1|Page
LIFE INSURANCE EXAM 2026
QUESTIONS AND VERIFIED ANSWERS
|ALREADY A GRADED | NEW AND
REVISED
The subject of a market conduct examination for non-financial matters
may request a hearing within how many days after receiving the
examination report?
A: 10 days
B: 15 days
C: 20 days
D: 30 days - ANSWER- A: 10 days
Which of the following sales is classified as controlled business?
A: A producer places a one million dollar life policy on the life of his
employer
B: A producer places a one million dollar life policy on the life of his
son
C: A producer places a one million dollar life policy on the life of his
niece
D: A producer places a one million dollar life policy on the life of his
neighbor - ANSWER- A: A producer places a one million dollar life
policy on the life of his employer
,2|Page
The resident licensing fee for a Limited Lines Car Rental license is
A: $50 every year
B: $180 every two years
C: $50 every two years
D: $250 every year. - ANSWER- B: $180 every two years
What is the maximum length of time a producer license can be
suspended by the Director?
A: A producer license suspension is for a period of time deemed
appropriate by the Director.
B: 6 months
C: 12 months
D: 3 years. - ANSWER- A: A producer license suspension is for a
period of time deemed appropriate by the Director.
All of the following is an example of an unfair practice EXCEPT:
A: An applicant being denied based on military experience
B: An applicant being denied based off partial blindness
C: An applicant being denied for being a sky dive instructor
D: An applicant being denied solely for being disabled. - ANSWER- C:
An applicant being denied for being a sky dive instructor
All Viatical Settlement Providers must report on or before _______ of
every year.
A: January 1st
,3|Page
B: Depends on License Issuance
C: March 1st
D: Birth month of the Licensee - ANSWER- C: March 1st
Each of the following is a requirement for a Life, Health, Property and
Casualty prelicensing course, EXCEPT:
A: The licensing candidate must spend 7.5 hours in class per line.
B: The licensing candidate must complete a 20 hour course per line.
C: An exam proctored by a course provider must be successfully passed
before a prelicensing course is successfully completed.
D: An exam that is graded by a course provider must be passed before a
prelicensing course is successfully completed. - ANSWER- C: An exam
proctored by a course provider must be successfully passed before a
prelicensing course is
F, a producer in Illinois for twenty years failed to finish his entire
continuing education requirement by his license renewal date. Which of
the following will likely happen to F's producer license.
A: Nothing, there is an automatic 30 day grace period.
B: The producer license will lapse automatically.
C: A producer holding a license in Illinois for 20 years or longer
automatically is licensed for the remainder of his or her lifetime without
a renewal requirement.
D: Nothing there is an automatic 12 month grace period since F has been
licensed for such a long time. - ANSWER- B: The producer license will
lapse automatically.
, 4|Page
Which of the following is required to be listed in an illustration?
A: Age and sex of proposed insured
B: Initial death benefit
C: Dividend option of non-guaranteed elements
D: All of the Above - ANSWER- D: All of the Above
Which of the following is true about a long term care rider?
A: It will decrease premiums
B: It will pay nursing benefits in addition to the death benefit.
C: The agent must write the Long Term Care Rider as a separate policy.
D: If the insured uses the LTC rider benefit, it will be deducted from the
proceeds when the insured dies. - ANSWER- D: If the insured uses the
LTC rider benefit, it will be deducted from the proceeds when the
insured dies.
J has a policy that requires that he meet certain conditions in order for
the contract to be enforceable. J has a(an):
A: Conditional Contract
B: Unilateral Contract
C: Contract of Adhesion
D: Aleatory Contract - ANSWER- B: Unilateral Contract
Variable Whole Life requires a:
LIFE INSURANCE EXAM 2026
QUESTIONS AND VERIFIED ANSWERS
|ALREADY A GRADED | NEW AND
REVISED
The subject of a market conduct examination for non-financial matters
may request a hearing within how many days after receiving the
examination report?
A: 10 days
B: 15 days
C: 20 days
D: 30 days - ANSWER- A: 10 days
Which of the following sales is classified as controlled business?
A: A producer places a one million dollar life policy on the life of his
employer
B: A producer places a one million dollar life policy on the life of his
son
C: A producer places a one million dollar life policy on the life of his
niece
D: A producer places a one million dollar life policy on the life of his
neighbor - ANSWER- A: A producer places a one million dollar life
policy on the life of his employer
,2|Page
The resident licensing fee for a Limited Lines Car Rental license is
A: $50 every year
B: $180 every two years
C: $50 every two years
D: $250 every year. - ANSWER- B: $180 every two years
What is the maximum length of time a producer license can be
suspended by the Director?
A: A producer license suspension is for a period of time deemed
appropriate by the Director.
B: 6 months
C: 12 months
D: 3 years. - ANSWER- A: A producer license suspension is for a
period of time deemed appropriate by the Director.
All of the following is an example of an unfair practice EXCEPT:
A: An applicant being denied based on military experience
B: An applicant being denied based off partial blindness
C: An applicant being denied for being a sky dive instructor
D: An applicant being denied solely for being disabled. - ANSWER- C:
An applicant being denied for being a sky dive instructor
All Viatical Settlement Providers must report on or before _______ of
every year.
A: January 1st
,3|Page
B: Depends on License Issuance
C: March 1st
D: Birth month of the Licensee - ANSWER- C: March 1st
Each of the following is a requirement for a Life, Health, Property and
Casualty prelicensing course, EXCEPT:
A: The licensing candidate must spend 7.5 hours in class per line.
B: The licensing candidate must complete a 20 hour course per line.
C: An exam proctored by a course provider must be successfully passed
before a prelicensing course is successfully completed.
D: An exam that is graded by a course provider must be passed before a
prelicensing course is successfully completed. - ANSWER- C: An exam
proctored by a course provider must be successfully passed before a
prelicensing course is
F, a producer in Illinois for twenty years failed to finish his entire
continuing education requirement by his license renewal date. Which of
the following will likely happen to F's producer license.
A: Nothing, there is an automatic 30 day grace period.
B: The producer license will lapse automatically.
C: A producer holding a license in Illinois for 20 years or longer
automatically is licensed for the remainder of his or her lifetime without
a renewal requirement.
D: Nothing there is an automatic 12 month grace period since F has been
licensed for such a long time. - ANSWER- B: The producer license will
lapse automatically.
, 4|Page
Which of the following is required to be listed in an illustration?
A: Age and sex of proposed insured
B: Initial death benefit
C: Dividend option of non-guaranteed elements
D: All of the Above - ANSWER- D: All of the Above
Which of the following is true about a long term care rider?
A: It will decrease premiums
B: It will pay nursing benefits in addition to the death benefit.
C: The agent must write the Long Term Care Rider as a separate policy.
D: If the insured uses the LTC rider benefit, it will be deducted from the
proceeds when the insured dies. - ANSWER- D: If the insured uses the
LTC rider benefit, it will be deducted from the proceeds when the
insured dies.
J has a policy that requires that he meet certain conditions in order for
the contract to be enforceable. J has a(an):
A: Conditional Contract
B: Unilateral Contract
C: Contract of Adhesion
D: Aleatory Contract - ANSWER- B: Unilateral Contract
Variable Whole Life requires a:
