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If an intermediary's license has been revoked for nonpayment of fees, the EARLIEST the intermediary may apply for reinstatement is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