Chapter Ins 26 Appendix 3

Register October 2006 No. 610

Chapter Ins 26

APPENDIX 3 - LIFE 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. Life Insurance -- 9 Hours

  A.   Purpose of life insurance

  B.   Types of policies

    1.   Term life

      a.   Level term

      b.   Decreasing term

      c.   Increasing term

      d.   Special features

        (1) Renewable

        (2) Convertible

    2.   Whole life

      a.   Ordinary life

      b.   Limited pay policies

      c.   Single pay policy

      d.   Modified and graded premium whole life

      e.   Adjustable life