STATE OF ILLINOIS PROPERTY AND CASUALTY LAWS CERTIFIED
QUALITY EXAM QUESTIONS BANK NEWEST ACTUAL 2025/2026
WITH COMPLETE QUESTIONS AND CORRECT ANSWERS GRADED
A+
The illinois guaranty associations - --ANSWERS---1. Were
formed to protect illinois consumers in the event an insurer or
health service plan provider becomes bankrupt, insolvent or
impaired.
2. There are three guaranty associations in illinois: i. The life &
health guaranty association. Ii. The health maintenance
organization guaranty association. Iii. The illinois guaranty fund.
The illinois guaranty fund - --ANSWERS---includes most
property and casualty insurers doing business in illinois.
1. Will pay claims filed within 30 days after the insurer is ordered
to be liquidated.
2. The fund will not pay a claim for unearned premium less than
$100 or more than $10,000 for any on policy.
3. The maximum the fund will pay for any one claim is $500,000
except for workers compensation claims, which have no limit.
Age requirement for insurance licensees - --ANSWERS---18
years
Continuing ed requirement for 24 months (2yrs) - --ANSWERS--
-24 hours and 3 hours in ethics class
Temporary producer license - --ANSWERS---90 days
Temporary producer license in case of death - --ANSWERS---
180 days
, License reinstatement period - --ANSWERS---12 months
Producer license renewal period - --ANSWERS---24 months
When hearing must be held following cease and desist order - --
ANSWERS---20 - 30 days
Min/max bond requirement for brokered business or 5% of
premiums past 12 months - --ANSWERS---$2,500 -$50,000
Controlled business maximum - --ANSWERS---50%
Max guaranty fund - --ANSWERS---$500,000
Fine for violating cease & desist order ($1,000 per violation for
final order) - --ANSWERS---$100 per day/$5,000 max
Fine for license suspension, revocation or denial - --ANSWERS-
--$10,000
Limited lines details - --ANSWERS---this license allows a
person to sell insurance sold in connection with transportation
though common carriers such as baggage insurance, trip
(vacation) cancellation insurance, and limited travel
accident/health insurance.
Industrial life or industrial accident/health insurance can be sold
with a limited line license, legal expense insurance and enrolling
people on medicaid or medicare in health maintenance
organizations (hmos).
"short rate" refund - --ANSWERS---is when the insured cancel
an existing policy. With a "short rate" refund, there is a
QUALITY EXAM QUESTIONS BANK NEWEST ACTUAL 2025/2026
WITH COMPLETE QUESTIONS AND CORRECT ANSWERS GRADED
A+
The illinois guaranty associations - --ANSWERS---1. Were
formed to protect illinois consumers in the event an insurer or
health service plan provider becomes bankrupt, insolvent or
impaired.
2. There are three guaranty associations in illinois: i. The life &
health guaranty association. Ii. The health maintenance
organization guaranty association. Iii. The illinois guaranty fund.
The illinois guaranty fund - --ANSWERS---includes most
property and casualty insurers doing business in illinois.
1. Will pay claims filed within 30 days after the insurer is ordered
to be liquidated.
2. The fund will not pay a claim for unearned premium less than
$100 or more than $10,000 for any on policy.
3. The maximum the fund will pay for any one claim is $500,000
except for workers compensation claims, which have no limit.
Age requirement for insurance licensees - --ANSWERS---18
years
Continuing ed requirement for 24 months (2yrs) - --ANSWERS--
-24 hours and 3 hours in ethics class
Temporary producer license - --ANSWERS---90 days
Temporary producer license in case of death - --ANSWERS---
180 days
, License reinstatement period - --ANSWERS---12 months
Producer license renewal period - --ANSWERS---24 months
When hearing must be held following cease and desist order - --
ANSWERS---20 - 30 days
Min/max bond requirement for brokered business or 5% of
premiums past 12 months - --ANSWERS---$2,500 -$50,000
Controlled business maximum - --ANSWERS---50%
Max guaranty fund - --ANSWERS---$500,000
Fine for violating cease & desist order ($1,000 per violation for
final order) - --ANSWERS---$100 per day/$5,000 max
Fine for license suspension, revocation or denial - --ANSWERS-
--$10,000
Limited lines details - --ANSWERS---this license allows a
person to sell insurance sold in connection with transportation
though common carriers such as baggage insurance, trip
(vacation) cancellation insurance, and limited travel
accident/health insurance.
Industrial life or industrial accident/health insurance can be sold
with a limited line license, legal expense insurance and enrolling
people on medicaid or medicare in health maintenance
organizations (hmos).
"short rate" refund - --ANSWERS---is when the insured cancel
an existing policy. With a "short rate" refund, there is a
