Free Casualty Insurance Basics Practice Questions
Minnesota Casualty exam — 131 practice questions.
Subtopics: Commercial cancellation, Rescission, Commercial nonrenewal, Compensatory damages, Special damages, General damages, Punitive damages, Strict liability, Vicarious liability, Absolute liability, Negligence elements, Proximate cause, Comparative negligence, Assumption of risk, Accident vs occurrence, Split limits, Combined single limit, Aggregate limit, Duty to defend, Supplementary payments, First named insured, Duties after loss, Other insurance, Underwriting purpose, Rate development, Subrogation condition, Liberalization, Policy territory, Hazard types, Claim settlement options, Cancellation pro rata, Loss payable, No benefit to bailee, Duties assignment, Negligence per se, Res ipsa loquitur, Intervening cause, Terrorism program, Bodily injury defined, Property damage defined, Insured contract, Self-insured retention, Tort defined, Battery, Libel, Nuisance, Trespass, Contributory negligence, Last clear chance, Joint and several liability, Respondeat superior, Attractive nuisance, Reasonable person standard, Burden of proof, Statute of limitations, Duty to mitigate, Nominal damages, Bailment, Hold harmless agreement, Named insured, Additional insured, Sublimit, Erosion of aggregate, Deductible, Loss reserve, IBNR reserve, Loss adjustment expense, Proof of loss, Appraisal clause, Arbitration, Short-rate cancellation, Notice of cancellation, Nonrenewal, Coverage trigger, Defense within limits, Severability of insureds, Premium audit, Retrospective rating, Schedule rating, Earned premium, Certificate of insurance, Split limits application, Intentional torts, Slander, Conversion, Invasion of privacy, Modified comparative negligence, Pure comparative negligence, Comparative negligence calculation, Legal liability sources, Criminal vs civil, Duty of care to entrants, Dram shop laws, Products liability, Occurrence vs claims-made, Claims-made tail, Common policy conditions, Legal action against insurer, Bankruptcy condition, Supplementary payments limits, Cancellation calculation, Limits calculation, Deductible types, Primary and excess, Contribution by equal shares, Contribution by limits, Duty to defend scope, Reservation of rights, Medical payments vs liability, Personal injury vs bodily injury, Claim vs suit, Negligence defenses, Extended reporting period, Retroactive date
Read the Casualty Insurance Basics study guide
Sample questions & answers
1. A renewed Minnesota commercial liability policy is canceled midterm for nonpayment of premium. What notice is required?
At least 10 days' notice of the amount due
A commercial policy may not be canceled for nonpayment unless the insurer gives at least ten days' notice of the amount due and due date; payment before the effective date prevents cancellation.
2. A Minnesota commercial liability insurer cancels a policy because it lost reinsurance for much of the risk. Within how many days may the policyholder appeal to the commissioner?
10 days from receipt of the notice
A notice of cancellation for loss of reinsurance must tell the policyholder it has ten days from receipt to appeal to the commissioner, who decides within 30 business days.
3. Under Minnesota law, when is a misrepresentation material enough to let an insurer rescind a commercial liability policy?
When the truth would have led it to refuse
No misrepresentation or omission is material unless knowledge of the true facts would have led the insurer to refuse to make the contract.
4. How far in advance must a Minnesota insurer send notice of intent not to renew a commercial liability policy?
At least 60 days before expiration
Notice of intention not to renew must be given at least 60 days before the policy expiration date, or coverage continues until 60 days after notice is received.
Practice: Casualty Insurance Basics
Answer choices are shuffled every time, and every question comes with an explanation.
Practice questions are study aids generated for exam preparation and are not actual exam questions. Content is provided for educational purposes and is not legal advice. Verify current statutes, rules, and exam specifications with the Insurance Department and the exam administrator before relying on it.
