WISCONSIN INSURANCE STUDY GUIDE 2025/2026
QUESTIONS WITH SOLUTIONS RATED A+
✔✔An intermediary need NOT report which of the following status changes to the
office of the commissioner - ✔✔A change in insurance company appointment.
✔✔All of the following are TRUE in regards to the other states section of the workers
compensation EXCEPT: - ✔✔All states are automatically included
✔✔Workers compensation laws are administered by the Wisconsin: - ✔✔Department of
Workforce Development
✔✔Regarding insurance coverage for employment practices exposures, which of the
following statements is true - ✔✔Employment practices liability policies cover losses
arising out of wrongful
terminations discrimination and sexual harassment
✔✔Which of the following would be a specific duty of the insurer in a liability policy -
✔✔Providing a legal defense
✔✔An insurance policy deductible is the - ✔✔Amount of loss that the insured individual
must pay
✔✔Which of the following endorsements can be added to the BOP to cover loss or
damage property caused by an interruption in water, communication or power supply
service - ✔✔Utility services endorsement direct damage and time element
✔✔Which of the following refers to a situation in which an insurer transfers part of
their risk to another insurer - ✔✔Reinsurance
✔✔If insurance is used to establish proof of financial responsibility to comply with
the Motor Carrier Act of 1980 what endorsement can be used - ✔✔MCS-90
endorsement
✔✔Which of the following is a characteristic of a contract of adhesion - ✔✔Their terms
must be accepted or rejected in full
✔✔Which ratio evaluates the percentage of losses that accompany incurred for every
dollar of premium - ✔✔Loss
✔✔Under the personal automobile policy, trailers would not be covered when towed
by a - ✔✔Dump truck used to haul trash
, ✔✔Under surplus lines insurance the 3% premium tax must be paid by the -
✔✔Policyholder
✔✔What isn't covered under businessowners policy - ✔✔Outdoor fences
✔✔How can an employers provide coverage for excluded employees under workers
compensation - ✔✔Adding voluntary compensation endorsement
✔✔Which of the following statements is correct about commissions - ✔✔Payable only to
licensed intermediaries
✔✔Intentionally withholding information that should be provided to an insurer is
known as - ✔✔Concealment
✔✔An order issued by the insurance commissioner that clarifies a person's rights
under the law is referred to a - ✔✔Declaratory
✔✔Which of the following is a characteristic of a contract of adhesion - ✔✔The terms
must be accepted or rejected in full
✔✔An unforeseen loss that occurs at a specific time and place is a - ✔✔Accident
✔✔Construction with materials that will take two or more hours to start on fire (or burn)
is: - ✔✔Fire-restrictive
✔✔The claims process of indemnity is determined by: - ✔✔Insurable interest
✔✔Under an unendorsed Business Auto Policy, which of the following would be
covered? - ✔✔Dump truck
✔✔When Bob buys his house, it has a replacement value of $80,000. A few years later,
replacement value increased to $100,000. The bank has a mortgage of $150,000. What
is the most the policy will pay out for a total loss? - ✔✔100,000
✔✔The insurance company is not responsible for the intermediary's actions in all of the
following EXCEPT: - ✔✔The intermediary hides a material fact from the insurer when
they send in the
application
✔✔The general aggregate on the Commercial General Liability policy is how many
times
the Medical Expense limit? - ✔✔Two times
QUESTIONS WITH SOLUTIONS RATED A+
✔✔An intermediary need NOT report which of the following status changes to the
office of the commissioner - ✔✔A change in insurance company appointment.
✔✔All of the following are TRUE in regards to the other states section of the workers
compensation EXCEPT: - ✔✔All states are automatically included
✔✔Workers compensation laws are administered by the Wisconsin: - ✔✔Department of
Workforce Development
✔✔Regarding insurance coverage for employment practices exposures, which of the
following statements is true - ✔✔Employment practices liability policies cover losses
arising out of wrongful
terminations discrimination and sexual harassment
✔✔Which of the following would be a specific duty of the insurer in a liability policy -
✔✔Providing a legal defense
✔✔An insurance policy deductible is the - ✔✔Amount of loss that the insured individual
must pay
✔✔Which of the following endorsements can be added to the BOP to cover loss or
damage property caused by an interruption in water, communication or power supply
service - ✔✔Utility services endorsement direct damage and time element
✔✔Which of the following refers to a situation in which an insurer transfers part of
their risk to another insurer - ✔✔Reinsurance
✔✔If insurance is used to establish proof of financial responsibility to comply with
the Motor Carrier Act of 1980 what endorsement can be used - ✔✔MCS-90
endorsement
✔✔Which of the following is a characteristic of a contract of adhesion - ✔✔Their terms
must be accepted or rejected in full
✔✔Which ratio evaluates the percentage of losses that accompany incurred for every
dollar of premium - ✔✔Loss
✔✔Under the personal automobile policy, trailers would not be covered when towed
by a - ✔✔Dump truck used to haul trash
, ✔✔Under surplus lines insurance the 3% premium tax must be paid by the -
✔✔Policyholder
✔✔What isn't covered under businessowners policy - ✔✔Outdoor fences
✔✔How can an employers provide coverage for excluded employees under workers
compensation - ✔✔Adding voluntary compensation endorsement
✔✔Which of the following statements is correct about commissions - ✔✔Payable only to
licensed intermediaries
✔✔Intentionally withholding information that should be provided to an insurer is
known as - ✔✔Concealment
✔✔An order issued by the insurance commissioner that clarifies a person's rights
under the law is referred to a - ✔✔Declaratory
✔✔Which of the following is a characteristic of a contract of adhesion - ✔✔The terms
must be accepted or rejected in full
✔✔An unforeseen loss that occurs at a specific time and place is a - ✔✔Accident
✔✔Construction with materials that will take two or more hours to start on fire (or burn)
is: - ✔✔Fire-restrictive
✔✔The claims process of indemnity is determined by: - ✔✔Insurable interest
✔✔Under an unendorsed Business Auto Policy, which of the following would be
covered? - ✔✔Dump truck
✔✔When Bob buys his house, it has a replacement value of $80,000. A few years later,
replacement value increased to $100,000. The bank has a mortgage of $150,000. What
is the most the policy will pay out for a total loss? - ✔✔100,000
✔✔The insurance company is not responsible for the intermediary's actions in all of the
following EXCEPT: - ✔✔The intermediary hides a material fact from the insurer when
they send in the
application
✔✔The general aggregate on the Commercial General Liability policy is how many
times
the Medical Expense limit? - ✔✔Two times
