Download Wisconsin Property and Casualty Insurance Exam (138 questions) with precise answers and more Exams Insurance law in PDF only on Docsity!
Wisconsin |! Property |! and |! Casualty |!
Insurance |! Exam |! with |! precise |!
detailed |! answers
Coverage |! Forms |! - |! Correct |! answer |! ✔Income |! Extra |! Expenses cancallation |! - |! Correct |! answer |! ✔Occurs |! before |! expiration |! date. |! Insurer |! must |! give |! advance |! notice. |! Insured |! doesn't |! need |! to |! give |! notice Perils |! Special |! - |! Correct |! answer |! ✔Open |! Perils, |! all |! direct |! causes |! of |! loss. |! Unless |! specifically |! excluded Fair |! - |! Correct |! answer |! ✔Fair |! access |! to |! Insurance |! requirements Elements |! of |! a |! Legal |! Contract |! (LOAC) |! - |! Correct |! answer |! ✔Consideration, |! legal |! purpose, |! offer, |! acceptance, |! competent |! parties Consideration |! - |! Correct |! answer |! ✔Money |! and |! Statement |! made |! on |! application Legal |! Purpose |! - |! Correct |! answer |! ✔risk |! transfer |! doesn't |! violate |! the |! law
offer |! - |! Correct |! answer |! ✔Insured |! submits |! application |! and |! first |! month |! payment |! to |! the |! insurer. |! Insurer |! accepts |! or |! denies |! the |! risk Counteroffer |! - |! Correct |! answer |! ✔Agrees |! to |! issue |! policy |! but |! with |! higher |! premium |! or |! restrictions |! and |! exclusions Competent |! Parties |! - |! Correct |! answer |! ✔Those |! entering |! into |! the |! contract |! must |! be |! of |! legal |! age, |! must |! be |! mentally |! competent |! and |! sober Adhesion |! - |! Correct |! answer |! ✔A |! Policy |! written |! by |! the |! company, |! the |! insured |! has |! no |! input Aleatory |! Contract |! - |! Correct |! answer |! ✔The |! exchange |! of |! value |! is |! unequal, |! Pay |! a |! small |! premium, |! large |! claims Representation |! - |! Correct |! answer |! ✔Believed |! to |! be |! true Misrepresentation |! - |! Correct |! answer |! ✔a |! representation |! that |! is |! actually |! false Material |! Misrepresentation |! - |! Correct |! answer |! ✔information |! given |! that |! is |! not |! true |! and |! DOES |! affect |! the |! insurer's |! decision Warranty |! - |! Correct |! answer |! ✔Statement |! that |! is |! guaranteed |! to |! be |! the |! truth, |! may |! be |! relied |! on |! by |! others
Name |! Insured |! - |! Correct |! answer |! ✔the |! person |! or |! party |! named |! on |! the |! declarations |! page |! of |! the |! policy first |! name |! insured |! - |! Correct |! answer |! ✔1st |! on |! declaration |! page Policy |! Territory |! - |! Correct |! answer |! ✔place |! where |! coverage |! under |! the |! policy |! applies United |! States, |! Canada, |! Puerto |! Rico |! and |! US |! territories Flat |! Cancellation |! - |! Correct |! answer |! ✔The |! cancellation |! of |! a |! policy |! on |! or |! before |! the |! date |! the |! policy |! becomes |! effective. Nonrenewal |! - |! Correct |! answer |! ✔A |! termination |! of |! a |! policy |! by |! an |! insurer |! on |! the |! anniversary |! or |! renewal |! date. concurrency |! - |! Correct |! answer |! ✔Two |! or |! more |! policies |! covering |! one |! property Pro |! Rata |! - |! Correct |! answer |! ✔Each |! insurer's |! liable |! for |! a |! portion |! of |! the |! loss Calculate |! Pro |! Rata |! - |! Correct |! answer |! ✔Policy |! Limit |! of |! one |! comapny
Contribution |! by |! Equal |! Share |! - |! Correct |! answer |! ✔each |! insurer |! shares |! equally |! in |! the |! loss |! until |! the |! share |! paid |! by |! each |! insurer |! equals |! the |! lowest |! limit |! of |! liability |! under |! any |! policy, |! or |! until |! the |! full |! amount |! of |! the |! loss |! is |! paid Duties |! After |! Loss |! - |! Correct |! answer |! ✔Give |! prompt |! notice Protect |! the |! property Prepare |! an |! inventory |! of |! damaged |! personal |! property Exhibit |! the |! damaged |! property File |! a |! proof |! of |! loss |! within |! 60 |! days |! after |! the |! insurer's |! request Assignment |! - |! Correct |! answer |! ✔policy |! cannot |! be |! transferred |! without |! written |! consent |! from |! the |! insurer Abandonment |! - |! Correct |! answer |! ✔Insured |! cannot |! abandon |! property |! that |! can |! be |! repaired |! and |! expect |! to |! be |! paid |! as |! if |! the |! loss |! was |! total Elements |! of |! a |! Legal |! Contract |! - |! Correct |! answer |! ✔1. |! Agreement |! - |! offer |! and |! acceptance
- |! Consideration
- |! Competent |! parties
- |! Legal |! purpose salvage |! - |! Correct |! answer |! ✔Insurance |! company |! can |! take |! possession |! of |! damaged |! property |! after |! payment |! of |! total |! loss
Expense |! Ratio |! - |! Correct |! answer |! ✔Cost |! of |! doing |! business Judgment |! - |! Correct |! answer |! ✔No |! set |! rates, |! based |! upon |! underwriters |! experience Manuel |! (Class) |! - |! Correct |! answer |! ✔Set |! rates |! for |! specific |! risk |! classes Experience |! Rating |! - |! Correct |! answer |! ✔- |! Modification |! factor |! based |! on |! loss |! experience
- |! Increases |! or |! decreases |! premium
- |! Usually |! a |! three-year |! period Loss |! Cost |! - |! Correct |! answer |! ✔Pure |! claims |! data; |! no |! operating |! expenses |! included; |! no |! profits |! included Rate |! Components |! - |! Correct |! answer |! ✔Loss |! Cost, |! Claims |! handling |! cost, |! Operating, |! Expenses, |! Profit TRIA |! - |! Correct |! answer |! ✔In |! result |! of |! 9/11 |! Congress |! enacted |! in |! 2002 |! limits |! exposure |! in |! case |! of |! another |! catastrophic |! event Gramm-Leach-Bliley |! Act |! - |! Correct |! answer |! ✔Consumer |! anyone |! about |! whom |! info |! is |! collected |! has |! an |! ongoing |! relationship |! with |! financial |! instituter |! opportunity |! to |! opt |! out |! must |! be |! offered
Fraud |! and |! False |! Statements |! - |! Correct |! answer |! ✔- |! illegal |! to |! make |! false |! statements -if |! guilty |! fine, |! up |! to |! 10 |! years |! in |! prison, |! or |! both; |! up |! to |! 15 |! years |! in |! prison |! or |! up |! to |! $50,000 |! fine Max |! penalty |! - |! Correct |! answer |! ✔Reports |! with |! False |! pretenses- |! $5,000, |! 1 |! year |! in |! prison |! or |! both Types |! of |! property |! - |! Correct |! answer |! ✔real |! property, |! replacement |! cost |! (Building) |! Personal |! Property, |! movable |! contents, |! Actual |! cash |! value Specific/scheduled |! - |! Correct |! answer |! ✔Detailed |! list |! of |! covered |! items Blanket |! - |! Correct |! answer |! ✔all |! of |! a |! single |! type |! of |! property-single |! limit, |! no |! detailed |! list Limits |! of |! Insurance |! - |! Correct |! answer |! ✔-maximum |! coverage |! limits ->listed |! on |! declarations |! page insured |! perils |! - |! Correct |! answer |! ✔-Named |! peril |! - |! only |! perils |! on |! the |! list |! are |! covered -Open |! (special) |! perils |! - |! covers |! all |! perils |! except |! those |! specifically |! excluded Basic |! Perils |! - |! Correct |! answer |! ✔-Fire, |! lightning, |! and |! internal |! explosion
Classes |! of |! Construction |! - |! Correct |! answer |! ✔Class |! 1- |! Frame Class |! 2- |! joisted |! Masonry Class |! 3- |! Noncombustible Class |! 4- |! Masonry |! Combustible Class |! 5- |! Modified |! Fire |! Resistive Class |! 6- |! Fire |! Resistive Loss |! Valuation |! - |! Correct |! answer |! ✔A |! factor |! in |! determining |! the |! premium |! charged |! and |! the |! amount |! of |! insurance |! required. Coinsurance |! - |! Correct |! answer |! ✔a |! type |! of |! insurance |! in |! which |! the |! insured |! pays |! a |! share |! of |! the |! payment |! made |! against |! a |! claim. |! 80% |! of |! replacement |! cost Replacement |! Cost |! Value |! - |! Correct |! answer |! ✔The |! cost |! to |! replace |! the |! property |! on |! the |! same |! premises |! with |! other |! property |! of |! comparable |! material |! and |! quality |! used |! for |! the |! same |! purpose Actual |! Cash |! Value |! - |! Correct |! answer |! ✔replacement |! cost |! minus |! depreciation standard |! morgage |! clause |! - |! Correct |! answer |! ✔does |! not |! apply |! to |! moveable |! personal |! property |! filing |! proof |! of |! loss |! if |! the |! insured |! fails |! to |! do |! so
paying |! the |! premium |! if |! the |! insured |! fails |! to |! do |! so No |! Benefit |! to |! Bailee |! - |! Correct |! answer |! ✔A |! Person |! or |! business |! has |! temporary |! control |! of |! the |! insured |! property. |! Bailee |! cannot |! benefit |! from |! the |! property |! owner's |! policy. Dwelling |! Policy |! Eligibility |! - |! Correct |! answer |! ✔1-4 |! units |! with |! boarders, |! a |! Vacation |! dwelling, |! Rental |! Dwellings, |! Under |! Construction |! (Endorsement), |! Mobile |! Homes |! (Endorsement) |! Farm |! Dwellings |! are |! NOT |! Eligible Dwelling |! Coverage |! A |! - |! Correct |! answer |! ✔Covers |! the |! dwelling |! and |! any |! building |! attached |! to |! it Dwelling |! Coverage |! B |! - |! Correct |! answer |! ✔Other |! buildings |! that |! are |! detached, |! connected |! by |! a |! fence |! and |! utility |! lines. Dwelling |! Coverage |! C |! - |! Correct |! answer |! ✔Personal |! Property |! that |! is |! at |! the |! location |! and |! is |! usual |! at |! the |! location. Dwelling |! Coverage |! D |! - |! Correct |! answer |! ✔Fair |! Rental |! Value. |! Covers |! a |! loss |! the |! makes |! the |! property |! unfit |! for |! normal |! use Dwelling |! Coverage |! E |! - |! Correct |! answer |! ✔Additional |! Living |! Expenses |! get |! paid |! for |! such |! as |! a |! reasonable |! hotel, |! meals, |! laundry |! and |! transportation
General |! Exclusions |! in |! All |! Dwelling |! Policies |! - |! Correct |! answer |! ✔Ordinance |! of |! Law, |! Government |! Seizure, |! Nuclear, |! Flood, |! War, |! Intentional |! Loss DP |! Loss |! Valuation |! - |! Correct |! answer |! ✔Recovered |! Property, |! Other |! Insurnace, |! Loss |! of |! Payment, |! Loss |! of |! settlement, |! deductible, |! our |! option, |! Pay |! or |! Set, DP |! Personal |! Liability |! Supplement |! - |! Correct |! answer |! ✔This |! adds |! all |! of |! Section |! 2 |! Homeowners |! to |! the |! Dwelling |! Policy *Bodily |! Injury *Property |! Damage *Medical |! Payments |! to |! Others Limits |! are |! same |! as |! Homeowners Personal |! Liability |! $100,000 |! per |! occurence Medical |! Payments |! to |! Others |! $1000 |! per |! person |! 3 |! year |! time |! limit DP |! Coverage |! M |! - |! Correct |! answer |! ✔Medical |! Bills |! others, |! No |! fault, |! 3 |! years |! on |! and |! off |! premises DP |! Additional |! Coverages |! - |! Correct |! answer |! ✔bond, |! aid, |! interest, |! loss |! of |! earnings, |! expenses, |! defenses
DP |! exclusions |! - |! Correct |! answer |! ✔Animals |! Credit |! Card's, |! Property |! in |! mail, |! aircraft, |! other |! insurance |! property, |! tenants |! property, |! business |! property, |! property |! in |! custody |! of |! others, |! motor |! vehicle DP |! Special |! Limits |! - |! Correct |! answer |! ✔Apply |! to |! certain |! classes |! of |! property, |! limit |! is |! total |! of |! each |! category. DP |! Endorsements |! - |! Correct |! answer |! ✔An |! automatic |! increase |! in |! insurance, |! increases |! dwelling |! and |! other |! structures |! coverages |! at |! renewal, |! dwelling |! under |! construction, |! mobile |! home, |! or |! permanent |! foundation. Farm |! Liability |! coverage |! form |! - |! Correct |! answer |! ✔Excludes |! contractual |! Liability Pollution |! Liability |! - |! Correct |! answer |! ✔not |! a |! type |! of |! insured |! contract Camera |! Floater |! - |! Correct |! answer |! ✔Newly |! acquired |! are |! covered |! up |! to |! 25% |! of |! the |! policy |! amount |! until |! reported Section |! 3 |! garage |! coverage |! - |! Correct |! answer |! ✔Garage |! keepers' |! coverage Loss |! sustained |! form |! - |! Correct |! answer |! ✔Form |! that |! covers |! your |! losses |! that |! happened |! during |! the |! policy |! period, |! found |! no |! later |! than |! 1 |! year |! after |! policy |! expiration.
Business |! owners |! coverage |! - |! Correct |! answer |! ✔Excludes |! medical |! expenses, |! including |! bodily |! injury |! to |! an |! insured |! or |! someone |! that |! they |! have |! hired |! to |! do |! work BAP |! - |! Correct |! answer |! ✔The |! Business |! Auto |! Policy |! provides |! property |! damage |! and |! liability |! insurance |! for |! automobiles |! used |! by |! a |! business. Lost |! or |! damaged |! property |! is |! values |! lesser |! if |! the |! ACV |! or |! the |! cost |! to |! repair proximate |! cause |! - |! Correct |! answer |! ✔The |! primary |! cause |! of |! a |! loss |! in |! a |! sequence |! of |! events |! resulting |! in |! a |! claim PAP |! part |! 13 |! Medical |! Expenses |! - |! Correct |! answer |! ✔May |! be |! incurred |! within |! three |! years |! of |! the |! accident Personal |! affects |! and |! Property |! of |! others |! - |! Correct |! answer |! ✔Provides |! a |! limited |! coverage |! for |! personal |! affects |! owned |! by |! an |! individual |! insured |! partner, |! employee, |! ECT. |! Excludes |! theft. |! $2500 |! limit |! per |! location contribution |! by |! equal |! shares |! - |! Correct |! answer |! ✔each |! insurer |! shares |! equally |! in |! the |! loss |! until |! the |! share |! paid |! by |! each |! insurer |! equals |! the |! lowest |! limit |! of |! liability |! under |! any |! policy, |! or |! until |! the |! full |! amount |! of |! the |! loss |! is |! paid HO-2 |! - |! Correct |! answer |! ✔covers |! dwellings, |! other |! structures |! and |! personal |! property |! named |! on |! the |! perils |! basis
Damage |! to |! Others |! Property |! - |! Correct |! answer |! ✔pays |! up |! to |! $1,000 |! per |! occurrence |! for |! property |! damage |! caused |! by |! an |! insured |! person Homeowners |! Eligibility |! - |! Correct |! answer |! ✔owner |! occupied, |! no |! more |! than |! a |! 4 |! family |! dwelling. |! Primary |! purpose |! as |! a |! residence, |! dwelling |! under |! construction |! mobile |! homes |! require |! mobile |! home |! endorsements Insured |! - |! Correct |! answer |! ✔Resident |! spouse, |! relatives |! under |! 21 |! years |! old. |! Foster |! or |! foreign |! exchange |! students, |! full |! time |! students |! under |! the |! age |! of |! 24 HO |! Cancellation |! - |! Correct |! answer |! ✔By |! insurance |! company |! in |! the |! first |! 60 |! days |! for |! whatever |! reason. |! 10 |! day |! notice, |! other |! after |! 60 |! days |! minimum |! 30 |! day |! notice, |! material |! mis |! representation, |! substantial |! change |! of |! risk |! non |! payment |! of |! premium |! 10 |! day |! advance |! notice Nonrenewal |! by |! insurer |! - |! Correct |! answer |! ✔ 30 |! days |! advance |! notice Standard |! mortgagee |! Clause |! - |! Correct |! answer |! ✔Can |! Pay |! the |! premium, |! file |! a |! claim |! up |! to |! insurable |! interest, |! receive |! advance |! notice |! of |! cancellation. |! Dishonesty |! doesn't |! prevent |! mortgagee |! from |! collecting Homeowners |! Policy |! - |! Correct |! answer |! ✔2-Owner |! Occupant |! (Broad |! Form) 3- |! Owner |! Occupant |! (Special |! Form) 4- |! Tenant |! or |! Renters 5- |! Owner |! Occupant 6- |! Condominums |!
NFIP |! - |! Correct |! answer |! ✔National |! Flood |! Insurance |! Program CPP |! - |! Correct |! answer |! ✔Commercial |! Package |! Policy CPP |! declarations |! - |! Correct |! answer |! ✔Named |! if |! insured, |! includes |! spouse |! or |! partner CPP |! common |! conditions |! - |! Correct |! answer |! ✔First |! named |! insured, |! premium |! refund |! to |! first |! named |! insured CPP |! Cancellation |! - |! Correct |! answer |! ✔-notices |! to |! first |! named |! insured -premium |! refund |! to |! first |! named |! insured -request |! from |! first |! named |! insured CPP |! Changes |! + |! Premiums |! - |! Correct |! answer |! ✔Change |! name |! to |! person |! paying |! the |! premium CPP |! Cant |! Include |! - |! Correct |! answer |! ✔Can't |! cover |! work |! comp, |! life |! insurance, |! health |! or |! disability Inland |! Marine |! Insurance |! - |! Correct |! answer |! ✔Insurance |! that |! covers |! many |! different |! classes |! of |! property |! that |! typically |! involve |! an |! element |! of |! transportation. |! Truck |! Train |! Plane
Annual |! transit |! policy |! - |! Correct |! answer |! ✔protects |! the |! shipper |! or |! receiver |! of |! goods |! against |! loss |! to |! goods |! in |! transit Motor |! truck |! cargo |! - |! Correct |! answer |! ✔- |! trucker's |! form |! covers |! the |! insured's |! bailee |! responsibility
- |! owner's |! form |! covers |! insured's |! own |! goods |! in |! own |! trucks
- |! combo |! form |! covers |! bailee |! responsibility |! and |! own |! goods combo |! form |! - |! Correct |! answer |! ✔Covers |! bailee |! responsibility |! and |! own |! goods
