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Wisconsin |! Property |! & |! Casualty |! Exam
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A |! situation |! in |! which |! a |! person |! can |! experience |! only |! a |! loss |! and |! no |! gain |! presents |! what |! type |! of |! risk? |! - |! Correct |! answer |! ✔Pure |! Risk A |! tornado |! that |! destroys |! a |! property |! would |! be |! an |! example |! of |! what? |! - |! Correct |! answer |! ✔Peril What |! type |! of |! authority |! is |! based |! on |! the |! agent's |! actions, |! or |! words? |! - |! Correct |! answer |! ✔Apparents If |! an |! insurer |! holds |! a |! Certificate |! of |! Authority, |! it |! is |! know |! as |! what |! type |! of |! insurer? |! - |! Correct |! answer |! ✔Authorized |! or |! admitted What |! document |! is |! required |! for |! an |! insurance |! company |! to |! transact |! insurance? |! - |! Correct |! answer |! ✔Certificate |! of |! Authority Insurers |! are |! classified |! according |! to |! their |! domicile. |! What |! are |! the |! three |! types |! of |! insurers? |! - |! Correct |! answer |! ✔Domestic, |! Foreign, |! and |! Alien What |! would |! a |! misrepresentation |! on |! an |! insurance |! application |! be |! considered |! fraud? |! - |! Correct |! answer |! ✔When |! it |! is |! material |! and |! intentional
What |! provision |! states |! that |! if |! a |! policy |! allows |! for |! greater |! benefits |! than |! the |! financial |! loss |! incurred, |! the |! insured |! may |! be |! compensated |! only |! for |! the |! amount |! lost? |! - |! Correct |! answer |! ✔Indemnity In |! insurance |! contracts, |! when |! is |! the |! offer |! usually |! made? |! - |! Correct |! answer |! ✔When |! the |! insurance |! application |! is |! submitted What |! is |! the |! term |! for |! the |! causes |! of |! loss |! insured |! against |! in |! an |! insurance |! policy? |! - |! Correct |! answer |! ✔Peril In |! insurance |! contracts, |! when |! does |! acceptance |! usually |! occur? |! - |! Correct |! answer |! ✔When |! the |! insurer |! approves |! a |! prepaid |! application What |! do |! individuals |! use |! to |! transfer |! their |! risk |! of |! loss |! to |! a |! larger |! group? |! - |! Correct |! answer |! ✔Insurance Insurance |! contracts |! are |! aleatory |! in |! nature. |! What |! does |! that |! mean? |! - |! Correct |! answer |! ✔Unequal |! values |! are |! exchanged |! between |! the |! parties |! to |! a |! contract. What |! type |! of |! insurer |! is |! formed |! under |! the |! laws |! of |! another |! state? |! - |! Correct |! answer |! ✔Foreign According |! to |! the |! Laws |! of |! Agency, |! who |! represents |! the |! principal? |! - |! Correct |! answer |! ✔The |! Agent |! or |! producer
What |! are |! three |! types |! of |! agent |! authority? |! - |! Correct |! answer |! ✔express, |! implied, |! apparent In |! insurance |! contracts, |! when |! is |! the |! offer |! usually |! made? |! - |! Correct |! answer |! ✔When |! the |! insurance |! application |! is |! submitted What |! are |! the |! methods |! of |! managing |! risk? |! - |! Correct |! answer |! ✔Avoidance, |! transfer, |! sharing, |! retention, |! and |! reduction Wagering |! on |! a |! sporting |! event |! is |! known |! as |! what |! type |! of |! risk? |! - |! Correct |! answer |! ✔Speculative What |! is |! consideration |! on |! the |! part |! of |! the |! insurer? |! - |! Correct |! answer |! ✔A |! promise |! to |! pay |! in |! the |! event |! of |! a |! loss What |! are |! the |! five |! characteristics |! of |! an |! ideally |! insurable |! risk? |! - |! Correct |! answer |! ✔Loss |! must |! be, |! due |! to |! chance, |! definite |! and |! measurable, |! statistically |! predictable, |! not |! catastrophic, |! and |! coverage |! cannot |! be |! mandatory What |! is |! a |! risk? |! - |! Correct |! answer |! ✔Uncertainty |! of |! loss Who |! must |! be |! notified |! of |! a |! producers |! change |! of |! address? |! - |! Correct |! answer |! ✔The |! Department |! of |! Insurance
In |! general, |! who |! can |! be |! excluded |! from |! producer |! licensing |! and |! examination |! requirements? |! - |! Correct |! answer |! ✔Insurance |! company |! officers, |! directors, |! or |! any |! other |! employees |! who |! do |! not |! transact |! insurance |! and |! who |! do |! not |! receive |! commissions |! for |! their |! services Who |! owns |! stock |! companies? |! - |! Correct |! answer |! ✔Stockholders Who |! is |! responsible |! for |! the |! costs |! associated |! with |! the |! examination |! of |! insurers? |! - |! Correct |! answer |! ✔The |! insurer |! who |! is |! being |! examined What |! are |! producers |! requires |! to |! do |! in |! order |! to |! renew |! their |! license? |! - |! Correct |! answer |! ✔Complete |! continuing |! education |! house |! and |! pay |! a |! renewal |! fee Who |! may |! share |! in |! the |! commission |! from |! the |! sale |! of |! an |! insurance |! policy? |! - |! Correct |! answer |! ✔Only |! producers |! properly |! licensed |! for |! the |! type |! of |! insurance |! transaction Two |! individuals |! who |! are |! in |! the |! same |! risk |! and |! age |! class |! are |! charged |! different |! rates |! for |! their |! insurance |! policies |! due |! to |! an |! insignificant |! factor. |! What |! is |! this |! called? |! - |! Correct |! answer |! ✔Discrimination The |! requirement |! that |! agents |! must |! account |! for |! and |! promptly |! remit |! all |! insurance |! funds |! collected |! is |! known |! as |! what |! type |! of |! agent |! responsibilities? |! - |! Correct |! answer |! ✔Fiduciary
What |! is |! controlled |! business? |! - |! Correct |! answer |! ✔Insurance |! on |! the |! producer's |! own |! life |! or |! property, |! or |! the |! lives |! or |! property |! of |! the |! producer's |! family |! or |! business |! associates Who |! is |! an |! insurance |! agent? |! - |! Correct |! answer |! ✔A |! person |! authorized |! to |! sell, |! solicit |! and |! negotiate |! insurance |! contracts When |! would |! a |! misrepresentation |! on |! an |! insurance |! application |! be |! considered |! fraud? |! - |! Correct |! answer |! ✔When |! it |! is |! intentional |! and |! material What |! is |! the |! purpose |! of |! a |! cease |! and |! desist |! order? |! - |! Correct |! answer |! ✔To |! prevent |! a |! producer |! or |! insurer |! from |! further |! violating |! laws |! for |! transacting |! insurance If |! a |! producer |! makes |! maliciously |! critical |! statements |! about |! another |! insurer, |! what |! is |! this |! illegal |! practice |! called? |! - |! Correct |! answer |! ✔Defamation On |! its |! advertisement, |! a |! company |! claims |! that |! it |! has |! funds |! in |! its |! possession |! that |! are, |! in |! fact, |! not |! available |! for |! the |! payment |! of |! losses |! or |! claims. |! What |! is |! the |! company |! guilty |! of? |! - |! Correct |! answer |! ✔Misrepresentation What |! type |! of |! licensee |! represents |! the |! insurance |! company? |! - |! Correct |! answer |! ✔The |! agent
If |! an |! insurer |! meets |! the |! state's |! financial |! requirements |! and |! is |! approved |! to |! transact |! business |! in |! the |! state, |! it |! is |! considered |! what |! type |! of |! insurer? |! - |! Correct |! answer |! ✔Authorized |! or |! admitted Who |! is |! considered |! a |! nonresident |! agent? |! - |! Correct |! answer |! ✔An |! agent |! who |! resided |! and |! is |! licensed |! in |! another |! state, |! but |! who |! is |! authorized |! to |! transact |! insurance |! in |! this |! state When |! can |! the |! Commissioner |! or |! Director |! examine |! insurers? |! - |! Correct |! answer |! ✔Whenever |! deemed |! necessary, |! but |! at |! lease |! once |! every |! few |! years What |! is |! the |! difference |! between |! cancellation |! and |! non-renewal? |! - |! Correct |! answer |! ✔Cancellation |! is |! the |! termination |! of |! an |! insurance |! policy |! by |! either |! party |! prior |! to |! the |! policy's |! expiration |! date. |! Nonrenewal |! is |! the |! termination |! of |! a |! policy |! at |! its |! expiration |! date |! by |! not |! offering |! a |! continuation |! of |! the |! existing |! policy What |! is |! the |! process |! that |! insurers |! use |! to |! determine |! whether |! a |! policy |! should |! be |! issued |! and |! on |! what |! terms |! and |! conditions? |! - |! Correct |! answer |! ✔Underwriting How |! are |! direct |! and |! indirect |! losses |! related? |! - |! Correct |! answer |! ✔Direct |! losses |! can |! cause |! indirect |! losses. A |! policy |! that |! covers |! all |! causes |! of |! loss |! except |! for |! those |! specifically |! excluded |! is |! know |! as |! what |! type |! of |! policy? |! - |! Correct |! answer |! ✔Open |! Peril |! (Special) |! Form
What |! are |! the |! 2 |! liability |! coverages |! included |! in |! Homeowners |! policy |! forms? |! - |! Correct |! answer |! ✔Coverage |! E |! - |! Personal |! Liability |! and |! Coverage |! F |! - |! Medical |! Payments |! to |! Others How |! many |! owner-occupied |! residences |! per |! covered |! home |! are |! allowed |! by |! Homeowners |! Policies? |! - |! Correct |! answer |! ✔An |! HO |! policy |! may |! insure |! a |! property |! that |! has |! 1 |! - |! to |! 4 |! family |! owner-occupies |! residences When |! is |! an |! appraisal |! needed |! and |! how |! can |! it |! be |! requested? |! - |! Correct |! answer |! ✔If |! an |! insured |! and |! an |! insurer |! disagree |! about |! the |! value |! of |! a |! property |! loss, |! either |! can |! make |! a |! written |! demand |! for |! an |! appraisal In |! HO |! policies, |! which |! coverage |! provides |! protection |! against |! an |! indirect |! or |! consequential |! loss? |! - |! Correct |! answer |! ✔Coverage |! D- |! Loss |! of |! Use In |! HO |! policies, |! what |! determined |! the |! amount |! an |! insurer |! will |! pay |! under |! Coverage |! D? |! - |! Correct |! answer |! ✔The |! amount |! of |! coverage |! on |! a |! dwelling What |! HO |! form |! insurers |! a |! tenant |! living |! in |! an |! apartment? |! - |! Correct |! answer |! ✔HO-4 |! (tenant |! broad |! form) In |! general, |! what |! do |! HO |! policies |! cover? |! - |! Correct |! answer |! ✔Dwellings |! used |! primarily |! as |! private |! residences An |! insured |! with |! a |! HO |! policy |! has |! removed |! property |! from |! the |! insured |! location |! to |! protect |! it |! from |! loss |! that |! could |! be |! caused |! by |! a |! covered |! peril. |!
The |! removal |! coverage |! applies |! for |! how |! many |! days? |! - |! Correct |! answer |! ✔ 30 |! days Losses |! caused |! by |! vandalism |! and |! malicious |! mischief |! are |! excluded |! from |! coverage |! if |! a |! dwelling |! has |! been |! vacant |! for |! how |! many |! days? |! - |! Correct |! answer |! ✔ 60 |! days What |! HO |! policy |! form |! is |! known |! as |! special |! form? |! - |! Correct |! answer |! ✔HO |! - |! 3 |! Special |! Form In |! order |! for |! forms |! HO-2, |! HO-3, |! and |! HO-5 |! to |! provide |! coverage, |! a |! dwelling |! must |! be |! insured |! for |! at |! least |! what |! percentage |! of |! replacement |! cost? |! - |! Correct |! answer |! ✔80% What |! HO |! form |! covers |! condominium |! unit |! owners? |! - |! Correct |! answer |! ✔HO- |! (condominium |! unit |! owners) How |! are |! the |! dwelling |! and |! other |! structures |! covered |! in |! an |! HO |! 3 |! policy |! form? |! - |! Correct |! answer |! ✔On |! an |! open-peril |! basis What |! does |! form |! HO-5 |! cover? |! - |! Correct |! answer |! ✔The |! dwelling |! and |! other |! structures, |! as |! well |! as |! contents |! and |! personal |! property When |! would |! theft |! of |! property |! of |! guests |! and |! residence |! employees |! be |! covered |! under |! the |! HO-8 |! form? |! - |! Correct |! answer |! ✔Only |! while |! on |! the |! insured |! premises
What |! are |! additional |! coverages |! available |! in |! HO |! policies |! without |! additional |! premiums? |! - |! Correct |! answer |! ✔Debris |! removal, |! lawns/plants/shrubs, |! and |! trees, |! removal, |! reasonable |! repairs, |! and |! fire |! department |! service |! charges When |! replacement |! coverage |! cost |! is |! not |! reasonable, |! what |! type |! of |! HO |! coverage |! is |! applicable? |! - |! Correct |! answer |! ✔The |! HO |! 8 |! modified |! homeowners |! form |! is |! intended |! for |! use |! when |! replacement |! cost |! coverage |! is |! not |! practical Why |! does |! the |! HO |! 4 |! form |! not |! provide |! dwelling |! coverage? |! - |! Correct |! answer |! ✔HO |! 4 |! is |! written |! for |! a |! tenant |! residing |! in |! a |! rented |! dwelling, |! the |! tenant |! does |! not |! own |! the |! dwelling Under |! Coverage |! C |! of |! a |! HO |! 3 |! policy, |! what |! is |! the |! amount |! of |! insurance |! provided |! for |! personal |! property? |! - |! Correct |! answer |! ✔At |! least |! 50% |! of |! coverage |! A |! limit |! (all |! policies |! except |! 4 |! and |! 6) What |! are |! some |! of |! the |! exclusions |! from |! coverage |! in |! all |! of |! the |! Homeowners |! forms? |! - |! Correct |! answer |! ✔Land, |! structures |! used |! for |! business |! purposes, |! animals/ |! birds/fish, |! aircraft, |! rented |! property, |! electronic |! data, |! and |! motor |! vehicles What |! HO |! policy |! form |! is |! known |! as |! contents |! broad |! form? |! - |! Correct |! answer |! ✔HO |! 4 |! contents |! broad |! form What |! type |! of |! coverage |! is |! included |! in |! Homeowners |! policies, |! but |! is |! not |! available |! in |! Dwelling |! Policies? |! - |! Correct |! answer |! ✔Liability |! Coverage
If |! an |! auto |! policy |! has |! split |! limits |! of |! 30/50/25, |! how |! much |! will |! the |! policy |! pay |! for |! property |! damage |! in |! a |! single |! accident? |! - |! Correct |! answer |! ✔25, What |! would |! be |! considered |! a |! newly |! acquired |! auto? |! - |! Correct |! answer |! ✔A |! vehicle |! acquired |! by |! the |! insured |! during |! the |! policy |! period What |! is |! a |! combined |! limit |! in |! an |! auto |! insurance |! policy? |! - |! Correct |! answer |! ✔The |! max |! amount |! the |! insurer |! will |! pay |! on |! a |! covered |! loss What |! do |! numerical |! symbols |! represent |! in |! auto |! policies? |! - |! Correct |! answer |! ✔They |! define |! the |! type |! of |! vehicle |! insured |! for |! specific |! coverage What |! is |! the |! limit |! of |! liability |! in |! Part |! D: |! Coverage |! for |! Damage |! to |! Your |! Auto? |! - |! Correct |! answer |! ✔The |! lesser |! of |! the |! ACV |! of |! the |! vehicle |! or |! the |! amount |! needed |! to |! repair |! or |! replace |! the |! vehicle If |! an |! insured |! is |! injured |! driving |! his |! own |! car, |! what |! coverage |! in |! his |! personal |! auto |! policy |! will |! pay |! for |! the |! loss? |! - |! Correct |! answer |! ✔Part |! B: |! Medical |! Payments How |! much |! will |! a |! physical |! damage |! policy |! pay |! for |! transportation |! expenses |! due |! to |! a |! theft |! of |! a |! covered |! auto? |! - |! Correct |! answer |! ✔The |! policy |! will |! pay |! $20 |! per |! day |! up |! to |! a |! max |! of |! $600 |! for |! transportation |! expenses |! incurred |! by |! the |! insured
What |! Personal |! Auto |! coverage |! would |! pay |! for |! damages |! to |! a |! covered |! auto |! caused |! by |! a |! collision |! with |! a |! deer? |! - |! Correct |! answer |! ✔Other-than-collision What |! is |! a |! covered |! Auto? |! - |! Correct |! answer |! ✔A |! vehicle |! in |! the |! policy |! declaration A |! vehicle |! rented |! from |! a |! commercial |! rental |! company |! is |! known |! as |! what |! type |! of |! auto? |! - |! Correct |! answer |! ✔Hired |! Auto In |! Personal |! Auto |! Policy, |! to |! what |! geographical |! region |! does |! the |! out |! of |! state |! coverage |! apply? |! - |! Correct |! answer |! ✔Any |! US |! states |! or |! Territory, |! as |! well |! as |! Canada When |! does |! the |! underinsured |! motorist |! coverage |! apply? |! - |! Correct |! answer |! ✔When |! the |! Motorist |! is |! at |! fault |! in |! an |! accident, |! but |! the |! limits |! of |! his/her |! auto |! insurance |! are |! not |! sufficient |! to |! cover |! the |! bodily |! injury |! to |! another |! motorist How |! does |! the |! Auto |! medical |! payment |! coverage |! endorsement |! modify |! the |! auto |! policy? |! - |! Correct |! answer |! ✔It |! adds |! medical |! payment |! coverage |! to |! a |! commercial |! auto |! policy What |! are |! the |! coverage |! forms |! used |! in |! commercial |! auto |! insurance? |! - |! Correct |! answer |! ✔Business |! Auto |! Coverage |! Form, |! Business |! Auto |! Physical |! Damage |! Coverage |! Form, |! Garage |! Coverage |! Form, |! and |! Motor |! Carrier |! Coverage |! form
Coverage |! for |! medical |! payments |! under |! a |! Personal |! Auto |! Policy |! applies |! to |! expenses |! following |! a |! covered |! accident |! that |! are |! incurred |! and |! services |! rendered |! within |! what |! time |! period? |! - |! Correct |! answer |! ✔ 3 |! years What |! coverage |! is |! provided |! in |! the |! liability |! section |! of |! the |! business |! auto |! coverage |! form? |! - |! Correct |! answer |! ✔The |! policy |! will |! pay |! for |! injury |! or |! property |! damage |! to |! third |! parties What |! are |! 4 |! categories |! of |! uninsured |! motor |! vehicles? |! - |! Correct |! answer |! ✔No |! insurance |! or |! liability |! bond, |! insurance |! is |! less |! than |! what's |! required |! by |! the |! financial |! responsibility |! laws, |! a |! hit |! and |! run |! accident |! where |! the |! driver |! cannot |! be |! identified, |! and |! the |! insurer |! denies |! coverage |! or |! becomes |! insolvent When |! does |! Uninsured |! Motorist |! coverage |! apply? |! - |! Correct |! answer |! ✔When |! the |! other |! party |! is |! legally |! liable |! but |! has |! no |! insurance If |! an |! auto |! policy |! has |! split |! limits |! of |! 30/50/25, |! what |! is |! the |! maximum |! amount |! the |! policy |! will |! pay |! for |! injuries |! to |! one |! person |! in |! a |! single |! accident? |! - |! Correct |! answer |! ✔$30, What |! type |! of |! auto |! coverage |! will |! apply |! in |! a |! hit-and-run |! accident |! where |! the |! driver |! cannot |! be |! identified? |! - |! Correct |! answer |! ✔Uninsured |! Motorist Who |! does |! the |! Garage |! Coverage |! form |! insure? |! - |! Correct |! answer |! ✔Auto |! dealers, |! service |! stations, |! auto |! repair |! shops
What |! is |! the |! date |! stipulated |! on |! the |! declaration |! page |! of |! a |! claims-made |! liability |! form |! as |! the |! earliest |! date |! on |! which |! an |! incident |! may |! occur |! and |! be |! covered |! by |! the |! policy? |! - |! Correct |! answer |! ✔Retroactive |! Date What |! are |! the |! 2 |! coverage |! triggers |! in |! Commercial |! Crime |! policies? |! - |! Correct |! answer |! ✔Discovery |! Form |! and |! Loss |! Sustained |! Form When |! other |! insurance |! is |! written |! on |! the |! same |! basis |! as |! a |! Commercial |! Property |! policy, |! what |! is |! the |! insurer |! obligated |! to |! cover? |! - |! Correct |! answer |! ✔A |! share |! of |! the |! loss What |! is |! the |! difference |! between |! personal |! injury |! and |! an |! advertising |! injury? |! - |! Correct |! answer |! ✔Personal |! injury |! refers |! to |! individuals; |! advertising |! injury |! is |! incurred |! to |! a |! business. |! Both, |! however, |! are |! nonphysical |! injuries What |! types |! of |! expenses |! are |! covered |! by |! Coverage |! C |! - |! Medical |! Payments |! in |! Commercial |! General |! Liability |! policies? |! - |! Correct |! answer |! ✔Medical, |! Surgical, |! hospital |! or |! funeral |! expenses |! for |! third |! parties |! injured |! because |! of |! the |! insured's |! business |! operations What |! type |! of |! policy |! is |! a |! liability |! policy |! that |! covers |! all |! claims |! arising |! out |! of |! incidents |! occuring |! during |! the |! policy |! period, |! regardless |! of |! whether |! the |! policy |! is |! still |! in |! effect |! at |! the |! time |! of |! the |! claim? |! - |! Correct |! answer |! ✔An |! occurrence |! policy
What |! are |! the |! 3 |! liability |! coverages |! included |! in |! the |! Commercial |! General |! Liability |! (CGL) |! Coverage |! Form? |! - |! Correct |! answer |! ✔Coverage |! A |! - |! Bodily |! injury |! and |! property |! damage, Coverage |! B |! - |! Personal |! and |! Advertising |! Injury, |! and |! Coverage |! C- |! Medical |! Payments What |! does |! Coverage |! A |! of |! the |! Commercial |! General |! Liability |! from |! provide |! coverage |! for? |! - |! Correct |! answer |! ✔Injury |! or |! death |! suffered |! by |! a |! third |! party |! or |! damage |! to |! the |! property |! of |! others What |! type |! of |! perils |! are |! covered |! by |! the |! Advertising |! Injury |! Form? |! - |! Correct |! answer |! ✔Libel, |! slander, |! defamation, |! violation |! of |! privacy, |! infringement |! of |! copyrights |! or |! titles How |! are |! supplementary |! payments |! paid |! in |! liability |! insurance |! policies? |! - |! Correct |! answer |! ✔In |! addition |! to |! the |! limits |! of |! liability Which |! coverage |! would |! a |! business |! owner |! need |! in |! a |! crime |! policy |! to |! cover |! money |! that |! may |! be |! stolen |! from |! a |! messenger? |! - |! Correct |! answer |! ✔Outside |! the |! Premises What |! components |! make |! up |! a |! Commercial |! Policy? |! - |! Correct |! answer |! ✔Policy |! cover; |! policy |! declarations; |! interlines |! endorsements; |! lines |! of |! insurance |! declaration |! pages; |! lines |! of |! insurance |! coverage |! forms; |! common |! policy |! conditions; |! lines |! of |! insurance |! conditions; |! causes |! of |! loss |! forms; |! and |! endorsements
