Minnesota State Real Estate Practice Test

What authority does the commissioner have regarding the Commerce Fraud Bureau?

1. The commissioner can establish it for car insurance fraud investigations only.

2. The commissioner can appoint officers for all types of fraud investigations.

3. The commissioner has no authority to establish law enforcement agencies.

4. The commissioner can only review reports of fraud complaints.

The correct answer is: The commissioner can appoint officers for all types of fraud investigations.

The correct answer indicates that the commissioner has the authority to appoint officers for various types of fraud investigations, not just those related to one specific area like car insurance. This highlights the broad scope of the commissioner's responsibilities in overseeing fraud investigations, ensuring that all forms of fraud are adequately handled by qualified personnel. In Minnesota, the Commerce Fraud Bureau is part of the Department of Commerce and is responsible for investigating fraud in various sectors, including insurance, real estate, and more. By having the power to appoint officers across different types of fraud cases, the commissioner can effectively manage and direct investigations to safeguard public interests and ensure that fraudulent activities are thoroughly addressed. Other options suggest a more limited scope of authority, which does not reflect the commissioner's comprehensive role in overseeing a range of fraud-related issues. The ability to establish a bureau specifically for car insurance fraud only, to have no authority over law enforcement, or to be limited to merely reviewing reports of fraud complaints would hinder the commissioner's effectiveness in overseeing and addressing fraud comprehensively across all relevant industries.