Wisconsin Property & Casualty Insurance License Exam — All Questions
3 questions
Which agency licenses resident property and casualty insurance producers in Wisconsin?
- a.The Department of Transportation
- b.The Department of Financial Institutions
- c.The Office of the Commissioner of Insurance✓
- d.The Department of Revenue
Wisconsin regulates insurance and licenses producers through the Office of the Commissioner of Insurance (OCI), led by the Commissioner of Insurance. The Department of Transportation handles vehicle matters, not producer licensing.
A Wisconsin producer offers to give a client part of her commission as an inducement to buy a homeowners policy. This is:
- a.Required to be reported but otherwise lawful
- b.Permitted if disclosed to the insurer
- c.Permitted for new customers only
- d.Prohibited rebating under Wisconsin's unfair trade practices law✓
Rebating, giving any part of the premium or commission or other valuable consideration as an inducement to buy, is a prohibited unfair trade practice in Wisconsin and can bring fines and license action by the Office of the Commissioner of Insurance.
After a Wisconsin personal auto or homeowners policy is in force beyond its initial underwriting period, mid-term cancellation by the insurer is generally allowed only:
- a.Only during the first month after issuance
- b.Never under any circumstances
- c.For specific statutory reasons such as nonpayment of premium, fraud or material misrepresentation, or a substantial increase in the hazard, with required advance written notice✓
- d.For any reason, with no notice to the insured
Wisconsin limits mid-term cancellation of seasoned personal-lines policies to defined grounds such as nonpayment, fraud or material misrepresentation, or a substantial increase in the hazard, and requires advance written notice. The exact notice day-counts are set by statute; verify current figures with the Office of the Commissioner of Insurance.