Wisconsin Property and Casualty
Insurance - Exam
Binder - Temporary insurance
Usually given by the agent—verbal or in writing
Can be canceled by the company
Does not guarantee a policy will be issued
Automatically ends if a policy is issued by the underwriter
Assigned risk plans - A plan through which people can buy insurance if they are unable to
purchase insurance in the regular or voluntary market, because of their high risk or other factors.
An insurer who terminates an appointment, employment, or other relationship of an agent must notify
the Commissioner within ___ days after the effective date of the termination - 30
Actual Cash Value - replacement cost - depreciation
Additional Coverages in ho 2, 3, and 5 - Collapse- Caused by a covered peril - Not earthquake
Landlord's furnishings—$2,500 Grave markers—$5,000 Ordinance or law—increased cost up to 10% ×
dwelling limi
adhesion - An insurance contract is prepared by oneparty (the insurance company) with little or
no opportunity for the other party (the insured) to bargain
Adhesion - Policy written by the insurance company
Adhesion = glue
Insured has no input
If ambiguous, court will take the side of the insured
Aleatory Contract - • Unequal value
,• Pay small premium and have a large claim, or pay premiums for many years without a claim
An employer is NOT liable for - An employee's injury sustained off the job
An HO-3 policy provides coverage on which basis - Open perils coverage on the dwelling and
broad form coverage on the personal property
An insurer ____ use odometer reading data collected in the course of an inspection to set rates or
premiums for a motor vehicle policy or as a factor in altering rates or premiums during the term of the
policy or at the time of renewal. - may not
An insurer may not use odometer reading data collected in the course of an inspection to set rates or
premiums for a motor vehicle policy or as a factor in altering rates or premiums during - the term
of the policy or at the time of renewal.
An insurer must mail a copy of the notification of termination to the agent within ___ days after
notifying the Commissioner - 15
Abandonment - abandonment condition states that the insured may not abandon property to the
insurance company and ask to be reimbursed for its full value.
annual transit policy - protects the shipper or receiver of goods against loss to goods in transit.
Coverage is available on a named-peril basis, protecting against such losses as fire, windstorm, collision,
and theft, or on an open-peril basis
Application for a permanent resident agent license can only be made - Online
Assignment - Policy cannot be transferred without written consent from the insurer
Transfer of rights
,Assignment Clause / Transfer of rights - Insurance company has to agree Automatic if named
insured dies
Absolute liability - Some activities are so inherently dangerous that no degree of care taken by the
insured can defend against a charge of negligence.
Assumption of risk - A defense against negligence that can be used when the plaintiff was aware
of a danger and voluntarily assumed the risk of injury from that danger.
Bailee Liability - Covers damage to customer's property
• Pays customer
Basic Perils - ■ Fire, lightning, and internal explosion ■ Extended coverage
- WCSHAVVER- Vandalism and malicious mischief (V&MM)
BI AFFET - BURGLARY, ICE AND SNOW WEIGHT, ACCIDENTAL DISCHARGE OF WATER, FALLING,
FREEZING, ELECTRICAL, TEARING APART
Blanket - all of a certain type of property
- Single limit of coverage
- No detailed list
BOP - Business Owners Policy
BOP - standard deductible - $500
BOP Action of Civil Authority - For business loss when insured cannot access premise
• Beginning 72 hours after the action
, BOP Business Income From Dependent Properties - • Limit of $5,000
BOP Collapse caused by: - building glass breakage;
hidden decay;
hidden insect or vermin damage;
weight of people or personal property; or
weight of rain or snow
BOP Coverage Extensions - Newly acquired
Buildings—30 days, $250,000
Personal property—30 days, $100,000
Trees and detached signs• Maximum total of $2,500• Maximum per tree—$1,000
Personal property of others (not customers) such as employee property on the premises
• $2,500
Valuable papers and records
• $10,000
BOP Debris removal - 25% of the loss (amount paid by insurer plus the deductible)
• Additional $25,000 if loss equals or exceeds policy limits
BOP Electronic Data - oftware and hardware• $10,000 per policy period • Caused by a covered
peril
BOP Forgery or Alteration - Maximum of $2,500• Includes defense costs
BOP Free Additional Coverages - debris removal, Collapse, Business income, Increased Cost of
Construction, Forgery or Alteration, Action of Civil Authority, Business Income From Dependent
Properties, Electronic Data, Fungi, Wet Rot, Dry Rot, and Bacteria
Insurance - Exam
Binder - Temporary insurance
Usually given by the agent—verbal or in writing
Can be canceled by the company
Does not guarantee a policy will be issued
Automatically ends if a policy is issued by the underwriter
Assigned risk plans - A plan through which people can buy insurance if they are unable to
purchase insurance in the regular or voluntary market, because of their high risk or other factors.
An insurer who terminates an appointment, employment, or other relationship of an agent must notify
the Commissioner within ___ days after the effective date of the termination - 30
Actual Cash Value - replacement cost - depreciation
Additional Coverages in ho 2, 3, and 5 - Collapse- Caused by a covered peril - Not earthquake
Landlord's furnishings—$2,500 Grave markers—$5,000 Ordinance or law—increased cost up to 10% ×
dwelling limi
adhesion - An insurance contract is prepared by oneparty (the insurance company) with little or
no opportunity for the other party (the insured) to bargain
Adhesion - Policy written by the insurance company
Adhesion = glue
Insured has no input
If ambiguous, court will take the side of the insured
Aleatory Contract - • Unequal value
,• Pay small premium and have a large claim, or pay premiums for many years without a claim
An employer is NOT liable for - An employee's injury sustained off the job
An HO-3 policy provides coverage on which basis - Open perils coverage on the dwelling and
broad form coverage on the personal property
An insurer ____ use odometer reading data collected in the course of an inspection to set rates or
premiums for a motor vehicle policy or as a factor in altering rates or premiums during the term of the
policy or at the time of renewal. - may not
An insurer may not use odometer reading data collected in the course of an inspection to set rates or
premiums for a motor vehicle policy or as a factor in altering rates or premiums during - the term
of the policy or at the time of renewal.
An insurer must mail a copy of the notification of termination to the agent within ___ days after
notifying the Commissioner - 15
Abandonment - abandonment condition states that the insured may not abandon property to the
insurance company and ask to be reimbursed for its full value.
annual transit policy - protects the shipper or receiver of goods against loss to goods in transit.
Coverage is available on a named-peril basis, protecting against such losses as fire, windstorm, collision,
and theft, or on an open-peril basis
Application for a permanent resident agent license can only be made - Online
Assignment - Policy cannot be transferred without written consent from the insurer
Transfer of rights
,Assignment Clause / Transfer of rights - Insurance company has to agree Automatic if named
insured dies
Absolute liability - Some activities are so inherently dangerous that no degree of care taken by the
insured can defend against a charge of negligence.
Assumption of risk - A defense against negligence that can be used when the plaintiff was aware
of a danger and voluntarily assumed the risk of injury from that danger.
Bailee Liability - Covers damage to customer's property
• Pays customer
Basic Perils - ■ Fire, lightning, and internal explosion ■ Extended coverage
- WCSHAVVER- Vandalism and malicious mischief (V&MM)
BI AFFET - BURGLARY, ICE AND SNOW WEIGHT, ACCIDENTAL DISCHARGE OF WATER, FALLING,
FREEZING, ELECTRICAL, TEARING APART
Blanket - all of a certain type of property
- Single limit of coverage
- No detailed list
BOP - Business Owners Policy
BOP - standard deductible - $500
BOP Action of Civil Authority - For business loss when insured cannot access premise
• Beginning 72 hours after the action
, BOP Business Income From Dependent Properties - • Limit of $5,000
BOP Collapse caused by: - building glass breakage;
hidden decay;
hidden insect or vermin damage;
weight of people or personal property; or
weight of rain or snow
BOP Coverage Extensions - Newly acquired
Buildings—30 days, $250,000
Personal property—30 days, $100,000
Trees and detached signs• Maximum total of $2,500• Maximum per tree—$1,000
Personal property of others (not customers) such as employee property on the premises
• $2,500
Valuable papers and records
• $10,000
BOP Debris removal - 25% of the loss (amount paid by insurer plus the deductible)
• Additional $25,000 if loss equals or exceeds policy limits
BOP Electronic Data - oftware and hardware• $10,000 per policy period • Caused by a covered
peril
BOP Forgery or Alteration - Maximum of $2,500• Includes defense costs
BOP Free Additional Coverages - debris removal, Collapse, Business income, Increased Cost of
Construction, Forgery or Alteration, Action of Civil Authority, Business Income From Dependent
Properties, Electronic Data, Fungi, Wet Rot, Dry Rot, and Bacteria
