Property and Casualty Exam- Illinois Laws and Regulations Questions with Correct Answers

An insurance producer license is required of an individual to: Correct Answer Solicit- sell or ask person to apply Negotiate- confer/offer advice, quoting rates Sell- binding, renewing Give advice for a fee Receive commission Brokering Correct Answer broker is a producer who arranges policies for insureds through insurance companies for which they do not have agency contract Disclosure Correct Answer All insurance producers, limited lines producers, temporary, business entities involved in sale must be identified in policy Disclosure applies if sale was made by: Correct Answer 1. Insurance producer in person 2. Call center phone insurance producer 3. Online internet insurance producer Penalty for not being licensed Correct Answer 1. Class A misdemeanor 2. Class 4 felony 3. Injunction (restraining form selling insurance) Penalty for not being licensed- Class A misdemeanor Correct Answer Acting as an insurance agent without license- fine up to $1,000 or 1 year in jail (1 and 1) Penalty for not being licensed- Class 4 felony Correct 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 Correct 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 Correct Answer insurance sold to oneself, spouse, employer or persons own business