General WI Insurance Law Test Flashcards
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
True
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
True
True or False:
If a town mutual insurance agent sells only casualty insurance, they do not need to be licensed
False
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
False
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
True
True or False:
The biennial renewal fee for a resident agent’s license is $35
True
True or False:
Rebating is when an intermediary offers the applicant part of their commission if they purchase the insurance from them
True
True or False:
Mid-term cancellation by the insurance company requires the insurance company to give a 20 day notice of cancellation
False
True or False:
The Commissioner has specified and implied powers
True
True or False:
If an intermediary is denied a license by the Commissioner they have 15 days to request a hearing
False
An agent that acts in the procuring of insurance on behalf of an applicant is called a what?
Broker
If an intermediary changes their address they have how many days to notify the Commissioner?
30 Days
Policyholder records must be maintained by an agent for how long?
3 Years
The renewal fee of a resident intermediary’s license is how much?
$35
Anniversary cancellations require a how many day notice of cancellation prior to the anniversary date?
60 Days
An agent or broker who places insurance with unauthorized insurance companies is called what?
Surplus Lines Agent
Represents only the insurance company
Intermediary or Producer
If a WI intermediary wishes to obtain a nonresident license in another state they must obtain what from the Commissioner’s office?
Letters of Certification
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?
Acts of the Agent
If an intermediary that is a resident from another state wishes to sell in WI they must obtain what?
Nonresident License
If a new insurance law is being proposed the insurance Commissioner will hold what?
General Public Hearing
False written or oral communication by an intermediary about another intermediary or insurance company
Misrepresentation
Time period of one year from date the insurance policy coverage began is called what?
Anniversary Date
What allows a spouse of a deceased agent time for the sale of the goodwill of the agency?
Temporary License
When an agent fails to provide the proper claim forms to the insured it is called what?
Unfair Claims Methods & Practice
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. TWICE the amount
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
C. A letter of clearance from their previous resident state
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
B. Affirms that there is something already in place
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. Estoppel
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
D. None of the above
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
B. $1,000 a day
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
D. It is suspended, revoked or voluntarily surrendered
An insurance agent who markets insurance represents the:
A. Insurer
B. Insured
C. Commissioner
D. Claims adjuster
A. Insurer
The following are Unfair Marketing Practices EXCEPT:
A. Conversion
B. Extra Charges
C. Coercion
D. Influencing Employers
A. Conversion
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
D. May not do any business in WI until they get properly licensed
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
B. A secretary or clerical worker in a home office
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
B. Certificate of Authority
An insurance agent who markets insurance for a fraternal insurance company represents the:
A. Insurer
B. Insured
C. Commissioner’s Regulatory Division
D. NAIC
B. Insured
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. Agent refuses to help insured in a claim
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
B. Credit Life/ Credit Accident & Health
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
B. 12 months
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
B. An agent uses another company’s logo in which they are not licensed
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
C. Inform the Commissioner’s Office they are no longer with that company
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
C. May be required to have a $100,000 bond
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
D. Unfair Use of Official Position
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. An agent works together with the insured to defraud the insurance company
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
B. Not adopting reasonable claims handling procedures
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. Handling claims of policyholders
