State Life Exam Q's to Study

The policy loans provision states that the insurer must advance to the policyowner a sum up to the policy's cash value after the full amount of premiums have been paid for how long?

3 years

A producer whose license is revoked or whose application for a license is denied will be ineligible to reapply for any license for at least

3 years.

A producer receives notice that his license has been terminated. If the producer wants to have the charges reviewed in court, within what time period must the request be made?

30 days

How long must an insurer's advertisements be kept on file?

4 years

What is the maximum percentage of the face amount of a life insurance policy that can be paid in an acceleration of benefits?

75%

Which of the following correctly describes controlled business?

Anytime more than 50% of the total premiums collected by a producer comes from themselves, his or her spouse, employer, or own business

The act of rebating is considered a(n)

Class B misdemeanor.

With which entity must a corporation register before it will be allowed to operate as an insurance agency?

Director

All of the following are true about the bond requirements in the state of Illinois EXCEPT

Insurance producers with insurance companies that take responsibility for their actions are still required to post a bond.

To which of the following situations does the Replacement Regulation apply?

Nonrenewable coverage expiring in 8 years

Under standard circumstances, at what point should a Buyer's Guide be distributed to a prospective buyer?

Prior to the initial premium

In the event a licensed producer dies, a temporary license may be issued to the deceased producer's representative. This temporary license will allow the licensee to do all of the following EXCEPT

Solicit insurance.

An applicant receives a temporary insurance producer license. After 80 days, the owner of the insurance company decides to sell the business. Which of the following is TRUE?

The license will automatically terminate.

A group insurance policy was solicited by a limited insurance representative. Which of the following is true according to the disclosure regulation?

The representative's name and signature must appear on the master policy.

An insured has been diagnosed with a life-threatening disease, and is given approximately 6 months to live. The insured is in a hard financial situation which will worsen with the upcoming medical expenses. Which of the following options could the insured utilize right away?

Viatical Settlement

Warranty

an absolutely true statement upon which the validity of the insurance policy depends

The Director may refuse to issue a license if a licensee's aggregate amount of premiums on controlled business exceeded the aggregate amount of premiums on all other insurance business during

2 calendar years immediately preceding the extension date of the license.

How soon must the insurer pay a death benefit claim after receiving the proof of death?

2 months

Producer licenses are good for what period of time before renewal is required?

2 years

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

20

All Illinois insurance producers must complete how many hours of ethics training to renew a a license?

3 hours

A producer failed to complete the required continuing education credit hours for this compliance period, and allowed his license to lapse. Within what time period after the deadline may the license be reinstated?

12 months

In the event an insurer is found guilty of committing defamation, the insurer may be subject to the maximum penalty of

$10,000.

Producers who broker insurance must file a bond along with the application for license. The bond must be issued in favor of the people of Illinois, and must be on a continuous form and for an amount equal to 5% of the premium brokered the previous year, NOT to exceed

$50,000

Within how many days may a person who is being examined by the Director for nonfinancial business practices request a hearing after receiving the examination report?

10 days