Life Insurance Chapter 2. General Wisconsin Insurance Laws

An insurance broker is an intermediary who acts in the procuring of insurance on behalf of A. A financial institution. B. The commissioner C. An applicant D. An insurer

C. an applicant

An insurer can refuse, cancel or deny insurance coverage to a class of risks based on which of the following characteristics of an applicant or insured? A. None of the Above B. Physical condition or developmental disability C. Moral character D. Sexual preference

A. None of the above

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? A. Reinsurance broker B. Reinsurance agent C. Ceding Agent D. Managing general agent

A. 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? A. Reinsurance manager B. Reinsurance broker C. Reinsurance agent D. Managing general agent

A. Reinsurance manager

Circulating deceptive sales material to the public is what type of Unfair Trade Practice? A. Defamation B. False Advertising C. Coercion D. Misrepresentation

B. False Advertising

Which type of misrepresentation persuades an insured, to his or her detriment, to cancel, lapse, or switch policies from one to another? A. Switching B. Twisting C. Rebating D. False advertising

B. Twisting

The knowledge and actions of an agent are deemed to be those of A. That agent only B. The insurer. C. The department of insurance D. The insured

B. the insurer

Applicants must complete a Crime Information Bureau form within how many days before taking their state exam? A. 60 days B. 90 days C. 180 days D. 30 days

C. 180 days

Which of the following would be considered an illegal inducement to purchase insurance? A. Mailing an agency brochure to a prospective client B. Inviting prospective clients to the grand opening of the company's new office. C. Confirming future dividends in a life insurance proposal D. Listing the insurance companies the agency represents in a letter

C. Confirming future dividends in a life insurance proposal

Which of the following changes does NOT need to be reported to the Commissioner within 30 days? A. From nonresident to resident status B. The principal officers of a corporation licensed as intermediaries C. Each commission paid to a licensee who has held a license for less than 1 year D. Management powers in the business entity

C. Each commission paid to a licensee who has held a license for less than 1 year.

A person who assists another in soliciting, negotiating, or placing insurance or annuities on behalf of an insurer or a person seekign insurance or annuities is called a(n) A. Mediator B. Middleman C. Intermediary D. Represnetative

C. Intermediary

State law specifically prohibits using illegal inducements in the marketing of insurance. All of the following would be considered illegal inducements EXCEPT A. Issuing or delivering insurance company stock in return for purchasing insurance. B. Offering benefit certificates or securities in return for purchasing insurance C. Inviting prospective clients to the grand opening of the company's new office. D. Promising returns and profits from the purchase of insurance

C. Inviting prospective clients to the grand opening of the company's new office

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

C. Must be informed of the source of the report

Which of the following is an example of a producer's fiduciary responsibilities? A. Helping clients to file claims B. Doing a review of their client's coverage C. Promptly forwarding premiums to the insurance company D. Offering additional coverage to his client

C. Promptly forwarding premiums to the insurance company

All of the following are true EXCEPT A. Rebates are only allowed if specifically stated in the policy. B. Dividends are not considered to be rebates. C. Rebates are allowed if it is in the best interest of the client. D. Rebating can be anything of monetary value given as an inducement to purchase insurance.

C. Rebated are allowed if it is the best interest of the client.

Which of the following is an example of a producer being involved in an unfair trade practice of rebating? A. Charging a client a higher premium for the same policy as another client in the same insuring class B. Making deceptive statements about a competitor C. Telling a client that his first premium will be waived if he purchases the insurance policy today D. Inducing the unsured to drop a policy in favor of another one when it is not in the insured's best interest

C. Telling a client that his first premium will be waived if he purchases the insurance policy today

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? A. 20 B. 45 C. 10 D. 30

D. 30

The Commissioner issues an order without holding a hearing. The person aggrieved by the order demands a hearing shortly after receiving the order. The hearing must be held within a maximum of how many days? A. 90 B. 60 C. 10 D. 30

D. 30

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? A. 45 B. 30 C. 90 D. 60

D. 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? A. 10 days B. 30 days C. 20 days D. 60 days

D. 60 days

Any inducement offered to the insured in the sale of an insurance policy that is not specified in the policy is an unlawful practice known as A. Coercion B. Twisting C. False Advertising D. Rebating

D. Rebating