ILLINOIS LIFE PRODUCER STATE - DESIGNATED EXAM

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ILLINOIS LIFE PRODUCER STATE - DESIGNATED EXAM

SIMULATOR (75 QUESTIONS)

Actual Qs and Ans - Expert-Verified Explanation -Guaranteed passing score -81 Questions and Answers

-Format: Multiple-choice / Flashcard

Question 1: Which licensee faces possible license revocation by the Director

Answer:

Licensee who commingles monies belonging to policyholders with personal funds Question 2: A producer must complete _ hours of ethics per continuing education reporting period

Answer:

• hours

To renew a producer license, a producer must complete 24 hours of continuing education courses every

• years, with 3 of those hours being on the subject of ethics.

Question 3: The director

Answer:

Has authority to review policy forms if they will be issued for delivery in Illinois Question 4: How is the Illinois life and health insurance guaranty associated funded

Answer:

From member companies

Question 5: Which of the following is a requirement to attain a nonresident producer license

Answer:

Be licensed as a producer in the producer's state of domicile Question 6: Which of the following is not a valid reason for the director to suspend or revoke a producers license

Answer:

Producer represents more than one insurance company Question 7: A producer is circulating incorrect information about the benefits of a policy. This producer may be found guilty of

Answer:

Misrepresentation Question 8: A new life insurance policy owner may review and return it for a full refund within __ days after policy delivery

Answer:

10 days

Question 9: List actions that constitute life insurance policy replacement

Answer:

• Cash surrender an existing policy and purchase a new policy

• Discontinue premiums on an existing policy and apply the payments to a new policy

• Take reduced paid-up insurance and purchase a new policy with another insurer

Question 10: Who signs a "notice regarding replacement" form when an application is taken for a new life insurance policy that replaces an existing one

Answer:

Producer and applicant A copy must also be left with the applicant Question 11: Q the producer knowingly misappropriated fiduciary money in the amount of $150.This is his second offense. Q will likely be charged with a

Answer:

Class 4 felony If a producer producer knowingly misappropriates or converts fiduciary moneys in the amount of $150 or

less, they are guilty of a class A misdemeanor. Repeated occurrences of such actions are subsequently rated a class 4 felony.

Question 12: An example of unfair discrimination would be

Answer:

offering different terms of coverage for different policyowners having the same risk classification Question 13: A producer charged an insurance applicant an administration fee. At what point must the producer give a written disclosure for this fee

Answer:

Prior to any services being rendered Question 14: The holder of a business entity registration is required to notify the director within __ days of a change in office location

Answer:

30 days Question 15: A producer is attempting to replace an existing life insurance policy with a new one. What must this producer submit as part of the application?

Answer:

A signed statement by the applicant regarding the replacement

Question 16: How many days is a temporary producers license valid

Answer:

180 days Issued by the director

Question 17: The director of insurance is authorized to

Answer:

Make reasonable insurance rules and regulations Question 18: It is acceptable to discriminate the amount of benefits for life and health insurance policies between individuals of

Answer:

Different classes (they will be able to afford different benefits)

Question 19: What is the minimum age for an individual to be a licensed Illinois Insurance producer

Answer:

18

Question 20: The director is NOT permitted to

Answer:

Set insurance rates within the state Question 21: A business entity wishes to become approved as a producer for soliciting insurance business. Before doing so, the business entity is required to submit to the director a(n)

Answer:

Designated producer assigned for compliance with Illinois insurance laws Question 22: In a viatical settlement, how much does the policyowner receive for a life insurance policy

Answer:

Amount less than the death benefit

Question 23: An example of rebating would be

Answer:

offering a client something of value not stated in the contract in exchange for their business

Question 24: Why would the director issue a temporary license

Answer:

To allow the personal representative of a deceased producer to provide service to existing policyowners Question 25: In Illinois, which of the following must be delivered to a policyowner upon the sale of an individual life insurance policy

Answer:

Policy summary and buyers guide