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General WI Insurance Law Test > General WI Insurance Law Test > Flashcards

General WI Insurance Law Test Flashcards

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1
Q

True or False:
A compulsive forfeiture is when the agent has failed to comply with an order by the OCI after two weeks of notification

A

True

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2
Q

True or False:
The essential element for an individual to be an intermediary in the state of WI is that they be 18 years old and be competent and trustworthy

A

True

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3
Q

True or False:
If a town mutual insurance agent sells only casualty insurance, they do not need to be licensed

A

False

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4
Q

True or False:
If an agent is a resident from another state and would like to solicit insurance in WI, they must get a surplus lines license

A

False

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5
Q

True or False:
If an agent moves to another state and wishes to obtain a resident license in that state, they must get a letter of clearance from the Commissioner’s office from the state they are leaving

A

True

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6
Q

True or False:
The biennial renewal fee for a resident agent’s license is $35

A

True

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7
Q

True or False:
Rebating is when an intermediary offers the applicant part of their commission if they purchase the insurance from them

A

True

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8
Q

True or False:
Mid-term cancellation by the insurance company requires the insurance company to give a 20 day notice of cancellation

A

False

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9
Q

True or False:
The Commissioner has specified and implied powers

A

True

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10
Q

True or False:
If an intermediary is denied a license by the Commissioner they have 15 days to request a hearing

A

False

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11
Q

An agent that acts in the procuring of insurance on behalf of an applicant is called a what?

A

Broker

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12
Q

If an intermediary changes their address they have how many days to notify the Commissioner?

A

30 Days

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13
Q

Policyholder records must be maintained by an agent for how long?

A

3 Years

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14
Q

The renewal fee of a resident intermediary’s license is how much?

A

$35

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15
Q

Anniversary cancellations require a how many day notice of cancellation prior to the anniversary date?

A

60 Days

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16
Q

An agent or broker who places insurance with unauthorized insurance companies is called what?

A

Surplus Lines Agent

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17
Q

Represents only the insurance company

A

Intermediary or Producer

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18
Q

If a WI intermediary wishes to obtain a nonresident license in another state they must obtain what from the Commissioner’s office?

A

Letters of Certification

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19
Q

If the insured failed to send in a claim form because of misinformation by the agent what states that the insurance company is still responsible for any overdue claims?

A

Acts of the Agent

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20
Q

If an intermediary that is a resident from another state wishes to sell in WI they must obtain what?

A

Nonresident License

21
Q

If a new insurance law is being proposed the insurance Commissioner will hold what?

A

General Public Hearing

22
Q

False written or oral communication by an intermediary about another intermediary or insurance company

A

Misrepresentation

23
Q

Time period of one year from date the insurance policy coverage began is called what?

A

Anniversary Date

24
Q

What allows a spouse of a deceased agent time for the sale of the goodwill of the agency?

A

Temporary License

25
Q

When an agent fails to provide the proper claim forms to the insured it is called what?

A

Unfair Claims Methods & Practice

26
Q

Any person who violates an effective order or any insurance statute or rule may be required to forfeit to the state, in addition to any other forfeiture imposed:
A. TWICE the amount of any profit gained from the violation
B. THREE times the amount
C. FIVE times the amount
D. TEN times the amount

A

A. TWICE the amount

27
Q

If an intermediary moves to WI from another state, the agent must have:
A. A letter of certification from their resident state
B. A letter of certification from the state of WI
C. A letter of clearance from their previous resident state
D. A letter of clearance from the state of WI

A

C. A letter of clearance from their previous resident state

28
Q

An affirmative warranty:
A. Takes place after the policy has been issued
B. Affirms that there is something already in place
C. Is not legal
D. None of the above

A

B. Affirms that there is something already in place

29
Q

The insurance company leads the insured to believe they have coverage when they really do not is:
A. Estoppel
B. Aleatory Law
C. Unfair claims practices
D. Letter of clearance

A

A. Estoppel

30
Q

For an insurance company to do business in WI the Commissioner of Insurance will issue the insurance company a:
A. Certificate of Clearance
B. Letter of Clearance
C. Letter of Certification
D. None of the above

A

D. None of the above

31
Q

If an intermediary fails to obey an order issued from an enforcement proceeding, the Commissioner may fine the individual up to:
A. $500 a day
B. $1,000 a day
C. $10,000 a day
D. $50,000 maximum fine

A

B. $1,000 a day

32
Q

An intermediary’s license remains in effect until:
A. Two years from the date of issuance
B. Three years from the date of issuance
C. Four years from the date of issuance
D. It is suspended, revoked or voluntarily surrendered

A

D. It is suspended, revoked or voluntarily surrendered

33
Q

An insurance agent who markets insurance represents the:
A. Insurer
B. Insured
C. Commissioner
D. Claims adjuster

A

A. Insurer

34
Q

The following are Unfair Marketing Practices EXCEPT:
A. Conversion
B. Extra Charges
C. Coercion
D. Influencing Employers

A

A. Conversion

35
Q

If an intermediary moves to WI from another state, the agent:
A. May continue to write business in WI as long as they get licensed within 6 months
B. May continue to to write business in WI as long as they get licensed withing 60 days
C. May continue to write business in WI as long as they get licensed within 90 days
D. May not do any business in WI until they get properly licensed

A

D. May not do any business in WI until they get properly licensed

36
Q

The following must be licensed to do business in WI EXCEPT:
A. An insurance company chartered and incorporated in WI
B. A secretary or clerical worker in a home office
C. A licensed agent who places insurance with a fraternal company
D. A broker who places insurance on behalf of a policyholder

A

B. A secretary or clerical worker in a home office

37
Q

For an insurance company to do business in WI, the Commissioner of Insurance will issue the insurance company a:
A. Certificate of Clearance
B. Certificate of Authority
C. Letter of Certification
D. Letter of Clearance

A

B. Certificate of Authority

38
Q

An insurance agent who markets insurance for a fraternal insurance company represents the:
A. Insurer
B. Insured
C. Commissioner’s Regulatory Division
D. NAIC

A

B. Insured

39
Q

The following are Unfair Marketing Practices EXCEPT:
A. Agent refuses to help insured in a claim
B. Misrepresentation
C. Unfair Use of Official Position
D. Restraint of Competition

A

A. Agent refuses to help insured in a claim

40
Q

An intermediary licensed in which of the following is exempt from continuing education hours?
A. Property
B. Credit Life/ Credit Accident & Health
C. Life
D. Accident & Health

A

B. Credit Life/ Credit Accident & Health

41
Q

How often must an agent for a Life Settlement Company renew their license?
A. 6 months
B. 12 months
C. 2 years
D. 3 years

A

B. 12 months

42
Q

As an Unfair Marketing Practice, which of the following would constitute Misrepresentation?
A. An agent helps an insured fill out a claim form
B. An agent uses another company’s logo in which they are not licensed
C. An agent tells the applicant they will provide fast and fair claim service
D. An agent gives and oral binder over the telephone

A

B. An agent uses another company’s logo in which they are not licensed

43
Q

If an intermediary is terminated by the insurance company the agent must do all of the following EXCEPT:
A. Return all contracts brochures and applications to the insurance company
B. Do not further represent the company
C. Inform the Commissioner’s Office they are no longer with that company
D. Make sure no forms from the prior company are used in a sales presentation

A

C. Inform the Commissioner’s Office they are no longer with that company

44
Q

To have a Surplus Lines License, an agent:
A. May only represent unauthorized companies
B. Must successfully pass a Surplus Lines exam
C. May be required to have a $100,000 bond
D. None of the above

A

C. May be required to have a $100,000 bond

45
Q

The mayor of Beaver Dam directs insurance to his brother for group life insurance for city employees. This is an example of:
A. Unfair Inducement
B. Misrepresentation
C. Estoppel
D. Unfair Use of Official Position

A

D. Unfair Use of Official Position

46
Q

Which of the following best describes collusion?
A. An agent works together with the insured to defraud the insurance company
B. The agent and the company work together to defraud the insured
C. The company and insured work together to defraud the agent
D. None of the above

A

A. An agent works together with the insured to defraud the insurance company

47
Q

All of the following would be considered an Unfair Marketing Practice EXCEPT:
A. Influencing Employers
B. Not adopting reasonable claims handling procedures
C. Extra Charges
D. Churning

A

B. Not adopting reasonable claims handling procedures

48
Q

All of the following constitute being an intermediary in the state of WI EXCEPT:
A. Handling claims for policyholders
B. Advising others about insurance needs & coverage
C. Soliciting insurance door to door
D. Analyzing an applicants insurance needs and coverages

A

A. Handling claims of policyholders

General WI Insurance Law Test (1 decks)

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