WorksheetsIllinois Statues
Total questions: 78
Worksheet time: 18hrs 18mins
the (a) is charged with the rights, powers, and duties necessary to enforce and execute the insurance laws of the state of Illinois
the director of insurance has the power to do all of the following except:
make reasonable rules and regulations
conduct investigations, examinations and hearings
request the attorney general to proceed in the courts to enforce the insurance law
request records
Set premium rates for all insurance policies
when it appears to the director that a person or company is conducting business that violates Illinois insurance law or endangers policyholders, companies or the general public, he may issue, WITHOUT NOTICE, a _________
Cease and desist order
summary suspension
Consent decree
Temporary restraining order
when a cease and desist order is issued, the Director of insurance will:
Immediately revoke the insurance license of the individual or company involved.
Schedule a hearing to be held within 20 to 30 days after the order is issued and take action if the violations are found to be true
Impose a fine on the individual or company without a hearing.
Require the individual or company to submit a corrective action plan within 10 days
If the violators do not comply with the cease and desist order they could be subject to a fine up to _______
$1,000 per day, with a maximum of $10,000
$50 per day, with a maximum of $2,500
$100 per day, with a maximum of $5,000
$200 per day, with a maximum of $15,000
To determine the insurer's financial condition and business practices, the director of insurance can investigate insurers, individuals involved in forming a company, those managing or controlling a company, licensed producers or firms, business adjusters, and anyone with information related to company operation to determine financial condition and business practices.
True
False
the director or any of her examiners can conduct a financial examination of any company as often as the director deems appropriate but, at a minimum conduct a financial examination not less than once every ____ years
two
three
four
five
the cost of an examination will be covered by the company being examined. If a hearing is required, the company will be given __ days advanced notice in writing. Anyone who refuses or fails to submit to an examination will be penalized up to $______
10; $1000
30; $1000
10; $2000
30; $2000
Once the examination is complete, a written report of the findings may be submitted with the following information: facts that were obtained, sworn testimony, and ...
(a)
if a report is made, it shall be delivered to the person being examined, the examinee has __ days to request a hearing.
10
12
14
16
If a report is made, it shall be delivered to the person being examined, the examinee has 14 days to request a hearing. The request must be in writing and the Director must issue a written order within __ days.
30
45
60
90
If the producer is found guilty, the producer may be fined up to $____
$10,000
$20,000
$30,000
$50,000
a person cannot sell, solicit or negotiate insurance in the state of Illinois unless the person is licensed for that line of authority. If found guilty, the person could face fines and a ______
class a misdemeanor
class b misdemeanor
class 3 felony
6 month suspension
a person cannot sell, solicit or negotiate insurance in the state of Illinois unless the person is licensed for that line of authority. If found guilty, the person could face fines and a Class A misdemeanor. Additionally, any person who fails to obtain a license and misappropriates or converts money to their own use will be guilty of a _______.
class a misdemeanor
Class 4 felony
class 3 felony
class b misdemeanor
a person applying for a resident insurance producer must meet the following requirements:
Be at least 16 years of age, not been convicted of a felony, complete a pre-licensing course of study, successfully pass the examination
Be at least 18 years of age, not been convicted of a felony, complete a pre-licensing course of study, successfully pass the examination
Be at least 18 years of age, not been convicted of more than 1 felony, complete a pre-licensing course of study, successfully pass the examination
Be at least 18 years of age, not been convicted of a felony, complete a pre-licensing course of study, successfully pass only one of the exams
Licensing fees are directed into a special fund called the __________
General Insurance Revenue Fund
Insurance Producer Administrative Fund
Special Licensing Fund
Insurance Producer Regulation Fund
fee for a resident insurance producer license
$50 a month
$150 every two years
$50 a year
$215 every two years
fee for non-resident insurance producer license
$215 biannually
$350 every two years
$380 every two years
$1000 a year
fee for a temporary insurance producer license
$30
$50
$100
$150
fee for a business entity
$215 every two years
$150 every two years
$380 annually
$1000 every two years
fee for a limited lines producer license
$215 every two years
$150 every two years
$50 every two years
$50 annually
fee for the processing of the written examination
$20
$30
$40
$50
fee for the registration of an education provider
$215
$380
$500
$1000
fee for each certified pre-licensing or continuing education course
$50
$60
$80
$90
fee for renewing
$10
$20
$40
$50
fee for a resident for a car rental limited lines license
$150 every two years
$180 every two years
$215 every two years
$380 every two years
fee for a non-resident for a car rental limited lines license
$180 anually
$215 every two years
$250 every two years
$380 every two years
the fee for a limited lines license other than all the other ones mentioned
$150 anually
$200 every two years
$215 every two years
$380 every year
the fee for a self-service storage facility limited lines license
$50 every year
$50 every two years
$150 every year
$150 biannually
a person applying for a resident insurance producer license has to complete a pre-licensing course for each class of insurance for which a producer license is requested. The required hours are:
25 hours; 7.5 of them are mandatory classroom hours / 12 hours for a motor vehicle insurance license; 5 of them are mandatory classroom hours
22 hours; 7.5 of them are mandatory classroom hours / 12.5 hours for a motor vehicle insurance license; 6 of them are mandatory classroom hours
20 hours; 5 of them are mandatory classroom hours / 12.5 hours for a motor vehicle insurance license; 3 of them are mandatory classroom hours
20 hours; 7.5 of them are mandatory classroom hours / 12.5 hours for a motor vehicle insurance license; 5 of them are mandatory classroom hours
(a) insurance policies are those that are arranged and sold by an insurance broker, who acts as an intermediary between the insurance company and the client.
In Illinois, an insurance producer who places insurance either directly or indirectly with an insurer with which they do not have an agent contract must be:
Licensed as a broker
Covered by a bond in favor of the State of Illinois
Registered with the Department of Insurance
Employed by a licensed insurance company
In Illinois, if you place insurance either directly or indirectly with an insurer that you do not have an agent contract with, you are required to be bonded. The amount of this bond is ...
$2500 or 5% of the premiums brokered whichever is greater but not to exceed $100,000
$2000 or 5% of the premiums brokered whichever is greater but not to exceed $50,000
$2500 or 5% of the premiums brokered whichever is greater but not to exceed $50,000
$2500 or 10% of the premiums brokered whichever is greater but not to exceed $50,000
an individual that is applying for a insurance producer license must:
sit and pass both parts of the exam within 60 days of each other and pay a nonrefundable fee to Illinois plus a testing fee
sit and pass both parts of the exam within 100 days of each other and pay a nonrefundable fee to Illinois plus a testing fee
sit and pass both parts of the exam within 90 days of each other and pay a refundable fee to Illinois plus a testing fee
sit and pass both parts of the exam within 90 days of each other and pay a nonrefundable fee to Illinois plus a testing fee
In Illinois, which of the following individuals are NOT allowed to charge a fee for offering advice, counsel, opinion, or services regarding the benefits, advantages, or disadvantages under any insurance policy?
Licensed attorneys
trust officers
licensed insurance producers and public adjusters
actuaries
real estate agent
a non-resident person may receive a nonresident license if:
the person is currently licensed and in good standing in their home state
the person has submitted the proper fees
the person has submitted an application to the Director
the person's home state awards non-residents producer licenses to residents of Illinois on the same basis
all of the above
if the non-resident producer moves from one state to another or a resident Illinois producer moves to another state, the producer must file a change of address within (a) days.
A business entity acting as an insurance producer must obtain an insurance producer license. The business entity must apply by using the __________ application.
Individual License Application
Corporate License Application
Uniform Business Entity Application
Partnership License Application
Before approving the Uniform Business Entity application, the Director must find:
the entity has paid the $150 fee and has a DRLP for the entity's compliance with the insurance laws of IL
the entity has paid the $200 fee and has a DOOR for the entity's compliance with the insurance laws of IL
the entity has paid the $150 fee and has a DLPR for the entity's compliance with the insurance laws of IL
the entity has paid the $100 fee and has a DP for the entity's compliance with the insurance laws of IL
The director may issue a temporary insurance producer license for up to __ days and at the discretion of the Director issue a renewal for an additional __ days without requiring an examination
(a)
a company may file an individual (a) day temporary producer license with the Director and meet the following requirements: individual must be enrolled in a training course, must be in the process of fulfilling the pre-licensing requirement, submit the proper applications and fees, and the applicant cannot hold more than one temporary license during their lifetime.
once an insurance producer is licensed, the licensee has to complete at least 24 hours of continuing education. (a) of the 24 hours has to be an ethics course taught in classroom or by live webinar. The producer is required to keep proof of completing the hours for 3 years. if the producer does not complete the required hours, the license can be terminated.
The insurance producer cannot write more than (a) % controlled business. controlled business is defined by the statute to mean: insurance procured or to be procured by or through the person upon a) his own life, person, property or risks or those of his spouse or b) the life, person, property, or risks of this employer or his own business.
a licensed insurance producer must inform the Director by any means acceptable of a change of address within (a) days after the change
if an insurance producer allows his or her license to lapse, the producer may within (a) months after the due date of the renewal fee, be issued a license without the necessity of passing a written examination. Additionally, all continuing education hours must be satisfied.
If an insurance producer allows his or her license to lapse, the penalty in the amount of double the unpaid renewal fee is required. That amount is $___
215
230
430
460
An individual, partnership, association, or corporation licensed by the Illinois Department of Insurance may choose to place their license on inactive status if they are employed by a government unit where holding the license would pose a (a) . This requires notifying the Director in writing using prescribed Department forms and paying any applicable licensing renewal fees, subject to Department rules.
a licensee whose license is on inactive status may have the license restored by submitting an application to the Department on a prescribed form. The application must be accompanied with a fee of $_ plus the current applicable license fee
(a)
a license may be placed on inactive status for a 2-year period, and upon request, the inactive status may be extended for a an additional 2 years as long as it does not exceed a (a) year inactive period. after a license has been inactive for four years or more, the licensee must meet all of the standards required of a new applicant before the license may be restored to active status.
a licensed insurance producer who is unable to comply with license renewal procedures due to military service may request a (a) of those procedures.
If the Director takes action to nonrenew, suspend, or revoke a license, the applicant or licensee has 30 days to submit a written request for a hearing. The hearing must be scheduled to occur within no fewer than 20 days and no more than 30 days after the notice of the hearing is mailed.
In addition to or instead of denying, suspending, or revoking a license, the Director has the authority to impose a civil penalty. This penalty can be up to $ (a) for each cause, but the total penalty imposed cannot exceed $100,000.
if an insurance producer's license is in denial that means they cannot reapply for a license for (a) years
if an insurance producer's license is in revocation this means that the individual cannot reapply for a license for (a) years
if an insurance producer's license is in suspension it will last until licensee comes into (a) with Order. For example, licensee delinquent on State taxes will be suspended until they come into compliance with Department of Revenue
an individual whose license has been revoked, suspended, or denied has (a) days from the date of the Order to request a hearing
If an insurance producer of any kind misappropriates, converts, or improperly withholds $150 or less, they will be charged with a...
class a misdemeanor
class b misdemeanor
class c misdemeanor
class 5 felony
in the case of withholding money or anything similar, if an insurance producer repeats offenses they will be subject to a...
class 2 felony
class 3 misdemeanor
class 4 felony
class c misdemeanor
if any misappropriated funds are more than $150, the producer will be charged with a....
class b misdemeanor
class 3 felony
class c felony
class 4 felony
a producer that is authorized by an insurer to collect premium on its behalf cannot hold premiums more than (a) days
the department of insurance issues guidelines for handling and keeping records of premium funds. any funds held longer than 15 days must be placed in a...
General Operating Account
Business Operating Account
Premium Fund Trust Account (PFTA)
Investment Account
The PFTA must be established and maintained with a financial institution located in the state of Illinois. All PFTA records must be maintained for ___ years
5
6
7
8
Which of the following are allowable disbursements from a premium fund trust account?
Personal expenses
Premium payments to insurers
Business operating expenses
Investments
Which of the following are allowable disbursements from a premium fund trust account?
Personal expenses
Commission payments
Loans
Investments
Which of the following is not allowed as a disbursements from a premium fund trust account?
return premium payment (must be paid within 15 days of receipt)
interest withdrawals (if company approves of interest bearing account)
other payments when matched with previous deposit
business operating expenses (if insurer approves)
what are records are required for a PFTA?
receipts, disbursements, supporting documents, annual financial reports
receipts, disbursements, income statements, bank reconciliations (every 30 days, no negative balance)
receipts, disbursements, supporting documents, bank reconciliations (every 30 days, no negative balance)
employee payroll records records, disbursements, supporting documents, bank reconciliations (every 30 days, no negative balance)
any return premiums due from the producer to the consumer must be paid within (a) days of receipt from the insurer.
renewal or other deferred commissions may be paid to a person for selling soliciting, or negotiating insurance if that person......
Performed Services Leading to the Sale
Continues to Comply with Regulatory Requirements
was licensed at the time of sale
is still an active employee of the insurance company.
Under what condition may an insurer or producer pay or assign commissions, fees, brokerages, or other valuable considerations to an insurance agency or to persons who do not sell, solicit, or negotiate insurance?
If the payment would not violate the rebating law.
If the payment is below a certain monetary threshold
If the person receiving the payment holds a valid insurance license
If the person receiving the payment has referred clients to the insurer or producer.
if the producer receives a fee, a copy written disclosure must be kept for seven years. If the compensation fee exceeds ___% of the premium amount, the written disclosure must include the signature of the insured acknowledging the fee
5
8
10
15
if an insurance policy is canceled for any reason within (a) days of the effective date, the insurance producer must refund a prorated portion of the fee or compensation within 30 days unless disclosure indicated fee is earned.
if an insurance producer is convicted of a felony, the producer must report the conviction to the Director within (a) days of the judgement.
If the Director finds that a company has engaged in an improper claims practice, the Director can order that company to cease and desist. This action can lead to suspension for up to 6 months and civil penalty of $ (a)
Any company or any person violating the rebating law will be guilty of a_________. If the producer is found guilty of rebating, the licensee may not receive commission for that policy.
Class A misdemeanor
Class B misdemeanor
class 4 felony
Class 3 felony
oral or written statements that are false, maliciously critical or critical to the financial conditions of the insurer.
the penalty for misrepresentation and defamation is a fine between ___________ assessed by the Attorney General or local State's Attorney. This would be separate and apart from penalty assessed by the DOI.
$500 and $1000
$200 and $10000
$100 and $10000
$1000 and $100000
The Director may issue a cease and desist order to anyone violating an unfair marketing practice. Anyone that violates the order can be subject to a penalty of $ (a) per violation
the purpose of the fund is to provide a mechanism for the payment of covered claims under certain policies so that there will be no excessive delay or financial loss to the claimants due to an insolvent insurance company.
Illinois Insolvent Fund
Insurance Trust Fund
Illinois Insurance Guaranty Fund
Reimbursement Fund
the Illinois Insurance Guaranty Fund is comprised of member insurance companies that are assessed contributions according to the volume of business written in the state of Illinois. the maximum assessment is _% of that member company's net direct written premiums
1
2
3
4
