WISCONSIN INSURANCE STANDARD EXAM SHEET
2025/2026 QUESTIONS WITH SOLUTIONS RATED A+
✔✔Basic Hospital Expense Insurance - ✔✔Coverage that provides benefits for room,
board and miscellaneous hospital expenses for a certain number of days during a
hospital stay.
✔✔Basic Medical Expense Insurance - ✔✔Coverage for doctor visits, x-rays, lab tests,
and emergency room visits; benefits, however, are limited to specified dollar amounts.
✔✔Beneficiary - ✔✔The person who receives the proceeds from the policy when the
insured dies.
✔✔Benefit Period - ✔✔The length of time over which the insurance benefits will be paid
for each illness, disability or hospital stay.
✔✔Birthday Rule - ✔✔The method of determining primary coverage for a dependent
child, under which the plan of the parent whose birthday occurs first in the calendar
year, is designated as primary.
✔✔Blanket Medical Insurance - ✔✔A policy that provides benefits for all medical costs,
including doctor visits, hospitalization, and drugs.
✔✔Boycott - ✔✔An unfair trade practice in which one person refuses to do business
with another until he or she agrees to certain conditions.
✔✔Buyer's Guide - ✔✔A booklet that describes insurance policies and concepts, and
provides general information to help an applicant make an informed decision.
✔✔Cafeteria Plan - ✔✔A selection of health care benefits from which an employee may
choose the ones that he/she needs.
✔✔Capital Amount - ✔✔A percentage of the principal amount of a policy paid to the
insured if he/she suffered the loss of an appendage.
✔✔Carriers - ✔✔Organizations that process claims and pay benefits in an insurance
policy.
✔✔Cease and Desist Order - ✔✔A demand of a person to stop committing an action
that is in violation of a provision.
✔✔Certificate of Authority - ✔✔A document that authorizes a company to start
conducting business and specifies the kind(s) of insurance a company can transact. It is
illegal for an insurance company to transact insurance without this certificate.
, ✔✔Certificate of Insurance - ✔✔A written document that indicates that an insurance
policy has been issued, and that states both the amounts and types of insurance
provided.
✔✔Claim - ✔✔A request for payment of the benefits provided by an insurance contract.
✔✔Coercion - ✔✔An unfair trade practice in which an insurer uses physical or mental
force to persuade an applicant to buy insurance.
✔✔Coinsurance - ✔✔An agreement between an insurer and insured in which both
parties are expected to pay a certain portion of the potential loss and other expenses.
✔✔Coinsurance Clause - ✔✔A provision that states that the insurer and the insured will
share the losses covered by the policy in a proportion agreed upon in advance.
✔✔Commissioner - ✔✔The chief executive and administrative officer of the Insurance
Department.
✔✔Comprehensive Policy - ✔✔A plan that provides a package of health care services,
including preventive care, routine physicals, immunization, outpatient services and
hospitalization.
✔✔Comprehensive Major Medical - ✔✔A combination of basic coverage and major
medical coverage that features low deductibles, high maximum benefits, and
coinsurance.
✔✔Concealment - ✔✔The withholding of known facts which, if material, can void a
contract.
✔✔Conditional Contract - ✔✔A type of an agreement in which both parties must
perform certain duties and follow rules of conduct to make the contract enforceable.
✔✔Consideration - ✔✔The binding force in a contract that requires something of value
to be exchanged for the transfer of risk. The consideration on the part of the insured is
the representations made in the application and the payment of premium; the
consideration on the part of the insurer is the promise to pay in the event of loss.
✔✔Consideration Clause - ✔✔A part of the insurance contract that states that both
parties must give something of value for the transfer of risk, and specifies the conditions
of the exchange.
✔✔Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 - ✔✔The law
that provides for the continuation of group health care benefits for the insured for up to
2025/2026 QUESTIONS WITH SOLUTIONS RATED A+
✔✔Basic Hospital Expense Insurance - ✔✔Coverage that provides benefits for room,
board and miscellaneous hospital expenses for a certain number of days during a
hospital stay.
✔✔Basic Medical Expense Insurance - ✔✔Coverage for doctor visits, x-rays, lab tests,
and emergency room visits; benefits, however, are limited to specified dollar amounts.
✔✔Beneficiary - ✔✔The person who receives the proceeds from the policy when the
insured dies.
✔✔Benefit Period - ✔✔The length of time over which the insurance benefits will be paid
for each illness, disability or hospital stay.
✔✔Birthday Rule - ✔✔The method of determining primary coverage for a dependent
child, under which the plan of the parent whose birthday occurs first in the calendar
year, is designated as primary.
✔✔Blanket Medical Insurance - ✔✔A policy that provides benefits for all medical costs,
including doctor visits, hospitalization, and drugs.
✔✔Boycott - ✔✔An unfair trade practice in which one person refuses to do business
with another until he or she agrees to certain conditions.
✔✔Buyer's Guide - ✔✔A booklet that describes insurance policies and concepts, and
provides general information to help an applicant make an informed decision.
✔✔Cafeteria Plan - ✔✔A selection of health care benefits from which an employee may
choose the ones that he/she needs.
✔✔Capital Amount - ✔✔A percentage of the principal amount of a policy paid to the
insured if he/she suffered the loss of an appendage.
✔✔Carriers - ✔✔Organizations that process claims and pay benefits in an insurance
policy.
✔✔Cease and Desist Order - ✔✔A demand of a person to stop committing an action
that is in violation of a provision.
✔✔Certificate of Authority - ✔✔A document that authorizes a company to start
conducting business and specifies the kind(s) of insurance a company can transact. It is
illegal for an insurance company to transact insurance without this certificate.
, ✔✔Certificate of Insurance - ✔✔A written document that indicates that an insurance
policy has been issued, and that states both the amounts and types of insurance
provided.
✔✔Claim - ✔✔A request for payment of the benefits provided by an insurance contract.
✔✔Coercion - ✔✔An unfair trade practice in which an insurer uses physical or mental
force to persuade an applicant to buy insurance.
✔✔Coinsurance - ✔✔An agreement between an insurer and insured in which both
parties are expected to pay a certain portion of the potential loss and other expenses.
✔✔Coinsurance Clause - ✔✔A provision that states that the insurer and the insured will
share the losses covered by the policy in a proportion agreed upon in advance.
✔✔Commissioner - ✔✔The chief executive and administrative officer of the Insurance
Department.
✔✔Comprehensive Policy - ✔✔A plan that provides a package of health care services,
including preventive care, routine physicals, immunization, outpatient services and
hospitalization.
✔✔Comprehensive Major Medical - ✔✔A combination of basic coverage and major
medical coverage that features low deductibles, high maximum benefits, and
coinsurance.
✔✔Concealment - ✔✔The withholding of known facts which, if material, can void a
contract.
✔✔Conditional Contract - ✔✔A type of an agreement in which both parties must
perform certain duties and follow rules of conduct to make the contract enforceable.
✔✔Consideration - ✔✔The binding force in a contract that requires something of value
to be exchanged for the transfer of risk. The consideration on the part of the insured is
the representations made in the application and the payment of premium; the
consideration on the part of the insurer is the promise to pay in the event of loss.
✔✔Consideration Clause - ✔✔A part of the insurance contract that states that both
parties must give something of value for the transfer of risk, and specifies the conditions
of the exchange.
✔✔Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 - ✔✔The law
that provides for the continuation of group health care benefits for the insured for up to
