Illinois Property Insurance - Laws and
Regulations
Insurance Professional is: correct answers· Unselfish (Altruism)
· Professional Societies/Associations
· Code of professional ethics
· Technical knowledge
· Broad or general education
· Passed qualifying exams
Insurance license allows you to: correct answers· Solicit
· Negotiate
· Sell
· Advise for free
· Collect commissions
Duties as a producer: correct answers· Keep current w/ coverage
changes
· Analyze risk and needs
· Sell a suitable policy
· Make appropriate changes from time to time
· Keep insured informed on coverage
· Help with Claims
· Collect premium and policy renewal
· Keep Records
Insurance Producer Qualifications: correct answers· 18 yrs
· 20 hours pre-ed per line (7.5 classroom & 12.5 self study).
· Pass test
Getting license: correct answers· Pay fee $180/ every 2 years
·License contains name, address, date issued, class of insurance
and National Producer Number (NPN ).
· Stay licensed if fees are paid, maintain bond, and license in good
standing.
· Get Surety Bond >$2500 or 5% premiums brokered, but not to
exceed $50k.
Keep license correct answers· Compete 24 hrs of CE every 2 years
· Pay fee $180/ every 2 years
· Surety bond maintained (continuous in form) $2500>$50k
· Completed 30 days before exp of license
· Keep proof of C.E. completion on file for 3 years.
, Req of Business Entity (aka Insurance Agency) correct answers· Fee of
$150 every 2 years
· Surety Bond Maintained
Limited Lines Producer qualifications correct answers· Insurance company
must apply on producers behalf
· Insurance company pays $50/ year
· 18 years old
· Competent, trustworthy, good rep
· No exam or pre-ed, CE, or bond requirements apply.
· LL's include insurance for baggage, rental car, industrial life, legal
expense, etc.
Surplus Line Producer License: correct answersSpecial license producer is
allowed to non-admitted policies in the state of sale.
Temp License correct answers· An IC must apply on temps behalf and pays
$50
· Temp must be enrolled in pre-ed and prepping for test
· One time only in a lifetime
· 90 days
· Can't be renewed
· IC's temps must convert to producers 50% of time.
·If IC fails to maintain 50% conversion, only SID can reinstate
qualification to rep temps.
Temp License due to Death, Disability, or Military correct answers· May be
issued to spouse of court appointed rep · Allows sales of insurance as
directed by SID
· No exam, pre-ed, or CE required
· Valid 180 days and can apply for second 180 day term.
Military - Active Duty correct answers· Can request waiver of fees and CE
· Military man can receive renewal commissions even if not up to date on
fees or CE.
No Exam Required of: correct answers· Reinstatement of producer's
license within 1 year of lapse.
o $180 reinstatement fee applies
o Completed 30 days before exp of license
o Keep proof of C.E. completion on file for 3 years.
No Exam Required of: correct answers· Non-Residents who intend to sell
in IL
oReciprocity: As long as non rest's state doesn't require pre-ed & test for
IL producers in their state.
No Exam Required of: correct answers· New Residents of IL
o Provide SID cert from home state
o Letter of Clearance from home state saying license was in good standing.
o Producer must be applying in IL within 90 days of IL residency.
Regulations
Insurance Professional is: correct answers· Unselfish (Altruism)
· Professional Societies/Associations
· Code of professional ethics
· Technical knowledge
· Broad or general education
· Passed qualifying exams
Insurance license allows you to: correct answers· Solicit
· Negotiate
· Sell
· Advise for free
· Collect commissions
Duties as a producer: correct answers· Keep current w/ coverage
changes
· Analyze risk and needs
· Sell a suitable policy
· Make appropriate changes from time to time
· Keep insured informed on coverage
· Help with Claims
· Collect premium and policy renewal
· Keep Records
Insurance Producer Qualifications: correct answers· 18 yrs
· 20 hours pre-ed per line (7.5 classroom & 12.5 self study).
· Pass test
Getting license: correct answers· Pay fee $180/ every 2 years
·License contains name, address, date issued, class of insurance
and National Producer Number (NPN ).
· Stay licensed if fees are paid, maintain bond, and license in good
standing.
· Get Surety Bond >$2500 or 5% premiums brokered, but not to
exceed $50k.
Keep license correct answers· Compete 24 hrs of CE every 2 years
· Pay fee $180/ every 2 years
· Surety bond maintained (continuous in form) $2500>$50k
· Completed 30 days before exp of license
· Keep proof of C.E. completion on file for 3 years.
, Req of Business Entity (aka Insurance Agency) correct answers· Fee of
$150 every 2 years
· Surety Bond Maintained
Limited Lines Producer qualifications correct answers· Insurance company
must apply on producers behalf
· Insurance company pays $50/ year
· 18 years old
· Competent, trustworthy, good rep
· No exam or pre-ed, CE, or bond requirements apply.
· LL's include insurance for baggage, rental car, industrial life, legal
expense, etc.
Surplus Line Producer License: correct answersSpecial license producer is
allowed to non-admitted policies in the state of sale.
Temp License correct answers· An IC must apply on temps behalf and pays
$50
· Temp must be enrolled in pre-ed and prepping for test
· One time only in a lifetime
· 90 days
· Can't be renewed
· IC's temps must convert to producers 50% of time.
·If IC fails to maintain 50% conversion, only SID can reinstate
qualification to rep temps.
Temp License due to Death, Disability, or Military correct answers· May be
issued to spouse of court appointed rep · Allows sales of insurance as
directed by SID
· No exam, pre-ed, or CE required
· Valid 180 days and can apply for second 180 day term.
Military - Active Duty correct answers· Can request waiver of fees and CE
· Military man can receive renewal commissions even if not up to date on
fees or CE.
No Exam Required of: correct answers· Reinstatement of producer's
license within 1 year of lapse.
o $180 reinstatement fee applies
o Completed 30 days before exp of license
o Keep proof of C.E. completion on file for 3 years.
No Exam Required of: correct answers· Non-Residents who intend to sell
in IL
oReciprocity: As long as non rest's state doesn't require pre-ed & test for
IL producers in their state.
No Exam Required of: correct answers· New Residents of IL
o Provide SID cert from home state
o Letter of Clearance from home state saying license was in good standing.
o Producer must be applying in IL within 90 days of IL residency.
