Illinois Insurance Licensing Oversight

Questions and Answers

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?

$5,000

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?

$100 Signup and view all the answers

The director will conduct examinations of companies not less frequently than every?

5 years Signup and view all the answers

A licensed insurance producer convicted of a felony must report the conviction within how many days?

30 Signup and view all the answers

What is the minimum number of prelicensing study hours required for a producer's license in casualty insurance?

20 hours Signup and view all the answers

An insurance producer must complete how many hours of continuing education in each compliance period?

24 hours Signup and view all the answers

The fine for engaging in unfair trade practice after a cease and desist order is?

$1,000 per violation Signup and view all the answers

The Illinois producer exam consists of two parts, which must be passed within how many days of each other?

90 days Signup and view all the answers

A business entity acting as an insurance producer must obtain what kind of license?

Insurance producer license Signup and view all the answers

An applicant for an insurance producer's license may be granted a temporary license that expires after how many days?

90 days Signup and view all the answers

In the case of a deceased licensed insurance producer, how many days may the temporary license be extended?

180 days Signup and view all the answers

As established by law, the fee for an insurance producer's license is?

$180 every two years Signup and view all the answers

A licensed insurance producer must advise the insurance director in writing of a change in residential address within how many days?

30 days Signup and view all the answers

All of the following are grounds for license suspension or revocation except?

Conviction of a misdemeanor Signup and view all the answers

Making a derogatory statement about an insurer's financial condition to injure their reputation is called?

Defamation Signup and view all the answers

An insurance producer who misappropriates funds amounting to $150 or less would be guilty of a?

Class A Misdemeanor Signup and view all the answers

Which of the following statements regarding the payments of commissions is not correct?

A producer may not share commissions with a licensed non-resident producer Signup and view all the answers

Premium funds held by an insurance producer must be deposited in?

Premium fund trust accounts Signup and view all the answers

All of the following acts are illegal under the insurance laws of Illinois except?

Replacing a life insurance policy with another Signup and view all the answers

A misrepresentation or false warranty by an insured will not void an insurance policy unless?

There was intent to deceive or it materially affects acceptance of the risk by the company Signup and view all the answers

An agent whose license is revoked will be ineligible to reapply for any license for how many years?

3 years Signup and view all the answers

Controlled business is insurance sold to cover the lives, businesses, properties, or risks of all the following except?

Friends of the insurance producer Signup and view all the answers

Applicants for insurance producer licenses must meet all of the following requirements except?

Be at least 21 years old Signup and view all the answers

Which of the following statements about continuing education requirements in Illinois is not correct?

Only classroom courses are approved for credit Signup and view all the answers

All of the following statements about rebating are correct except?

Insureds may accept rebates Signup and view all the answers

Which of the following persons need to be licensed to transact insurance business?

A resident individual who sells homeowners insurance Signup and view all the answers

Regarding company claims practices, which of the following statements is not correct?

A company may require an insured to submit to a polygraph test Signup and view all the answers

The Illinois guaranty fund was established to protect all of the following except?

Insurance companies Signup and view all the answers

A fire policy that has been in effect for two years may be cancelled for all of the following reasons except?

Having a space heater in the dwelling Signup and view all the answers

Mine subsidence insurance covers losses arising from?

The collapse of man-made mines Signup and view all the answers

Refusing to write property insurance solely on the basis of geographical location is called?

Redlining Signup and view all the answers

A person is eligible for insurance under the Illinois Fair Plan after how many rejections by insurers?

3 Signup and view all the answers

The Illinois Fair Plan provides coverage in urban areas as defined by an?

Illinois Fair Plan Association Signup and view all the answers

A commercial property policy may be canceled within 10 days of written notice if insured buildings have not been repaired within?

60 days Signup and view all the answers

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?

License renewal Signup and view all the answers

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?

The property location is in an urban area Signup and view all the answers

Which of the following would be considered unfair discrimination in property and casualty rate setting?

Gender-related pricing Signup and view all the answers

Which of the following statements concerning the Illinois automobile insurance plan is correct?

Uninsured motorist coverage is available Signup and view all the answers

The equipment exclusion in Illinois refers to?

Auto insurance Signup and view all the answers

All of the following statements about the defensive driving discount are correct except?

A defensive driving course of 10 hours or more must be completed Signup and view all the answers

Which of the following statements regarding the workers compensation assigned risk plan in Illinois is not correct?

It is mandatory for all employers Signup and view all the answers

Within how many days must an insurer disclose an insured's auto liability coverage amount after a written request?

30 days Signup and view all the answers

The Illinois automobile insurance plan offers all of the following coverages except?

Underinsured motorist coverage Signup and view all the answers

The mandatory liability coverage limits for automobiles in Illinois is?

25/50/20 Signup and view all the answers

How must an insurer treat premiums for a covered auto that is equipped with an anti-theft mechanism?

Reduce premiums Signup and view all the answers

Which of the following statements regarding auto insurance premium estimates is correct?

Estimates are typically not binding. Signup and view all the answers

The minimum penalty for giving a fraudulent residential address on an automobile insurance application is?

$1,001 Signup and view all the answers

The mandatory liability coverage limits affect all registered motor vehicles except?

Trailers Signup and view all the answers

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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Description

This quiz focuses on the key regulations and requirements of the Illinois Department of Insurance, including license penalties, examination processes, and fees. Test your knowledge on the laws governing insurance producers in Illinois and the implications of violations. Understand the responsibilities and obligations expected from licensed professionals in the insurance industry.