Wisconsin Property and Casualty exam questions with verified solutions

Wisconsin Property and Casualty \| \| \| \|




exam questions with verified \| \| \| \|




solutions

FAIR - CORRECT ANSWERS ✔✔Fair Access to Insurance
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Requirements


Elements of a Legal Contract. L. O. A. C. - CORRECT ANSWERS ✔✔•
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Consideration
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• Legal Purpose
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• Offer
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• Acceptance
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• Competent Parties
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Consideration - CORRECT ANSWERS ✔✔Money and statements \| \| \| \| \| \| \|



made on application \| \|




Legal Purpose - CORRECT ANSWERS ✔✔Risk transfer doesn't
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violate the law \| \|




Offer - CORRECT ANSWERS ✔✔Insured submits application and
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first month premium to insurer
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Insurer accepts or insurer declines the risk
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,Counteroffer - CORRECT ANSWERS ✔✔Agrees to issue policy but \| \| \| \| \| \| \| \| \|



with higher premium or restrictions/ exclusions
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Insured either accepts the conditions or withdraws their
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application


Competent Parties - CORRECT ANSWERS ✔✔Competent• Legal
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age (usually 18) • Mentally sane• Sober
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Adhesion - CORRECT ANSWERS ✔✔Policy written by the insurance
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company
Adhesion = glue \| \|




Insured has no input \| \| \|




If ambiguous, court will take the side of the insured
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Aleatory Contract - CORRECT ANSWERS ✔✔• Unequal value
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• Pay small premium and have a large claim, or pay premiums for
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many years without a claim
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representation - CORRECT ANSWERS ✔✔believed to be true \| \| \| \| \| \| \|




misrepresentation - CORRECT ANSWERS ✔✔representation that is \| \| \| \| \| \| \|



actually false. \|




Material misrepresentation - CORRECT ANSWERS ✔✔information
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given that is not true and DOES affect the insurer's decision
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,warranty - CORRECT ANSWERS ✔✔statement that is guaranteed to
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be true, and it may be relied on by the other party. If a warranty is
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not kept, there is a breach of warranty that voids the contract.
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Concealment - CORRECT ANSWERS ✔✔failure to disclose known \| \| \| \| \| \| \| \|



facts


Property insurance policies - CORRECT ANSWERS \| \| \| \| \| \|



✔✔Covers"mystuff"
"Mystuff"=buildings(real property) and personal belongings \| \| \| \|




First Part Loss \| \|




Casualty Insurance - CORRECT ANSWERS ✔✔Casualty = Liability
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Always pays the other guy, never me \| \| \| \| \| \|




Third party losses \| \|




D. I. C. E. E. - CORRECT ANSWERS ✔✔■ Declarations■ Insuring
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agreements■ Conditions■ Endorsements and additional \| \| \| \| \|



supplementary coverages ■ Exclusions \| \| \|




Declarations - CORRECT ANSWERS ✔✔who, what, when, where, \| \| \| \| \| \| \| \|



and how much \| \|




Insuring agreement(s) - CORRECT ANSWERS ✔✔promise to pay
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and perils covered \| \|




Conditions - CORRECT ANSWERS ✔✔rules for the policy \| \| \| \| \| \| \|

, Endorsements - CORRECT ANSWERS ✔✔changes to the original\| \| \| \| \| \| \| \|



policy


Exclusions - CORRECT ANSWERS ✔✔items not covered
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Named insured - CORRECT ANSWERS ✔✔listed on the declarations
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First-named insured - CORRECT ANSWERS ✔✔first on the
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declarations


policy territory - CORRECT ANSWERS ✔✔typically includes the
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United States, Canada, Puerto Rico, and other U.S. territories and
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possessions. Most insurance policies do not extend coverage into
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Mexico


flat cancellation. - CORRECT ANSWERS ✔✔policy is canceled on
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the effective date, by either the insurer or insured
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Cancellation - CORRECT ANSWERS ✔✔occurs before the policy's
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expiration date \|




Insurer cancellation requires advance notice
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Insured cancellation—no advance notice
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Nonrenewal - CORRECT ANSWERS ✔✔occurs at the expiration date
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Insurer must give advance notice
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