WISCONSIN INSURANCE REGULATIONS EXAM 2025 |160
QUESTIONS WITH ACCURATE SOLUTIONS
1. If a foreign insurer wishes to operate in Wisconsin, what must it obtain to
comply with state regulations?
Agent Registration
Premium Tax Exemption
Insurance License
Certificate of Authority
2. What is prohibited regarding the influence of agents or companies on
employers in relation to policy receipt?
Companies can incentivize employers to terminate employees for
policy benefits.
An agent or company cannot influence an employer to fire or
not hire a person as a condition for receiving the policy.
An agent can require employers to hire specific individuals to
receive a policy.
Agents must inform employers about hiring practices to receive a
policy.
3. How does the assessment of members in a Town Mutual insurance
company work when claims exceed reserves?
Members are not liable for any claims.
Members receive a refund on premiums.
Members are required to pay additional fees regardless of claims.
, Members may be assessed to cover the excess claims.
4. An insurance contract is valid even if purchased from a(n) ____ person.
, Unlicensed.
Resident licensed.
Non-degreed licensed.
Nonresident licensed.
5. Who is explicitly mentioned as not being responsible for reporting to the
commissioner in the context of insurance regulations?
an insurance agent
a licensed insurance broker
a claims adjuster
a person doing data entry for an insurance home office
6. If an applicant knowingly provides false information on their insurance
application, what potential consequences could they face?
Immediate approval of their application
No consequences as long as the premium is paid
A reduction in premium rates
Denial of coverage or policy cancellation
7. Describe how an insurance company can be held accountable for the
actions of its agents.
An insurance company is only responsible for its own actions, not
those of its agents.
An insurance company can avoid liability by terminating the agent.
An insurance company is liable only if the agent is licensed.
An insurance company can be held accountable for the actions
of its agents through the principle of vicarious liability, where
, the company is responsible for the financial harm caused by the
agent's mistakes.
8. In order to serve as a settlement broker for Viatical Settlement, the
producer must:
Be at least age 18
Have a Life License for 1 year or more
Have completed a 4-hour course on Viatical Settlements
All of the above
9. If insurance statutes, rule or order of the Commissioner are violated, how
much times more of profit gained must be paid?
2/3
Twice
Five
1/2
10. Who is represented by an intermediary broker in the context of
insurance?
The insurance company
The applicant for insurance
The insurance commissioner
The policyholder
11. Describe the significance of the Certificate of Authority for insurance
companies operating in Wisconsin.
The Certificate of Authority is a tax document for insurers.
The Certificate of Authority allows insurance companies to
legally conduct business in Wisconsin.
QUESTIONS WITH ACCURATE SOLUTIONS
1. If a foreign insurer wishes to operate in Wisconsin, what must it obtain to
comply with state regulations?
Agent Registration
Premium Tax Exemption
Insurance License
Certificate of Authority
2. What is prohibited regarding the influence of agents or companies on
employers in relation to policy receipt?
Companies can incentivize employers to terminate employees for
policy benefits.
An agent or company cannot influence an employer to fire or
not hire a person as a condition for receiving the policy.
An agent can require employers to hire specific individuals to
receive a policy.
Agents must inform employers about hiring practices to receive a
policy.
3. How does the assessment of members in a Town Mutual insurance
company work when claims exceed reserves?
Members are not liable for any claims.
Members receive a refund on premiums.
Members are required to pay additional fees regardless of claims.
, Members may be assessed to cover the excess claims.
4. An insurance contract is valid even if purchased from a(n) ____ person.
, Unlicensed.
Resident licensed.
Non-degreed licensed.
Nonresident licensed.
5. Who is explicitly mentioned as not being responsible for reporting to the
commissioner in the context of insurance regulations?
an insurance agent
a licensed insurance broker
a claims adjuster
a person doing data entry for an insurance home office
6. If an applicant knowingly provides false information on their insurance
application, what potential consequences could they face?
Immediate approval of their application
No consequences as long as the premium is paid
A reduction in premium rates
Denial of coverage or policy cancellation
7. Describe how an insurance company can be held accountable for the
actions of its agents.
An insurance company is only responsible for its own actions, not
those of its agents.
An insurance company can avoid liability by terminating the agent.
An insurance company is liable only if the agent is licensed.
An insurance company can be held accountable for the actions
of its agents through the principle of vicarious liability, where
, the company is responsible for the financial harm caused by the
agent's mistakes.
8. In order to serve as a settlement broker for Viatical Settlement, the
producer must:
Be at least age 18
Have a Life License for 1 year or more
Have completed a 4-hour course on Viatical Settlements
All of the above
9. If insurance statutes, rule or order of the Commissioner are violated, how
much times more of profit gained must be paid?
2/3
Twice
Five
1/2
10. Who is represented by an intermediary broker in the context of
insurance?
The insurance company
The applicant for insurance
The insurance commissioner
The policyholder
11. Describe the significance of the Certificate of Authority for insurance
companies operating in Wisconsin.
The Certificate of Authority is a tax document for insurers.
The Certificate of Authority allows insurance companies to
legally conduct business in Wisconsin.
