Your Exam Content Outline

1 1 your Exam Content Outline The following Outline describes the Content of one of the Wisconsin insurance examinations. The outlines are the basis of the examinations. The examination will contain questions on the subjects contained in the Outline . The percentages indicate the relative weights assigned to each part of the examination. For example, 10 percent means that 6 questions will be drawn from the section on a 60-question exam, 10 will be drawn on a 100-question exam and 15 will be drawn on a 150-question exam. Wisconsin Property: General and State Series 22-05 100 questions (5 pre-test items) Two-hour time limit Effective November 24, 2017 Insurance Regulation 35% Licensing Purpose Ref: ch.

2 628 Persons required to be licensed Ref: s. , ch. 628, s. (1), s. (3), s. (4), s. (5), s. , s. , s. , s. Ins , s. Ins , s. Ins , Ins 47, s. Ins License Requirements Ref: ch. Ins 26, s. , s. , s. (2), s. , s. , s. Ins , s. Ins (4)(a), s. Ins (4)(c) Record keeping, maintenance and duration Renewal Continuing education requirements Reinstatement Assumed name Change of address or telephone number Reporting of actions Ref: s. , s. , s. , s. , s. , s. (6), s. , s. Ins , s. Ins , s. Ins (3), s. Ins (1)(a), s. Ins (1)(f), s. Ins (2)(a), s. Ins (2)(b), s. Ins (6), s. Disciplinary actions License termination, suspension, or revocation Monetary forfeiture (fines) Ref: s.

3 , s. , s. (1), s. (2), s. (3), s. (1)(b), s. (2), s. (3)(a), s. (3)(d), s. (3)(e), s. (3)(f), s. Ins State regulation Commissioner's general duties and powers Duties Hearings Penalties Insurance security fund Ref: ch. 227, s. , s. , s. (4), s. , s. (4) s. , s. (5), s. , s. (2), s. (3), s. (3)(d), s. (4), s. , s. , s. (2)(b), s. Ins , ch. 646 Company regulation Solvency Responsibilities of the insurer Rates Use of Policy forms Producer appointments/terminations Unfair claims, methods, and practices Notice of right to file complaint Ref: s. , s. , s. , s. (3), s. , s. , s. Ins , s. Ins , s.

4 Ins (3), s. Ins , s. Ins (4)(b), s. Ins , s. Ins Producer regulation Fiduciary and trust account responsibilities Place of business/records maintenance Compensation of agents Controlled business Shared commissions Proper exchange of business Ref: s. , s. , s. , s. Ins Marketing practices Misrepresentation False advertising Rebating Unfair discrimination Boycott, coercion or intimidation Illegal inducement Ref: s. , s. (1) s. (9), s. Ins , s. Ins , s. Ins , s. Ins , s. Ins Examination of records Ref: s. , s. (1)(b), s. (1)(c), s. (2)(a), s. , s. , s. Ins , s. Ins , s. Ins (3), s. Ins , s. Ins (3) Retention of Electronic Records s.

5 2 General statutes, rules, and regulations affecting insurance contracts Definitions Specific knowledge Misrepresentation/Warranties Knowledge and acts of the agent Certificates of Insurance Ref: s. , ch. 631, s. , s. , s. , s. , ch. 632 Electronic delivery of notice of documents s. Regulation of specific clauses in insurance contracts Cancellation Renewal/Nonrenewal Notice of proof of loss Payment of claims Ref: s. (2)(a),s. (2)(b) 1., s. (10)(a)4, s. (10)(a)3, s. (10)(b)3, s. , s. , s. , s. , s. (1)+(2) s. Ins (4)(a c), s. Ins (5), s. Ins (6), s. Ins (10), s. Ins (11), s. Ins , s. Ins Privacy of Consumer Information Ref: s.

6 , s. , Ins 25 Federal regulation Fair Credit Reporting Act (15 USC 1681 1681d) Fraud and false statements (18 USC 1033, 1034) Wisconsin statutes, rules, and regulations common to property insurance only General rate standards Ref: s. , s. , s. , s. , s. , s. Ins (3), s. Ins , s. Ins (7)(g), s. Ins Prohibited classification of risks Ref: s. , s. Ins Surplus lines Definition Responsibilities of agents and brokers Ref: s. , s. , s. (7m), s. (8), s. , s. , s. , s. , s. (5), s. (2), s. Ins Ins , s. Ins , s. Ins Oral contracts Ref: s. Wisconsin statutes, rules, and regulations pertinent to property insurance only Application of the standard fire policy in Wisconsin Modifications or additions Required provisions Limitations on using or disclosing information regarding domestic abuse Ref: s.

7 , s. (2)(f), s. , s. , s. , s. Ins , s. Ins The Wisconsin Insurance Plan (WIP) Ref: s. , ch. 619, s. Ins Lender Requirements Ref: s. General Insurance 7% Concepts Risk management key terms Risk Exposure Hazard Peril Loss Methods of handling risk Avoidance Retention Sharing Reduction Transfer Elements of insurable risks Adverse selection Law of large numbers Reinsurance Insurers Types of insurers Stock companies Mutual companies Fraternal benefit societies Reciprocals Lloyd's associations Risk retention groups Private versus government insurers Admitted versus nonadmitted insurers Domestic, foreign and alien insurers Financial status (independent rating services) Marketing (distribution)

8 Systems Producers and general rules of agency Insurer as principal Producer/insurer relationship Authority and powers of producer Express Implied Apparent Responsibilities to the applicant/insured Contracts Elements of a legal contract Offer and acceptance Consideration Competent parties Legal purpose Distinct characteristics of an insurance contract Contract of adhesion Aleatory contract Personal contract Unilateral contract Conditional contract Legal interpretations affecting contracts Ambiguities in a contract of adhesion 3 Reasonable expectations Indemnity Utmost good faith Representations/misrepresentations Warranties Concealment Fraud Waiver and estoppel Property Insurance Basics 11% Principles and concepts Insurable interest Underwriting Function Loss ratio Rates Types Loss costs Components Hazards Physical Moral Morale Causes of loss (perils) Named perils versus special (open)

9 Perils Direct loss Consequential or indirect loss Blanket versus specific insurance Basic types of construction Loss valuation Actual cash value Replacement cost Functional replacement cost Market value Agreed value Stated amount Valued policy Policy structure Declarations Definitions Insuring agreement or clause Additional/supplementary coverage Conditions Exclusions Endorsements Common policy provisions Insureds named, first named and additional Policy period Policy territory Cancellation and nonrenewal Deductibles Other insurance Nonconcurrency Primary and excess Limits of liability Policy limits Restoration/nonreduction of limits Coinsurance Vacancy or unoccupancy Named insured provisions Duties after loss Assignment Abandonment Insurer provisions Liberalization Subrogation Salvage Claim settlement options Third-party provisions Standard mortgage clause Loss payable clause No benefit to the Bailee Dwelling ('14)

10 Policy 2% Characteristics and purpose Coverage forms Perils insured against Basic Broad Special Property coverages Coverage A Dwelling Coverage B Other structures Coverage C Personal property Coverage D Fair rental value Coverage E Additional living expense Other coverages General exclusions Conditions Selected endorsements Special provisions (DP 01 43) Automatic increase in insurance (DP 04 11) Broad theft coverage (DP 04 72) Dwelling under construction (DP 11 43) Personal liability supplement Homeowners ('11) Policy 15% Coverage forms HO-2 through HO-6 HO-8 Definitions Section I Property coverages Coverage A Dwelling Coverage B Other structures Coverage C Personal property Coverage D Loss of use Additional coverages Perils insured against Exclusions Conditions Selected endorsements Special provision (HO 01 43) Limited fungi, wet or dry rot, or bacteria coverage (HO 04 26, HO 04 27) Permitted incidental occupancies residence premises (HO 04 42) 4 Earthquake (HO 04 54) Scheduled personal property (HO 04 61) Personal property replacement cost (HO 04 90) Home day care (HO 04 97)