Life Insurance chapter 2
What is the maximum penalty for habitual willful noncompliance with the Fair Credit Reporting Act?
$2,500
Any person who violates an insurance statue or rule of Wisconsin can be fined up to
$5,000
If a person does not comply with an order issued within 2 weeks after the Commissioner has given notice, for each day that the violation continues, the Commissioner may issue a fine of up to
$5,000
What is the maximum annual billing for an insurer?
1% of net premiums earned
The commissioner may issue temporary license for an intermediary for a period of up to
12 months
What is the minimum age to apply for an insurance license in Wisconsin?
18
Applicants must complete a Crime Information Bureau from within how many days before taking their state exam
180 days
How often must insurers provide a current copy of the privacy policy and practices to each customer
Annually
Insurers must report or list all appointments and all terminations of appointments to what authority?
Commissioner
An intermediary failed to complete the CE requirements by the due date 14 months ago. What must they do to reinstate their license?
Complete a relicensing education course and pass the state exam
When does an agent's license expire?
Every 2 years
All funds collected by an intermediary for prompt payment to insureds, insurers, or producers as entitled received in what is known as
Fiduciary capacity
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
Which of the following is true regarding state regulations for record maintenance
Insurer's records may be maintained electronically
Which of the following is not a limited line of insurance?
Life Insurance
Which of the following is NOT correct regarding false statements by a person engaged in the business of insurance?
Only written statements can be considered fraud
A license applicant's trustworthiness and competence will be determined by all of the following EXCEPT
Personal testimonies from previous co-workers and managers
Which of the following is an example of a producer's fiduciary responsibilities?
Promptly forwarding premium to the insurance company
Which of the following is a person, other than an officer or employee of the ceding insurer, who solicits, negotiates, or places reinsurance cessions on behalf of a ceding insurer?
Reinsurance broker
Which of the following is 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?
Reinsurance manager
An agent makes a sales pitch that contains blatant lies about the insurer and its competitions. Who will ultimately be held legally responsible for this?
The insurer
Knowledge and actions of an agent are deemed to be of
The insurer
Examination requirements may be waived for nonresident agents if
Their home state imposes requirements that are similar to Wisconsin's requirements
Which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse or switch policies from one to another?
Twisting
Federal law makes it illegal for any individual convicted of a crime involving dishonesty or breach of trust to work in the business of insurance affecting interstate commerce
Without receiving written consent from an insurance regulatory authority
An agent who has had formal disciplinary action taken against them by a state regulatory agency must notify the commissioner of this within
30 days
Which term is used for replacing insurance policies for the sole purpose of making commissions?
Churning
All of the following violations may result in an agent's imprisonment except
Failing to report to the department a criminal prosecution taken against the agent in another jurisdiction.
In comparison to consumer reports, which of the following describes a unique characteristic of investigative consumer reports?
The customer's associates, friends, and neighbors provide the report's data
In comparison to consumer reports, which of the following describes a unique characteristics of investigate consumer reports
The customer's associates, friends, and neighbors provide the report's data
How many hours of relicensing education approved by the commissioner must each applicant complete?
20
An agent is presumed to have exceeded the occasional exchange of business if the agent places more than how many insurance risks per calendar year with all insurers?
25
Any person who violates an insurance statute or rule of Wisconsin can be imprisoned for up to how many years?
3
Intermediaries are required to maintain records related to insurance transactions for what period of time?
3 years
An intermediary must maintain records for how long?
3 years
An intermediary must notify the commissioner of a change of residence address within how many days of the change?
30
If the commissioner issues an order without having conducted a hearing, the person aggrieved by the order may demand a hearing within how many days after the order was mailed?
30
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
When the appointment of an individual agent is terminated, the insurer must notify the Office of the Commissioner with appropriate forms within how many days after the termination date?
30
A chain considered overdue if NOT paid within how many days after the insurer receives written notice?
30 days
How long are oral contracts valid in Wisconsin?
30 days
In this state, insurers must pay a claim within how many days of receiving proof of loss?
30 days
The commissioner issues an order without a hearing. The person aggrieved by this order demands a hearing shortly after receiving the order. The hearing must be held within a maximum of how many days?
60
A policy may be issued for a term longer than one year or for an indefinite term as long as there is a clause in the policy providing for cancellation by giving how much notice prior to the anniversary date?
60 days
An insurance policy is considered a "new policy" if is has been in effect for what maximum time period
60 days
Which of the following persons is not required to complete CE?
A limited lines intermediary with 40 years of continuous licensure
An "insurance broker" us an intermediary who acts in the procuring of insurance on behalf of
An applicant
Which of the following terms describes as situation in which an agent and policyholder act together to defraud the insurer?
Collusion
Which of the following is a licensee able to place insurance with unauthorized insurers?
Surplus lines agent
