General Wisconsin Insurance Laws

An insurer terminates an agent's appointment. Within how many days of termination must the intermediary be notified? 1. 15 days 2. 20 days 3. 30 days 4. 10 days

1. 15 days

An insurer decides to renew a policy but at a higher premium rate, starting on the renewal date. How many days in advance must the insured be notified? 1. 60 days 2. 90 days 3. 100 days 4. 30 days

1. 60 days

An agent is acting ethically in all of the following situations EXCEPT 1. Always representing the insured. 2. Working within the conditions of his/her contract. 3. Representing the insurer, not the insured. 4. Keeping customers' best interest in mind.

1. Always representing the insured.

The insurer decided to cancel an insurance policy prior to its expiration due to nonpayment of premium. When can cancellation take place? 1. 10 days after the decision was made 2. 10 days after the notice was delivered to the policyholder 3. 10 days after the notice is sent out to the policyholder 4. Immediately

2. 10 days after the notice was delivered to the policyholder

An agent is presumed to have exceeded the occasional exchange of business if the agent places more than how many insurance ricks per calendar year with all insurers? 1. 15 2. 25 3. 5 4. 10

2. 25

Under the Fair Credit Reporting Act, individuals rejected for insurance due to information contained in a consumer report 1. Must be advised that a copy of the report is available to anyone who requests it. 2. May sue the reporting agency in order to get inaccurate data corrected. 3. Must be informed of the source of the report. 4. Are entitled to obtain a copy of the report from the party who ordered it.

3. Must be informed of the source of the report.

An insurance agent's responsibilities include all of the following EXCEPT 1. Represent the insurer. 2. Perform professionally. 3. Represent the client. 4. Perform faithfully.

3. Represent the client.

A producer who fails to segregate premium monies from his own personal funds is guilty of 1. Commingling 2. Larceny 3. Embezzlement 4. Theft

1. Commingling

An insurance producer just sold an insurance policy to his sister. What kind of business if this? 1. Controlled 2. Illegal 3. Internal 4. Personal

1. Controlled

The Federal Fair Credit Reporting Act 1. Prevents money laundering. 2. Regulates consumer reports. 3. Protects customer privacy. 4. Regulates telemarketing.

2. Regulates consumer reports.

Any licensed person whose activities affect interstate commerce and who knowingly makes false material statements related to the business of the insurance may be imprisoned for up to 1. 3 years 2. 5 years 3. 10 years 4. 12 years

3. 10 years

In this state, insurers must pay a claim within how many days of receiving proof of loss? 1. 10 days 2. 15 days 3. 30 days 4. 90 days

3. 30 days

In Wisconsin, producers are permitted to share or split commissions, providing that 1. The insurance department knows of the arrangement. 2. There is a written agreement between the producers. 3. Both are properly licensed for the line of insurance. 4. The insured knows and agrees to the arrangement.

3. Both are properly licensed for the line of insurance.

If a consumer requests additional information concerning an investigative consumer report, how long does the insurer or reporting agency have to comply? 1. 7 days 2. 10 days 3. 3 days 4. 5 days

4. 5 days

The rule relating to insurance policy readability applies to which of the following? 1. Medicare supplement policies only 2. Only policies that are submitted for approval to the Department of the Insurance 3. Only policies issued to senior citizens 4. All insurance policies issued in this state

4. All insurance policies issued in this state

Each insurer must report or list all appointments and all terminations of appointments to what authority? 1. Department of Insurance 2. Federal Insurance Regulation Board 3. NAIC 4. Commissioner

4. Commissioner

Which of the following includes information regarding a person's credit, character, reputation, and habits? 1. Consumer history 2. Insurability report 3. Agent's report 4. Consumer report

4. Consumer report

If an insurer develops a new policy, form, which authority must approve it? 1. Department of Insurance 2. Federal Board of Insurance Regulation 3. Commissioner 4. None

3. Commissioner

Which of the following terms describes a situation in which an agent and policyholder act together to defraud the insurer? 1. Coercion 2. Teaming 3. Collaboration 4. Collusion

4. Collusion

When the Commissioner examines an insurer, who pays the examination costs? 1. Department of Insurance 2. The federal government 3. The state government 4. Examinees

4. Examinees

In what way can an agent demonstrate a high standard of ethics? 1. Making enough commissions to cover personal expenses 2. Setting and meeting monthly production goals 3. Recommending qualified retirement plans to each client 4. Putting the client's best interests before their own

4. Putting the client's best interests before their own