PROPERTY AND CASUALTY EXAM-
ILLINOIS LAWS AND REGULATIONS
QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS 100%
CORRECT!!!
An insurance producer license is required of an individual to:
✔✔ Answer:
Solicit insurance (sell or ask a person to apply)
Negotiate insurance (confer, offer advice, quote rates)
Sell insurance (bind or renew policies)
Give insurance advice for a fee
Receive commissions
Brokering
✔✔ Answer: A broker is a producer who arranges policies for insureds through
insurance companies with which they do not have an agency contract
Disclosure
✔✔ Answer: All insurance producers, limited lines producers, temporary
producers, and business entities involved in the sale must be identified in the
policy
Disclosure applies if the sale was made by:
✔✔ Answer:
1. An insurance producer in person
2. A call center/phone insurance producer
3. An online/internet insurance producer
,Penalty for not being licensed
✔✔ Answer:
1. Class A misdemeanor
2. Class 4 felony
3. Injunction (restraining order from selling insurance)
Penalty for not being licensed — Class A misdemeanor
✔✔ Answer: Acting as an insurance agent without a license m
Penalty for not being licensed- Class 4 felony -ANSWER ✔✔Acting as an
insurance agent without a license AND misappropriating premiums- fine up to 5k
and/or up to 5 years in jail (5 and 5)
Insurance producer license qualification -ANSWER ✔✔1. at least 18
2. not committed acts that would be grounds for suspension, revocation, denial of
license
3. Pass state exam
4. Purpose is NOT to sell controlled business
Controlled business -ANSWER ✔✔insurance sold to oneself, spouse, employer or
persons own business
Pre license requirements -ANSWER ✔✔1. 20 hours of pre edu per line- 7.5 class,
12.5 self
2. Motor vehicle insurance- 12.5 hours only- 5 class, 7.5 self
3. State certified course
, 4. proof of completion
Insurance continuing education -ANSWER ✔✔24 hours continuous edu every 2
year license term-
-3 hours ethics (classroom or webinar)
- can be computer based interactive or classroom
- self-study- open book final exam
Business Entity -ANSWER ✔✔"Insurance agency"
Business entity license -ANSWER ✔✔1.authorized licensed individual
2. Complete Uniform Business Entity Application & pay $150 two year fee
3. If brokering insurance, must own surety bond
Assumed name -ANSWER ✔✔Any name other than producer or business entity
legal name
Change of address -ANSWER ✔✔Insurance producer OR business entity must
report change of address within 30 days to state insurance director- no fee
Limited lines producer license -ANSWER ✔✔CAN be licensed for more than 1
insurance company:
1. Baggage insurance, limited travel accident, trip cancellation insurance
2. Rental car insurance
ILLINOIS LAWS AND REGULATIONS
QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS 100%
CORRECT!!!
An insurance producer license is required of an individual to:
✔✔ Answer:
Solicit insurance (sell or ask a person to apply)
Negotiate insurance (confer, offer advice, quote rates)
Sell insurance (bind or renew policies)
Give insurance advice for a fee
Receive commissions
Brokering
✔✔ Answer: A broker is a producer who arranges policies for insureds through
insurance companies with which they do not have an agency contract
Disclosure
✔✔ Answer: All insurance producers, limited lines producers, temporary
producers, and business entities involved in the sale must be identified in the
policy
Disclosure applies if the sale was made by:
✔✔ Answer:
1. An insurance producer in person
2. A call center/phone insurance producer
3. An online/internet insurance producer
,Penalty for not being licensed
✔✔ Answer:
1. Class A misdemeanor
2. Class 4 felony
3. Injunction (restraining order from selling insurance)
Penalty for not being licensed — Class A misdemeanor
✔✔ Answer: Acting as an insurance agent without a license m
Penalty for not being licensed- Class 4 felony -ANSWER ✔✔Acting as an
insurance agent without a license AND misappropriating premiums- fine up to 5k
and/or up to 5 years in jail (5 and 5)
Insurance producer license qualification -ANSWER ✔✔1. at least 18
2. not committed acts that would be grounds for suspension, revocation, denial of
license
3. Pass state exam
4. Purpose is NOT to sell controlled business
Controlled business -ANSWER ✔✔insurance sold to oneself, spouse, employer or
persons own business
Pre license requirements -ANSWER ✔✔1. 20 hours of pre edu per line- 7.5 class,
12.5 self
2. Motor vehicle insurance- 12.5 hours only- 5 class, 7.5 self
3. State certified course
, 4. proof of completion
Insurance continuing education -ANSWER ✔✔24 hours continuous edu every 2
year license term-
-3 hours ethics (classroom or webinar)
- can be computer based interactive or classroom
- self-study- open book final exam
Business Entity -ANSWER ✔✔"Insurance agency"
Business entity license -ANSWER ✔✔1.authorized licensed individual
2. Complete Uniform Business Entity Application & pay $150 two year fee
3. If brokering insurance, must own surety bond
Assumed name -ANSWER ✔✔Any name other than producer or business entity
legal name
Change of address -ANSWER ✔✔Insurance producer OR business entity must
report change of address within 30 days to state insurance director- no fee
Limited lines producer license -ANSWER ✔✔CAN be licensed for more than 1
insurance company:
1. Baggage insurance, limited travel accident, trip cancellation insurance
2. Rental car insurance
