ILLINOIS LIFE INSURANCE EXAM 2026
COMPLETE PRACTICE QUESTIONS AND
CORRECT ANSWERS WITH DETAILED
EXPLANATIONS ILLINOIS LIFE
INSURANCE PRODUCER LICENSING EXAM
STUDY GUIDE
Group life insurance is typically - CORRECT ANSWER -term life insurance
Group life insurance policyowners receive - CORRECT ANSWER -certificates
Group life insurance must include - CORRECT ANSWER -10 members of the
same employer, union, association, creditor
Adverse Selection - CORRECT ANSWER -is insuring too many health
conditions insureds have before the policy is issued causing premium rates
to be inadequate to pay claims
Enrollment Period is and requires: - CORRECT ANSWER -31 days after a
new member becomes first eligible. During the enrollment period new
members can enroll without health questions
If person does not enroll within the initial enrollment period and later
wants in the group - CORRECT ANSWER -there may be health questions at
that time
,Participation Requirements of Group life insurance - CORRECT ANSWER -
all eligible members must participate and 75% of all eligible members must
participate
Conversion period in group life insurance is - CORRECT ANSWER -31 day
conversion period after termination of group coverage
Grace period in group life insurance is - CORRECT ANSWER -31 day period
after premiums were due during which coverage is extended
2 year incontestability provision - CORRECT ANSWER -2 years after
coverage takes effect and a claim cannot be contested (denied) after that
time period due to any type of misstatement on the application
Consideration - CORRECT ANSWER -is the legal requirement that htere
must be an exchange of something of material value on the part of bot
parties to the policy
insured's premium and application is his or her consideration
issuing the policy is the insurance company's consideration
Premium Payment Clause - CORRECT ANSWER -the first premium must be
paid in advance to an office or agent of the insurance company
Accelerated Benefit Provision - CORRECT ANSWER -is sometimes included
and allows the insured to receive part of the policy face amount while still
alive; also called a living benefit provision
, Long-term Care rider - CORRECT ANSWER -allows the insured person while
alive to collect up to a specified portion of the life insurance face amount to
pay nursing home expenses
A Viatical Arrangement - CORRECT ANSWER -individual or org buys a life
insurance policy from a terminally ill insured person for a sum of money
less than face amount
Viatical arrangement is also known as - CORRECT ANSWER -Life
settlements
Viator - CORRECT ANSWER -is the insured who is transferring the life policy
to the viatical settlement provider
Owner's Rights (6 items) - CORRECT ANSWER -1. name and change
beneficiaries unless an irrevocable beneficiary has been named
2. select a settlement option
3. select a dividend option (participating policies only)
4. borrow against the policy (cash vale policies only)
5. surrender the policy and exercise a nonforfeiture option (cash vale
policies only)
6. assign the policy (transfer)
Suicide Clause - CORRECT ANSWER -during the first two years if an insured
commits suicide the insurance company is required to refund the premiums
that have been paid
COMPLETE PRACTICE QUESTIONS AND
CORRECT ANSWERS WITH DETAILED
EXPLANATIONS ILLINOIS LIFE
INSURANCE PRODUCER LICENSING EXAM
STUDY GUIDE
Group life insurance is typically - CORRECT ANSWER -term life insurance
Group life insurance policyowners receive - CORRECT ANSWER -certificates
Group life insurance must include - CORRECT ANSWER -10 members of the
same employer, union, association, creditor
Adverse Selection - CORRECT ANSWER -is insuring too many health
conditions insureds have before the policy is issued causing premium rates
to be inadequate to pay claims
Enrollment Period is and requires: - CORRECT ANSWER -31 days after a
new member becomes first eligible. During the enrollment period new
members can enroll without health questions
If person does not enroll within the initial enrollment period and later
wants in the group - CORRECT ANSWER -there may be health questions at
that time
,Participation Requirements of Group life insurance - CORRECT ANSWER -
all eligible members must participate and 75% of all eligible members must
participate
Conversion period in group life insurance is - CORRECT ANSWER -31 day
conversion period after termination of group coverage
Grace period in group life insurance is - CORRECT ANSWER -31 day period
after premiums were due during which coverage is extended
2 year incontestability provision - CORRECT ANSWER -2 years after
coverage takes effect and a claim cannot be contested (denied) after that
time period due to any type of misstatement on the application
Consideration - CORRECT ANSWER -is the legal requirement that htere
must be an exchange of something of material value on the part of bot
parties to the policy
insured's premium and application is his or her consideration
issuing the policy is the insurance company's consideration
Premium Payment Clause - CORRECT ANSWER -the first premium must be
paid in advance to an office or agent of the insurance company
Accelerated Benefit Provision - CORRECT ANSWER -is sometimes included
and allows the insured to receive part of the policy face amount while still
alive; also called a living benefit provision
, Long-term Care rider - CORRECT ANSWER -allows the insured person while
alive to collect up to a specified portion of the life insurance face amount to
pay nursing home expenses
A Viatical Arrangement - CORRECT ANSWER -individual or org buys a life
insurance policy from a terminally ill insured person for a sum of money
less than face amount
Viatical arrangement is also known as - CORRECT ANSWER -Life
settlements
Viator - CORRECT ANSWER -is the insured who is transferring the life policy
to the viatical settlement provider
Owner's Rights (6 items) - CORRECT ANSWER -1. name and change
beneficiaries unless an irrevocable beneficiary has been named
2. select a settlement option
3. select a dividend option (participating policies only)
4. borrow against the policy (cash vale policies only)
5. surrender the policy and exercise a nonforfeiture option (cash vale
policies only)
6. assign the policy (transfer)
Suicide Clause - CORRECT ANSWER -during the first two years if an insured
commits suicide the insurance company is required to refund the premiums
that have been paid
