Chapter 2: General Wisconsin Insurance Laws
Warranty
A statement made in an application by the insured that is the absolute truth
Under the mandatory uniform provision Notice of Claim, the first notice of injury or sickness covered under an accident and health policy must contain
A statement that is sufficiently clear to the identity the insured and the nature of the claim
Which of the following would NOT be an underwriting consideration for a Health insurance applicant?
Applicant's sexual orientation
All of the following are purposes of insurance EXCEPT to...?
Earn Commissions
All funds collected by a intermediary for prompt payments to insureds, insurers, or producers as entitled are received in what is known as..?
Fiduciary capacity
A person that markets insurance but does not include an insurer is called a?
Firm
Under which of the following would the Commissioner grant a requested re-hearing?
New evidence is discovered
Which of the following is a person, other than an officer or employee of the ceding insure, who solicits, negotiates, or places reinsurance cessions on behalf of a ceding insurer?
Reinsurance broker
A surplus lines agent or broker may be required to supply a bond of no greater than what amount?
$100,000
If a person violates an order specifically issued to him or her, that person may be required to pay a fine up to...?
$1000
A resident agent must pay a biennial regulation fee of..?
$35
What is the maximum annual billing for an insurer?
1% of net premiums earned
The insurer decided to cancel an insurance policy prior to its expiration due to nonpayment of premium. When can cancellation take place?
10 days after the notice was delivered to the policyholder
Any licensed person whose activities affect interstate commerce and who knowingly makes false material statements related to the business of insurance may be imprisoned for up to?
10 years
An intermediary has just placed insurance on himself. He can receive compensation for this transaction only if he has placed insurance on other individuals with the same insurer within the last...?
12 months
An insurer terminates an agent's appt. Within how many days of termination must the intermediary be notified?
15
Applicants must complete a Crime Information Bureau form within how many days before taking their state exam?
180
Within how many days of the original hearing and final insurance of an order (regarding an order issued by the Commissioner) may an aggrieved person request-rehearing?
20 days
The Commissioner issues an order without having conducted a hearing. Within how many days of receiving the order can the person aggrieved by the order request a trial?
30
In this state, insurers must pay a claim within how many days of receiving proof of loss?
30 days
Life Settlements sold in Wisconsin must allow for the rescission of the contract within...?
30 days
The Commissioner is required to examine every domestic insurer and every licensed rate service organization every...?
5 years
According to the rule of readability of insurance policies in this state, what is a required minimum score on the Flesch reading ease test for Medicare supplement policies?
50
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?
60 days
If the commissioner issues an order and the person who is the object of the order demands a hearing within 30 days, within how many days must the hearing be held?
60 days
Which of the following persons is not required to complete CE?
A limited lines intermediary w/40 years of continuous licensure
Life Settlement Broker
A person who receives a fee or commission to attempt to negotiate settlements between a life insurance policyholder or certificate holder and one or more life settlements
Which of the following is an intermediary who acts on behalf of the insurer he/she represents?
Agent
Which of the following would NOT be a violation of state insurance regulations?
Agent C uses her license to write only business other than controlled
An agent is acting ethically in all of the following situations EXCEPT..?
Always representing the insured
An 'insurance broker" is an intermediary who acts in the procuring of insurance on behalf of...?
An applicant
Affirmative Warranty
An express or implied positive representation that affirms an existence of a fact at the time the policy was entered into
Reinsurance Manager
Any person who has authority to bind, or manages all or part of the assumed reinsurance business of a reinsurer and acts as an agent for the reinsurer
Promissory Warranty
Certain things will be done or not be done after the policy takes effect
Forcing a client to buy insurance from a particular lender as a condition of granting a loan is defined as
Coercion
Insurers must report or list all appointments and all terminations of appointments to what authority?
Commissioner
In any case where there is a controversy or dispute between the insurance company and the insured, the soliciting agent is the agent of the
Company
Because an insurance policy is a legal contract, it must conform to the state laws governing contracts which require all of the following elements EXCEPT
Conditions
Which of the following reports will provide the underwriter with the information about an insurance applicant's credit?
Consumer report
Insurance policies are not drawn up through negotiations, an an insured has little to say about its provisions. What contract characteristic does this describe?
Contract of Adhesion
In which of the following cases would a credit disability policy be issued?
If an individual is in debt to a specific creditor, payments will be made for him/her until the return to work
An insurer devises an intimidation strategy in order to corner a large portion of the insurance market. Which of the following best describes this practice?
Illegal
An intermediary's license remains in effect for how long?
Indefinitely
Which of the following is INCORRECT concerning Medicaid?
Is is solely a federally administered program
Which law is the foundation of statistical prediction of loss upon which rates for insurance are calculated?
Law of Large Numbers
To sign up for a Medicare prescription drug plan, individuals must first be enrolled in?
Medicare Part A or in Medicare Parts A & B
An agent who includes a statement or omits a statement, which, when taken in context of the whole presentation, may tend to mislead or deceive the persons addressed has committed..?
Misrepresentation
Which of the following is the use of false,misleading, or deceptive statements to describe the terms of benefits of any policy?
Misrepresentation
Which renewability provision allows an insurer to terminate a policy for any reason, and to increase the premiums for any class of insureds?
Optionally Renewable
All of the following are covered by Part A of Medicare EXCEPT?
Physician's & Surgeon's services
Which of the following is an example of a producer's fiduciary responsibilities?
Promptly forwarding premiums to the insurance company
When an employee is still employed upon reaching age 65 and eligible for Medicare, which of the following is the employee's option?
Remain on the group health insurance plan and defer eligibility for Medicare
Under the Fair Credit Reporting Act, if the consumer challenges the accuracy of the information contained in his or her report, the reporting agency must...?
Respond to the consumer's complaint
Which of the following is a licensee able to place insurance with unauthorized insurers?
Surplus lines agents
When an insurer is given an order of liquidation, which of the following will protect the insureds' unpaid claims?
The Wisconsin Insurance Security Fund
Knowledge and actions of an agent are deemed to be of..?
The insurer
If an insurance premium is paid by the policyowner to the agent, and the agent fails to remit that premium to the insurer, which of the following statements is true?
The policy will not lapse since the payment to the agent is the same as a payment to the insurer
Under Credit Disability Policy, until what point will payments to a Creditor be made for the Insured?
Until the disability ends or the debt it satisfied, whichever is sooner
I forming an insurance contract, when does acceptance usually occur?
When an insurer's underwriter approves coverage
When is the insurability conditional receipt given?
When the premium is paid at the time of the application