10/15/25, 6:34 PM Illinois Life Insurance Exam comprehensive questions | FREQUENTLY MOST TESTED QUESTIONS AND VERIFIED SOLUTION…
Illinois Life Insurance Exam comprehensive
questions | FREQUENTLY MOST TESTED
QUESTIONS AND VERIFIED SOLUTIONS/GET IT
100% ACCURATE!!
Save
Terms in this set (146)
The transfer of the risk of loss from the individual or
What is insurance?
business entity to an insurance company
Solicitation, negotiating prior to execution of a
What is included under
contract, execution of a contract, and the transaction
the term insurance
of any matters that arise as a result of the contract, as
transaction?
well as the actual process of insuring.
An admitted or authorized insurer is qualified and
What is the difference received a Certificate of Authority from the
between an Department of Insurance to transact insurance in the
authorized/admitted and state. A nonadmitted or nonauthorized insurer is an
unauthorized/nonadmitte insurance company that has not applied for, or has
d insurer? been denied a Certificate of Authority and may not
transact insurance.
What are the four AGREEMENT- offer/acceptance, consideration,
elements of an insurance competent parties, legal purpose
contract?
https://quizlet.com/1093288968/illinois-life-insurance-exam-comprehensive-questions-frequently-most-tested-questions-and-verified-solutionsget-it-10… 1/18
,10/15/25, 6:34 PM Illinois Life Insurance Exam comprehensive questions | FREQUENTLY MOST TESTED QUESTIONS AND VERIFIED SOLUTION…
Representations are statements believed to be true to
What does representation
the best of one's knowledge. A warranty is an
mean and how does it
absolutely true statement upon which the validity of
differ from a warranty?
the insurance policy depends.
Part 1 of the application includes the general
What information is questions about the applicant, including name, age,
gathered in Parts 1 & 2 of address, birth date, gender, income, marital status,
the application? and occupation. Part 2 includes medical information
about prospective insured.
The agent's (producer's) report is used by the agent to
What is the purpose of the
discuss his or her personal observations concerning
agent's report?
the proposed insured.
Who is required to sign an Both the agent and the proposed insured (usually the
application for life applicant) must sign the application
insurance?
When does the insurance The policy will go into effect when the first premium is
policy go in effect? paid and the policy has been delivered
Underwriting is the risk selection and classification
What is underwriting?
process
In a life insurance policy, Insurable interest must exist between the policyowner
when must insurable and the insured at the time of application (or time of
interest exist? policy issue), but NOT at the time of loss
The act established procedures that consumer-
reporting agencies must follow in order to ensure that
What is the purpose of the
records are confidential, accurate, relevant, and
Fair Credit Reporting Act?
properly used. It also protects consumers against the
circulation of inaccurate or obsolete information
https://quizlet.com/1093288968/illinois-life-insurance-exam-comprehensive-questions-frequently-most-tested-questions-and-verified-solutionsget-it-10… 2/18
, 10/15/25, 6:34 PM Illinois Life Insurance Exam comprehensive questions | FREQUENTLY MOST TESTED QUESTIONS AND VERIFIED SOLUTION…
Investigative consumer reports are similar to
consumer reports in that they also provide
What is the difference
information on the consumer's character, reputation,
between a consumer
and habits. The primary difference is that the
report and an investigative
information is obtained through an investigation and
consumer report?
interviews with associates, friends and neighbors of
the consumer
How can an insurance It can use MIB information to conduct further
company use the investigation into an applicant's current insurability
information it obtains from
the MIB?
Substandard risk applicants are not acceptable at
How does a substandard standard rates because of physical condition,
risk policy differ from a personal or family history of disease, occupation, or
standard risk? dangerous habits. These policies could be issued with
the premium rated-up (higher than the standard risk)
STOLI is an arrangement in which a person purchases
What is stranger- an insurance policy on another without having
originated life insurance insurable interest with the insured. STOLIs are
(STOLI)? purchased with the intent to sell policies for life
settlements
What information does a Basic information about life insurance policies and
Buyer's Guide provide? comparison of policy cost
When would an insured If the initial premium is not paid with the application,
be required to sign a the agent may need to obtain the statement of good
statement of good health? health at policy delivery
What are the It provides temporary, pure death protection, with no
characteristics of term life cash value
insurance?
Annually renewable term (ART) is the purest form of
term life insurance in which the death benefit remains
What is annually
level; the policy may be guaranteed renewable each
renewable tern insurance?
year without proof of insurability, but the premium
increases annually according tp the attained age
https://quizlet.com/1093288968/illinois-life-insurance-exam-comprehensive-questions-frequently-most-tested-questions-and-verified-solutionsget-it-10… 3/18
Illinois Life Insurance Exam comprehensive
questions | FREQUENTLY MOST TESTED
QUESTIONS AND VERIFIED SOLUTIONS/GET IT
100% ACCURATE!!
Save
Terms in this set (146)
The transfer of the risk of loss from the individual or
What is insurance?
business entity to an insurance company
Solicitation, negotiating prior to execution of a
What is included under
contract, execution of a contract, and the transaction
the term insurance
of any matters that arise as a result of the contract, as
transaction?
well as the actual process of insuring.
An admitted or authorized insurer is qualified and
What is the difference received a Certificate of Authority from the
between an Department of Insurance to transact insurance in the
authorized/admitted and state. A nonadmitted or nonauthorized insurer is an
unauthorized/nonadmitte insurance company that has not applied for, or has
d insurer? been denied a Certificate of Authority and may not
transact insurance.
What are the four AGREEMENT- offer/acceptance, consideration,
elements of an insurance competent parties, legal purpose
contract?
https://quizlet.com/1093288968/illinois-life-insurance-exam-comprehensive-questions-frequently-most-tested-questions-and-verified-solutionsget-it-10… 1/18
,10/15/25, 6:34 PM Illinois Life Insurance Exam comprehensive questions | FREQUENTLY MOST TESTED QUESTIONS AND VERIFIED SOLUTION…
Representations are statements believed to be true to
What does representation
the best of one's knowledge. A warranty is an
mean and how does it
absolutely true statement upon which the validity of
differ from a warranty?
the insurance policy depends.
Part 1 of the application includes the general
What information is questions about the applicant, including name, age,
gathered in Parts 1 & 2 of address, birth date, gender, income, marital status,
the application? and occupation. Part 2 includes medical information
about prospective insured.
The agent's (producer's) report is used by the agent to
What is the purpose of the
discuss his or her personal observations concerning
agent's report?
the proposed insured.
Who is required to sign an Both the agent and the proposed insured (usually the
application for life applicant) must sign the application
insurance?
When does the insurance The policy will go into effect when the first premium is
policy go in effect? paid and the policy has been delivered
Underwriting is the risk selection and classification
What is underwriting?
process
In a life insurance policy, Insurable interest must exist between the policyowner
when must insurable and the insured at the time of application (or time of
interest exist? policy issue), but NOT at the time of loss
The act established procedures that consumer-
reporting agencies must follow in order to ensure that
What is the purpose of the
records are confidential, accurate, relevant, and
Fair Credit Reporting Act?
properly used. It also protects consumers against the
circulation of inaccurate or obsolete information
https://quizlet.com/1093288968/illinois-life-insurance-exam-comprehensive-questions-frequently-most-tested-questions-and-verified-solutionsget-it-10… 2/18
, 10/15/25, 6:34 PM Illinois Life Insurance Exam comprehensive questions | FREQUENTLY MOST TESTED QUESTIONS AND VERIFIED SOLUTION…
Investigative consumer reports are similar to
consumer reports in that they also provide
What is the difference
information on the consumer's character, reputation,
between a consumer
and habits. The primary difference is that the
report and an investigative
information is obtained through an investigation and
consumer report?
interviews with associates, friends and neighbors of
the consumer
How can an insurance It can use MIB information to conduct further
company use the investigation into an applicant's current insurability
information it obtains from
the MIB?
Substandard risk applicants are not acceptable at
How does a substandard standard rates because of physical condition,
risk policy differ from a personal or family history of disease, occupation, or
standard risk? dangerous habits. These policies could be issued with
the premium rated-up (higher than the standard risk)
STOLI is an arrangement in which a person purchases
What is stranger- an insurance policy on another without having
originated life insurance insurable interest with the insured. STOLIs are
(STOLI)? purchased with the intent to sell policies for life
settlements
What information does a Basic information about life insurance policies and
Buyer's Guide provide? comparison of policy cost
When would an insured If the initial premium is not paid with the application,
be required to sign a the agent may need to obtain the statement of good
statement of good health? health at policy delivery
What are the It provides temporary, pure death protection, with no
characteristics of term life cash value
insurance?
Annually renewable term (ART) is the purest form of
term life insurance in which the death benefit remains
What is annually
level; the policy may be guaranteed renewable each
renewable tern insurance?
year without proof of insurability, but the premium
increases annually according tp the attained age
https://quizlet.com/1093288968/illinois-life-insurance-exam-comprehensive-questions-frequently-most-tested-questions-and-verified-solutionsget-it-10… 3/18
