Cram Sheets - Days, Dates, Dollars Flashcards
A request for hearing must be made to the Commissioner of Insurance within ___ days of an order
30 Days
Hearings with the Commissioner of Insurance must be held within ___ to ___ days following the request for hearing.
10 to 60 Days
What is the maximum fine per-day for noncompliance with an order?
$5,000 per day beyond the two-week notice period
What is the Court-ordered fine per day for violating a Wisconsin insurance Law?
$5,000 each day
What is the fine for an individual who fails to obey an order issued from an enforcement proceeding?
$1,000 per day
What is the Civil Penalty on a firm for acts by its agent?
$1,000
What is the Maximum corporate fine per Criminal Offense?
$10,000
What is the Maximum individual fine per Criminal Offense?
$5,000
What is the possible length of imprisonment for a Criminal Offense?
Up to 3 Years
What is the Insurance Security Fund’s maximum liability per covered claim for a single risk, loss or life?
$300,000
What is the Insurance Security Fund’s aggregate liability for property, liability and disability insurance?
$500,000
What is the Insurance Security Fund’s maximum liability for a Workers Compensation Insurance claim?
The Full amount of the Claim.
What is the Insurance Security Fund?
A fund created to protect insureds against excessive delay and loss if an insurer is liquidated.
Where does the Insurance Security Fund get its funds?
All insurers authorized to do business in Wisconsin must pay assessments to the fund
What is the minimum age to obtain an intermediary’s license?
18
How many hours of Prelicensing Education is required per license for an Intermediary?
20 Hours
How many days does an Intermediary have to report a change of address, administrative action or criminal prosecution to the Commissioner of Insurance?
30 Days
How long does an Intermediary have to maintain records?
3 Years
If an Intermediary dies, becomes disabled, or is called to active military service who can receive a temporary intermediary license from the Commissioner of Insurance?
A Surviving Spouse, Business Partner, or Employee of the Intermediary.
If a Temporary Intermediary License is issued, how long may it remain in effect?
1 Year
Why would a Temporary Intermediary License be issued?
To allow the appointed individual to service an insurance business if an Intermediary dies, becomes disabled or is called to active military service.
What is an Intermediary Appointment?
An Insurer must notify the Commissioner of Insurance when an Intermediary is appointed to represent the Insurer as an Agent.
When must an Insurer file an Intermediary Appointment?
Within 15 days of the execution of the Agency Contract or first insurance application.
When must an insurer notify the Commissioner of Insurance if an Intermediary Appointment is terminated?
Within 30 days of the termination date.
What is an Intermediary?
Any Agent, Broker or Producer and any person, partnership or corporation requiring a license.
What does an Intermediary do?
i) Solicits, recommends, negotiates, or places insurance or annuities on behalf of an insurer or a person seeking insurance or annuities;
ii) advises other persons about insurance needs and coverages; or
iii) assists another in doing either i or ii
What is the required Intermediary fee?
$35 biennially for resident intermediaries and $70 biennially for nonresident intermediaries
What are the Continuing Education requirements for Intermediaries?
24 credit hours for each two-year licensing period, 3 of which must consist of ethics credits.
How much notice must an insurer give to an insured if it wishes to cancel a new policy in effect for less than 60 days?
10-days - no reason must be disclosed.
When can an insurer cancel a policy in the middle of a policy term?
After 10 days’ notice if the cancellation is for nonpayment of premium or after 30 days’ notice if the policy being cancelled is a worker’s compensation policy
How much notice must an insurer give to an insured if it wishes to cancel a policy on the policy anniversary?
Notice must be sent at least 60 days in advance of the policy anniversary.
How much notice must an insurer give to an insured if it wishes to nonrenew a policy or renew it with altered terms?
60 days’ notice of nonrenewal or renewal with altered terms is required.
When must an insurer pay claims?
Payment must be made within 30 days after written notice of a loss and interest of 7.5% per annum must be paid on past due amounts.
When must an insurer file rates with the Commissioner of Insurance?
Within 30 days after rates become effective.
What is the maximum amount of the bond required to be filed with the Commissioner of Insurance by a Surplus Lines Agent or Broker?
$100,000
What is the premium tax paid by policyholders on transactions of surplus lines insurance or risk retention groups?
3%
What is the Wisconsin Insurance Plan?
An insurance plan developed to assist Wisconsin residents in obtaining basic property insurance.
Who participates in the Wisconsin Insurance Plan?
All property insurers in Wisconsin must participate in the program.
Who supervises the Wisconsin Insurance Plan?
The Office of the Commissioner of Insurance.
What is NOT eligible for coverage under the Wisconsin Insurance Plan?
Farms, Automobiles, and Manufacturing Properties
What limits are offered by the Wisconsin Insurance Plan for Fire, Extended Coverage and Builder’s Risk?
$200,000 for Dwellings
$100,000 for Personal property for any habitational risk at one location
$500,000 for any other eligible property at any one location
What limits are offered by the Wisconsin Insurance Plan for Loss Due to Burglary and/or Theft?
$5,000 for any habitational risk at one location
$15,000 for any other eligible property at one location
What limits are offered by the Wisconsin Insurance Plan for Personal Liability for risks at one location?
$100,000
What limits are offered by the Wisconsin Insurance Plan for Medical Payments to Others?
$1,000
Is Automobile Insurance Required in Wisconsin?
Yes
What are the minimum liability limits for Automobile insurance in Wisconsin?
$25,000 for bodily injury or death to any one person in any one accident;
$50,000 for bodily injury or death to two or more persons in any one accident
$10,000 for property damage in any one accident
*remember “25/50/10”
Is Uninsured Motorist Coverage required in Wisconsin?
Yes
What are the minimum liability limits for Uninsured Motorist Coverage required in Wisconsin?
$25,000 per person
$50,000 per accident
Is Underinsured Motorist Coverage required in Wisconsin?
No but notice of coverage availability must be provided with the policy and coverage may be rejected by the insured.
What are the minimum Underinsured Motorist Coverage limits that may be offered by an insurer in Wisconsin?
$50,000 per person
$100,000 per accident
What is the Wisconsin Auto Insurance Plan? (WAIP)
An insurance plan that provides coverage for Wisconsin automobile owners who are unable to obtain automobile liability and physical damage coverages due to unfavorable driving records or other underwriting conditions.
Who may obtain Auto insurance under the Wisconsin Auto Insurance Plan?
WAIP is available to anyone having automobiles registered in Wisconsin.
What coverages are available under the Wisconsin Auto Insurance Plan?
Coverage is available for minimum required limits of $25,000 per person, $50,000 per accident and $10,000 for property damage (25/50/10) but insureds may also elect coverage up to $100,000 per person, $300,000 per accident and $100,000 for property damage (100/300/100)
Uninsured motorist coverage is also available (and mandatory) to cover minimum required limits of $25,000 per person and $50,000 per accident
A person licensed to sell insurance may be referred to as:
Intermediary
Broker
Agent
Producer
To whom does an Intermediary have responsibilities?
The State
Insurers
The Public
Describe the concept of Agency
The power to act on behalf of an insurance company.
How is an agency relationship created with an Insurer?
Through execution of an Agency Contract.
What is the Gramm-Leach Bliley Act? (GLBA)
An act that governs the disclosure of Customer and Consumer information. The Act requires that privacy notices be given at the inception of a customer relationship and that consumers and customers be allowed to opt out of disclosure of nonpublic information.
What is a Fiduciary?
Someone who has a great deal of trust and confidence placed in them by others and is bound to act in the best interest of others to whom they are bound.
What is Ethics?
The discipline concerned with what is morally good and bad, right and wrong.
What are two perspectives of Ethics?
Philosophically - Helps gai personal and professional satisfaction
Practically - helps avoid controversy and misunderstanding and increases personal efficiency as an insurance producer.
What is the Golden Rule?
Do unto others as you would have the, do unto you.
Who appoints the Commissioner of Insurance?
The Governor
What does the Commissioner of Insurance Do?
- Administers and enforces insurance laws
- Protects the insuring public
- Ensures insurance industry responsibly and adequately meets the insurance needs of Wisconsin residents
- Makes rules relating to insurance
- Issues orders
- Conducts examinations
- Conducts hearings
When must a request for rehearing be given?
Within 20 days after a final Order is filed.
Is an Intermediary licensed in Wisconsin required to be a resident of Wisconsin?
No
Is a license required to sell insurance?
Yes
After completing an exam, how does an individual apply for a license?
- Provide name and address
- Provide electronic confirmation of pre-licensing education completion
- Provide electronic confirmation of criminal history provided by the Wisconsin Department of Justice (within 180 days prior to test date)
- Provide Fingerprints
- Pay applicable fees
What is a letter of certification?
A letter issued by the Commissioner of Insurance which is required for Wisconsin agents to obtain a nonresident license in another state.
What is a Letter of Clearance?
A letter issued by the Commissioner of Insurance which is required for Wisconsin agents who move to another state and want to hold a resident agent’s license in that state.
What are some examples of Unfair Trade Practices?
- Misrepresentation
- False Advertising
- Illegal Inducement
- Rebating
How long does an Intermediary’s license remain in effect?
- Until it is revoked, suspended or limited by the Commissioner of Insurance
- Until it is voluntarily surrendered
- Until the death of the Intermediary
- Until a court finds the Intermediary mentally incompetent or the Commissioner determines after a hearing that the person is no longer qualified to act as an Intermediary
How can a license be reinstated after revocation?
- Within 12 months - fines are 2x the amount of the renewal fee and reinstatement is effective when actually reinstated by the Commissioner
- After 12 months - relicensing is required
Are insurers required to notify insureds of a policyholder’s right to file a complaint with the Office of the Commissioner of Insurance?
Yes - a notice must appear on each policy and must contain the wording: “KEEP THIS NOTICE WITH YOUR INSURANCE PAPERS”
Are Oral Contracts valid in Wisconsin?
Yes - Oral Contracts and Written Binders are permitted in Wisconsin provided a written policy is issued as soon as possible.
What are some prohibited Risk Classification Criteria? (Insurers cannot refuse, cancel or deny insurance coverage to a class of risk solely on the basis of these factors.)
- Criminal Record
- Physical Condition
- Past Mental Disability
- Age
- Marital Status
- Sexual Preference
- Moral Character
What is Surplus Lines Insurance?
Insurance that is legally place with an unauthorized insurer (unlicensed in WI) by an Intermediary licensed to transact surplus lines business in WI
What is the Wisconsin Workers’ Compensation Insurance Pool?
a risk sharing plan under Wisconsin law that was created to provide worker’s compensation insurance to any employer who is unable to obtain such insurance in the private market due to unfavorable loss history or other underwriting conditions.
What is the Wisconsin Health Care Liability Insurance Plan?
A health care liability insurance plan designed for those who are unable to obtain this coverage in the voluntary market.
Eligible risks include doctors, nurses, anesthetists, hospitals, podiatrists and public medical entities.
What is the term used to describe a new policy written to take the place of a policy already in force?
Replacement Policy
