Property & Casualty IL Law, IL Casualty
Insurance Practice Test Questions,
Casualty Producer IL Exam Questions,
Property And Casualty Illinois Law,
Property/Casualty Il laws & Regulations
The McCarran-Ferguson Act correct answers• Federal law that allows most
regulation to be done at the state
insurance
level.
Illinois Department of Insurance correct answersOverseen by governor-
appointed "director" who has the power to:
• Make reasonable rules and regulations to enforce insurance laws.
•Conduct reasonable investigations to determine violations of state
insurance requirements.
• Issue immediate cease-and-desist orders to halt illegal insurance
practices.
• Issue subpoenas in order to obtain insurance documents.
• Require individuals to testify under oath about insurance matters.
• Issue, deny, suspend or revoke insurance licenses for individuals
andDirector
DOI businesses
correct answers• Failure to comply with director orders can
result
to in $2,000
$20,000 in additional
• Guilty party can be forced to pay for independent
fines.
• Cease-and-desist
investigations. orders generally include the right to a hearing
• Investigated
within 30 days.parties must receive copies of reports before
the public.
Who Needs a License? correct answersProducer license generally required
when
any ofdoing
the following for
• Selling
compensation:
• Encouraging
insurance. someone to buy
• Negotiating
insurance. terms of
• insurance.
Giving insurance
advice.
• Acting without a license is Class A misdemeanor ($2,500 and 1
year in jail).
Unlicensed Persons correct answers• An insurer or producer cannot
compensateperson
unlicensed an for selling or negotiating
• Possible exception for a formerly licensed person who is receiving
insurance:
compensation
deferred and was licensed at time of
transaction.
,Who Doesn't Need a License? correct answersAn attorney giving legal
advice about
insurance laws or an insurance
• An accountant giving insurance-related advice as part of his or her
contract.
•A jobpublic
duties.
adjuster giving insurance-related opinions or advice as part of his
dutieor her job
•s.Officers, directors or employees of insurance businesses who don't receive
any type
sales of
commission and whose jobs are managerial, executive, administrative
or nature
in clericaland aren't related directly to
•sales.
Certain people who have insurance-specific careers but don't receive any
compensation
type of sales (such as insurance employees who evaluate insurance
applications,
investigate claims or process insurance-related
• Group benefit administrators who aren't compensated by an insurance
paperwork).
• Salaried,
business.full-time risk managers who neither sell insurance nor receive
related
insurance-
compensation.
License Qualifications correct answers• 18 or
• Pre-license
older.
• State
education.
• Licensing
exam.
•fee.
Good moral
character.
• Might not be eligible
• Committed
if :
• Fail
felony.
to pay child
• Had
support.
a license revoked in another
state.
What's on a License? correct answers• Producer's
• License
name.
• Date
number. of
• Date
issuance.of
• Address
expiration.
• Line
. of authority (Life, health, property,
casualty, etc.).
Lines of Authority correct answers• Each line generally requires 20 hours of
prelicense
education and a state
• Life
exam.
• .Accident and
• Property
health.
• Casualty
(Fire).
.
Other Lines of Authority correct answers• Slightly different requirements
might
the exist forless common lines of
following
• Personal
authority:
• Motor
lines.
• Variable
vehicle.
• Limited
contracts.
lines.
,Limited Lines Producers correct answersAllows someone to sell a
limited listproducts
insurance of that represent a narrow portion of the market (car rental
credit life insurance,
insurance,
• Requires "appointment" by an
etc.).
insurer.
Pre-License Education Exemptions correct answers• State exam but no
education
pre-license
•for: College graduates with a degree in insurance. • People who have
insurance
earned certain
related professional
•designations.
Example: For property and casualty producers: AAI, ARM, CIC,
CPCU
Pre-License Education AND Exam Exemptions correct answers• No state
exam and no
pre-license education
•for: Limited lines
• Producers
producers. moving to Illinois who are already licensed in same line of
• authority.
Must be in good standing and complete paperwork within 90 days of
residency.
• Non-residents of Illinois who are already licensed in the same line of
home authority in their
• Must be in good standing and obtain "non-resident" Illinois license
state.
property
before insuring
in Illinois or insuring anyone in
Illinois.
Licensing Exams correct answers• Administered by Pearson Vue in English or
• 1 exam for each line of
Spanish.
• 100authority.
questions (60 General, 40
• 135Illinois).
minutes total (80 to 85 for General, 50 to 55 for
• Cheating
Illinois). on an exam is grounds for discipline by
the DOI.
Passing the Exam correct answers• 70% on each
•portion.
Must pass the failed portion within 90 days to avoid retaking an
entire exam.
Administration of Exams correct answers• Exam candidates
•must
Certificate
bring: of
•completion.
Non-expired, government-issued
• SSphoto
card,
ID.credit/debit card or another nonexpired
government ID
After the Exam correct answers• No numeric score (or maybe 70% by
default) upon
passin
•g.Wait 5 days before applying for
license
Temporary Licenses correct answersUpon Death or
• No state
Disability
• Allows
exam. for limited time to settle disabled or deceased producer's
• Issued
business foraffairs.
180 days with one possible 180-day
•extension.
Can require supervision form licensed
producer.
, • License terminates if business is sold or
dissolved.
Not Death or
•Disability
Allows licensing candidates to begin work while completing the
• Valid
licensing process.
for 90 days with no
• Mustextension.
be affiliated with an
• Insurers
insurer. whose candidates don't complete the licensing process can
sponsor
no longertemporary
licenses.
DOI Fees correct answers• The following fees are generally
•nonrefundable:
Resident producer license: $180 every two
• Non-resident
years. producer license: $250 every two
• Temporary
years. producer license:
•$50.
Insurance business license: $150 every two
• Limited
years. Lines producer license: $50
• Licensing
every year. exam: $50 (in addition to other fees charged by the
• testing vendor).
Operating as a pre-license or continuing education provider: $1,000
• Approval
every year.of a pre-license or continuing education course: $50 initial
everyfee, then $20
year.
Insurance Broker Bond Requirements correct answers• Brokers must
have a
bond equal
surety
to at least $2,500 or 5% of brokered premiums from
previous year
(whichever is
•more).
$50,000
maximum.
License Terms and Renewals correct answers• Producer license is
generally valid for
two
• Renewal requires fees and continuing
years.
education.
License Reinstatement correct answers• One year to reinstate license by
paying
the doublefee and completing remaining CE
licensing
hours.
Continuing Education correct answers• 24 hours every 2 years before
license renewal
deadlin
•e.At least 3 must be ethics (classroom or
• Hours
webinar).
must be reported (not just completed) prior to renewal
deadline.
Education Providers correct answers• CE courses must be approved by the
DOI and
from be
approved
providers
Change of Address correct answers• Changes to physical and email
addresseswithin
reported must 30be
days.
Assumed Names correct answersProducers must follow the Assumed
Business Name
Act
•. Need to report to DOI if doing business under
another name.
Insurance Practice Test Questions,
Casualty Producer IL Exam Questions,
Property And Casualty Illinois Law,
Property/Casualty Il laws & Regulations
The McCarran-Ferguson Act correct answers• Federal law that allows most
regulation to be done at the state
insurance
level.
Illinois Department of Insurance correct answersOverseen by governor-
appointed "director" who has the power to:
• Make reasonable rules and regulations to enforce insurance laws.
•Conduct reasonable investigations to determine violations of state
insurance requirements.
• Issue immediate cease-and-desist orders to halt illegal insurance
practices.
• Issue subpoenas in order to obtain insurance documents.
• Require individuals to testify under oath about insurance matters.
• Issue, deny, suspend or revoke insurance licenses for individuals
andDirector
DOI businesses
correct answers• Failure to comply with director orders can
result
to in $2,000
$20,000 in additional
• Guilty party can be forced to pay for independent
fines.
• Cease-and-desist
investigations. orders generally include the right to a hearing
• Investigated
within 30 days.parties must receive copies of reports before
the public.
Who Needs a License? correct answersProducer license generally required
when
any ofdoing
the following for
• Selling
compensation:
• Encouraging
insurance. someone to buy
• Negotiating
insurance. terms of
• insurance.
Giving insurance
advice.
• Acting without a license is Class A misdemeanor ($2,500 and 1
year in jail).
Unlicensed Persons correct answers• An insurer or producer cannot
compensateperson
unlicensed an for selling or negotiating
• Possible exception for a formerly licensed person who is receiving
insurance:
compensation
deferred and was licensed at time of
transaction.
,Who Doesn't Need a License? correct answersAn attorney giving legal
advice about
insurance laws or an insurance
• An accountant giving insurance-related advice as part of his or her
contract.
•A jobpublic
duties.
adjuster giving insurance-related opinions or advice as part of his
dutieor her job
•s.Officers, directors or employees of insurance businesses who don't receive
any type
sales of
commission and whose jobs are managerial, executive, administrative
or nature
in clericaland aren't related directly to
•sales.
Certain people who have insurance-specific careers but don't receive any
compensation
type of sales (such as insurance employees who evaluate insurance
applications,
investigate claims or process insurance-related
• Group benefit administrators who aren't compensated by an insurance
paperwork).
• Salaried,
business.full-time risk managers who neither sell insurance nor receive
related
insurance-
compensation.
License Qualifications correct answers• 18 or
• Pre-license
older.
• State
education.
• Licensing
exam.
•fee.
Good moral
character.
• Might not be eligible
• Committed
if :
• Fail
felony.
to pay child
• Had
support.
a license revoked in another
state.
What's on a License? correct answers• Producer's
• License
name.
• Date
number. of
• Date
issuance.of
• Address
expiration.
• Line
. of authority (Life, health, property,
casualty, etc.).
Lines of Authority correct answers• Each line generally requires 20 hours of
prelicense
education and a state
• Life
exam.
• .Accident and
• Property
health.
• Casualty
(Fire).
.
Other Lines of Authority correct answers• Slightly different requirements
might
the exist forless common lines of
following
• Personal
authority:
• Motor
lines.
• Variable
vehicle.
• Limited
contracts.
lines.
,Limited Lines Producers correct answersAllows someone to sell a
limited listproducts
insurance of that represent a narrow portion of the market (car rental
credit life insurance,
insurance,
• Requires "appointment" by an
etc.).
insurer.
Pre-License Education Exemptions correct answers• State exam but no
education
pre-license
•for: College graduates with a degree in insurance. • People who have
insurance
earned certain
related professional
•designations.
Example: For property and casualty producers: AAI, ARM, CIC,
CPCU
Pre-License Education AND Exam Exemptions correct answers• No state
exam and no
pre-license education
•for: Limited lines
• Producers
producers. moving to Illinois who are already licensed in same line of
• authority.
Must be in good standing and complete paperwork within 90 days of
residency.
• Non-residents of Illinois who are already licensed in the same line of
home authority in their
• Must be in good standing and obtain "non-resident" Illinois license
state.
property
before insuring
in Illinois or insuring anyone in
Illinois.
Licensing Exams correct answers• Administered by Pearson Vue in English or
• 1 exam for each line of
Spanish.
• 100authority.
questions (60 General, 40
• 135Illinois).
minutes total (80 to 85 for General, 50 to 55 for
• Cheating
Illinois). on an exam is grounds for discipline by
the DOI.
Passing the Exam correct answers• 70% on each
•portion.
Must pass the failed portion within 90 days to avoid retaking an
entire exam.
Administration of Exams correct answers• Exam candidates
•must
Certificate
bring: of
•completion.
Non-expired, government-issued
• SSphoto
card,
ID.credit/debit card or another nonexpired
government ID
After the Exam correct answers• No numeric score (or maybe 70% by
default) upon
passin
•g.Wait 5 days before applying for
license
Temporary Licenses correct answersUpon Death or
• No state
Disability
• Allows
exam. for limited time to settle disabled or deceased producer's
• Issued
business foraffairs.
180 days with one possible 180-day
•extension.
Can require supervision form licensed
producer.
, • License terminates if business is sold or
dissolved.
Not Death or
•Disability
Allows licensing candidates to begin work while completing the
• Valid
licensing process.
for 90 days with no
• Mustextension.
be affiliated with an
• Insurers
insurer. whose candidates don't complete the licensing process can
sponsor
no longertemporary
licenses.
DOI Fees correct answers• The following fees are generally
•nonrefundable:
Resident producer license: $180 every two
• Non-resident
years. producer license: $250 every two
• Temporary
years. producer license:
•$50.
Insurance business license: $150 every two
• Limited
years. Lines producer license: $50
• Licensing
every year. exam: $50 (in addition to other fees charged by the
• testing vendor).
Operating as a pre-license or continuing education provider: $1,000
• Approval
every year.of a pre-license or continuing education course: $50 initial
everyfee, then $20
year.
Insurance Broker Bond Requirements correct answers• Brokers must
have a
bond equal
surety
to at least $2,500 or 5% of brokered premiums from
previous year
(whichever is
•more).
$50,000
maximum.
License Terms and Renewals correct answers• Producer license is
generally valid for
two
• Renewal requires fees and continuing
years.
education.
License Reinstatement correct answers• One year to reinstate license by
paying
the doublefee and completing remaining CE
licensing
hours.
Continuing Education correct answers• 24 hours every 2 years before
license renewal
deadlin
•e.At least 3 must be ethics (classroom or
• Hours
webinar).
must be reported (not just completed) prior to renewal
deadline.
Education Providers correct answers• CE courses must be approved by the
DOI and
from be
approved
providers
Change of Address correct answers• Changes to physical and email
addresseswithin
reported must 30be
days.
Assumed Names correct answersProducers must follow the Assumed
Business Name
Act
•. Need to report to DOI if doing business under
another name.
