homeowners insurance? - CORRECT ANSWER-anytime what does an insured get back when they cancel their homeowners insurance? - CORRECT ANSWER-any excess premium paid Total repair or replace? who decides? - CORRECT ANSWER-insurance company when can an insurance company cancel a homeowners policy? - CORRECT ANSWER-needs to give a 20 days notice After 60 days of an effective policy, what can an insurance cancel homeowners insurance because? - CORRECT ANSWER--nonpayment of premium -fraud when making a claim