Wisconsin Life Insurance
The Commissioner obtains a restraining order against a person who has violated an insurance law. The person continues the violation for 10 days. The person will have to pay a fine of
$0 - The Commissioner may obtain a temporary or permanent injunction or restraining order for any violations of insurance laws. If a person does not comply with an order issued within 2 weeks after the Commissioner has given notice, the Commissioner may issue a forfeiture of up to $5,000 for each day that the violation continues.
Insurance regulations in this state require prompt initiation and completion of claims investigations, and delivery of necessary claims forms and assistance to the insured and claimants. What constitutes prompt action?
10 Consecutive days - According to the Wisconsin Insurance Code, "prompt or promptly" means within 10 consecutive days of receipt of a communication concerning a claim.
The risk management technique that is used to prevent a specific loss by not exposing oneself to that activity is called
Avoidance - Risk avoidance is elimination of risk of loss by avoiding any exposure to an event that could give rise to such loss.
An insurance producer who by contract is bound to write insurance for only one company is classified as a/an
Captive agent - A captive/exclusive agent has agreed, by contract, to produce insurance business only for the insurer they are contracted with.
Insurers must report or list all appointments and all terminations of appointments to what authority?
Department of Insurance - Each insurer must report or list all appointments and all terminations of appointments to the Commissioner.
All of the following could be considered rebates if offered to an insured in the sale of insurance EXCEPT
Dividends from a mutual insurer - Dividends paid to policyholders of a mutual insurer are not considered to be a rebate because the policy specifies that they might be paid.
Which of the following is an intermediary who acts in the procuring of insurance on behalf of an applicant for insurance or an insured?
Insurance broker - An "insurance broker" is an intermediary who acts in the procuring of insurance on behalf of an applicant for insurance or an insured. A broker does not act on behalf of the insurer, except to collect premiums
Which statement regarding insurable risks is NOT correct?
Insureds cannot be randomly selected - Granting insurance must not be mandatory, selecting insureds randomly will help the insurer to have a fair proportion of good risks to poor risks. All other statements are true.
An insurance organization that does not issue insurance policies but provides a meeting place for underwriters to conduct business is known as a
Lloyd's association - A Lloyd's association itself does not issue insurance policies or provide insurance protection. Lloyd's associations provide a meeting facility for the individual underwriters to conduct the business of insurance.
Within how many days of the original hearing and final issuance of an order (regarding an order issued by the Commissioner) may an aggrieved person request a re-hearing?
20 days - An aggrieved person may request a re-hearing within 20 days after the original hearing and a final order is issued. This petition does not suspend or delay the effective date of the order unless the petition is granted or the order is superseded, modified, or set aside
All of the following are true regarding rebates EXCEPT
Rebates are allowed if it is in the best interest of the client - A rebate is an illegal act which involves returning something of value to the client as an inducement to buy, such as the commission. Rebates are only allowed if specifically stated in the policy. Insurance dividends are not considered rebates as the IRS considers it as a return of overpaid premium.