ILLINOIS STATE LAW PROPERTY II 2026
PRACTICE QUESTIONS AND ANSWERS TOP
REVIEW A+
◉ 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.
, 2. A producer is exempt from the bond if he or she is working solely
for one insurance company that assumes the same financial
responsibility for the producer that the bond would have provided.
◉ Change of Address. Answer: Must be reported to the Director of
Insurance in writing within 30 days of the change.
◉ Licensed Agent Moving to Illinois. Answer: Is exempt from the
prelicenising class and the exam and they apply for the Illinois
resident license within 90 dats if canceling his/her previous state's
license.
◉ Reinstatement. Answer: A lapsed producer license must be
reinstated within 12 months of the lapse to avoid repeating
prelicenising and the exam.
◉ Controlled Business. Answer: 1. Is insurance covering the life,
property or risks of the producer, the producer's spouse, the
producer's employer or the producer's own business.
2. Is permitted as long as the amount of premium collected does not
exceed the of premium from all other policies. (Example) No more
than 50% of total premium an agent collects in a 12-month period.
◉ If a producer's license is suspended or revoked.. Answer: 1. The
person cannot reapply for 3 years
PRACTICE QUESTIONS AND ANSWERS TOP
REVIEW A+
◉ 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.
, 2. A producer is exempt from the bond if he or she is working solely
for one insurance company that assumes the same financial
responsibility for the producer that the bond would have provided.
◉ Change of Address. Answer: Must be reported to the Director of
Insurance in writing within 30 days of the change.
◉ Licensed Agent Moving to Illinois. Answer: Is exempt from the
prelicenising class and the exam and they apply for the Illinois
resident license within 90 dats if canceling his/her previous state's
license.
◉ Reinstatement. Answer: A lapsed producer license must be
reinstated within 12 months of the lapse to avoid repeating
prelicenising and the exam.
◉ Controlled Business. Answer: 1. Is insurance covering the life,
property or risks of the producer, the producer's spouse, the
producer's employer or the producer's own business.
2. Is permitted as long as the amount of premium collected does not
exceed the of premium from all other policies. (Example) No more
than 50% of total premium an agent collects in a 12-month period.
◉ If a producer's license is suspended or revoked.. Answer: 1. The
person cannot reapply for 3 years
