MPCP - Minnesota Property and Casualty Producer Exam

Question 21: Examiners spend several weeks at a domestic insurer's Duluth office reviewing books, records, accounts and computer files during a Minnesota examination. The insurer's controller wants to know who bears the cost of that work. Which party does chapter 60A make responsible?

The Department of Commerce general fund

The Minnesota Insurance Guaranty Association

Policyholders through a statewide assessment

The company being examined

Question 22: A Duluth insurer ends its contract with an appointed producer for purely business reasons, with no misconduct of any kind. Under Minnesota Statutes section 60K.51, subdivision 1, what must the insurer do about that termination, and within how many calendar days?

Notify the commissioner within thirty calendar days

Nothing, since no misconduct occurred

Notify the commissioner within fifteen calendar days

Notify the producer within ten business days

Question 23: The commissioner revokes a Minnesota producer's licence after a hearing, and the former licensee wants to know how soon a new application may be filed. Section 60K.43 sets a minimum waiting period measured from the effective date of the revocation. Which period applies?

At least one year

At least five years

At least two years

No waiting period is imposed

Question 24: A Minnesota applicant intends to qualify for both the property line and the casualty line of authority. Minnesota Statutes section 60K.36 requires a program of classroom or verifiable self-study before the examination. How does that section measure the required hours?

Twenty hours total for both lines

Twenty hours per major line of authority

Forty hours before any first licence

Hours set by the commissioner annually

Question 25: A court enters a final order of liquidation against a Minnesota property insurer, and one of its policyholders suffers a fire loss eleven calendar days later without having replaced or cancelled the policy. Which statement matches Minnesota Statutes section 60C.09, subdivision 1?

Coverage ended when the order was entered

The window runs sixty calendar days

The claim arose within thirty calendar days

Only claims filed before liquidation qualify

Question 26: A Minneapolis manufacturer bought commercial property coverage with a self-insured retention of four hundred thousand dollars. Its insurer is now insolvent. Chapter 60C uses the same three-hundred-thousand-dollar figure in two subdivisions for two different purposes. How does the association treat this policy's claims?

They are excluded entirely from coverage

Paid up to three hundred thousand dollars

Paid after the retention is exhausted

Paid in full without any limitation

Question 27: Chapter 60C lists twelve kinds of direct insurance the guaranty association does not reach. Two of them surprise property candidates: one form of marine coverage and any insurance provided or guaranteed by government, which is why federal flood policies sit outside the fund. Which marine coverage is excluded?

Inland marine coverage on personal property

All marine and transportation coverage

Marine coverage written by township mutuals

Ocean marine coverage

Question 28: A stock insurer already writing in Minnesota applies to add the general liability line of authority. Minnesota Statutes section 60A.07, subdivision 5a, sets the minimum for that line. Which pair of figures must the insurer show for general liability?

Three hundred fifty thousand capital, same surplus

Five hundred thousand capital, one million surplus

One million capital, two million surplus

Two hundred thousand capital, same surplus

Question 29: A homeowner in Winona telephones her agent and asks whether a cracked foundation would be covered, then files nothing. At renewal the insurer refuses to renew, citing that call. Under Minnesota Statutes section 72A.20, subdivision 13, how is that refusal treated?

An unfair method of competition

Permitted, since no claim was paid

Permitted if the agent logged it

A ground for a premium surcharge

Question 30: An applicant for a Minnesota homeowners policy discloses that she obtained an order for protection after abuse by a former partner, and the underwriter proposes to decline the application on that history alone. Which statement matches Minnesota Statutes section 72A.20, subdivision 8?

The insurer may charge a higher premium

The protection covers only life insurance applicants

A written declination cures the refusal

Declining for that reason is prohibited

Question 31: An injured worker's employer bought workers compensation coverage from an insurer now in liquidation. The guaranty association picks up the claim, and the statutory benefits owed will run past the association's usual per-claim ceiling. Which statement describes how chapter 60C handles that claim?

Workers compensation is exempt from the limitation

The ceiling applies to workers compensation too

The claim is not covered at all

The ceiling doubles for workers compensation claims

Question 32: A Minnesota producer's mailer tells prospects that buying from her carrier is safe because a state association stands behind every policy if the insurer fails. Under Minnesota Statutes section 60C.20, how does the guaranty chapter treat that sales pitch?

Permitted if the statement is accurate

Permitted only in written advertising

It is an unfair trade practice

Required with every property policy application

Question 33: A Minnesota resident producer also transacts business in Iowa, where the insurance regulator has just entered a final order suspending her authority after a market conduct examination. Under Minnesota Statutes section 60K.54, subdivision 1, what must she do about that action here?

Nothing, the other state notifies Minnesota

Report it within ten business days

Report it only if Minnesota asks

Report it within thirty calendar days

Question 34: A homeowner in Moorhead asks an agent for an application form for homeowner's insurance from one of the insurers the agent represents. The agent thinks the risk is unattractive and refuses to hand over the form. Which conclusion does chapter 72A support?

The refusal is unfair competition

Supplying the form is discretionary

The refusal is lawful underwriting judgment

Only insurers can violate this provision

Question 35: A Saint Cloud insured submits a properly executed proof of loss on a fire claim several weeks after first reporting it. Minnesota's claims practices statute attaches its own deadline to that document, separate from the clock the first notice started. Which deadline runs from the proof of loss?

Thirty business days

Sixty calendar days

Ninety business days

Sixty business days

Question 36: The Minnesota commissioner suspends a licence pending final determination of an order to show cause, and the licensee asks for a hearing within thirty calendar days of receiving that order. Under the enforcement statute, how soon must the hearing on the merits then be held?

Thirty calendar days from the hearing request

Ten calendar days from the hearing request

Fifteen calendar days from the report

Sixty calendar days from the suspension

Question 37: A third party injured by a Minnesota policyholder writes to the insurer asking for the coverage and limits of the policy. Minnesota Statutes section 72A.201, subdivision 11, sets the deadline for that disclosure. Which period, with its unit, does the subdivision impose?

Thirty business days from the request

Ten business days from the request

Thirty calendar days from the request

Fifteen working days from the request

Question 38: A Minnesota producer intends to charge a client a separate service fee in addition to the policy premium. Minnesota permits the fee but conditions it on advance written disclosure. Which item must appear in that written disclosure before the fee is charged?

Only the total dollar amount charged

The services rendered and the fee amounts

A statement that fees replace commission

The insurer's countersignature on the agreement

Question 39: A Minnesota producer mails seniors a notice printed to look official, worded so that recipients believe she is contacting them on behalf of a state agency. Which statement about that conduct under Minnesota Statutes section 60K.43, subdivision 1, is correct?

Lawful where the policy facts are accurate

Only chapter 72A advertising rules apply

It is a ground for licence action

It requires proof of actual customer loss

Question 40: A Minnesota casualty producer has carried the same carrier appointment for eleven years without ever filing anything to keep it alive, and she asks what would bring it to an end. Under Minnesota Statutes section 60K.49, subdivision 7, what governs how long an appointment lasts?

It lasts until someone terminates it

It expires every twenty-four months

It expires each December thirty-first

It expires when the fee goes unpaid

MPCP Minnesota Property and Casualty Producer Exam - Set 1 - Part 2