Life and Health Insurance Exam (Wisconsin) UPDATED ACTUAL
Questions and CORRECT Answers
Question: National Association of Insurance Commissioners (NAIC)
Correct Answer: consists of all state and territorial insurance or regulators. Provides research, legislative
and regulatory recommendations and interpretations for state insurance regulators.
Question: Stock Insurance Company
Correct Answer: company is owned by stockholders or shareholder.
Question: Mutual Insurance Company
Correct Answer: Owned by policyowners, issues participating insurance.
Question: Risk Sharing Plan
Correct Answer: Insurers agree to apportion among themselves those risks that are unable to obtain
insurance through normal channels.
Question: Treaty
Correct Answer: Reinsurance agreement that automatically accepts all new risks presented by the ceding
insurer.
Question: faculative
Correct Answer: reinsurance agreement that allows the reinsurance company an opportunity to reject
coverage for individual risks, or price them higher due to their substandard nature
Question: Domicile
Correct Answer: jurisdiction where an insurer is formed or incorporated.
Question: Application challenge
Correct Answer: credit reporting agency must reinvestigate within 6 months, if applicant challenges
accuracy.
Question: Inaccuracies
Correct Answer: agency must forward to applicant inaccurate info given out within previous 2 years
Question: Disallowed information
Correct Answer: Report must not include lawsuits over 7 years old or bankruptcies more than 10 years
old.
Question: Disclosure upon request
Correct Answer: Consumer reporting agencies must provide the information on file if requested.
Question: Investigation of disputed info
Correct Answer: if consumer file contains inaccurate info, agency must promptly investigate the matter
with a source that provided in the info.
Question: Reciprocity
Correct Answer: If consent is granted by any state, other states must allow to work in their state.
Questions and CORRECT Answers
Question: National Association of Insurance Commissioners (NAIC)
Correct Answer: consists of all state and territorial insurance or regulators. Provides research, legislative
and regulatory recommendations and interpretations for state insurance regulators.
Question: Stock Insurance Company
Correct Answer: company is owned by stockholders or shareholder.
Question: Mutual Insurance Company
Correct Answer: Owned by policyowners, issues participating insurance.
Question: Risk Sharing Plan
Correct Answer: Insurers agree to apportion among themselves those risks that are unable to obtain
insurance through normal channels.
Question: Treaty
Correct Answer: Reinsurance agreement that automatically accepts all new risks presented by the ceding
insurer.
Question: faculative
Correct Answer: reinsurance agreement that allows the reinsurance company an opportunity to reject
coverage for individual risks, or price them higher due to their substandard nature
Question: Domicile
Correct Answer: jurisdiction where an insurer is formed or incorporated.
Question: Application challenge
Correct Answer: credit reporting agency must reinvestigate within 6 months, if applicant challenges
accuracy.
Question: Inaccuracies
Correct Answer: agency must forward to applicant inaccurate info given out within previous 2 years
Question: Disallowed information
Correct Answer: Report must not include lawsuits over 7 years old or bankruptcies more than 10 years
old.
Question: Disclosure upon request
Correct Answer: Consumer reporting agencies must provide the information on file if requested.
Question: Investigation of disputed info
Correct Answer: if consumer file contains inaccurate info, agency must promptly investigate the matter
with a source that provided in the info.
Question: Reciprocity
Correct Answer: If consent is granted by any state, other states must allow to work in their state.
