WISCONSIN INSURANCE EXAM SCRIPT 2025/2026
QUESTIONS WITH SOLUTIONS RATED A+
✔✔Essentials of an Insurance Contract- LACC - ✔✔Think LACC
Legal Purpose
Acceptance offer
-or acceptance counteroffer
Competent Parties
Consideration
-Insurer "promise to pay"
-Applicant's "premium"
✔✔4 Types of Insurance - ✔✔1. Life
2. Accident and Health
3. Property and Casualty
4. Social
- Social Security
- Medicare
- Workers' Compensation
- Railroad Retirement
✔✔3 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.
✔✔Three Methods of Purchasing Insurance - ✔✔1. From an
"approved/authorized/admitted"
- Domestic insurer, foreign insurer, alien insurer
2. Direct Placement
- Applicant crosses the state boundaries and buts a policy "direct" from the insurance
company
3. Surplus Lines Intermediary
- A surplus lines intermediary that is authorized by the WI OCI to place certain unusual
risks with a non approved insurance company
✔✔5 key parts of Stock Insurers - ✔✔1. Stockholders are owners
2. They elect board members
3. Board selects officers
4. For profit
5. Dividend returns, if any, are a return of profits
- Taxable
- Not Guaranteed
, ✔✔3 key parts of Mutual Insurers - ✔✔1. Policyholders are the owners
2. Policies can be:
- Assessable
- Non-Assessable
3. Dividends, If any, are a return of premiums
- Not taxable
- Not Guaranteed
✔✔4 key parts of Town Mutual Insurer - ✔✔1. Founded by a group of farmers
2. Regional in nature
3. Policies are all assessable
4. Write local property and casualty coverages only
✔✔4 key parts of Fraternal Insurer - ✔✔1. Type of mutual
2. Founded for the benefits and sales to their members
3. Many founded along religious or ethnic lines
4. Generally non-profit
✔✔6 key parts of Reciprocal Agreement - ✔✔1. "Group" of individuals
2. Self-insured arrangement
3. "Run" by an "attorney-in-fact"
4. Insured is own Insurer
5. Premium is kept in separate accounts
6. Can be assessed additional premium
✔✔4 key parts of Service Insurer - ✔✔1. Non-Profit
2. Enacted under state legislator
3. Have subscribers not policy holders
4. Low cost, high quality medical insurance
✔✔5 Key Insurer Departments - ✔✔1. Actuarial
- Function: Rate Making
2. Underwriting
- Function: Risk selectIon and classification
3. Sales and Marketing
- Function: Sales training and field compliance
4. Claims
- Function: Process claims
5. Legal-Consumer Affairs
✔✔3 key parts of Producer Competition - ✔✔1. Price
- Similar Products offer similar price
- Not much difference between insurers and prices regulated by state
2. Quality
QUESTIONS WITH SOLUTIONS RATED A+
✔✔Essentials of an Insurance Contract- LACC - ✔✔Think LACC
Legal Purpose
Acceptance offer
-or acceptance counteroffer
Competent Parties
Consideration
-Insurer "promise to pay"
-Applicant's "premium"
✔✔4 Types of Insurance - ✔✔1. Life
2. Accident and Health
3. Property and Casualty
4. Social
- Social Security
- Medicare
- Workers' Compensation
- Railroad Retirement
✔✔3 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.
✔✔Three Methods of Purchasing Insurance - ✔✔1. From an
"approved/authorized/admitted"
- Domestic insurer, foreign insurer, alien insurer
2. Direct Placement
- Applicant crosses the state boundaries and buts a policy "direct" from the insurance
company
3. Surplus Lines Intermediary
- A surplus lines intermediary that is authorized by the WI OCI to place certain unusual
risks with a non approved insurance company
✔✔5 key parts of Stock Insurers - ✔✔1. Stockholders are owners
2. They elect board members
3. Board selects officers
4. For profit
5. Dividend returns, if any, are a return of profits
- Taxable
- Not Guaranteed
, ✔✔3 key parts of Mutual Insurers - ✔✔1. Policyholders are the owners
2. Policies can be:
- Assessable
- Non-Assessable
3. Dividends, If any, are a return of premiums
- Not taxable
- Not Guaranteed
✔✔4 key parts of Town Mutual Insurer - ✔✔1. Founded by a group of farmers
2. Regional in nature
3. Policies are all assessable
4. Write local property and casualty coverages only
✔✔4 key parts of Fraternal Insurer - ✔✔1. Type of mutual
2. Founded for the benefits and sales to their members
3. Many founded along religious or ethnic lines
4. Generally non-profit
✔✔6 key parts of Reciprocal Agreement - ✔✔1. "Group" of individuals
2. Self-insured arrangement
3. "Run" by an "attorney-in-fact"
4. Insured is own Insurer
5. Premium is kept in separate accounts
6. Can be assessed additional premium
✔✔4 key parts of Service Insurer - ✔✔1. Non-Profit
2. Enacted under state legislator
3. Have subscribers not policy holders
4. Low cost, high quality medical insurance
✔✔5 Key Insurer Departments - ✔✔1. Actuarial
- Function: Rate Making
2. Underwriting
- Function: Risk selectIon and classification
3. Sales and Marketing
- Function: Sales training and field compliance
4. Claims
- Function: Process claims
5. Legal-Consumer Affairs
✔✔3 key parts of Producer Competition - ✔✔1. Price
- Similar Products offer similar price
- Not much difference between insurers and prices regulated by state
2. Quality
