ILLINOIS STATE LAW PROPERTY II 2026
COMPLETE STUDY GUIDE A+
◉ The Director of Insurance or a designee can examine
(investigate)any of the following. Answer: 1. Any insurance company
doing business in Illinois
2. Any person involved in forming an insurance company in Illinois.
3. Any licensed producer, firm, administrator or applicant for an
insurance license.
4. Any person adjusting clanims or financing premium.
◉ Examinees may be subpoena. Answer: 1. If anyone refuses to be
examined or ignores a subpoena, he or she can be fined $2,000.
2. Persons being examined have 14 days from the day they receive
the report to request a hearing.
3. The Director must provide a 10 days notice of the time and place
of the hearing.
4. The Director will issue a final report of the examination within 90
days of the exam or hearing.
5. Violating a written order can be fined up to $20,000.
◉ Cease and Desist Orders. Answer: 1. The hearing must be held
between 20 and 30 days from the date of the order.
, 2. The fine for ignoring a cease and desist order is $100 per day, not
to exceed $5,000.
3. After the cease and desist order has become final and is in effect,
any person who violates it will be fined $1,000 for each violation.
◉ Acting as a producer without a license. Answer: 1. Is a Class A
misdemeanor.
2. If the action results in misappropriation of funds, it's a Class 4
felony.
◉ Illinois law allows the following professionals to give insurance
advice without having a license. Answer: CPAs, actuaries, bank trust
officers, licensed public adjusters and attorneys.
◉ The personal lines P&C license allows an agent to sell personal
lines policies only. Answer: Such as homeowners and personal auto.
◉ Prelicensing Exemption. Answer: Applicants who have earned a
college degree in insurance or an advanced insurance designation
will be exempt from the prelicensing requirement.
◉ Bond. Answer: 1. The bond must have a face amount of at least
$2,500 or 5% of the premium brokered in the previous year,
whichever is greater, not to exceed $50,000.
COMPLETE STUDY GUIDE A+
◉ The Director of Insurance or a designee can examine
(investigate)any of the following. Answer: 1. Any insurance company
doing business in Illinois
2. Any person involved in forming an insurance company in Illinois.
3. Any licensed producer, firm, administrator or applicant for an
insurance license.
4. Any person adjusting clanims or financing premium.
◉ Examinees may be subpoena. Answer: 1. If anyone refuses to be
examined or ignores a subpoena, he or she can be fined $2,000.
2. Persons being examined have 14 days from the day they receive
the report to request a hearing.
3. The Director must provide a 10 days notice of the time and place
of the hearing.
4. The Director will issue a final report of the examination within 90
days of the exam or hearing.
5. Violating a written order can be fined up to $20,000.
◉ Cease and Desist Orders. Answer: 1. The hearing must be held
between 20 and 30 days from the date of the order.
, 2. The fine for ignoring a cease and desist order is $100 per day, not
to exceed $5,000.
3. After the cease and desist order has become final and is in effect,
any person who violates it will be fined $1,000 for each violation.
◉ Acting as a producer without a license. Answer: 1. Is a Class A
misdemeanor.
2. If the action results in misappropriation of funds, it's a Class 4
felony.
◉ Illinois law allows the following professionals to give insurance
advice without having a license. Answer: CPAs, actuaries, bank trust
officers, licensed public adjusters and attorneys.
◉ The personal lines P&C license allows an agent to sell personal
lines policies only. Answer: Such as homeowners and personal auto.
◉ Prelicensing Exemption. Answer: Applicants who have earned a
college degree in insurance or an advanced insurance designation
will be exempt from the prelicensing requirement.
◉ Bond. Answer: 1. The bond must have a face amount of at least
$2,500 or 5% of the premium brokered in the previous year,
whichever is greater, not to exceed $50,000.
