2024 /2025 | © copyright | This work may not be copied for profit gain Excel!
Wisconsin Property and Casualty Questions
and Correct Answers | Latest Update
FAIR
✓ -:- Fair Access to Insurance Requirements
Elements of a Legal Contract. L. O. A. C.
✓ -:- • Consideration
✓ • Legal Purpose
✓ • Offer
✓ • Acceptance
✓ • Competent Parties
Consideration
✓ -:- Money and statements made on application
Legal Purpose
✓ -:- Risk transfer doesn't violate the law
Offer
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,2024 /2025 | © copyright | This work may not be copied for profit gain Excel!
✓ -:- Insured submits application and first month premium to insurer
Insurer accepts or insurer declines the risk
Counteroffer
✓ -:- Agrees to issue policy but with higher premium or restrictions/
exclusions
Insured either accepts the conditions or withdraws their application
Competent Parties
✓ -:- Competent• Legal age (usually 18) • Mentally sane• Sober
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
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,2024 /2025 | © copyright | This work may not be copied for profit gain Excel!
✓ -:- • Unequal value
• Pay small premium and have a large claim, or pay premiums for many years without a claim
representation
✓ -:- believed to be true
misrepresentation
✓ -:- representation that is actually false.
Material misrepresentation
✓ -:- information given that is not true and DOES affect the insurer's
decision
warranty
✓ -:- statement that is guaranteed to be true, and it may be relied on by
the other party. If a warranty is not kept, there is a breach of warranty
that voids the contract.
Concealment
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, 2024 /2025 | © copyright | This work may not be copied for profit gain Excel!
✓ -:- failure to disclose known facts
Property insurance policies
✓ -:- Covers"mystuff"
"Mystuff"=buildings(real property) and personal belongings
First Part Loss
Casualty Insurance
✓ -:- Casualty = Liability
Always pays the other guy, never me
Third party losses
D. I. C. E. E.
✓ -:- ■ Declarations■ Insuring agreements■ Conditions■ Endorsements
and additional supplementary coverages ■ Exclusions
Declarations
✓ -:- who, what, when, where, and how much
4 | P a g e | G r a d e A + | 2 0 0 2 5
Wisconsin Property and Casualty Questions
and Correct Answers | Latest Update
FAIR
✓ -:- Fair Access to Insurance Requirements
Elements of a Legal Contract. L. O. A. C.
✓ -:- • Consideration
✓ • Legal Purpose
✓ • Offer
✓ • Acceptance
✓ • Competent Parties
Consideration
✓ -:- Money and statements made on application
Legal Purpose
✓ -:- Risk transfer doesn't violate the law
Offer
1 | P a g e | G r a d e A + | 2 0 0 2 5
,2024 /2025 | © copyright | This work may not be copied for profit gain Excel!
✓ -:- Insured submits application and first month premium to insurer
Insurer accepts or insurer declines the risk
Counteroffer
✓ -:- Agrees to issue policy but with higher premium or restrictions/
exclusions
Insured either accepts the conditions or withdraws their application
Competent Parties
✓ -:- Competent• Legal age (usually 18) • Mentally sane• Sober
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
2 | P a g e | G r a d e A + | 2 0 0 2 5
,2024 /2025 | © copyright | This work may not be copied for profit gain Excel!
✓ -:- • Unequal value
• Pay small premium and have a large claim, or pay premiums for many years without a claim
representation
✓ -:- believed to be true
misrepresentation
✓ -:- representation that is actually false.
Material misrepresentation
✓ -:- information given that is not true and DOES affect the insurer's
decision
warranty
✓ -:- statement that is guaranteed to be true, and it may be relied on by
the other party. If a warranty is not kept, there is a breach of warranty
that voids the contract.
Concealment
3 | P a g e | G r a d e A + | 2 0 0 2 5
, 2024 /2025 | © copyright | This work may not be copied for profit gain Excel!
✓ -:- failure to disclose known facts
Property insurance policies
✓ -:- Covers"mystuff"
"Mystuff"=buildings(real property) and personal belongings
First Part Loss
Casualty Insurance
✓ -:- Casualty = Liability
Always pays the other guy, never me
Third party losses
D. I. C. E. E.
✓ -:- ■ Declarations■ Insuring agreements■ Conditions■ Endorsements
and additional supplementary coverages ■ Exclusions
Declarations
✓ -:- who, what, when, where, and how much
4 | P a g e | G r a d e A + | 2 0 0 2 5
