Wisconsin Administrative Code
Office of the Commissioner of Insurance
Chapter Ins 26 - Prelicensing Education
Appendix 2 - Property insurance course requirements
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
1. 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. Insurable interest
3. Hazard
a. Physical
b. Moral
c. Morale
4. Peril (causes of loss)
a. Specified (named) perils
(1) Standard fire
(2) Extended coverage
(3) Broad form
b. Open perils (all physical loss)
5. Loss
a. Direct
b. Indirect
6. Proximate cause
7. Deductible
8. Principle of Indemnity
9. Actual cash value
10. Replacement cost
11. Limits of liability
12. Coinsurance
13. Pair and set clause
14. Extensions of coverage
15. Additional coverages
16. Accident
17. Occurrence
18. Cancellation
19. Nonrenewal
20. Vacancy and unoccupancy
21. Right of salvage
22. Abandonment
23. Liability
24. Negligence
B. Policy provisions and contract law
1. Parts of a policy
a. Declarations
b. Insuring agreement
c. Conditions
d. Exclusions
2. Definition of the insured
3. Duties of the insured
4. Obligations of the insurance company
5. Mortgagee rights
6. Proof of loss
7. Notice of claim
8. Appraisal
9. Pro rata liability (other insurance)
10. Assignment
11. Subrogation
12. Arbitration
13. Elements of a contract
14. Warranties, representations, and concealment
15. Warranty
a. Affirmative
b. Promissory
16. Breach of warranty
17. Concealment
18. Binders
19. Sources of insurability information
20. Fair Credit Reporting Act
C. Types of policies
1. Standard fire
2. Personal lines
a. Dwelling (DP forms)
b. Homeowners (HO) forms
c. Mobile homes
3. Homeowners policy
4. Watercraft
5. Flood insurance
6. Commercial Lines
a. Commercial package policy (CPP)
(1) Building and personal property coverage Form
(2) Causes of loss forms
(3) Business income coverage form
(4) Extra expense coverage form
(5) Boiler and machinery coverage form
7. Inland marine
a. Personal floaters
b. Commercial floaters
8. Other policies
a. Flood insurance
b. Personal Watercraft
c. Farm and ranch insurance
d. Commercial ocean marine
e. Earthquake insurance
V. Wisconsin Property Insurance Law - 2 Hours
A. General rate standards - use and file provisions
B. Prohibited classification of risks
C. Surplus lines
1. Definitions
2. Prohibitions and restrictions
3. Responsibilities of agents and brokers
D. Oral contracts
E. Content of forms
F. Definition of loss
G. Wisconsin Insurance Plan
H. Valued policy law
I. Vacancy rule
J. Time period for filing claim
