NWM FLASH 1 QUESTIONS AND ANSWERS
Which of the following is a licensee able to place insurance with unauthorized insurers?
a)Reinsurance intermediary
b)Reinsurance broker
c)Managing general agent
d)Surplus lines agent - CORRECT ANSWER✅✅✅surplus lines agent
When the Commissioner examines an insurer, who pays the examination costs?
a)Department of Insurance
b)The federal governmen
tc)The state government
d)Examinees - CORRECT ANSWER✅✅✅Examiniees
Contracts that are prepared by one party and submitted to the other party on a take-it-or-leave-it basis
are classified as
a)Aleatory contracts.
b)Binding contracts.
c)Contracts of adhesion.
d)Unilateral contracts. - CORRECT ANSWER✅✅✅contracts of adhesion
Which of the following is a person who receives a fee or commission to attempt to negotiate
settlements between a life insurance policyholder or certificate holder and one or more life settlement
providers?
a)Life settlement broker
b)Surplus lines broker
c)Reinsurance agent
d)Life intermediary - CORRECT ANSWER✅✅✅Life settlement broker
Examination requirements may be waived for nonresident agents if
, a)They receive sponsorship from an insurer based in Wisconsin.
b)Their home state imposes requirements that are similar to Wisconsin's requirements.
c)They file a surety bond of $75,000 with the Commissioner.
d)They generate at least $10,000 in commissions from insurance transactions in their home state. -
CORRECT ANSWER✅✅✅Their home state imposes requirements that are similar to Wisconsin's
requirements.
The XYZ Insurance Company markets standard accident and health policy as a Medicare supplement
policy. The company is guilty of
a)Nothing.
b)Misrepresentation.
c)Coercion.
d)Rebating. - CORRECT ANSWER✅✅✅misrepresentation
A participating insurance policy may do which of the following?a)Require 80% participation
b)Pay dividends to the policyowner
c)Provide group coverage
d)Pay dividends to the stockholder - CORRECT ANSWER✅✅✅pay dividends to policyowner
What is the maximum annual billing for an insurer?
a)2% of gross premium
b)3% of interest
c)5% interest
d)1% of net premiums earned - CORRECT ANSWER✅✅✅1 percent of net premiums
Which of the following will NOT be an appropriate use of a deferred annuity?a)Accumulating funds in an
IRA
b)Funding a child's college education
c)Creating an estate
d)Accumulating retirement funds - CORRECT ANSWER✅✅✅creating an estate
Which of the following is a licensee able to place insurance with unauthorized insurers?
a)Reinsurance intermediary
b)Reinsurance broker
c)Managing general agent
d)Surplus lines agent - CORRECT ANSWER✅✅✅surplus lines agent
When the Commissioner examines an insurer, who pays the examination costs?
a)Department of Insurance
b)The federal governmen
tc)The state government
d)Examinees - CORRECT ANSWER✅✅✅Examiniees
Contracts that are prepared by one party and submitted to the other party on a take-it-or-leave-it basis
are classified as
a)Aleatory contracts.
b)Binding contracts.
c)Contracts of adhesion.
d)Unilateral contracts. - CORRECT ANSWER✅✅✅contracts of adhesion
Which of the following is a person who receives a fee or commission to attempt to negotiate
settlements between a life insurance policyholder or certificate holder and one or more life settlement
providers?
a)Life settlement broker
b)Surplus lines broker
c)Reinsurance agent
d)Life intermediary - CORRECT ANSWER✅✅✅Life settlement broker
Examination requirements may be waived for nonresident agents if
, a)They receive sponsorship from an insurer based in Wisconsin.
b)Their home state imposes requirements that are similar to Wisconsin's requirements.
c)They file a surety bond of $75,000 with the Commissioner.
d)They generate at least $10,000 in commissions from insurance transactions in their home state. -
CORRECT ANSWER✅✅✅Their home state imposes requirements that are similar to Wisconsin's
requirements.
The XYZ Insurance Company markets standard accident and health policy as a Medicare supplement
policy. The company is guilty of
a)Nothing.
b)Misrepresentation.
c)Coercion.
d)Rebating. - CORRECT ANSWER✅✅✅misrepresentation
A participating insurance policy may do which of the following?a)Require 80% participation
b)Pay dividends to the policyowner
c)Provide group coverage
d)Pay dividends to the stockholder - CORRECT ANSWER✅✅✅pay dividends to policyowner
What is the maximum annual billing for an insurer?
a)2% of gross premium
b)3% of interest
c)5% interest
d)1% of net premiums earned - CORRECT ANSWER✅✅✅1 percent of net premiums
Which of the following will NOT be an appropriate use of a deferred annuity?a)Accumulating funds in an
IRA
b)Funding a child's college education
c)Creating an estate
d)Accumulating retirement funds - CORRECT ANSWER✅✅✅creating an estate
