ILLINOIS LAWS AND RULES PERTINENT TO
INSURANCE EXAM 2025/2026 WITH ACTUAL
CORRECT QUESTIONS AND VERIFIED
DETAILED ANSWERS |CURRENTLY TESTING
QUESTIONS AND SOLUTIONS|ALREADY
GRADED A+|NEWEST|BRAND NEW VERSION
!!|GUARANTEED PASS
An accelerated (living) benefit is payable based upon the occurrence of a qualifying event. This
qualifying event is certified by a(n)
Physician
Which of the following types of insurance may a limited lines producer sell?
Industrial Life
The ____ must be signed by both the producer and applicant when an existing life insurance
policy is being reissued with a reduction in cash value
Notice Regarding Replacement
J has been issued a temporary insurance producer license. How many of these licenses may J
hold in a lifetime?
1
Which of these is a REQUIREMENT for obtaining a nonresident insurance producer license?
A similar license must be held by the producer in his/her state of residence
Life insurance replacement regulation protects the interests of
policy owner
The Life and Health insurance Guaranty Association
Assumes the financial obligations of insolvent companies
1|Page
, Which of these statements accurately reflects Illinois law regarding life insurance
advertisements?
An insurance agency is responsible for advertisements placed by its insurance producers
Which of these actions fall under Illinois' definition of rebating?
Discounting insurance premium by the producer
A business entity wishes to become approved as a producer for soliciting insurance business.
Before doing so, the business entity is required to submit to the Director a(n)
designated producer assigned for compliance with Illinois insurance laws
A producer has influenced an existing policyowner to convert an existing whole life policy to
Reduced Paid-Up insurance. The producer then sells the policyowner a new universal life policy.
This transaction is called a(n)
replacement
A policy owner decides to cancel an insurance policy within 90 days of the issue date. As a result
of this cancellation, the producer is REQUIRED to refund a prorated portion of any fee charged
within __ days of receiving the cancellation notice.
30 days
An example of unfair claims practice would be
failing to effectuate prompt, fair, and equitable claim settlements
All of the following are examples of insurance advertisement except
a memo from an employer announcing the availability of coverage for employees
A hearing must be held before a producer's license can be suspended or revoked. Prior to the
hearing, the director is required to
give a written notice to the producer
Which of the following actions by a producer would NOT result in a license suspension or
revocation?
Producer sells a replacement policy that causes an insured to lapse an existing policy
Which licensee faces possible license revocation by the director?
Licensee who commingles monies belonging to policyholder with personal funds
2|Page
INSURANCE EXAM 2025/2026 WITH ACTUAL
CORRECT QUESTIONS AND VERIFIED
DETAILED ANSWERS |CURRENTLY TESTING
QUESTIONS AND SOLUTIONS|ALREADY
GRADED A+|NEWEST|BRAND NEW VERSION
!!|GUARANTEED PASS
An accelerated (living) benefit is payable based upon the occurrence of a qualifying event. This
qualifying event is certified by a(n)
Physician
Which of the following types of insurance may a limited lines producer sell?
Industrial Life
The ____ must be signed by both the producer and applicant when an existing life insurance
policy is being reissued with a reduction in cash value
Notice Regarding Replacement
J has been issued a temporary insurance producer license. How many of these licenses may J
hold in a lifetime?
1
Which of these is a REQUIREMENT for obtaining a nonresident insurance producer license?
A similar license must be held by the producer in his/her state of residence
Life insurance replacement regulation protects the interests of
policy owner
The Life and Health insurance Guaranty Association
Assumes the financial obligations of insolvent companies
1|Page
, Which of these statements accurately reflects Illinois law regarding life insurance
advertisements?
An insurance agency is responsible for advertisements placed by its insurance producers
Which of these actions fall under Illinois' definition of rebating?
Discounting insurance premium by the producer
A business entity wishes to become approved as a producer for soliciting insurance business.
Before doing so, the business entity is required to submit to the Director a(n)
designated producer assigned for compliance with Illinois insurance laws
A producer has influenced an existing policyowner to convert an existing whole life policy to
Reduced Paid-Up insurance. The producer then sells the policyowner a new universal life policy.
This transaction is called a(n)
replacement
A policy owner decides to cancel an insurance policy within 90 days of the issue date. As a result
of this cancellation, the producer is REQUIRED to refund a prorated portion of any fee charged
within __ days of receiving the cancellation notice.
30 days
An example of unfair claims practice would be
failing to effectuate prompt, fair, and equitable claim settlements
All of the following are examples of insurance advertisement except
a memo from an employer announcing the availability of coverage for employees
A hearing must be held before a producer's license can be suspended or revoked. Prior to the
hearing, the director is required to
give a written notice to the producer
Which of the following actions by a producer would NOT result in a license suspension or
revocation?
Producer sells a replacement policy that causes an insured to lapse an existing policy
Which licensee faces possible license revocation by the director?
Licensee who commingles monies belonging to policyholder with personal funds
2|Page
