ILLINOIS LIFE INSURANCE FINAL SCRIPT
2026 QUESTIONS WITH ANSWERS
GRADED A+
◉conditional contract. Answer: aa type of an agreement in which
both parties must perform certain duties and follow rules of conduct
to make the contract enforceable
◉consideration. Answer: the binding force in a contract that
requires something of value to be exchanged for the transfer of risk.
the consideration on the part of the insured is the representations
made in the application and the payment of premium; the
consideration no the part of the insurer is the promise to pay in the
event of loss
◉consumer report. Answer: a written and or oral statement
regarding a consumers credit, character, reputation, or habits
collected by a reporting agency from employment records, credit
reports, and other public sources
◉contract. Answer: an agreement between two or more parties
enforceable by law
,◉contributory. Answer: a group insurance plan that requires the
employees to pay part of the premium
◉controlled business. Answer: an entity that obtains and possesses
a license soley for the purpose of writing business on the owner,
immediate family, relatives, employer or employees
◉convertible. Answer: a policy that may be exchanged for another
type of policy by contractual provision, at the option of the policy
owner, and without evidence of insurability (ex. term life changed to
a form of permanent life)
◉countersignature. Answer: the act of signing an insurance policy
by a licensed resident agent
◉coverage. Answer: the inclusion of causes of loss (perils) which are
covered within a scope of a policy
◉credit life insurance. Answer: a special type of coverage written to
pay off the balance of a loan in the event of the death of the debtor
◉death benefit. Answer: the amount payable upon the death of the
person whose life is insured
,◉decreasing term. Answer: a type of life insurance that features a
level premium and a death benefit that decreases each year over the
duration of the policy
◉defamation. Answer: an unfair trade practice in which one agent
or insurer makes and injurious statement about another with the
intent of harming the persons or company reputation
◉dependent. Answer: a person who relies on another for support
and maintenance
◉director. Answer: the chief executive and administrative officer of
the insurance departments (in some states known as commissioner
or superintendent)
◉disclosure. Answer: an act of identifying the name of the producer,
representative or firm, limited insurance representative, or
temporary insurance producer on any policy situation
◉domestic insurer. Answer: an insurance company that conducts
business in the state of incorporation
◉domicile of insurer. Answer: insurers location of incorporation and
the legal ability to write business in a state
, ◉earned premium. Answer: the amount of the premium for which
the policy protection has been given
◉effective date. Answer: the date when an insurance policy begins
(aka inception date)
◉Employee retirement income security act (ERISA). Answer: the act
that stipulates federal standards for private pension plans
◉endorsement. Answer: a form changing the provisions of and
attached to a life insurance policy (aka a rider)
◉endow. Answer: to reach the maturity date or time at which the
face amount equals cash value
◉estoppel. Answer: a legal impediment to denying a fact or
restoring a right that has been previously waived
◉excess insurance. Answer: insurance that pays over and above or
in addition to basic policy limits
◉exclusions. Answer: causes of loss, exposures, conditions, etc listed
in the policy for which the benefits will not be paid
2026 QUESTIONS WITH ANSWERS
GRADED A+
◉conditional contract. Answer: aa type of an agreement in which
both parties must perform certain duties and follow rules of conduct
to make the contract enforceable
◉consideration. Answer: the binding force in a contract that
requires something of value to be exchanged for the transfer of risk.
the consideration on the part of the insured is the representations
made in the application and the payment of premium; the
consideration no the part of the insurer is the promise to pay in the
event of loss
◉consumer report. Answer: a written and or oral statement
regarding a consumers credit, character, reputation, or habits
collected by a reporting agency from employment records, credit
reports, and other public sources
◉contract. Answer: an agreement between two or more parties
enforceable by law
,◉contributory. Answer: a group insurance plan that requires the
employees to pay part of the premium
◉controlled business. Answer: an entity that obtains and possesses
a license soley for the purpose of writing business on the owner,
immediate family, relatives, employer or employees
◉convertible. Answer: a policy that may be exchanged for another
type of policy by contractual provision, at the option of the policy
owner, and without evidence of insurability (ex. term life changed to
a form of permanent life)
◉countersignature. Answer: the act of signing an insurance policy
by a licensed resident agent
◉coverage. Answer: the inclusion of causes of loss (perils) which are
covered within a scope of a policy
◉credit life insurance. Answer: a special type of coverage written to
pay off the balance of a loan in the event of the death of the debtor
◉death benefit. Answer: the amount payable upon the death of the
person whose life is insured
,◉decreasing term. Answer: a type of life insurance that features a
level premium and a death benefit that decreases each year over the
duration of the policy
◉defamation. Answer: an unfair trade practice in which one agent
or insurer makes and injurious statement about another with the
intent of harming the persons or company reputation
◉dependent. Answer: a person who relies on another for support
and maintenance
◉director. Answer: the chief executive and administrative officer of
the insurance departments (in some states known as commissioner
or superintendent)
◉disclosure. Answer: an act of identifying the name of the producer,
representative or firm, limited insurance representative, or
temporary insurance producer on any policy situation
◉domestic insurer. Answer: an insurance company that conducts
business in the state of incorporation
◉domicile of insurer. Answer: insurers location of incorporation and
the legal ability to write business in a state
, ◉earned premium. Answer: the amount of the premium for which
the policy protection has been given
◉effective date. Answer: the date when an insurance policy begins
(aka inception date)
◉Employee retirement income security act (ERISA). Answer: the act
that stipulates federal standards for private pension plans
◉endorsement. Answer: a form changing the provisions of and
attached to a life insurance policy (aka a rider)
◉endow. Answer: to reach the maturity date or time at which the
face amount equals cash value
◉estoppel. Answer: a legal impediment to denying a fact or
restoring a right that has been previously waived
◉excess insurance. Answer: insurance that pays over and above or
in addition to basic policy limits
◉exclusions. Answer: causes of loss, exposures, conditions, etc listed
in the policy for which the benefits will not be paid
