Illinois Life Insurance Practice Exam
Questions and Answers
1. A producer is circulating incorrect information about the
benefits of a policy. This producer may be found guilty of:
misrepresentation
2. How often must an insurance producer's license be
renewed?: every two years
3. Which of the following is NOT considered rebating?:
sharing commissions with other licensed and appointed
producers
4. The free-look period for life insurance policies issued in
Illinois is
days.: 10
5. A(n) lines producer may sell Travel
Accident insurance in
Illinois.: limited
6. Q the producer has recently replaced one insurance policy
with another. In
Illinois, replacement is: regulated and requires full disclosure
,7. How is the Illinois Life and Health Insurance Guaranty
Associated funded?-
: from member companies
8. Within how many days must a license notify the Director of
a change in address?: 30
9. All of these MUST be included on an insurance producer's
license EXCEPT-
: appointing insurance company
10. Which of these contracts are affected by replacement
regulations?: ordi- nary life insurance
11. During the course of an insurance transaction, if a
producer makes a false or incomplete statement he/she could
be found guilty of: misrepresentation
12. All of these statements concerning a license's
responsibility for premiums received are true EXCEPT: the
license must hold them in a separate account before transmitting
them to the insurance company
13. A policyowner decides to cancel an insurance policy
within 90 days of the issue date. As a result of this
cancellation, the producer is REQUIRED to refund a prorated
portion of any fee charged within days of receiving the
cancellation notice.: 30
, 14. An accelerated (living) benefit is payable based upon the
occurrence of a qualifying event. This qualifying event is
certified by a(n): physician
15. Which licensee faces possible license revocation by the
Director?: licensee who commingles monies belonging to policy
holders with personal funds
16. could have claim to viatical settlement
proceeds.: creditors
17. An example of unfair discrimination would be: offering
different terms of coverage for different policyowners having the
same risk classification
18. Which of these actions by a licensee would NOT likely
result in license suspension or revocation?: sharing a
commission with another similarly-licensed agent
Questions and Answers
1. A producer is circulating incorrect information about the
benefits of a policy. This producer may be found guilty of:
misrepresentation
2. How often must an insurance producer's license be
renewed?: every two years
3. Which of the following is NOT considered rebating?:
sharing commissions with other licensed and appointed
producers
4. The free-look period for life insurance policies issued in
Illinois is
days.: 10
5. A(n) lines producer may sell Travel
Accident insurance in
Illinois.: limited
6. Q the producer has recently replaced one insurance policy
with another. In
Illinois, replacement is: regulated and requires full disclosure
,7. How is the Illinois Life and Health Insurance Guaranty
Associated funded?-
: from member companies
8. Within how many days must a license notify the Director of
a change in address?: 30
9. All of these MUST be included on an insurance producer's
license EXCEPT-
: appointing insurance company
10. Which of these contracts are affected by replacement
regulations?: ordi- nary life insurance
11. During the course of an insurance transaction, if a
producer makes a false or incomplete statement he/she could
be found guilty of: misrepresentation
12. All of these statements concerning a license's
responsibility for premiums received are true EXCEPT: the
license must hold them in a separate account before transmitting
them to the insurance company
13. A policyowner decides to cancel an insurance policy
within 90 days of the issue date. As a result of this
cancellation, the producer is REQUIRED to refund a prorated
portion of any fee charged within days of receiving the
cancellation notice.: 30
, 14. An accelerated (living) benefit is payable based upon the
occurrence of a qualifying event. This qualifying event is
certified by a(n): physician
15. Which licensee faces possible license revocation by the
Director?: licensee who commingles monies belonging to policy
holders with personal funds
16. could have claim to viatical settlement
proceeds.: creditors
17. An example of unfair discrimination would be: offering
different terms of coverage for different policyowners having the
same risk classification
18. Which of these actions by a licensee would NOT likely
result in license suspension or revocation?: sharing a
commission with another similarly-licensed agent
