Chapter Ins 26 Appendix 2M

Register October 2006 No. 610

Chapter Ins 26

APPENDIX 2M - PERSONAL LINES INSURANCE COURSE REQUIREMENTS

SECTION A

I.   Principles of Insurance –– 1 Hour

  A.   Definition of risk

  B.   Risk management

  C.   Insurable and noninsurable risk

  D.   Pooling concept––law of large numbers

  E.   Types of insurance companies

  F.   Reinsurance

II.   General Wisconsin Insurance Laws –– 4 Hours

  A.   Duties and powers of Insurance Commissioner––
  statutory and rule–making

  B.   Knowledge of administrative action process, including
  hearings and penalties

  C.   Purpose of licensing, including procedures and who
  must be licensed

  D.   Record keeping and changes in agent status, including
  change of name or address

  E.   Agent license expiration, revocation, suspension, and
  limitation

  F.   General regulations regarding misrepresentation,
  knowledge of acts of agent, rebating

  G.   Regulation of specific insurance contract changes
  regarding cancellation, nonrenewal, notice of proof of
  loss, and payment of claims

  H.   Unfair claims methods and practices––timely payment
  of claims

  I.   Fair rating practices

  J.   Home and telephone solicitation requirements

  K.   Section 628.32, Wis. Stat., written disclosure of fees
  other than commissions

  L.   Controlled business

  M.   Proper exchange of business

  N.   Unfair marketing practices

    1.   Misrepresentation

    2.   Unfair inducement

    3.   Unfair discrimination

    4.   Extra charges

    5.   Influencing employers

    6.   Unfair use of official position

    7.   Returning indicia of agency

    8.   Churning

    9.   Twisting

    10.   Restraint of competition

    11.   Unfair restriction of contracting parties choice of
    insurer

  O.   Insurance contracts in Wisconsin

III.   Ethics –– 3 Hours

  A.   Fiduciary duties, and responsibilities

  B.   Conflict of interest

  C.   Ethical marketing practices, including fair and ethical
  treatment of policyholders

  D.   Appropriate claims practices

  E.   Suitability of product to client

  F.   Social responsibility of insurance agent

  G.   Agent/company relationships

  H.   Maintaining appropriate insurance expertise

SECTION B

IV.   Terms, Concepts and Policies –– 10 Hours

  A.   Insurance terms and related concepts

    1.   Insurance

    2.   Risks

    3.   Peril (causes of loss)

      a.   Specified (named) perils

        (1)   Standard fire

        (2)   Extended coverage

        (3)   Broad form

      b.   Open perils (all physical loss)

    4.   Hazards

    5.   Loss

      a.   Direct