MPCP Minnesota Property and Casualty Producer Exam - Set 1 - Part 3

Test your knowledge of technical writing concepts with these practice questions. Each question includes detailed explanations to help you understand the correct answers.

Question 41: A Minnesota agency offers every commercial client who buys a business auto policy a free personal umbrella policy for the first year, describing it as a thank-you rather than a discount. Section 72A.071 addresses that offer. Which conclusion follows?

The gift is permitted for commercial clients

The offer is permitted if disclosed

Only cash rebates are prohibited here

Free insurance as an inducement is barred

Question 42: The commissioner charges an insurer with an unfair method of competition that is defined in section 72A.20 and sets the matter for hearing. Minnesota fixes a minimum interval, counted in calendar days, between service and that hearing. How much notice must the insurer receive?

Not less than ten calendar days

Not less than thirty calendar days

Not less than twenty calendar days

Not less than five business days

Question 43: The Minnesota FAIR Plan is governed by a board of nine directors, five of whom the member insurers elect from among themselves. Under Minnesota Statutes section 65A.35, who appoints the remaining four directors, the ones who sit on that board to represent the public?

The commissioner of commerce

The governor of Minnesota

The attorney general of Minnesota

The plan's own member insurers

Question 44: A Minnesota FAIR Plan underwriter would like to decline a Saint Paul duplex because of the part of the city it stands in and because of a nearby environmental hazard the owner cannot control. Under Minnesota Statutes section 65A.36, subdivision 3, how are those two grounds treated?

Both are acceptable underwriting criteria

Location is acceptable, the hazard is not

The hazard is acceptable, location is not

Neither is an acceptable criterion

Question 45: Fire destroys an insured Brainerd house completely. The insurer argues that the building's actual cash value at the time of loss was well below the amount written on the policy. Under Minnesota Statutes section 65A.08, subdivision 2, what must the insurer pay?

Actual cash value at the loss

The whole amount mentioned in the policy

Replacement cost less accumulated depreciation

The lesser of value or limit

Question 46: A Minneapolis homeowner wants to hire someone for a fee to press her own fire loss claim against her insurer, and a neighbor asks whether that same person could pursue his liability claim against a driver. Under Minnesota Statutes section 72B.02, subdivision 6, which describes a public adjuster?

Acts for the insurer on any claim

A salaried employee of one insurer

Contracts with self-insurers as an independent contractor

Represents the insured on first-party claims

Question 47: A homeowner in Albert Lea applies to the Minnesota FAIR Plan after two carriers refuse her, and the plan inspects the dwelling before deciding whether to accept the risk. She asks what that inspection will cost her. Which statement matches Minnesota Statutes section 65A.34, subdivision 2?

She pays a fee set by rule

The cost is added to her premium

The inspection is at no cost

Her agent must pay the inspector

Question 48: A Red Wing insured's application misstated the age of the roof, and after a fire the insurer wants to void the policy outright. It cannot show the insured knew the statement was false. Which statement matches Minnesota Statutes section 65A.01, subdivision 3b?

Rescission requires willful intent to defraud

Any material misstatement voids the policy

The insurer may void within two years

Voiding is allowed if the insurer relied

Question 49: Minnesota Rules chapter 2880 governs homeowners nonrenewal notices and lists what each notice must contain. One required element points the insured toward another source of property coverage. Which element does the rule require the insurer to put in that notice?

The name of the insurer's reinsurer

Information about the Property Insurance Placement Facility

A quotation from another admitted insurer

The producer's commission on the expiring policy

Question 50: Candidates often hunt for Minnesota's standard fire policy language in a departmental bulletin or in whatever form each insurer has filed for approval. Under Minnesota Statutes section 65A.01, subdivision 3, where does the wording of the standard fire policy actually appear?

In a Department of Commerce bulletin

In each insurer's own filed form

In a rule the commissioner adopts

Printed in the statute itself

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