FFL Life Course Illinois Laws and Rules Pertinent to Insurance

Q the producer knowingly misappropriated fiduciary money in the amount of $150. This is his second offense. Q will likely be charged with a

<> Class A misdemeanor

<> Class 3 felony

<> Class 4 felony

<> Class B misdemeanor

The Director is appointed by the \_\_\_\_.

<> Governor

<> Attorney General

<> State Senate

<> NAIC

An Illinois producer must do which of the following to continue as a residential license?
<> Take a new licensing exam
<> Meet a sales quota
<> Meet continuing education requirements
<> Attain managerial status

A hearing must be held before a producer’s license can be suspended or revoked. Prior to the hearing, the director is required to
<> give oral notice to the producer
<> give written notice to the producer
<> give notice to the producer’s insurance company
<> give notice to the NAIC

The Illinois Life and Health Insurance Guaranty Association has regulations that apply ONLY to
<> Life and Health policies issued by companies authorized outside of Illinois
<> self-funded plans that are sold in Illinois
<> Life and Health policies issued by companies authorized in Illinois
<> variable products sold in Illinois

The act of replacing an existing inurance policy with another is called

<> renewal

<> regulation

<> replacement

<> reinstatemnt

All of these are required to be included in a life insurance illustration EXCEPT

<> rating classification

<> initial death benefit

<> insurer's name

<> insurer's mortality table

The Guaranty Fund
<> ensures that claims filed against insolvent insurance companies will be paid
<> enforces Illinois insurance regulations
<> approves policy forms
<> underwrites high-risk applicants

Replacement can be defined as
<> converting term coverage to an individual whole life policy
<> cash surrounding an existing policy
<> accepting a reduced paid-up policy
<> exchanging an exisiting policy for a new policy

Who signs a "Notice Regarding Replacement" form when an application is taken for a new life insurance policy that replaces an existing one?

<> Producer only

<> Applicant only

<> Producer and applicant

<> Beneficiary

According to Illinois insurance law, life insurance claim payments made after \_\_\_\_ days from receipt of satisfactory proof of loss must receive the insurer's current interest rate.

<> 10

<> 15

<> 20

<> 31

Which of these is a REQUIREMENT for obtaining a nonresident insurance producer license?
<> A similar license must be held by the producer in his/her state of residence
<> Producer must be 21 years of age
<> Producer must have written a minimum amount of insurance business in his/her state of residence
<> A surety bond of $500,000 must be obtained by the producer

A lapsed producer's license may be reinstated without having to pass a written exam if the license lapses within \_\_\_ months after the renewal fee due date.

<> 12

<> 10

<> 8

<> 6

Stating that dividends are guaranteed is considered to be

<> defamation

<> misrepresention

<> rebating

<> discrimination

T the producer has just collected premium monies from a client. T may personally hold these funds for a MAXIMUM of \_\_\_\_\_ days before depositing them in a Premium Fund Trust Account.

<> 7

<> 14

<> 21

<> 28

A(n) \_\_\_\_ lines producer may sell Travel Accident insurance in Illinois.

<> accidental

<> limited

<> travel

<> restricted

In Illinois, which of the following MUST be delivered to a policy owner upon the sale of an individual life insurance policy?

<> Insurer's AM Best rating

<> The written proposal

<> Policy Summary and Buyer's Guide

<> Buyer's Guide only

Q the producer gave his client a rebate as an enticement to purchase insurance. Q may be found guilty of a

<> felony

<> Class A misdemeanor

<> Class B misdemeanor

<> moral transgression

T purchased a life insurance policy. T is entiled to review the policy and return it for a full refund
<> within 10 days of the sales presentation
<> within 10 days after delivery of this policy
<> within 10 days after policy issue
<> within 20 days after delivery of the policy

It is acceptable to discriminate the amount of benefits for life and health policies between individuals of

<> the same country of origin

<> different classes

<> different religious faiths

<> the same racial category

A temporary insurance license is valid for up to \_\_\_\_ days.

<> 30

<> 45

<> 90

<> 180

In a viatical settlement, how much does the policy owner receive for a life insurance policy?
<> Amount equal to the sum of all premiums paid
<> Amount equal to the death benefit
<> Amount greater than the death benefit
<> Amount less than the death benefit

A policy owner decides to cancel an insurance policy within 90 days of the issue date. As a result of this cancellation, the producer is REQUIRED to refund a prorated portion of any fee charged within \_\_\_ days of receiving the cancellations notice.

<> 30

<> 45

<> 60

<> 90

Which of these is NOT an unfair method of competiton?
<> Publish misleading information about insurance coverage
<> Replace coverage written by another producer
<> Monopolize the business of insurance
<> Misrepresent any fact about an insurance policy

Which of the following is NOT a valid reason for the Director to suspend or revoke a producer's license?
<> Producer returns part of a commission to a client in exchange for a sale
<> Producer represents more than one insurance company
<> Producer engages in false advertising
<> Producer commingles premiums collected with a personal account

Before applying for an Illinois resident producer license, an applicant MUST

<> register with the NAIC

<> be 21 years old

<> have attained a high school diploma

<> complete a prelicensing course

The Life and Health Insurance Guaranty Association

<> assumes the financial obligations of the insolvent insurance companies

<> is regulated by the National Association of Insurance and Finacial Advisors (NAIFA)

<> assists in underwriting large policies

<> sets rates for the insurer

Which of the following triggers an accelerated (living) benefit?

<> Becoming unemployed

<> Broken arm

<> Qualifying event

<> Filing bankruptcy

Which of the following types of insurance may a limited lines producer sell?

<> Whole life

<> Disability

<> Industrial life

<> Endowment

A producer has influenced an existing policy owner to convert an existing whole life policy to Reduced Paid-up insurance. The producer then sells the policy owner a new universal life policy. This transaction is called a(n):

<> misrepresentation

<> conversion

<> replacement

<> asset roller