Wisconsin Life Insurance
risk - Answer- chance or uncertainty of loss
pure risk - Answer- -insurable risk
-only a loss can be produced
speculative risk - Answer- -an uninsurable risk
-because there is a chance of profit or loss
name two examples of the pooling concept, or law of large...
Wisconsin Life Insurance
risk - Answer- chance or uncertainty of loss
pure risk - Answer- -insurable risk
-only a loss can be produced
speculative risk - Answer- -an uninsurable risk
-because there is a chance of profit or loss
name two examples of the pooling concept, or law of large numbers - Answer- -helps
to predict losses
-helps spread the loss among many people
describe a Town Mutual insurance company - Answer- -originally was designed for
farmers, but will do homes also
-the members may be assessed if the claims exceed the reserves
-if selling only property insurance, agents selling do not need to be licenses
what is a stock company? - Answer- -owned by the stockholders
-members may have a profit or losses based on company performances
what is a mutual insurance company? - Answer- -owned by the policyholders
-will receive a dividend from any profits at the end of the year
-dividends will be split among all policyholders
what is fraternal insurance company? - Answer- -sells only to their members
-such as lutherans or catholics
how does the commissioner receive their job? - Answer- appointed by the gov. of
Wisconsin
what is a domestic insurance company? - Answer- -home office in Wisconsin
-chartered and organized under Wisconsin law
what is a foreign insurance company? - Answer- -home office in a state other than
Wisconsin
-chartered and organized in another state
what is an alien insurance company? - Answer- -home office in another country
-chartered and organized in another country
what is the job of the commissioner of insurance? - Answer- protect the general
public from unethical insurance agents or companies
how do they protect the general public? Three ways: - Answer- -administer
-interpreting
-enforcing the insurance laws
, what powers does the commissioner have? Two powers: - Answer- -specified
powers, written
-implied powers, interpreted
who makes the insurance laws in Wisconsin? - Answer- the Wisconsin state
legislature
who would not be held responsible to report to the commissioner? - Answer- -a
person doing data entry for an insurance home office
-clerical worker
how often is the commissioner required to examine a domestic insurer? - Answer-
every five years
how is the cost paid by domestic insurers? - Answer- the costs are apportioned
among all domestic insurers
who pays the cost for examinations of non-domestic insurers and town mutuals? -
Answer- they pay their own cost for examinations
what is a general public hearing? - Answer- an informational hearing by the OCI to
solicit opinions by the insurance industry and the general public
why does the commissioner require the state insurance exam? - Answer- to
determine if the agent is competent and trustworthy
is denied a license, the agent has how many days to request a hearing? - Answer-
30 days
how many days does the commissioner have to give a hearing? - Answer- 10 to 60
days
is the agent loses, what can they do? - Answer- request a rehearing within 20 days
but only if their was an error in law or fact
at a hearing may and agent plead the 5th amendment? - Answer- no they may not,
but if requested the commissioner may not prosecute them
how much is a compulsive forfeiture? - Answer- $5,000 for each day in violation
if an agent violates a state statute, how much may they be fined? - Answer- $1,000
each day in violation
if an agent profits from a violation, how much any they be fined? - Answer- twice the
amount of any profit gained
criminal penalties are: - Answer- -$5,000
-up to 3 years in jail
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