Chapter 11: Laws and Rules

60 days

A notice of intent to nonrenew a policy by the insurer requires at least how many days written notice before policy expiration

State insurance departments

Claims settlement practices of insurers are regulated by:

The insurer

Who reports an intermediary's termination of appointment to the Commissioner?

competent

A requirement for becoming an intermediary is to be trustworthy and

a material misrepresentation

A false statement made by an applicant that would influence an insurer in determining whether or not to accept the risk is

Reciprocal arrangement with the state of domicile

An individual may become licensed as a nonresident intermediary without passing a written examination by

Boycott, coercion and intimidation

An intermediary who makes an agreement that unreasonably restrains the business of insurance may have violated regulations against

Intermediary's appointment with the insurance company

An intermediary's authority to bind an insurer to an insurance contract may be granted in the:

pay a debtor's premiums

It is an unfair trade practice for an intermediary selling Credit Life insurance to make a creditor an offer to

defamation

Making a statement that is false or maliciously critical of the financial condition of an insurer is known as

Material

Misrepresentation on the application is

Twisting

Misrepresenting a policy for the purpose of inducing a policyholder to change or replace an existing policy is known as

An unfair claims settlement practice

Misrepresenting pertinent policy provisions relating to coverage after a loss is

Rebating

Splitting the commission with the buyer on a sale of insurance is known as

12 months

The Commissioner can issue a temporary license as an intermediary for a period of

Misstatement of age in the application

During the first two years a life insurance policy is in force, the insurer may contest a policy for all of the following reasons EXCEPT

Misrepresentation

False advertising of an insurance policy is considered

When the policy is delivered

If a basic illustration is not provided, an insurer MUST provide a policy summary to a prospective insured at which of the following times?

immediately after the revocation

If an intermediary's license has been revoked for nonpayment of fees, the EARLIEST the intermediary may apply for reinstatement is

The intermediary may not participate in the sale of insurance during the revocation period

If an intermediary's license is revoked by the Insurance Commissioner, which of the following statements is CORRECT?

Life settlements

Agreements made by terminally ill persons to sell their life insurance policies at a discount in order to pay medical expenses are called

a felony

An attempt to defraud an insurance company is considered

Charge different premiums

For policyholders in the same risk classification, it is unlawful to

a proper exchange of business

The forwarding of insurance business from one intermediary to another because the forwarding intermediary cannot place the business with any of the companies with which the intermediary is listed is considered

Apply for the license after passing the appropriate examination

To receive an insurance license an applicant must

The consumer who was investigated must be advised that credit, insurance, or employment was denied because of an unfavorable report.

Under the Fair Credit Reporting Act, which statement is true?

a testimonial

A policyowner's statement that promotes an insurance company and its policy by describing the policy's benefits is called

Has committed an illegal act

An agent who misrepresents a life insurance product in the state of Wisconsin

coercion

An example of the unfair restraint of competition would be

A foreign

An insurance company writing business in a state other than the one in which it is domiciled is called

three

An insurance intermediary must maintain customer records for how many years following the completion date of the insurance transaction?

has a change in marital status

An insurer may cancel a policy midterm for all of the following reasons EXCEPT when the insured

coercion

An intermediary who attempts to intimidate is engaging in

Until revoked or suspended by Commissioner

How long does an intermediary's license remain in effect?

24

How many hours of continuing education is required every two years for license renewal?

Misrepresentation

If an intermediary misleads or fails to adequately disclose the title and true nature of a policy offered to a potential insured, it may be considered

Premiums must be paid by the insured

Life insurance policies in Wisconsin must state all of the following EXCEPT

promissory warranty

The insured's statement that guarantees certain things will be done after the policy has taken effect is called a(n)

acted together to deceive or defraud the company

The insurer is legally protected against actions in which an intermediary and a policyholder

has not filed for bankruptcy within the last 3 years

The purpose of licensing insurance intermediaries is to show to the satisfaction of the Commissioner all of the following EXCEPT that the applicant

Life, variable, and securities

What licenses MUST an intermediary have to market variable life insurance products?

Office of the Commissioner of Insurance in writing of the address change within a maximum of thirty days

When an intermediary has a change of mailing address, the intermediary MUST notify the

be present during the sale of insurance by another intermediary

When an intermediary's license is revoked for failure to meet continuing education requirements, the intermediary CANNOT

No later than at the time of taking an application

When must an intermediary provide a replacement notice on life insurance?

Compliance with state insurance laws and regulations

When the Commissioner examines an intermediaries insurance records, the purpose will primarily be to determine:

The client's financial status

Which item must be considered by an intermediary when determining the suitability of an annuity recommendation?

A person who advises others about insurance needs and coverages and is compensated by an insurance company

Which of the following individuals is required to be licensed as an intermediary in Wisconsin?

An individual listed as a salesperson by an insurance company

Which of the following persons is required to have an intermediary's license?

It does not affect the insurance company's obligations

Which of the following statements is CORRECT about an insured's failure to report a claim in a timely manner based on the advice of an intermediary?

A person who sells insurance on behalf of an insurer

Which of these is considered to be an intermediary?

An intermediary must meet specified course requirements within a two-year period

Which statement is true regarding Wisconsin's continuing education requirements for licensed intermediaries?

Controlled Business

Which term refers to insurance written on the interests of the licensee, the licensee's employer, or the licensee's immediate family?

three

Wisconsin insurance law requires intermediaries to keep policyholder records for at least how many years after termination or lapse of the policy?

Rebates a portion of the commission to the insured

The Commissioner may suspend an intermediary's license when the intermediary

$5,000

A person who intentionally commits a criminal violation of an insurance law may be subject to a MAXIMUM fine of

receive a commission

A person who is not licensed as an intermediary may do all of the following EXCEPT

Before soliciting insurance applications for that insurer

An intermediary must secure an appointment with an insurer

An employee of a collection agency who collects delinquent premiums

Under Wisconsin law, which of the following is NOT required to be licensed?

Upon request of the Commissioner

Under what circumstances must an intermediary provide his or her business records to the Commissioner?

representation

In the process of obtaining insurance, a statement made by an applicant that becomes part of the contract is considered to be a

Creditors

Proceeds of the viatical settlement contract could be subject to the claims of

30 days by written notice

A licensee whose name or address changes must notify the Commissioner within

The policyowner may need to resume premium payments depending on actual results

A life insurance illustration showing future premiums being paid out of nonguaranteed values must disclose that

Solicit, receive and forward applications to the insurer

A life insurance intermediary licensed in Wisconsin is authorized to

2 years

A life insurance policy becomes incontestable after it has been in force for

a personal representative of a deceased or physically ill intermediary to allow time for the representative to qualify for a permanent license

A temporary license may be issued to

Replacement

A transaction in which a new life insurance policy is purchased and an existing life insurance policy is surrendered is called

An attempt to settle a claim by arbitration

All of the following are unfair claims settlement practices EXCEPT

Refusing to pay a claim without conducting a reasonable investigation of all available information where material facts are in dispute

All of the following claims settlement practices could initiate a cease and desist order EXCEPT

intermediary surplus lines agent or broker

An intermediary licensed to place insurance with an unauthorized insurer is an

is a licensed life agent in Wisconsin and has sold insurance with the same company during the prior year with total premiums exceeding the premium on the intermediary's own life

An intermediary may receive a commission on business written on the intermediary's own life ONLY if the intermediary

the other intermediary is licensed in the same line of business

An intermediary may share a commission with another intermediary if

Refusing to pay persons bringing false or fraudulent claims

Any of the following may be an unfair claims practice EXCEPT

the agent

Illustrations used in the sale of life insurance contain a statement that must be signed by

The written consent of the Commissioner

In accordance with federal fraud and false statements regulation, a prohibited person cannot transact insurance business in Wisconsin without

The written consent of the Insurance Commissioner

In accordance with federal fraud and false statements regulation, a prohibited person cannot transact insurance business in Wisconsin without

group policyowners

The Insurance Commissioner does NOT have authority to examine the business affairs and financial conditions of

Compliance

The Insurance Commissioner has the right to issue which of the following orders?

the individual reply promptly in writing or in any other designated form

The Insurance Commissioner's request for information from an insurance intermediary or other individual licensed under insurance law requires that

Insolvency

The Insurance Security Fund was established to protect consumers in the event of an insurer's

protect policyowners from misrepresentations and loss of benefits

The PRIMARY purpose of the replacement rule is to

Insolvency

The Wisconsin Insurance Security Fund was established to protect consumers in the event of an insurer's

31 days

The grace period for a life insurance policy with an annual premium is usually

Puerto Rico

Under the Federal Fraud and False Statements Act, interstate commerce includes

Puerto Rico

What is considered interstate travel under the Federal Fraud and False Statements Act?

use an illustration that shows both guaranteed and non-guaranteed elements

When using illustrations in the sale of a life insurance policy, intermediaries and companies are required to