Podcast
Questions and Answers
The head of the Illinois Department of Insurance is the?
The head of the Illinois Department of Insurance is the?
Insurance Director
An insurance producer who violates a cease and desist order may be fined a maximum penalty of?
An insurance producer who violates a cease and desist order may be fined a maximum penalty of?
$5,000
Which of the following is NOT included in the general powers of the insurance director?
Which of the following is NOT included in the general powers of the insurance director?
- Developing insurance policies
- Writing insurance education courses (correct)
- Issuing licenses
- Conducting insurance examinations
What is the daily fine for disobeying a cease and desist order of the insurance director?
What is the daily fine for disobeying a cease and desist order of the insurance director?
The director will conduct examinations of companies not less frequently than every?
The director will conduct examinations of companies not less frequently than every?
A licensed insurance producer convicted of a felony must report the conviction within how many days?
A licensed insurance producer convicted of a felony must report the conviction within how many days?
What is the minimum number of prelicensing study hours required for a producer's license in casualty insurance?
What is the minimum number of prelicensing study hours required for a producer's license in casualty insurance?
An insurance producer must complete how many hours of continuing education in each compliance period?
An insurance producer must complete how many hours of continuing education in each compliance period?
The fine for engaging in unfair trade practice after a cease and desist order is?
The fine for engaging in unfair trade practice after a cease and desist order is?
The Illinois producer exam consists of two parts, which must be passed within how many days of each other?
The Illinois producer exam consists of two parts, which must be passed within how many days of each other?
A business entity acting as an insurance producer must obtain what kind of license?
A business entity acting as an insurance producer must obtain what kind of license?
An applicant for an insurance producer's license may be granted a temporary license that expires after how many days?
An applicant for an insurance producer's license may be granted a temporary license that expires after how many days?
In the case of a deceased licensed insurance producer, how many days may the temporary license be extended?
In the case of a deceased licensed insurance producer, how many days may the temporary license be extended?
As established by law, the fee for an insurance producer's license is?
As established by law, the fee for an insurance producer's license is?
A licensed insurance producer must advise the insurance director in writing of a change in residential address within how many days?
A licensed insurance producer must advise the insurance director in writing of a change in residential address within how many days?
All of the following are grounds for license suspension or revocation except?
All of the following are grounds for license suspension or revocation except?
Making a derogatory statement about an insurer's financial condition to injure their reputation is called?
Making a derogatory statement about an insurer's financial condition to injure their reputation is called?
An insurance producer who misappropriates funds amounting to $150 or less would be guilty of a?
An insurance producer who misappropriates funds amounting to $150 or less would be guilty of a?
Which of the following statements regarding the payments of commissions is not correct?
Which of the following statements regarding the payments of commissions is not correct?
Premium funds held by an insurance producer must be deposited in?
Premium funds held by an insurance producer must be deposited in?
All of the following acts are illegal under the insurance laws of Illinois except?
All of the following acts are illegal under the insurance laws of Illinois except?
A misrepresentation or false warranty by an insured will not void an insurance policy unless?
A misrepresentation or false warranty by an insured will not void an insurance policy unless?
An agent whose license is revoked will be ineligible to reapply for any license for how many years?
An agent whose license is revoked will be ineligible to reapply for any license for how many years?
Controlled business is insurance sold to cover the lives, businesses, properties, or risks of all the following except?
Controlled business is insurance sold to cover the lives, businesses, properties, or risks of all the following except?
Applicants for insurance producer licenses must meet all of the following requirements except?
Applicants for insurance producer licenses must meet all of the following requirements except?
Which of the following statements about continuing education requirements in Illinois is not correct?
Which of the following statements about continuing education requirements in Illinois is not correct?
All of the following statements about rebating are correct except?
All of the following statements about rebating are correct except?
Which of the following persons need to be licensed to transact insurance business?
Which of the following persons need to be licensed to transact insurance business?
Regarding company claims practices, which of the following statements is not correct?
Regarding company claims practices, which of the following statements is not correct?
The Illinois guaranty fund was established to protect all of the following except?
The Illinois guaranty fund was established to protect all of the following except?
A fire policy that has been in effect for two years may be cancelled for all of the following reasons except?
A fire policy that has been in effect for two years may be cancelled for all of the following reasons except?
Mine subsidence insurance covers losses arising from?
Mine subsidence insurance covers losses arising from?
Refusing to write property insurance solely on the basis of geographical location is called?
Refusing to write property insurance solely on the basis of geographical location is called?
A person is eligible for insurance under the Illinois Fair Plan after how many rejections by insurers?
A person is eligible for insurance under the Illinois Fair Plan after how many rejections by insurers?
The Illinois Fair Plan provides coverage in urban areas as defined by an?
The Illinois Fair Plan provides coverage in urban areas as defined by an?
A commercial property policy may be canceled within 10 days of written notice if insured buildings have not been repaired within?
A commercial property policy may be canceled within 10 days of written notice if insured buildings have not been repaired within?
Once a personal auto policy has been in effect for 60 days or more, the insurer may cancel for all of the following reasons except?
Once a personal auto policy has been in effect for 60 days or more, the insurer may cancel for all of the following reasons except?
When a fire and extended coverage policy is canceled or not renewed, an insurer is required to give notice of eligibility for a fair plan if?
When a fire and extended coverage policy is canceled or not renewed, an insurer is required to give notice of eligibility for a fair plan if?
Which of the following would be considered unfair discrimination in property and casualty rate setting?
Which of the following would be considered unfair discrimination in property and casualty rate setting?
Which of the following statements concerning the Illinois automobile insurance plan is correct?
Which of the following statements concerning the Illinois automobile insurance plan is correct?
The equipment exclusion in Illinois refers to?
The equipment exclusion in Illinois refers to?
All of the following statements about the defensive driving discount are correct except?
All of the following statements about the defensive driving discount are correct except?
Which of the following statements regarding the workers compensation assigned risk plan in Illinois is not correct?
Which of the following statements regarding the workers compensation assigned risk plan in Illinois is not correct?
Within how many days must an insurer disclose an insured's auto liability coverage amount after a written request?
Within how many days must an insurer disclose an insured's auto liability coverage amount after a written request?
The Illinois automobile insurance plan offers all of the following coverages except?
The Illinois automobile insurance plan offers all of the following coverages except?
The mandatory liability coverage limits for automobiles in Illinois is?
The mandatory liability coverage limits for automobiles in Illinois is?
How must an insurer treat premiums for a covered auto that is equipped with an anti-theft mechanism?
How must an insurer treat premiums for a covered auto that is equipped with an anti-theft mechanism?
Which of the following statements regarding auto insurance premium estimates is correct?
Which of the following statements regarding auto insurance premium estimates is correct?
The minimum penalty for giving a fraudulent residential address on an automobile insurance application is?
The minimum penalty for giving a fraudulent residential address on an automobile insurance application is?
The mandatory liability coverage limits affect all registered motor vehicles except?
The mandatory liability coverage limits affect all registered motor vehicles except?
Flashcards
Who is the leader of the Illinois Department of Insurance?
Who is the leader of the Illinois Department of Insurance?
The head of the Illinois Department of Insurance, responsible for overseeing insurance regulation.
What is a cease and desist order?
What is a cease and desist order?
A formal order to stop an illegal or harmful action, issued by the Illinois Department of Insurance.
What are the consequences of violating a cease and desist order?
What are the consequences of violating a cease and desist order?
License suspension or revocation, fines up to $5,000, and daily fines of $100.
What happens if unfair trade practices continue after a cease and desist order?
What happens if unfair trade practices continue after a cease and desist order?
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How often are insurance companies examined in Illinois?
How often are insurance companies examined in Illinois?
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How many prelicensing study hours are needed for a casualty insurance license?
How many prelicensing study hours are needed for a casualty insurance license?
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How many continuing education hours are necessary for insurance producers?
How many continuing education hours are necessary for insurance producers?
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How many parts are in the insurance producer exam?
How many parts are in the insurance producer exam?
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How long is a temporary insurance producer's license valid?
How long is a temporary insurance producer's license valid?
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How much is the application fee for an insurance producer's license?
How much is the application fee for an insurance producer's license?
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What is the timeframe for notifying the insurance director of an address change?
What is the timeframe for notifying the insurance director of an address change?
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Can a misdemeanor lead to license suspension for insurance producers?
Can a misdemeanor lead to license suspension for insurance producers?
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What is the legal classification for misappropriating insurance funds under $150?
What is the legal classification for misappropriating insurance funds under $150?
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What is defamation in insurance?
What is defamation in insurance?
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Where must premium funds be held?
Where must premium funds be held?
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Is replacing a life insurance policy legal in Illinois?
Is replacing a life insurance policy legal in Illinois?
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When does misrepresentation by an insured void a policy?
When does misrepresentation by an insured void a policy?
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Is it allowed to share commissions with non-resident licensed producers?
Is it allowed to share commissions with non-resident licensed producers?
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Who are rebates unlawful for?
Who are rebates unlawful for?
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When does an individual qualify for insurance under the Illinois Fair Plan?
When does an individual qualify for insurance under the Illinois Fair Plan?
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Do urban area definitions for the Illinois Fair Plan include the Illinois Fair Plan Association?
Do urban area definitions for the Illinois Fair Plan include the Illinois Fair Plan Association?
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Can property insurance be canceled due to a space heater after two years?
Can property insurance be canceled due to a space heater after two years?
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What are the mandatory liability limits in Illinois?
What are the mandatory liability limits in Illinois?
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Can insurers cancel a personal auto policy during license renewal?
Can insurers cancel a personal auto policy during license renewal?
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How do anti-theft devices affect auto insurance premiums?
How do anti-theft devices affect auto insurance premiums?
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Does the Workers Compensation Assigned Risk Plan require prior insurer rejections?
Does the Workers Compensation Assigned Risk Plan require prior insurer rejections?
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How long do insurers have to disclose auto liability coverage information?
How long do insurers have to disclose auto liability coverage information?
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Is sex-based discrimination allowed in fire and extended coverage insurance?
Is sex-based discrimination allowed in fire and extended coverage insurance?
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Does the Illinois Automobile Insurance Plan offer underinsured motorist coverage?
Does the Illinois Automobile Insurance Plan offer underinsured motorist coverage?
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Study Notes
Illinois Department of Insurance
- The leader of the Illinois Department of Insurance is the Insurance Director.
License Violations and Penalties
- Violating a cease and desist order can result in license suspension or revocation with fines up to $5,000.
- Daily fines for disobeying a cease and desist order may reach $100.
- Engaging in unfair trade practices post-cease and desist incurs fines of $1,000 per violation.
Examination and Licensing Requirements
- Companies are examined by the director at least every five years.
- Licensed producers must complete 20 prelicensing study hours for a casualty insurance license and 24 hours of continuing education for compliance periods.
- The producer exam consists of two parts that must be passed within 90 days of each other.
- A temporary insurance producer's license expires after 90 days but can be extended to 180 days for the executor of a deceased producer.
Producer License Fees and Address Changes
- The application fee for an insurance producer's license is $180, valid for two years.
- Producers must notify the insurance director of any address change within 30 days.
Grounds for License Suspension
- License suspension or revocation can be due to felony convictions, but not for misdemeanors.
- Misappropriating insurance funds of $150 or less is a Class A Misdemeanor.
Insurance Practices and Regulations
- Defamation involves making misleading statements about an insurer's financial status.
- Premium funds must be held in trust accounts, while replacing life insurance policies is legal.
- Misrepresentation by an insured only voids a policy if intent to deceive is proven or if it affects risk acceptance.
Rebating and Commission Payments
- Sharing commissions with non-resident licensed producers is prohibited.
- Rebate transactions are unlawful for agents, although accepting them may not be illegal for insureds.
Fair Plans and Coverage
- An individual qualifies for insurance under the Illinois Fair Plan after three rejections by insurers.
- Urban area definitions for Fair Plan coverage do not include the Illinois Fair Plan Association.
- Coverage for property insurance cannot be canceled due to the presence of a space heater after two years.
Automobile Insurance Regulations
- Mandatory liability limits in Illinois are set at 25/50/20.
- Insurers may cancel a personal auto policy after 60 days but cannot do so for license renewal.
- Discounts for anti-theft mechanisms should result in reduced premiums.
Workers' Compensation and Claims Practices
- The Workers Compensation Assigned Risk Plan does not require prior rejection by insurers within 60 days for application.
- Insurers must disclose auto liability coverage amounts within 30 days of a written request.
Discrimination and Coverage Issues
- Discriminatory practices based on sex in fire and extended coverage insurance are unfair.
- The Illinois Automobile Insurance Plan does not offer underinsured motorist coverage.
Final Notes
- Incorrect assumptions about continuing education courses that restrict learning environments may mislead applicants.
- Providing a fraudulent address on an automobile insurance application results in a minimum penalty of $1,001.
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