UNIT 21-23: ILLINOIS STATE SPECIFIC
QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS ALREADY
PASSED!!!
Question 1: Under what condition is an individual generally exempt from needing
a contractor's license?
A) When performing specific construction work on commercial agricultural
property ✔️✔️
B) When remodeling a residential kitchen valued under $100,000
C) When working as an independent subcontractor on a public works project
D) When building a new detached garage for a commercial property
Question 2: What is the required dollar amount for the contractor surety bond that
most applicants must secure to obtain their license?
A) $5,000
B) $10,000
C) $15,000 ✔️✔️
D) $25,000
Question 3: When a contractor's license is issued under a Sole Proprietorship, who
officially owns the license?
A) The individual business owner
B) The Company ✔️✔️
C) The state licensing board
D) The qualifying manager
,Question 4: Which of the following statements accurately describes the
regulations regarding an inactive contractor's license?
A) It remains valid indefinitely without any paperwork
B) It must be renewed every 4 years ✔️✔️
C) It must be renewed annually on the date of issuance
D) It cannot be reactivated once placed on inactive status
Question 5: What is the maximum number of license classifications that a
Responsible Managing Employee (RME) is allowed to apply for?
A) Only one classification at a time
B) A maximum of three related classifications
C) As many classifications as he or she can qualify for. ✔️✔️
) No more than five distinct trade classifications
Question 6: Following the receipt of a progress payment, what is the maximum
timeframe allowed for a prime contractor to pay their subcontractors?
A) Within 24 hours of receiving the funds
B) Within 7 days of receipt of each progress payment ✔️✔️
C) Within 14 business days of the invoice date
D) Within 30 days of the project completion phase
policy cancellation
-refers to the termination of a policy by an insurer before the policy's expiration
date
-insurer may not deny, cancel, or refuse to renew an insurance policy solely bc the
insured or applicant was previously denied, refused, or canceled by another insurer
, licensing and registration
-a person may not sell, solicit, or negotiate insurance in Illinois for any class of
insurance unless the person is licensed for that line of authority
-class 4 felony
insurance producer
-individual applying for a resident insurance producer license must declare under
penalty of refusal, suspension, or revocation of the license that the statements made
in the application are true, correct, and complete to the best of the individuals
knowledge
-application fee
lines of authority
-2 year insurance producer license
1)life
2)variable life and variable annuity products
3)accident and health
4)property
5)casualty
6)personal lines
nonresidents
QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS ALREADY
PASSED!!!
Question 1: Under what condition is an individual generally exempt from needing
a contractor's license?
A) When performing specific construction work on commercial agricultural
property ✔️✔️
B) When remodeling a residential kitchen valued under $100,000
C) When working as an independent subcontractor on a public works project
D) When building a new detached garage for a commercial property
Question 2: What is the required dollar amount for the contractor surety bond that
most applicants must secure to obtain their license?
A) $5,000
B) $10,000
C) $15,000 ✔️✔️
D) $25,000
Question 3: When a contractor's license is issued under a Sole Proprietorship, who
officially owns the license?
A) The individual business owner
B) The Company ✔️✔️
C) The state licensing board
D) The qualifying manager
,Question 4: Which of the following statements accurately describes the
regulations regarding an inactive contractor's license?
A) It remains valid indefinitely without any paperwork
B) It must be renewed every 4 years ✔️✔️
C) It must be renewed annually on the date of issuance
D) It cannot be reactivated once placed on inactive status
Question 5: What is the maximum number of license classifications that a
Responsible Managing Employee (RME) is allowed to apply for?
A) Only one classification at a time
B) A maximum of three related classifications
C) As many classifications as he or she can qualify for. ✔️✔️
) No more than five distinct trade classifications
Question 6: Following the receipt of a progress payment, what is the maximum
timeframe allowed for a prime contractor to pay their subcontractors?
A) Within 24 hours of receiving the funds
B) Within 7 days of receipt of each progress payment ✔️✔️
C) Within 14 business days of the invoice date
D) Within 30 days of the project completion phase
policy cancellation
-refers to the termination of a policy by an insurer before the policy's expiration
date
-insurer may not deny, cancel, or refuse to renew an insurance policy solely bc the
insured or applicant was previously denied, refused, or canceled by another insurer
, licensing and registration
-a person may not sell, solicit, or negotiate insurance in Illinois for any class of
insurance unless the person is licensed for that line of authority
-class 4 felony
insurance producer
-individual applying for a resident insurance producer license must declare under
penalty of refusal, suspension, or revocation of the license that the statements made
in the application are true, correct, and complete to the best of the individuals
knowledge
-application fee
lines of authority
-2 year insurance producer license
1)life
2)variable life and variable annuity products
3)accident and health
4)property
5)casualty
6)personal lines
nonresidents
