WISCONSIN INSURANCE EXAM

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WISCONSIN INSURANCE EXAM

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -48 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Producer Competition

Answer:

• Price
• Similar Products offer similar price
• Not much difference between insurers and prices regulated by state

• Quality
• Similar products offer similar quality

• Service
• Where the agent sets themselves apart from the competition

Question 2: Pure Risk

Answer:

I lose or I do not lose

Question 3: Town Mutual Insurer

Answer:

• Founded by a group of farmers

• Regional in nature

• Policies are all assessable

• Write local property and casualty coverages only

Question 4: Rules of Risk Management

Answer:

• Don't Risk more than you can afford to lose

• Consider the odds

• Don't risk a lot for a little

• Priority for purchasing insurance

Question 5: Enforcement Procedures

Answer:

1. A hearing must be held:

• To revoke, suspend, or limit a producer's license
• before adopting a new or changing an existing law
• Whenever the law requires
• Appeal the denial of an insurance License

• Anyone aggravated by an insurance Commissioner Order
• Liscensee has 30 days to request a hearing
• OCI has not less than 10 nor more than 60 days to grant

3. No hearing required for:

• Failure to pay license renewal fee
• Failing to meet continuing education requirements

4. Re-Hearings may be granted if:

• Material fact evidence was overlooked
• New Evidence

- Liscensee has:

• 20 days to request
• The OCI has 20 days to grant, deny, or do nothing

Question 6: Violation of effective rule, order or statue

Answer:

Penalty: 2x the profit earned

Question 7: Association Insurer

Answer:

• Lloyd's of London
• Not an Insurance company
• Admitted in Two States
• Illinois and Kentucky
• In WI, they are treated as "Surplus Lines"
• Must have $1 billion in assets
• Not to be confused with American Lloyds

Question 8: Violation with regards to failure to supervise

Answer:

Penalty: $1,000/violation

Question 9: Pooling

Answer:

Spread of risk

Question 10: Mutual Insurers

Answer:

• Policyholders are the owners

2. Policies can be:

• Assessable
• Non-Assessable

• Dividends, If any, are a return of premiums
• Not taxable
• Not Guaranteed

Question 11: Speculative Risk

Answer:

I win or I lose

Question 12: Violation of insurance statue or law

Answer:

Penalty: $1,000/violation

Question 13: The Insurance Commissioner

Answer:

• Appointed by Governor

• Serves indefinite term

3. Charged with:

• Protecting the interests of the public
• Administering and enforcing insurance laws
• Ensure the insurance industry is meeting the public needs

• Administers and enforces the Law, does NOT creat

Question 14: Reinsurance

Answer:

• Insurance for Insurers
• Spreads the risk

- Used in Large risks of:

• Life insurance contracts
• Group health insurance
• Property and casualty insurance

Question 15: The process of risk management

Answer:

• Identify the Objectives

• Identify the Risks

• Evaluate the Risks

Question 16: Insurable Interest

Answer:

Deemed to have if the possibility exists of suffering financial or economic harm as a result of damage or destruction to person or property

• For life and health
• Yourself, Spouse, and Dependent Children
• Only has to be present at time of application

• For property and causality insurance
• Must be present at time of application and also at the time of loss/claim