Property/Casualty Il laws & Regulations
Mr. James, an insurance producer, has an agreement with crash mutual automobile insurance company. The agreement authorizes Mr. James to sell and service policies issued by Crash mutual. What would you call this agreement.
An agency agreement
If it insurance company becomes insolvent, which of the following would apply
And assessment may be made against the members of the Illinois insurance guaranty fund to pay claims
When must an insurance company allow a rate reduction on an auto policy
And auto equipped with an antitheft mechanism
Which of the following statements describes an insurance producer
And individual who sells, solicits or negotiates coverage on property located in Illinois
What is proof of mailing
Any post office form indicating that a letter was mailed on a certain date with certain address
Which of the following statements concerning cancellation and nonrenewal of the fire insurance policy is true
Hey policy can be nonrenewed due to too many claims
Which of the following is not a quality needed to be a professional person
Hi income
Which type of insurance can a limited lines producer not selves
Homeowners insurance
State workers compensation commission does all of the following except
Supervises the Worker's Compensation assigned risk pool
Which of the following is the purpose of the premium fund trust account
To establish bookkeeping requirements and to keep monies from being commingled
The primary purpose of a premium fund trust account as what
To keep premium monies held for insurance companies separate from other monies
An individual has been examined by the state department of insurance. He or she has received a report alleging substantial violations. Here she must request a hearing within how many days
14 days
An individual has been examined by the state department of insurance. She has received a report alleging substantial violations. She must request a hearing within how many days
14 days
A business entity is required to maintain a premium fund trust account whenever it is going to retain premium monies for how many days
15 days
whats is an Illinois Pre-License Education requirement
20 hours of instruction for each class of insurance
a change of address must be reported with in how many days?
30
Which of the following requires a premium finance company license
Allowing a client more than 90 days to pay his premiums without charging him interest or any late charges
Which of the following must be reported to the state insurance director
A felony conviction
All of the following are qualities needed to be a professional except
A large number of clients
All of the following are qualities needed to be professional except
A large number of clients
What is a penalty for not maintaining premium monies in a proper manner
A license can be revoked
Which of the following statements concerning license suspension and revocation is true?
A license can be revoked due to misappropriation of premiums.
Which of the following statements concerning Worker's Compensation assigned risk pool is true
All insurance companies celly Worker's Compensation insurance in Illinois must participate in its losses
Which of the following statements concerning financial examination is this true
All insurance companies must submit detailed financial statements to the department of insurances where they are licensed every year
Which of the following statements concerning the Worker's Compensation assigned risk pool is true
All insurance companies selling Worker's Compensation insurance in Illinois must participate in its losses
Which of the following statements concerning the state Worker's Compensation commission is true
All insurance on self insurance plans must be filed with it
Which of the following statements concerning the Illinois insurance guaranty fund is true
All property and casualty insurance companies admitted to sell insurance in Illinois must participate
Which of the following is a purpose of the premium fun trust account
Both to establish bookkeeping requirements and keep monies from being commingled
What is the state of Illinois fee for business entity
$150 for two years
What is the state of Illinois fee for a business entity
$150 per two years
What is the fee for an insurance producer license
$180 per two years paid by the producer
If required, and insurance producer bond must be in what amount
$2500
What is the license fee for a limited insurance representative license
$50 per year paid by the insurance company
What is the state of Illinois fee for a limited lines producer license
$50 per year paid by the insurance company
How many day notice is required when canceling an insurance policy
10 day notice for nonpayment of premium
What percentage of temporary insurance producers must pass their exams and obtain insurance producer license in order for an insurance company to have a qualified training program
50% each six month period
An insurance company has terminated a producer because she did something illegal. The insurance company has failed to report this to the state department of insurance. Which of the following penalties would apply
A civil penalty
And insurance company has terminated a producer because she did something illegal. The insurance company has failed to report this to the state department of insurance. Which of the following penalties would apply
A civil penalty
what is the penalty for selling insurance with out the proper license and misappropriating premiums?
A class 4 felony
Mr. Lloyd, and insurance producer, has died leaving behind mini active insurance clients. Which of the following could not obtain a temporary insurance producer license in case of death, disability or military service
A competitor
Hey property insurance policies being canceled because the insured has change the property substantially increasing the risk of the originally excepted. Which of the following requirements apply
A copy of the notice of cancellation must be mailed to the producer of record
Who is eligible for coverage under the FAIR plan
A person owning urban property other than an auto, manufacturing or farming property who cannot obtain basic property, dwelling or homeowner insurance
Who is eligible for coverage under the fair plan
A person owning urban property other than an auto, manufacturing or farming property who cannot obtain basic property, dwelling or homeowners coverage
Which of the following statements concerning premium monies is not true
A premium fund trust account is not required just because premium monies are being deposited to a local bank before being turned into the insurance company
Which of the following is not a right of the insured upon cancellation or nonrenewal of the fire policy
A prorated return of the unearned premium if the insured is canceling the policy
Once a business entity is required to maintain a premium fun trust account it is also required to maintain which of the following bookkeeping records
Account receivables due from insureds
Once a business entity is required to maintain a premium fund trust account, it is also required to maintain which of the following bookkeeping records
Accounts payable
Which must an insurance company do in canceling or non-renewing an auto policy
Advise the insured of his or her right to appeal the cancellation to the state insurance director
Which of the following statements concerning cancellation and nonrenewal of a fire policy is not true
After a fire policy has been in effect for five years, the insurance company must always give 30 day notice to nonrenewal
Which of the following statements concerning cancellation and nonrenewal of property fire policy is true
After a policy has been in effect for five years, it can be nonrenewed with 60 day notice if the non-renewal is due to an act which would measurably increase risk as originally excepted
Which of the following statements concerning cancellation and nonrenewal of the fire policy is true
After a policy has been in effect for one year, it can be canceled only with 60 days notice
Which of the following statements concerning cancellation and/or nonrenewal of an auto policy is state law
After an auto policy has either been in effect for 60 days or renewed, the policy can't be canceled only for certain reasons specified in the state insurance laws
Which of the following statements concerning cancellation and or nonrenewal of an auto policy a state law
After an auto policy has either been in effect for 60 days were renewed, the policy can't be canceled only for certain reasons specified in the state insurance laws
Which of the following statements concerning a change of address is true
All changes of address must be reported within 30 days
The state insurance director can financially examine which of the following?
All domestic insurance companies periodically.
If an Illinois admitted insurance company becomes insolvent, it is very unlikely for an insured to lose any benefits for which of the following reasons
An assessment may be made against the other admitted property or casualty companies in the Illinois insurance guaranty fund to pay the claims of the insolvent insurance company
An insurance company can pay renewal commissions to which of the following?
An individual not currently licensed, but who was licensed at the time the policy was sold.
Which of the following qualifies for a temporary insurance producer license?
An individual whose appointing insurance company has made application, is enrolled in a required training program and who is the process of fulfilling the pre-license education requirements.
Which of the following is a rebate?
An insurance Producer giving a client a $100.00 discount on a Homeowners policy.
And insurance company becomes insolvent, which of the following would apply
And assessment may be made against the members of the Illinois insurance guaranty fund to pay claims
Which of the following is not a penalty for miss appropriating premium monies
Hey civil penalty of not more than $500
Which of the following can be done by an individual Possessing a temporary insurance producer in case of death, disability or military service license
Anything a producer can normally do unless the insurance director impose his limitations
In which of the following situations is a license required, but no examination
Applicants for nonresident insurance producer license
Which of the following situations is a license required, but no examination
Applicants for nonresident insurance producer license
Tell me an individual obtain coverage through the automobile insurance plan
Applied directly him or herself
When can a temporary insurance producer license be issued
Before an examination has been taken as long as the individual is enrolled in a qualified training program
When can a temporary insurance producer license be issued
Before examination has been taken as long as the individual is enrolled in a qualified training program provided by the appointing insurance company and is engaged in a pre-license education program
Which of the following penalties for unfair methods of compensation apply
Being ordered to cease and assist for Missstating the benefits of a policy
Miss Kaitlyn needs an insurance policy that her regular producer, Mr. James does not regularly sell through his regular insurance company. He offers to obtain a policy for Miss Kaitlyn by going through another insurance producer, Mr. Jordan, who represents in a company that does offer the type of policy them as Kaitlyn needs. What type of transaction is this called
Brokering
Miss Kaitlyn needs an insurance policy that her regular producer, Mr. James does not regularly south through his regular insurance company. He offers to obtain a policy for Miss Kaitlyn by going through another insurance producer, Mr. Jordan, represent the company that does offer the type of policy that Miss Kaitlyn need. What type of transaction is this called
Brokering
Which of the following is not prohibited activity for which a license can be suspended
Brokering insurance
An individual may satisfy the state financial responsibility requirement how
By posting of the ends of an insurance policy covering either the driver or the automobile and effect at the time of the accident
An auto policy can be canceled for nonrenewal for what reason
Cancel due to misrepresentation in the application
It auto policy can be canceled or nine renewed for what reason
Cancel due to misrepresentation in the application
Which of the following requires a premium finance company license?
Charging premiums on account for than 90 days without charging interest.
Which of the following requires a premium finance company license
Charging premiums on accounts for more than 90 days without charging interest
Which of the following statements best describes an alien insurance company
Chartered in another country other than the one in which it is doing business
Which of the following statements best describes an alien insurance company
Chartered in another country other than the one which it is doing business
A premium fun trust account can be maintained in which of the following types of accounts
Checking account in an Illinois bank
What is the penalty for not being properly license
Class A misdemeanor for acting as an insurance producer without a proper license
Which of the following is not a penalty for improperly maintaining a premium find trust account
Class B misdemeanor
Which of the following is not a penalty for improperly maintaining a premium fun trust account
Class B misdemeanor
Which of the following is not a penalty for violating an order issued by the state insurance director
Class III felony
What is the penalty for acting as an insurance producer without a license
Class a misdemeanor for acting as an insurance producer without proper license
What is the penalty for selling insurance without the proper license in misappropriating of premiums
Class four felony
A worker compensation policy will not cover which of the following
Common law liability to someone other than an employee
Which of the following is a continuing education requirement
Completing a course that has been approved by the state department of insurance
Which of the following is not a penalty for misappropriating premium monies
Continuing education
Which of the following types of disbursements cannot be made from a premium fun trust account
Direct payment of advertising expenses
The state insurance director can I do which of the following
Disapprove of premium rates
Which of the following statements concerning Worker's Compensation insurance is not true
Domestic employees must always be covered
Limited lines producer license can be terminated by who?
Either the insurance company, the state Insurance director or the individual Limited Lines Producer.
All of the following must carry Worker's Compensation insurance or have self insurance plan filed except
Employees of certain types of farming domestic employees
All of the following must carry Worker's Compensation insurance or have a self insurance plan filed except
Employers of certain types of farm and domestic employees
Which of the following are not required to carry Worker's Compensation insurance
Employers of certain types of farm or domestic employees
After a fire policy has been effective for five years, how long can it be nonrenewed
For an act which has measurably increase the risk as originally excepted by given 60 days notice
After fire policy has been effect for five years, how can it be nonrenewed
For an act which has measurably increase the risk as originally excepted by giving 60 days notice
Which of the following is not a qualification to obtain coverage through the automobile insurance plan
Have a suspended drivers license
James, an insurance producer, has entered the military. Which of the following statements concerning his Insurance Producer license applies?
He may obtain a waiver of license renewal while he is in the military if he does not intend to sell insurance while in the military.
Mr. James, an insurance producer, has entered the military. Which of the following statements concerning his insurance producer license supplies
He may obtain waiver of license renewal while he is in the military if he does not intend to Sell insurance while he is in the military
Mr. James, a license insurance producer, is assuming a new employment situation in which the insurance director has determined there would be a conflict of interest for him to retain his insurance producer license. Which of the following would apply
He will probably be able to get relicensed after his conflict of interest no longer applies without retaking the exam
Which of the following statements concerning business entities is true
Hey business entity is a person or organization who employs individuals to act as insurance producers
Which of the following is not a penalty for serious, willful violation of state insurance law?
Hey civil penalty not to exceed $1000 no matter how many offenses have been committed
Which of the following is not a penalty for a serious, willful violation of the state insurance law?
Hey civil penalty not to exceed $1000 no matter how many offenses have been committed.
Which of the following is not a penalty for misappropriating premium monies
Hey civil penalty of not more than $500
The state insurance director has conducted an examination. Which of the following is not a procedure which may be followed
If a report is issued, it will not be sent to the person or entity examined
Which of the following statements concerning premium monies is not true
If an insurance producer deposit premium monies to a local bank account, but it turns into the insurance company within five days, a premium SunTrust account is not required
When an insurance producer excepts premium money, the producer has an obligation of special or extra responsibility. What is this called
If fiduciary responsibility
Which of the following applies when an insurance producer enters the military
If the individual is not going to sell insurance while in the military, here she may file for a waiver from the license fees while in the military
Which of the following applies with an insurance company intends to not renew a property insurance policy
If the insurance company fails to give proper notice, they insured me keep the policy in effect
Property insurance policy was non-renewed because the insured made to many claims. Which of the following requirements apply
If the insurance company fails to give the insured proper notice of intent to not renew, coverage can continue and effect until the insured obtain substitute coverage
And insurance producer agency contract was terminated by the insurance company because the producer was caught misappropriating premiums which of the following applies
Insurance company is subject to a civil penalty of up to $1000 if it fails to report it to the state department of insurance
Which of the following is a special state fund in which all license and examination fees are deposited by the state insurance director
Insurance producer administrative fund
Which of the following statements concerning a temporary insurance producer in Case of Death, Disability or military Service license is true?
It allows the sale of insurance only as the Insurance Director allows.
Which of the following describes uninsured motorist coverage
It covers the difference between the at fault drivers liability limits in the insured's underinsured motorist limits
Which of the following describes the insurance producer administrative fund
It is a fund in which all license fees are deposited by the state department of insurance
What is a proof of mailing
It is a post office form stating that the letter was mailed and a certain date to a certain address
What is a fiduciary duty?
It is an obligation of special or extra care.
Which of the following statements concerning the FAIR plan is true
It is supervised by both the state and federal governments
Which of the following is true concerning a business entity
It is the same as an insurance agency
Which of the following is true concerning a business entity
It is the same as an insurance company
When must mine subsidence coverage be included in a property insurance policy
It must automatically be included in all property insurance policies issued on property and counties in Illinois susceptible to mine subsidence
When must mine subsidence coverage be included in property insurance policy
It must automatically be included in all property insurance policies issued on property in counties in Illinois susceptible to mine subsidence
Which of the following statements concerning a change of address is true
It must be done within 30 days
Which of the following statements concerning uninsured motorist coverage is true
It must be written with minimum limits of 25,000 50,000
Which of the following statements concerning the fair plan is true
It's purpose is to assure the availability of fire insurance to all individuals who own buildings which are structurally insurable, including buildings in urban areas that might otherwise have trouble obtaining insurance
And insurance producer has all of the following duties to an insured except what
Make sure the insured is always getting a lowest premium rate possible
Which of the following is not an unfair method of competition which carries a civil penalty of up to $5000
Making a statement which fairly and accurately compare let insurance company's policies to another insurance company's policy
Worker's Compensation insurance policy will not cover which of the following
Medical expenses incurred because of an accident at home
Which of the following statements concerning auto insurance limits of liability is true
Minimum liability coverage limits are 25,000 50,000 and 20,000
Which of the following is an unfair method of competition carrying with it a fine of not more than $5000
Misrepresenting the financial status of insurance company
Miss Jordan an insurance producer was elected to a public office. Election to the office required her to surrender her insurance producer license in order to avoid any possibility of a conflict of interest. Which of the following statements apply
Miss Jordan will not have to retake the examination to get her license within four years
Payments cannot be made out of premium find trust accounts for which of the following
Office salaries
Insurance producer can charge and insured service charges in addition to the regular premiums and commissions under what circumstances
Only if here she has given the insured notice
Which of the following best describes a stock insurance company?
Owned by stockholders
Which of the following describes a stock insurance company
Owned by stockholders
Which of the following would be an example of rebating
Paying someone a referral fee only if the referral buys
Which of the following does not require an insurance producer license
Perform office duties
When must mine subsidence coverage be included in a property insurance policy
Property insurance policies issued on property located in counties susceptible to mine subsidence
An insured paid $1000 annual premium. After three months the policy was canceled the insured received a return premium of $750. Which of the following describes the refund
Prorated refund
What is it called when an individual applying for nonresident insurance license is not required to take an examination because his or her resident state does not require an examination of individuals from other states wishing to become nonresident producers
Reciprocity
Which of the following do not have to be licensed?
Salaried Business Entity employees who are not paid a commission and who are engaged only in clerical duties.
Which of the following is not an Unfair Method of Competition which carries with it civil penalty of up to $5,000.00?
Selling additional policies to establish customers
Which of the following is not an example of a controlled business
Selling insurance only to people who the producer is not related to
What is a controlled business
Selling insurance only to yourself, your spouse, the business you are employed by, or your own business
Which of the following is not a qualification for an insurance producer license
Selling mostly controlled business
Which of the following is not an example of a controlled business
Selling only to clients to which the producer has no personal relationship
An insurance Producer surrendered her license in order to assume a public office. Which of the following would apply?
She can later become re-licensed without re-examination.
And insurance producer surrendered her license in order to assume a public office position. Which of the following would apply
She can later become real license without re-examination
An insurance producer can I do which of the following
So the insured any product the producer wants to without regard to the insured's best interest
Which of the following is not prohibited activity for which a license can be revoked
Soliciting insurance
What is the penalty for not being properly licensed
The class a misdemeanor for acting as an insurance producer without proper license
Hey property insurance policy has been canceled because the insurance change the property substantially increasing the risk originally accepted. which of the following requirements apply
The copy of the notice of cancellation must be mailed to the producer of record
And employee has been injured in a work related accident. The employer does not have Worker's Compensation insurance. Which of the following penalties applies
The employer loses all common law defenses
An insurance producer has been convicted of a felony crime. Which of the following statements is true?
The felony conviction must be reported within 30 days of judgement being entered.
And insurance producer has been convicted of a felony crime. Which of the following statements is true
The felony conviction must be reported within 30 days of judgment being entered
Which of the following statements concerning a limited lines producer is not true
The individual applicant must apply and pay the license fee
Insurance producer has been caught misappropriating premium monies. The state insurance director has issued an order revoking her license. Which of the following procedures must be followed
The individual has 30 days to request a hearing
The insurance Director has held a hearing concerning an insurance Producer's violation of the State Insurance Code. Which of the following does not apply?
The insurance Producer is not bound by the State Insurance Director order.
And insurance company has terminated a limited lines producer because he was caught excepting insurance business from someone who is not licensed. The insurance company failed to report the circumstances to the state insurance director. Which of the following penalties apply.
The insurance company is subject to a civil penalty or suspension or revocation of its license
An insurance producer agency contract was terminated by the insurance company because the producer was caught misappropriating premiums. Which of the following applies
The insurance company is subject to a civil penalty penalty of up to $1000 if it fails to report it to the state department of insurance
Which of the following statements concerning cancellation and/or nonrenewal Of an auto policy is true
The insurance company must notify the insured of his or her right to appeal the cancellation or non-renewal to the state insurance director
Which of the following parties do not have a special responsibility and handling premium monies
The insured
Who does uninsured motorist and underinsured motorist coverage protect
The insured in all members of his or her household anywhere
Which of the following must be licensed
The next of kin of a deceased insurance producer who wishes to maintain the deceased producers business
An insurance producer license can be terminated by who
The state insurance director
All of the following statements concerning the state workers compensation after true except
There is no penalty for not carry Worker's Compensation insurance or having self insurance plan
All of the following statements concerning the state workers compensation act are true except
There is no penalty for not carrying Worker's Compensation insurance or a having self insurance plan
Which of the following is not a producer of the fair plan
To refuse to ensure a building because of its location
When can commissions to be paid
To someone who is properly licensed for the line of insurance sold at the time the sale was made
Which of the following is a qualification for a limited lines producer license
Trustworthy, confident and of good business reputation
Which of the following do not have to be disclosed in an insurance policy
Underwriters
There is a state insurance law which sets forth the amount of time which various types of claims must be paid what is it called
Unfair claims practices act
And auto was damaged by hit-and-run driver. Which coverage applies?
Uninsured motorist property damage.
When mustn't insurance company allow a rate reduction on an auto policy
When auto equipped with antitheft mechanisms
When must a return premium be calculated on a prorated basis
When the insurance company cancels the policy
What is an insurance producer bond required
When the insurance producer intends to broker insurance
When must an insurance company provide the state insurance director with information pertaining to the termination of a producer
When the producer is being terminated because he or she violated an insurance law
When is an insurance producer license bond required
When the producer sometimes acts as a broker
Lincoln property insurance policy be canceled
With 10 day notice for nonpayment of premium's
Lincoln property insurance policy canceled
With 10 days notice for nonpayment of premium's
Producers Jordan and James have jointly sold an insurance policy to Caitlin. Which of statements apply?
both of their name must be disclosed on the policy
which of the following statements concerning the insurance producer written examination is true?
it can only be taken three times in one year
which of the following is not contained on an insurance producer license?
name of the insurance company
An insurance producer can not do which of the following
sell the insured any product the producer wants to without regard to the insured's best interest
which of the following statements concerning a limited lines producer is not true?
the individual applicant must apply and pay the required fees
Which of the following is an insurance producer license requirement
the individual applicant must make application
To whom is an Insurance Producer responsible while holding premium monies.
the insurance company
when is an insurance producer bond required
when an insurance producer intends to broker insurance
which of the following does not require an insurance producer license
working as a receptionist in an insurance company home office