MN INSURANCE EXAMS SET 2025/2026 ALL QUESTIONS
AND SOLUTIONS GRADED A+ TIP
✔✔occurrence - ✔✔An accident includes continuous or repeated exposure to the same
general harmful conditions.
✔✔pro rata - ✔✔if an insurer cancels an insurance policy before its expiration date
✔✔proximate cause - ✔✔The primary cause of loss
✔✔friendly fire - ✔✔a fire that stays in its intended place, such as a fire in a fireplace
✔✔Hostile Fire - ✔✔a fire that leaves its intended place, such as a spark that escapes a
fireplace and sets the carpet on fire
✔✔endorsement - ✔✔is a policy that alters or adds to the provisions of a property and
casualty insurance contract
✔✔Deductible - ✔✔specified amount of each loss that the insured must bear. Larger
deductible lowers the premium and submission of small claims
✔✔direct loss - ✔✔causes damage without an intervening cause
✔✔Indirect Loss - ✔✔Loss that is a result or consequence of a direct loss
✔✔named perils - ✔✔specifically lists the covered perils
✔✔open perils - ✔✔policy covers all perils except those specifically excluded
✔✔replacement value - ✔✔is the cost to replace it with property of like kind and quality,
at current pricing, without a deduction for depreciation
✔✔Actual cash value - ✔✔replacement value minus depreciation
✔✔valued policy - ✔✔requires the insurance company to pay the total scheduled limit of
insurance for a total loss
✔✔Specific Limit - ✔✔Insures a single item of property for a single limit of insurance.
✔✔scheduled limit - ✔✔Insures one or more items of property on a single policy and the
amount of insurance applying to each item is shown on a schedule.
✔✔blanket limit - ✔✔insures multiple items of property on a single policy with one limit
of insurance applying to all insured property
, ✔✔declarations page - ✔✔describes basic info about the policy
✔✔insuring agreement - ✔✔insurers promise to pay the insured
✔✔conditions - ✔✔section states the obligations of the insurer and the insured as well
as any other conditions of coverage
✔✔subrogation - ✔✔states the insureds obligation to transfer to the insurance company
its right of recovery against any party causing a loss after it accepts payment from the
insurer for a loss
✔✔perils that are NOT covered - ✔✔are in the exclusion section
✔✔additional coverages - ✔✔automatically included in property policies without an
additional premium and include items such as debris removal, collapse, and fire
department service charges
✔✔coinsurance - ✔✔common property policy provision that requires the insured
maintain a certain limit of insurance coverage in order to avoid a penalty in the event of
a partial loss
✔✔wrongful act - ✔✔tort
✔✔intentional tort - ✔✔deliberate act that harms another
✔✔liability insurance - ✔✔provides coverage for most unintentional torts and excludes
intentional torts
✔✔vicarious liability - ✔✔assigned to one party for the conduct of another based solely
on a relationship between the two
✔✔compensatory damages - ✔✔are awarded to an injured party for actual loss
sustained
✔✔special damages - ✔✔compensatory damages for tangible expenses such as bills,
loss of earnings, and the cost to repair or replace damaged property
✔✔general damages - ✔✔compensatory damages for pain, suffering, mental anguish,
disfigurement and similar types of losses that cannot be objectively calculated
✔✔bodily injury liability - ✔✔legal liability arising from physical injury, including sickness,
disease, and death caused by the acts or omissions of an insured. Include medical bills,
lost wages, mental anguish, disfigurement, pain and suffering
AND SOLUTIONS GRADED A+ TIP
✔✔occurrence - ✔✔An accident includes continuous or repeated exposure to the same
general harmful conditions.
✔✔pro rata - ✔✔if an insurer cancels an insurance policy before its expiration date
✔✔proximate cause - ✔✔The primary cause of loss
✔✔friendly fire - ✔✔a fire that stays in its intended place, such as a fire in a fireplace
✔✔Hostile Fire - ✔✔a fire that leaves its intended place, such as a spark that escapes a
fireplace and sets the carpet on fire
✔✔endorsement - ✔✔is a policy that alters or adds to the provisions of a property and
casualty insurance contract
✔✔Deductible - ✔✔specified amount of each loss that the insured must bear. Larger
deductible lowers the premium and submission of small claims
✔✔direct loss - ✔✔causes damage without an intervening cause
✔✔Indirect Loss - ✔✔Loss that is a result or consequence of a direct loss
✔✔named perils - ✔✔specifically lists the covered perils
✔✔open perils - ✔✔policy covers all perils except those specifically excluded
✔✔replacement value - ✔✔is the cost to replace it with property of like kind and quality,
at current pricing, without a deduction for depreciation
✔✔Actual cash value - ✔✔replacement value minus depreciation
✔✔valued policy - ✔✔requires the insurance company to pay the total scheduled limit of
insurance for a total loss
✔✔Specific Limit - ✔✔Insures a single item of property for a single limit of insurance.
✔✔scheduled limit - ✔✔Insures one or more items of property on a single policy and the
amount of insurance applying to each item is shown on a schedule.
✔✔blanket limit - ✔✔insures multiple items of property on a single policy with one limit
of insurance applying to all insured property
, ✔✔declarations page - ✔✔describes basic info about the policy
✔✔insuring agreement - ✔✔insurers promise to pay the insured
✔✔conditions - ✔✔section states the obligations of the insurer and the insured as well
as any other conditions of coverage
✔✔subrogation - ✔✔states the insureds obligation to transfer to the insurance company
its right of recovery against any party causing a loss after it accepts payment from the
insurer for a loss
✔✔perils that are NOT covered - ✔✔are in the exclusion section
✔✔additional coverages - ✔✔automatically included in property policies without an
additional premium and include items such as debris removal, collapse, and fire
department service charges
✔✔coinsurance - ✔✔common property policy provision that requires the insured
maintain a certain limit of insurance coverage in order to avoid a penalty in the event of
a partial loss
✔✔wrongful act - ✔✔tort
✔✔intentional tort - ✔✔deliberate act that harms another
✔✔liability insurance - ✔✔provides coverage for most unintentional torts and excludes
intentional torts
✔✔vicarious liability - ✔✔assigned to one party for the conduct of another based solely
on a relationship between the two
✔✔compensatory damages - ✔✔are awarded to an injured party for actual loss
sustained
✔✔special damages - ✔✔compensatory damages for tangible expenses such as bills,
loss of earnings, and the cost to repair or replace damaged property
✔✔general damages - ✔✔compensatory damages for pain, suffering, mental anguish,
disfigurement and similar types of losses that cannot be objectively calculated
✔✔bodily injury liability - ✔✔legal liability arising from physical injury, including sickness,
disease, and death caused by the acts or omissions of an insured. Include medical bills,
lost wages, mental anguish, disfigurement, pain and suffering
