Free Casualty Insurance Basics Study Guide
Minnesota Casualty exam — Casualty Insurance Basics.
The national guide covers negligence, torts, damages, defenses and liability policy structure. This guide covers the Minnesota statutes that apply those concepts. They are comparative fault and the cancellation and nonrenewal rules for commercial property and liability policies (Minn. Stat. 60A.36–60A.37).
Comparative fault (Minn. Stat. 604.01)
- A plaintiff's fault doesn't bar recovery if it was not greater than the fault of the person sued. Damages are reduced in proportion to the plaintiff's fault.
- Example: a plaintiff 30% at fault with $100,000 in damages recovers $70,000.
- A plaintiff more at fault than the defendant recovers nothing from that defendant.
- The last clear chance doctrine is abolished.
- In auto injury cases, the no-fault tort threshold (65B.51) applies first. See the Minnesota auto guide.
Commercial policy cancellation and nonrenewal (60A.36, 60A.37)
| Rule | Minnesota requirement |
|---|---|
| New policies | A policy in effect less than 90 days that hasn't been renewed may be cancelled on at least 10 days' written notice |
| Midterm cancellation (other reasons) | Only for permitted reasons. Effective no sooner than 60 days after notice stating the specific reason. |
| Nonpayment | At least 10 days' notice of the amount due and the due date. Paying before the effective date prevents cancellation. |
| Loss of reinsurance | The policyholder may appeal to the Commissioner within 10 days. The Commissioner decides within 30 business days. |
| Nonrenewal | At least 60 days' notice before expiration. If notice is late, coverage continues until 60 days after the insured receives it. |
Materiality (60A.36, subd. 5): a misrepresentation or omission is material only if knowing the true facts would have led the insurer to refuse the contract.
Common exam traps
- Minnesota bars recovery only when the plaintiff's fault is greater than the defendant's.
- Commercial policies: 60 days' notice for midterm cancellation (other than nonpayment) and for nonrenewal.
- The first 90 days: 10 days' notice.
- Nonpayment: 10 days' notice.
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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.
