Wisconsin Insurance Exam 2024/2025 Questions with 100% Correct Answers

Wisconsin Insurance Exam 2024/2025 Questions with 100% Correct Answers Adverse selection - Trying to get a policy for events that are already occurring, or are knowingly going to happen (Life insurance policy before committing suicide, home insurance while a fire is destroying home, etc) Aleatory - A contract in which the consideration or monetary value between the parties is not equal The policy holder pays a premium and may collect nothing from the insurer is no loss occurs; however if a loss does occur, the policy holder may collect considerably more than the amount of the premium Assessable Policy - Policyholder takes risk of loss Association Insurer - 1. Lloyd's of London - Not an Insurance company - Admitted in Two States - Illinois and Kentucky - In WI, they are treated as "Surplus Lines" - Must have $1 billion in assets - Not to be confused with American Lloyds Criminal Penalties - Classification of Insurers - 1. Domestic - Founded and chartered in your resident state 2. Foreign - Founded and chartered outside your resident state, but in the U.S. 3. Alien - Funded and chartered outside of the U.S. Enforcement Procedures - 1. A hearing must be held: - To revoke, suspend, or limit a producer's license - before adopting a new or changing an existing law - Whenever the law requires - Appeal the denial of an insurance License 2. Anyone aggravated by an insurance Commissioner Order - Liscensee has 30 days to request a hearing - OCI has not less than 10 nor more than 60 days to grant 3. No hearing required for: - Failure to pay license renewal fee - Failing to meet continuing education requirements 4. Re-Hearings may be granted if: - Material fact evidence was overlooked - New Evidence - Liscensee has: - 20 days to request - The OCI has 20 days to grant, deny, or do nothing