Illinois Insurance laws and regulations Flashcards
1
Q
Attempt to sell or ask a person to apply for a particular kind of insurance from a particular insurance company
A
Solicit
2
Q
Confer with or offer advice to a prospective purchaser concerning benefits or terms.
A
Negotiate
3
Q
Negotiating also includes ______ rates
A
quoting
4
Q
Exchange an insurance policy for money or it’s equivalent on behalf of an insurance company.
A
Sell
5
Q
Selling includes ________ and ________ insurance
A
binding ; renewing
6
Q
An insurance producer license is required of an individual to:
A
- Solicit
- Negotiate
- Sell
- Give advice for a fee
- Receive commissions
7
Q
Is an agreement between the producer and the insurance company which authorizes the producer to acts as the insurance company’s representative and sell the insurance company’s policies
A
An Agency Contract
8
Q
Is selling policies issued by insurance companies which the producer does not regularly represent, does not have an agency contract with and/or for which the producer only infrequently sells.
A
Brokering
9
Q
A _________ is a producer who arranges policies for insureds through insurance companies for which the producer does not have an agency contract
A
Broker
10
Q
All Insurance Producers, Limited Lines Producers, Temporary Producers or Business Entities involved in the sale of an insurance policy must be identified in the policy
A
Disclosure
11
Q
Disclosure applies if the sale was made by:
A
- An insurance producer in-person
- A call center telephone insurance producer
- An online internet insurance producer
12
Q
Acting as an insurance producer without a license is a fine up to $_____ and/or up to _ year in jail.
A
$1,000 ; 1 year (1 and 1)
13
Q
Acting as an insurance producer without a license is a Class _ misdemeanor
A
A
14
Q
Acting as an Insurance Producer without an insurance producer license AND misappropriating premiums is a fine up to $________ and/or up to _ years in prison
A
$5,000 ; 5 years
15
Q
Acting as an Insurance Producer without an insurance producer license AND misappropriating premiums is a Class _ felony
A
4
16
Q
The state attorney general may file in court a request for an _____ against an individual acting as an insurance producer without an insurance producer license, restraining the individual from further selling of insurance
A
Injunction
17
Q
To apply for an insurance producer license, you must be at least __ years old
A
18
18
Q
The applicant must not have committed any acts that would be grounds for _____, ______, or ______ of a license.
A
suspension ; revocation ; denial
19
Q
If an individual fails part of an exam and retests within ___ days, he/she will be required to retake only the part or parts failed.
A
90
20
Q
Is there a limit to the number of times that the exam can be taken?
A
N
21
Q
The purpose of obtaining the license is not to
sell ________ business
A
controlled
22
Q
Is insurance sold to oneself, a spouse, or employer or a person’s own business.
A
Controlled business
23
Q
No more than __% of the premiums a producer sells can be on controlled business
A
50
24
Q
___ hours of pre-license education per line of insurance
A
20 hours
25
The covers must be a ____ certified course from a ______ certified provider
state
26
The course provider must submit proof of ______ to the IL Dept. of Insurance.
completion
27
___ hours of Continuing Education every 2 year license term prior to license renewal for as long as the individual holds an IL resident insurance producer license
24
28
Of the 24 hours that's required, __ hours must be a state of IL certified ethics course
3
29
C.E. must be a ____ certified course from a ______ certified provider
state
30
No one course will be recognized for more than __ hours credit
12
31
Self study must include an ___ ___ final exam
open book
32
CE must be completed at least ___ month prior to the expiration of the insurance producer's license
one
33
Insurance producers can accumulate up to __ hours of continuing education on file with the IL DEPT of Insruance
36
34
An individual cannot repeat the same course within a __ year license term
2
35
Each producer must keep a file of courses completed for __ years
3
36
The state certified course provider must submit ____ of completion to the IL DEPT of insurance
proof
37
Many insurance companies require that the policies be ________ by the insurance producer who sold the policy
countersigned
38
It is ___ required by state insurance law for policies to be countersigned
not
39
State insurance laws require that all producers, temporary producers, and business entities involved is an insurance sale be _______ in the policy
disclosed
40
Disclosure applies if the sale was made by:
a. An insurance producer __ _____
b. A ___ ___ telephones insurance producer, or
c. an online ______ insurance producer
in person ; call center ; internet
41
The individual must apply and pay an IL Insurance DEPT ___ year $___ fee. the individual must also pay $____ NIPR/SBS service fee
2 ; $215 ; $5.60
42
The _______ _______ ______ will contain the producers name, resident address, date of issue, and class or classes of insurance that the insurance producer is authorized to sell
insurance producer license
43
The insurance producer license will also contain the insurance producer's ________ _______ Number
National Producer (NPN
44
The insurance producer and limited lines producer license remains ______ in effect (is perpetual) as long as the fees are paid, the bond is maintained, and the license has not been suspended or revoked.
continuously
45
Every Insurance Producer or Business Entity who brokers insurance must maintain a ______ _____
surety bond
46
Insurance producer license brokers bond must be in ______ of the people of the State of Illinois
favor
47
Insurance producer license brokers bond must be _____ in form
Continuous
48
Insurance producer license brokers bond must be in a face amount of no less than $_____ or if greater than _% of the premiums brokered in the previous year, whichever greater. It does not have to exceed $_______
$2,500 ; 5% ; $50,000
49
Is a corporation, association, partnership, limited liability company, limited liability partnership or other legal entity who employs individuals to act as Insurance producers.
Business Entity
50
Business Entity is the same as ?
Insurance agency
51
There must be an ______ licensed individual who is authorized to act of behalf of the Business Entity
authorized
52
The business entity's licensed, authorized individual must complete a ______ Business Entity Application and pay a $____ two year fine
Uniform ; $150
53
If the Business Entity is to broker insurance, it must maintain a ____ ____ in favor of the people of the State of Illinois
surety bond
54
An insurance producer must report to the Insurance director a change of resident address within __ Days
30
55
A Business Entity must report a change of business within __ days
30
56
There is no fee for reporting a change of ___ or _____ to the State Insurance Director
address ; name
57
There is no _____ required for limited lines producer license (4 things)
examination, Pre-license education, continuing education, or bond requirements
58
An appointing ____ _____ must make the application for a limited lines producer license and must pay a $__ a year fee
insurance company ; $50
59
An insurance producer license can be terminated by the _____ ______, the State insurance _______, or it _____ terminates when the individual fails to meet the _________ education, ____ year fee, or ____ requirements
licensed individual ; Director ; automatically ; continuing ; two ; bond
60
If an insurance company terminates an Insurance Producer's agency contract or a Limited Lines Producer's license for any of the causes for revocation or suspension of a license, the insurance company must notify the state insurance director of the termination within __ Days
30 days
61
The _____ ______ ______ cannot use any information provided by the insurance company about an Insurance Producer or Limited Lines Producer against the insurance copmany
State Insurance Director
62
The insurance company must notify the producer or limited lines producer within ____ days of notifying the Insurance Director that the Insurance Director has been notified
15
63
The insurance company has __ days to file comments with the insurance director
30
64
If the insurance company fails to give the SID proper notice of termination or reported maliciously untrue info, the SID may charge the insurance company with a _____ penalty or _______, or _______ of license
civil ; suspension ; revocation
65
Is a monetary penalty charged to someone or to an organization with an insurance license by the Insurance director
Civil penalty
66
A civil penalty does not have to be prosecuted through the _____
courts
67
Is a monetary penalty which must be prosecuted through the courts by a states attorney or the state attorney general
A fine
68
Is when a license is taken away from a person or organization for a temporary time period
A suspension of license
69
Is when a license is taken away from a person or organization permanently.
Revocation of license
70
The person or organization who had a license revoked must be allowed to reapply every _ years
3
71
Allows an individual new to insurance sales to start selling insurance and earning commissions while at the same time preparing for the state exam
Temporary insurance producer license
72
a temp insurance producer license is issued for a one ___ day period and ____ be renewed
90 ; cannot
73
An individual may have only ___ Temp Insurance Producer License per lifetime
one
74
To acquire a temp insurance producer license, the ___ ___ must apply and will be billed a $____ fee
insurance company ; 50
75
To get a temp license, the applicant must be in the process of fulfilling the ___-______ education requirements and msut be enrolled in a qualified _____ program
pre-license ; training
76
An insurance companyis considered by the state to have a qualified training program when each six month period is at least ___% of its temp insurance producers obtain _____ _____ license
50 ; insurance producers
77
Temporary insurance producer license may be issued to a surviving _____ or court appointed personal representative of a deceased or disabled Insurance Producer or the designee of an Insurance Producer entering active military services
spouse
78
Temporary Insurance Producer License in case of death, disability, or military service requires __ examination, Pre-license ______ or ________ Education
no ; Education ; Continuing
79
Temporary Insurance Producer License in case of death, disability, or military service is issued for a period of ____ days and may be renewed for one additional ___ day term
180
80
Situations in which no license is required:
1. attorneys offering clients legal advise incidental to insurance
2. Bank trust officers performing duties incidental to their position
3. Actuaries or Certified Public Accountants engaged in a consulting capacity.
4. Licensed Public adjusters who render claims assistance services to insurance consumers for a fee
5. Officers, directors who perform executive, admin, underwriting but don't solicit, negotiate or sell insurance
6. Persons who sponsor or administer group insurance or employee benefit programs
7. Persons who live in and are licensed as insurance producers in another state who sell commercial insurance on property located in IL, but the property owner's principal place of business is another state
8. Salaried, full-time employees who advise their employees on the employer's insurance programs
81
An exam is not required if the reinstatement of an insured producer license without retaking an examination is allowed within ___ year of termination of an insurance producer license.
1
82
If an insurance producer is reinstated within one year of termination, there is a $____ reinstatement fee that applies in addition to the $_____ two year insurance license renewal fee. The applicant must also submit proof that they had completed their _____ _____ for the previous license term
$215 ; $215 ; continuing ed
83
Is required is a person who has an insurance producer license or its equivalent in another state and who intends to sell in IL only as a non-resident.
Non-Resident Insurance Producer license
84
If the producers state does not require exams or education requirements on IL producers, IL will in turn not require the outside resident from that state to do it in IL. This is called?
reciprocity
85
Applicants who move to IL and become residents of IL are exempt from IL insurance producer examination and pre-license education requirements if they meet 3 requirements:
a. The applicant must submit to the IL Insurance director a cert from the state insurance official of their prior state showing that they held a license in the previous state for which they passed an exam, and;
b. the applicant must submit to the IL Insurance Director a "letter of clearance" from the state insurance official of their prior state showing that their license has been terminated in the prior state in good standing, and
c. The applicant must be applying for their Illinois resident Insurance license within 90 days of becoming a resident of IL.
86
Owned by stockholders
stock
87
owned by policyholders
Mutual
88
Owned by a fraternal society
fraternal (ie knights of columbus)
89
Original charter / same state as sale
Domestic
90
another state =
foreign
91
another country =
alien
92
where the insurance is obtained it's - _____ _____
original charter
93
Means licensed or authorized in the state in which the sale is to be made
Admitted
94
Means non-licensed or unauthorized in the state in which the sale is to be made
Non-admitted
95
A special, additional license required to sell policies issued by insurance companies which are non-admitted in the state in which the sale is to be made.
Surplus Lines Producer License
96
Penalties for selling a policy issued by a non-admitted company without a Surplus Lines Produce license
1. Class _ Misdemeanor - Selling a policy without a proper license (_ and _)
2. Class _ Felony - Selling one or more policies without the proper license and misappropriating premium monies (_ and _)
3. An ______ may be files in the courts to restrain an unlicensed individual from selling insurance
A ; 1 and 1 ; 4 ; 5 and 5 ; Injunction
97
Insurance companies can pay commissions / service fees/ brokerage fees/or other fees to another individual or business entity for _____, ______, or _____ insurance policies only if the individual/business entity are licensed for the classes of insurance sold at the time the sale was made
soliciting, negotiating, or selling
98
Written notice prior to the performance of the services or issuance of the policy must be given to the insured if an insurance producer is to charge a _____ charge
service
99
Commissions may be paid to an individual or business entity not currently ________ only if they were _____ at the time the policy was originally sold.
licensed
100
Insurance producers can charge premiums and bill on account. a late charge of up to __% per month can be charge on the unpaid balance for up to ____ days
1.5% ; 90
101
Is required to finance premiums. Financing premiums is loaning customers the premium money
Premium Finance company license
102
If an insurance producer allows more than ____% of accounts receivable to go over ___ days from their original due date, they are _____ premiums
10 ; 90 ; financing
103
Are total premiums due to an Insurance Producer by clients.
Accounts Receivable
104
If an account is collected in installments with some of the installments collected more than ___ days after their first due date, the entire account is considered to be over __ days
90
105
The penalty for financing customer's premiums without a premium finance company license is a ___ penalty charged by the Insurance Director of up to $_____ per violation
civil ; $1,000
106
State Director of Insurance = ?
Insurance Director
107
The Illinois Insurance Director is appointed by the ______ for a ___ year term
Governor ; two
108
The Insurance Director is accountable to the _______
Governor
109
The insurance Director can issue ____ and _____ that can have the same force and effect as law.
rules ; regulations
110
The _____ _____ must approve all policy forms
Insurance Director
111
The Insurance Director does not have the authority to approve or disapprove _____ ______ on most forms of insurance.
premium rates
112
All insurance companies are audited by the state insurance official where they are domestic _______
periodically
113
All insurance companies must submit financial statements to every state insurance official where they are licensed ______
annually
114
Any state official may audit at any admitted insurance company __ ______
at random
115
The SID may audit insurance producers, limited lines producers and business entities __ _____
at random
116
Insurance companies must pay for their ______. Insurance producers, limited lines producers, and business entities do not pay for their _______.
audits
117
SID can ____ insurance producers, limited lines producers, business entities, and insurance companies
audit
118
SID can ____ insurance producers, limited lines producers, business entities, and insurance companies
Examine
119
All persons or business entities being examined (investigated), as well as their officers, directors and _____, must provide the SID or their examiner convenient and free access at all reasonable hours to their offices, records, and documents
employees
120
SID or their examiner may issue _____ and administer oaths
subpoenas
121
If a person fails to give the SID all the files or docs the SID has requested in a subpoena or if a person is caught lying under oath, the person can be:
1. Fined up to $2,000
2. Subject to jail penalties
122
Is the state official to whom state law assigns all of the powers and responsibilities of regulation of insurance in Illinois.
Illinois Director of Insurance (Insurance Director)
123
Is a state agency that performs the functions of insurance regulations under the authority of and on behalf of the Insurance Director.
Illinois Department of Insruance
124
If an examiner finds substantive violations of State Insurance laws or Illinois Dept of Insurance regulations, the examiner may make a written, verified report to the ______ _______ ________ if the examiner chooses.
State Insurance Director
125
The ______ _________ ________ must deliver or mail by registered or certified mail a copy of the report to the person or Business Entity examined if a report is made
State Insurance Director
126
The person or business entity has __ days to request a hearing regarding the report
14
127
IF a hearing is requested, the SID must issue a ____ ___ _____. It must be mailed to the person or Business Entity not less than __ days but not more than __ days
Notice of Hearing; 20 ; 30
128
Within __ days of the report being filed or hearing being completed, the SID must issue an order.
90
129
The order may be ______ to the courts under the Administrative Review Law
appealed
130
Is an order issued by the SID to someone or an organization that has an insurance license ordering them to stop a specified activity
An order to cease and desist
131
Any person or Business Entity violating and order issued by the SID as the result of an exam or hearing:
1. Can have their ____ suspended
2. Can be fined in courts up to $______
3. Can be held guilty of ______ offense
license ; $10,000 ; business
132
Penalties for methods of competition, deception, and misrepresentation
a. a fine of not less than $____ not more than $______ which may be prosecuted through the courts by the State Attorney General or a local States Attorney
b. SID may issue an order to _____ and ______
$100 ; $5,000 ; cease ; desist
133
It is illegal for insurance companies to discriminate either as to acceptability or as to premium rate for reasons other than underwriting facts.
Discriminating
134
Prohibits insurance companies from delaying unreasonably in settling insurance claims
Unfair Claims Practices Act
135
It is illegal to offer something, give something, reduce premiums, or accept something of
a. material value, and
b. to someone not licensed as an insurance producer
c. Paid out of a producer's commissions, and
Only if the recipient or someone upon whom the recipient has influence buys an insurance policy.
Rebating
136
Special penalty that may be prosecuted through the courts for rebating:
Class __ misdemeanor
Fine up to $___ and/or up to __ months in jail (_ and _)
B ; $500 ; 6 ; 1/2 and 1/2
137
Penalties that can be assessed by the SID:
a. ____ penalty of up to $_____ per offense NTE $_____
b. Suspension of _______ (temporary)
c. Revocation of _________ (permanent)
d. Application for additional ________ may be denied
Civil ; $5,000 ; $20,000 ; license
138
Prohibited Activities: Having admitted to or being found to have committed any ______ unfair trade practice or fraud.
insurance
139
Prohibited Activities: Violating any insurance laws or violating any rule, subpoena or order of the SID or of another state's insurance __________
commissioner
140
Prohibited Activities: ________ using notes or any other reference material to complete an examination for an insurance license.
Improperly
141
Prohibited Activities: Providing incorrect, misleading, incomplete, or materially untrue info on an ______ for a license
application
142
Prohibited Activities: Attempting to obtain a ______ through misrepresentation or fraud
license
143
Prohibited Activities: Improperly withholding, misappropriating, or converting any _______ or ______ recieved in the course of doing business
monies ; property
144
What does misappropriating include?
A. Steal
B. Not keep records
145
Prohibited Activities: Using fraudulent, coercive, or dishonest practices or demonstrating incompetence, untrustworthiness, or financial irresponsibility in the conduct of _____ in this state or elsewhere
business
146
Prohibited Activities: Intentionally ________ the terms of an insurance policy
misrepresting
147
Prohibited Activities: _____ a name to an application for insurance or to a document related to an insurance transaction
forging
148
Prohibited Activities: having an insurance producer license, or its equivalent, denied, suspended, or revoked in another _____, ______ or ______
state ; district ; territory
149
Prohibited Activities: Knowingly accepting insurance business from an __________ individual
unlicensed
150
Prohibited Activities: Failing to pay state _______ tax, or penalty or interest
income
151
Prohibited Activities: Failure to pay child ______
support
152
Prohibited Activities: Failing to make satisfactory payment to the Illinois Student Assistance Comission for a ____ or ____ loan
delinquent ; defaulted
153
Prohibited Activities: Having been convicted of a _____
felony
154
Failing to report a _____ conviction to the SID within ____ days of conviction
felony ; 30
155
A notice of the suspended, revocation, or civil penalty must be issued to the licensed person by the SID at least __ days prior to its effective date
30
156
WIthin that __ day period the licensed individual can request a hearing regarding the penalty
30
157
If a hearing is requested, the SID must issue to the licensed person a Notice of ______.
Hearing
158
Notice of Hearing:
a. the notice must list the _____ and give the date and location of the hearing
b. The notice must be mailed not less than __ days, but no more than __ days prior to the hearing
c. The hearing must be held in either _____, _____ or the _____ of the licensed person
d. The SID must issue an order within ___ days of completion of the hearing
e. The order can be _____ to the courts under the State Administrative Review act
a. charges
b. 20 days ; 30 days
c. Springfield; Chicago ; county
d. 90 days
e. apprealed
159
If the insurance Director determines as a result of a hearing that a licensed person's illegal activity was known of or should have been known of by one or more of the partners, officers, or managers of a _____ ____, the license of the _____ _____ may be suspended, revoked or refused
Business Entity
160
The SID may impose _____ even if the individual's license has been surrendered or lapsed
penalties
161
Upon suspension or revocation, thelicense must be promptly _____ or _____ to the SID
mailed ; delivered
162
A person whose license has been suspended, revoked or denied may not be _______ in, ________ with, or _______ in any insurance related capacity during the period the license _______, ______ or _____ is in effect
suspended ; revoked ; denied ; suspension ; revocation ; denial
163
Premium funds - Fiduciary Duties: Penalties
A. Prohibited Activities
B. Class __ misdemeanor (_ & _) misappropriation of less than $____
C. Class _ Felony (_ & _) - misappropriation of less than $_____ (repeated offense)
D. Class _ Felony (_ & _) - misappropriation of $____ or more
B. A ; 1 and 1 ; $150
C. 4 ; 5 and 5) ; $150
D. 3 ; 10 and 10 ; $150
164
Insurance Producers, Limited Lines Producers, Temp Insurance Producers and Business Entities have an extra or special duty to the insurance companies to collect, safeguard, and account for all ______ _______
premium monies
165
The extra or special responsibility for premium monies is referred to as _______ _______
Fiduciary responsibility
166
The SID has written a rule that says a Premium Fund Trust account is required when:
A. If a licensed person is going to hold any premium monies for insurance companies for __ days or more or deposit premiums in a ____ ____ account before remitting it to the insurance company
B. All premium monies that he or she collects must be deposited into a special, ______ bank account called a ____ _____ ______ account
C. It is illegal to ______ personal and or business monies with insurance companies' monies.
A. 15 ; local bank
B. separate ; Premium Fund Trust
C. commingle
167
Types of Premium funds accounts allowed
a. Checking account
b. Savings accounts
c. Illinois Bank
d. Savings bank
e. Treasury Bills or notes
f. Repurchase agreements secured by the US GOV
g. High grade commercial paper
h. Money market funds
168
Four types of disbursements allowed from a premium trust fund account
a. Premium ________
B. ________
C. Returned ________ (within ___ days)
D. ______ withdrawals and other disbursements authorized by the insurance company(s) in writing
a. remittances
b. commissions
c. premiums ; 15 days
d. interest
169
What is a returned premium within 15 days?
Pro Rata Return premium
170
Six types of supporting records required
A. Receipts
B. Disbursements
C. Receivables
D. Payables
E. Returned Premiums (within 15 days)
F. Bank records must be reconciled monthly (no negative balances)
G. All records must be kept 7 years
171
Acting as an insurance producer, limited lines producer, or temp insurance producer without proper licensing = Class _ Misdemeanor
A
172
Acting as a licensed person without proper licensing and misappropriating premium monies = Class _ Felony
4
173
An insurance company who has not given the SID proper notes of termination of an agency contract or license when required is subject to ______ penatly, ____ of license, or _____ of license
civil ; suspension ; revocation
174
Financing premiums without a Premium Finance Company license is subject to a ___ penalty of up to $______ per violation
civil ; $1,000
175
Failing to provide documents requested in a subpoena or lying under oath
a. Fine of up to $_____ and/or
B. ____ penalties
$2,000 ; jail
176
Violating an order issued by the SID as a result of an examination or hearing:
A. License may be _____ or ______
B. Fine of up to $__________
C. Held guilty of a ____ ______
A. suspended ; revoked
B. $10,000
C. business offense
177
Unfair Methods of Competition:
A. Fine of not less than $____ - not more than $_______
B. May be ordered to ____ and ______
A. $100 ; $5,000
B. cease ; desist
178
Rebating is a Class _ Misdemeanor
B
179
Prohibited activities:
a. civil penalty of $______ per offense, NTE $______
b. _____ of license (temporary)
c. ______ of license (permanent)
d. Application for additional _____ may be denied
a. $5,000 ; $20,000
b. suspension
c. Revocation
d. license
180
Misappropriation of premiums:
a. _______ activity penalties
b. Class _ Misdemeanor - Misappropriation of less than $___
c. Class _ Felony - misappropriation of less than $____ (repeated offense)
d. Class _ Felony - misappropriation of $____ or more
a. Prohibited
b. a ; $150
c. 4 ; $150
d. 3 ; $150
181
The SID can administratively charge a person with administrative penalties (such as _____ forfeitures, ______ of license, or ______ of license)
civil ; suspension ; revocation
182
Criminal penalties (such as a fine or unfair competition, misdemeanor, or felony must be prosecuted by either the State ______ _______ or a local States ______ _________ through the courts
Attorney General
183
A business entity license cost $____ per ___ year fee
$150 ; 2
184
Limited Lines Insurance Producer license cost $___ per year and paid by each ____ _____
$50 ; insurance company
185
Temp Insurance Producer license cost $____ fee billed to by the appointing _____ _____
$50 ; insurance company
186
Reinstated a lapsed license is the $_____ Illinois insurance Dept reinstatement fee and the $_____ Illinois Insurance Dept renewal fee (plus NIPR/SBS fee)
$215
187
All license and exam fees collected by the SID are deposited to a special state fund called _____ ______ administrative fund
Insurance Producer
188
Six basic qualities to be a professional:
a. Unselfishness (_____)
b. ______ societies or associations
c. Codes of Professional ______
d. A formal body of _____, ______ knowledge
e. A broad or general ________ or ________
f. Qualifying ________
a. altruism
b. professional
c. ethics
d. specialized ; technical
e. education ; background
f. examinations
189
If an insurance company becomes so insolvent that there is not enough money to pay claims and benefits, and assessment can be made of all _____ admitted property/casualty insurance companies to guarantee payments of claims and benefites
Illinois
190
The organization that administers the guarantee of benefits and the assessment of funds is called the ______ _______ _______ ________
Illinois Insurance Guaranty fund
191
The purpose of the Illinois Insurance Guaranty fund is to protect policy holders and to assure ____ settlement of claims
quick
192
The Illinois Insurance Guaranty fund will either:
a. pay up to $______ in insurance benefits per claim, or
b. it will refund ______ up to $______ per policy less a $_____ deductible
a. $500,000
b. premiums ; $10,000 ; $100
193
Credit information used by insurance companies in underwriting property and/or casualty insurance policies must be _____
current
194
Credit information used by insurance companies underwriting property and/or casualty insurance policies cannot be based on _____, _____, ______, _____ _____ or _____ _____
income ; gender ; address ; marital status ; ethnic group
195
________ information cannot be the sole reason for determining rates, denying coverage, cancelling or non-renewing property and/or casualty insurance policies
Credit
196
An insurance company cannot ______ or _____ to renew an insurance policy on the grounds that the insurance company's agency contract with the insurance producer who sold the policy has been terminated
terminate ; refuse
197
An insurance company must renew policies written by ______ insurance producers for at leas __ year after an insurance producer has been _________ with the following exceptions
a. The insurance producer has insured the property under another policy issued by another _____ _____, or
b. The insured property does not meet the insurance company's ______ standards
terminated ; 1 ; terminated
a. insurance company
b. underwriting
198
Insurance companies may contract with _____ _____ to perform part of the insurance company's insurance functions such as adjustment of claims, marketing, investment management and other insurance company activities
outside organizations
199
Management contracts must be filed with the _____ ______ ______
Director of insurance
200
All _______ (fire) insurance policies must contain a cancellation provision setting forth the manner in which the policy can be cancelled.
property
201
Termination of coverage by the insurance companies in the middle of the policy term.
Notice of cancellation
202
___ days notice - is required no matter how long the policy has been in effect for cancellation due to nonpayment of premiums.
10
203
__ days notice - is required during the first 60 days the policy is in effect for reasons other than the nonpayment of premiums
30
204
__ days notice - is required after the policy has been in effect 60 days or renewed if the cancellation is for reasons other than nonpayment of premiums. After 60 days, the _______ can be only for nonpayment of premium or for other reasons that are specifically allowed by law.
60 ; cancellation
205
The notice of cancellation must be ____ to eh insured at their last known address
mailed
206
An insured cannot protest (challenge) a cancellation on the basis that they did not receive the notice if the insurance company has some type of ____ __ ______
Proof of mailing
207
A copy of the notice of cancellation must be mailed to the _____ ____ ______
producer of record
208
The notice of cancellation must contain a specific _______ for the cancellation
explanation
209
___ day notice - Is required in all notices to insureds by insurance companies of changes in premiums, premium payment plans, deductibles or limits of liability as of the next policy renewal
60
210
Termination of coverage by insurance companies as of the next policy renewal date
Notice of intent not to renew
211
__ days notice is required in all notices of intent to not renew a property insurance policy
60
212
Notice of intent not to renew must be ____ to the insured at their last known address
mailed
213
Notice of intent not to renew: insured can't protest if the insurance company provides ____ ____ _____
proof of mailing
214
A copy of the Notice of intent not to renew must be sent to the ____ _____ _____
producer of record
215
If the insurance fails to comply with the requirements for Notice of intent not to renew , the coverage continues in force until the ___ ____ of any substitute coverage the insured might obtain or until the insurance company gives the insured proper notice at next renewal
effective date
216
Reasons a property (fire) insurance cannot be cancelled - Property Insurance policies can never be cancelled mid policy term due to too many ____
claims
217
Cancellation due to nonpayment of premiums - __ days notice is required no matter how long the policy has been in effect
10
218
Cancellation during the first 60 days of a property (fire) policy is in effect - After a property insurance policy has been in effect for __ days, it can only be cancelled mid policy term by the insurance company with __ days notice only for the following reasons:
A. the policy was obtained by ________ or fraud
B. An act which has measurably increased the ___ as originally accepted
60 days
A. misrepresentation
B. risk
219
Reasons a property (fire) insurance policy cannot be nonrenewed - Property insurance policies can never be nonrenewed by the company due to:
a. __ of property, or
b. ______ of property
C. ______ as to the occupants
a. age
b. location
c. discrimination
220
Nonrenewal of a property (fire) insurance policy during its first 5 years. - during the first 5 years a property insurance policy is in effect it can be nonrenewed with __ days notice by the insurance company for any reason except ________
60 ; discrimination
221
Nonrenewal of a property (fire) insurance policy after it has been in effect 5 years. - after the first __ years a property insurance policy is in effect it can be nonrenewed with 60 days notice by the insurance company only for the following reasons:
a. the policy was obtained by _____ or ______
b. An act which has measurably increased the ___ as originally accepted
c. These are the same reasons allowed by law for cancellation after a property insruance policy has been in effect 60 days. After a property insurance policy has been in effect for ___ years, it cannot be nonrenewed for any other reasons.
a. misrepresentation or fraud
b. risk
c. 5
222
A property (fire) insurance policy cannot be cancelled or nonrenewed by an insurance company because of a ___ ___ or group ____ ___ provided on premises
day care
223
Coverage can be cancelled or nonrenewed under some circumstances, if the building has been unoccupied __ consecutive days
60
224
When an insurance company cancels the policy, the unearned premium is returned ___ ____
pro rata
225
When an insured cancels the policy, the unearned premium can be calculated on a ___ ____ basis which will be less than a pro rata returned premium
short rate
226
An insurance company cannot refuse to issue, refuse to renew or cancel an insurance policy because the insured has made claims for damage caused by a ___ ____
hate crime
227
In cancellation or nonrenewal, the insurance company must notify the insured of his/her right to _____ to the SID.
appeal
228
In cancellation or nonrenewal, the insurance company must notify the insured of his/her right to obtain coverage through the ____ _____
Fair plan
229
The FAIR plan is supervised by both the state _____ ___ _______ and the federal Department of _____ ______ _______ _______
Department of Insurance ; Housing and Urban Development (HUD)
230
Any person who has been rejected by three insurance companies for basic property, dwelling or homeowners insruance can apply to the ___ ____
FAIR plan
231
FAIR plan has the capability to ___ coverage immediately
bind
232
An eligible person may apply either directly himself/herself or through any producer licensed in _____ (___) insurance
property (fire)
233
The FAIR plan must _____ the property
inspect
234
After inspecting the property, the FAIR plan can:
1. offer to insure the property (they calculate rates and underwrite themselves) and FAIR Plan will issue the policy
2. The FAIR plan may recommend improvements to be made to the property to make it ______
3. the FAIR Plan may _____ to insure the property if the property does not meet reasonable underwriting standards. The applicant must be advised of the reasons for ____
2. insurable
3. insure ; denial
235
The purpose of the FAIR Plan is to assure the availability of property insurance to everyone including individuals who have been _____ by the insurance companies
rejected
236
A borrower cannot be required to buy property insurance with limits in excess to the _____ _____ of the property
replacement value
237
238
Mine subsidence coverage must be ________ included on ___ property insurance policies sold on structures located in counties designated by the SID as being susceptible to mine subsidence
automatically ; all
239
The _____ for Mine subsidence coverage must be shown as a separate charge. The insured has the option of ______ coverage
premium ; waiving
240
Mine subsidence coverage has a deductible equal to __% of face amount but not less than $250 or more than $_____
2 ; $500
241
Mine subsidence insurance coverage issued by insurance companies on buildings in applicable areas is ____% reinsured up to $________ by the State Mine Subsidence Fund which is part of the Industry Placement Facility (FAIR Plan)
100% ; $700,000
242
Insurance companies must provide all potential applicants in ____ of over ________ people an ___ estimate of premium charges
cities ; 500,000, oral
243
All auto policies must cover _____ restraint systems that are damaged during a covered accident
child
244
All auto policies issued in Illinois must allow rate reductions for any insured over age ___ who has successfully completed the National Safety Council's Defense Driving Course or a motor vehicle accident course approved by the Secretary of State
55
245
Time allowed for cancellation and nonrenewal of auto policies by Insurance companies:
a. __ days notice is required for cancellation due to nonpayment of premiums
b. __ days notice - is required for cancellation during the first 60 days the policy is in effect for all reasons other than nonpayment of premiums
c. ___ days notice is required for cancellation for all reasons other than the nonpayment of premium after an auto insurance policy has been in effect for 60 days
d. ___ days notice is always required for nonrenewal
a. 10 days
b. 30 days
c. 60 days
d. 60 days
246
No policy can be cancelled due solely to _____
claims
247
No policy can be nonrenewed due to ______ as to the insured (including physical handicap
discrimination
248
The purpose of the _____ _______ ______ is to assure the availability to all automobile owners and drivers including people who have been rejected by insurance companies
Automobile Insurance Plan
249
All insurance companies writing (selling) auto insurance in the State of IL must participate in the ________ __________ __________
Automobile Insurance Plan
250
Eligibility requirements for Automobile Insurance Plan:
1. __ registered vehicle
2. Valid IL _____ _____
3. _____ for auto insurance from at least 3 insurance companies
1. IL
2. drivers license
3. Rejected
251
The automobile insurance plan ____ the policy to an insurance company to issue the policy
assigns
252
Financial Responsibility Laws: All drivers involved in an accident where there is any ___ ___ or $1,500 ____ ____ must submit an accident report to the Dept of Transportation Safety Responsibility section. Along with the report, each driver must provide evidence of financial responsibility for the ___ and ____ incurred in the accident
bodily injury ; property damage ; injuries ; damage
253
An __-__ form accompanied by a certificate of coverage must be submitted by an atuo insurance company to the IL Sec of state if a person is involved in an accident without auto insurance or is convicted of driving without insurance. This must be submitted to avoid suspension of their drivers license
SR-22
254
The state _____ ______ law provides that any worker injured in a hazardous occupation should have his/her expenses, temporary lost wages, and permanent disability paid without due delay to the court process
Workers Compensation
255
All employers except employers of certain types of ____ and _____ employees must file an insurance plan or a self-insurance with the state wokrers comp commission
farm and domestic
256
Workers comp is not a _______ insurance program
Government
257
Work comp plans can be either an _____ ______ issued by an insurance company or a ____-_______ plan that has been established by the employer
insurance policy ; self-insurance
258
The injured worker must prove that their injury was incurred out of and in the course of ______. The injured worker does not have to prove the employer was negligent at fault or legally liable. This is called _____ liability
employment ; absolute
259
Penalties for not filing either an insurance plan or self-insurance plan:
a. If an employer fails to file either an insurance plan or a self -insruance plan with the state Workers COMP commission, the employee may __ the employer in court ______ law.
sue ; common
260
An employer that fails to carry workers comp in IL is subject to a minimum fine of $______. There can also be liability and penalties to the employer's _____ _____
$10,000 ; corporate officer's
261
Premium rates are based on:
a. _______ classification of employees
b. _____ payroll
c. Experience _____ rate (EMR). (employers history of employee work accidents/injuries
a. Occupational
b. Employer's
c. Mod
262
All Workers Comp policy covers all sums for which an employer is _____ liable to an employee under:
a. the Workers Comp Act.
b. The Occupational ______ Act
c. Other ______ coverage
d. _____ Law Employer's Liability
legally
b. Disease
c. states
d. Common
263
The Workers Comp Act
1. ______ benefits including the cost of rehab
2. temporary total _____ benefits
3. Permanent partial ______ benefits
4. _____ benefits
1. Medical
2. disability
3. disability
4. Survivor
264
Is covered NTE the employer's Workers Comp policy common law liability limits
Common Law Employers Liability
265
The Workers Comp Commission is a ____ agency separate from the Department of Insurance
state
266
All insurance and self insurance plans must be filed with the _____ ______ _____
Workers Comp Commission
267
The Workers Comp Commission approves all ____ settlements
claim
268
The Workers comp commission maintains a ______ Injury Fund from which employees who lose or lose use of two or more limbs will receive lifetime benefits
Second
269
The IL _____ _____ ______ is responsible for supervising the Workers Comp Assigned Risk Pool
Department of Insurance
270
The purpose of Workers Comp assigned risk pool is to assure the availability of Workers Comp insurance to all employers including employers than have been _____ by insurance companies.
rejected
271
An employer is eligible for Workers Comp insurance coverage through the Workers Comp Assigned risk pool if the employer has been rejected for Workers Comp insurance by ___ insurance companies
two
272
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