Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
54 Cards in this Set
- Front
- Back
|
What is the OCI? |
The Office of the Commissioner of Insurance |
|
|
What are the WI Insurance Statutes? (Range) |
Chapters 600-655 Govern All Insurance |
|
|
What Chapter(s) of the WI Insurance Statute govern rate regulation? |
Statute 625 |
|
|
What Chapter(s) of the WI Insurance Statute govern Insurance Marketing? |
Statute 628 |
|
|
What Chapter(s) of the WI Insurance Statute govern Insurance Contracts? |
Statute 631 |
|
|
What is the WI Administrative Code that governs prohibited practices of Title Insurance? |
Code 3.32 |
|
|
What is the WI Administrative Code that governs record keeping? |
Code 6.61 |
|
|
Who is the WI OCI Commissioner? |
Ted Nickel |
|
|
What is the maximum fine the OCI can levy for a statute violation? |
$1000 per violation |
|
|
What is the maximum fine the OCI can levy for a violation of an OCI order? |
$1000 per violation (after notice of violation) |
|
|
What is the maximum fine (per day) that can be levied by the OCI after initiation of legal action? |
$5000 per day |
|
|
What is the maximum amount the OCI can fine for intentionally violating a rule or statute? |
$5000 per day (Individual) $10,000 per day (Corps) |
|
|
Who must respond to an "OCI Call" |
Insurer (Chicago Title, Old Republic, First American) Licensed Intermediaries (KBT) Owners of Insurance Agency |
|
|
Who are intermediaries? |
A person who does or assists in; Solicits, negotiates, or places insurance or annuities Advises other persons about insurance needs and coverage |
|
|
Who are not intermediaries? |
People who do not sell insurance People who are only incidentally involved in insurance |
|
|
How long do you have to notify the OCI after a move? |
The OCI must be notified within 30 days |
|
|
How long must insurance applications be kept? (Record keeping under 6.61) |
3 years |
|
|
If the owner of a title insurance company also own a real estate firm; How must the intermediary maintain a record of revenue? |
The intermediary must maintain a record of gross revenue from operations by quarter calendar year. |
|
|
Who can intermediaries share commission with? |
Intermediaries cannot share commission with anyone other than another intermediary (Sec 628.61, Wis Stats) |
|
|
What is the maximum amount of referral fees an intermediary can receive? |
Intermediary cannot receive more than 25 referral fees per year (Ins 6.66) |
|
|
True or False Wisconsin is a "file and use" state? |
True |
|
|
Insurers file policy forms with OCI. What must be included? |
Form must be filed with OCI Must meet minimum readability standards |
|
|
Are oral contracts permissible? |
Yes Policy must be issued ASAP 631.05 Wis. Stats |
|
|
Knight Barry title is notified of an issue with a Title Insurance policy insured by Chicago Title. Has Chicago Title also been placed on notice? |
Yes An Insurer is bound by the acts of their agents. 631.07 Wis. Stats |
|
|
A representation made by someone other than the insurer/ agent does not bind the insurer unless... |
It's in the policy Insured requested the insurance in a written application The insurer writes the insured within 60 days after effective date of the policy. 631.11 Wis. Stats |
|
|
Can a policy be rescinded by the Insurer because of a misrepresentation or breach of an affirmative warranty? |
Yes, provided; The person making the misrepresentation knew or should have known the statement was false, and the insurer relied on the statement |
|
|
Can a policy be rescinded by the Insurer because of a misrepresentation or breach of an affirmative warranty but the insurer knew the statement was false? |
No, this is not grounds for rescission. Example; if google maps shows a property does not have public access, but the seller says it does. |
|
|
What must the Insurer do to rescind a policy? |
Insurer must notify the insured of its intention to rescind within 60 days after becoming aware of the breach |
|
|
Insurers file rates with the OCI Per OCI rates may not be... |
Excessive Inadequate Unfairly Discriminatory |
|
|
How many days do insurers have to file a rate after it becomes effective? |
Rates must be filed with the OCI within 30 days of the effective date |
|
|
For Title Insurance are downward deviation from filed rates permissible? |
Yes |
|
|
What must the Insurer keep on record to issue a downward deviation? |
The filed rate and deviated rate Effective date of policy and description of risk Reason for the deviation Record of the deviated rate development |
|
|
How long must the Insurer keep downward deviation records? |
Records must be kept for 5 years |
|
|
After 2012 the OCI issued a bulletin that also required Insurers to do what with regards to rate deviations? |
Notify the OCI in writing of; The intent to deviate the rate Identify the rate deviation program and applicable parameters |
|
|
Does any Title Insurer in WI have an active downward deviation program? |
No There have been none set after 2012 |
|
|
Does Knight Barry title handle title claims? |
No claims are handled by the insurer not the intermediary |
|
|
How long after notice does the insurer have to resolve the claim? |
Insurer must make a good faith effort to settle the claim within 30 days. (After coverage is determined) 628.46 Wis. Stats |
|
|
True or False Advertisements cannot be misleading? |
True |
|
|
True or False Advertisements can contain disparaging comparisons between competitors? |
False |
|
|
True or False Advertisements must generally be factual? |
True |
|
|
True or False Misleading information can be used to market a product. |
False |
|
|
Can an Licensee offer benefits not specified in the insurance contract? |
No |
|
|
Can a Licensee charge different premiums for different people? |
No |
|
|
Can a Licensee employ marketing practices designed to restrain competition? |
No. Boycotts, coercion, and intimidation are forbidden by the OCI. |
|
|
Can additional charges be assessed as a condition of issuance? |
No |
|
|
Can Insurance be used to condition employment? |
No |
|
|
Can a Licensee use a Government job or other official position to steer business? |
No |
|
|
Can KBT charge a rate other than the one on file with the OCI. (This is specific to Title Insurance) |
No |
|
|
Can KBT offer to pay a cancellation fee to induce additional business? (This is specific to Title Insurance) |
No |
|
|
Can KBT guarantee someone's debt in order to induce business? (This is specific to Title Insurance) |
No |
|
|
Can KBT offer to pay for a survey in order to induce business? (This is specific to Title Insurance) |
No |
|
|
Can KBT rent space (for greater than FMV) from a Realtor/ Lender in order to induce business? (This is specific to Title Insurance) |
No |
|
|
Can the Title Insurer use contests in order to solicit business? (This is specific to Title Insurance) |
No |
|
|
Can the Title Insurer co-advertise along with a realtor or lender? |
Yes, provided 3rd party advertising costs are split appropriately. |
