Illinois Statutes & Regulations All Lines Flashcards

1
Q

Applicants must pass both parts of the licensing exam within how many days?

A

90 Days

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2
Q

Change of address (business, resident, mailing or email) must be reported to the Director within how many days?

A

30 Days

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3
Q

Nonresident producers must file a change of address within how many days of moving out of the state?

A

30 Days

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4
Q

The Director May issue a temporary non-producer license for a maximum of how many days to a surviving spouse, business partner or employee of a producer dies, becomes disabled, or is called to active military service?

A

180 Days

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5
Q

A temporary producer license may be issued for how many days provided the applicant is currently enrolled in a pre-licensing course.

A

90 Days

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6
Q

What is the minimum age to obtain a producer license?

A

18 Years

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7
Q

Biennial (every two years) few for a current state insurance producer’s license and also for a nonresident license?

A

$180 - State License

$250 - Nonresident License

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8
Q

Pre-Licensing Study Requirements

1) How many hours per line of authority?
2) Minimum number of hours spent in the classroom?

A

1) 20 Hours

2) 7.5 Hours

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9
Q

Continuing Education

1) Total CE hours required for each two year licensing period?
2) How hours ethics courses must be included in the total CE hours?

A

1) 24 Hours

2) 3 Hours

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10
Q

How many months after the due date of a renewal can a license be reinstated?

A

12 Months

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11
Q

Civil Penalties for Insurance Licensing Violations

1) Maximum penalty for each cause
2) Maximum penalty for all causes

A

1) $10,000

2) $100,000

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12
Q

Licenses must report felony convictions within how many days?

A

30 Days

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13
Q

What is the maximum penalty for unfair claims practices?

A

$250,000

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14
Q

What is the maximum penalty for misrepresentation?

A

$10,000

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15
Q

What is the maximum penalty for defamation?

A

$10,000

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16
Q

What is the maximum penalty for unfair marketing practices per violation?

A

$1,000

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17
Q

What is the Illinois Life and Health Guaranty Association’s maximum liability for any one life for life insurance death benefits?

A

$300,000

18
Q

What is the Illinois Life and Health Guaranty Association’s maximum liability for any one life on life insurance net cash surrender and withdrawal values?

A

$100,000

19
Q

What is the Illinois Life and Health Guaranty Association’s maximum liability for any one life for present value of annuity benefits?

A

$250,000

20
Q

What is the Illinois Life and Health Guaranty Association’s maximum liability for any one life for health insurance benefits?

A

$300,000

21
Q

What is the Illinois Life and Health Guaranty Association’s maximum liability for any one life for benefits, irrespective of the number of contracts with respect to the contract owner or plan sponsor?

A

$5,000,000

22
Q

Duties of the Director of Insurance

A
  • conduct investigations and examinations
  • write reasonable rules and regulations (not laws)
  • Impose penalties (fines, suspensions and revocations)
  • Approve insurance policy forms, rates and rate increases
  • Issue insurance licenses and certificates of authority
23
Q

Cease and Desist Orders - Director of Insurance

1) Hearing guidelines
2) Penalties

A

1) Hearings are held 20-40 days from the date of the hearing notice
2) Penalties ($100 per day violation continues, $5,000 maximum fine, revocation or suspension,)

24
Q

Examinations and Records of Insurers - Director Guidelines

1) How many years must a domestic insurer be examined?
2) How many days may violators request a hearing within receiving examination report?
3) How many days does the Director have to issue a written order after a hearing?
4) What is the maximum penalty for violating an order?

A

1) Once every 5 years
2) 10 days
3) 90 days
4) $2,000

25
Q

Examination of Producer Records - Director of Insurance

1) How many days do violators have to request a hearing after an examination report?
2) How many days does the Director have to issue a written order after a hearing?
3) what is the maximum penalty for violating an order?

A

1) 14 Days
2) 90 Days
3) $20,000

26
Q

What should a resident license contain?

A

1) name
2) address
3) license number and national producer number
4) date of issuance
5) lines of authority
6) expiration date of license

27
Q

What is the bond required for producers acting as Brokers?

A

1) greater of $2,500 or 5% of premiums brokered in the previous year

28
Q

What is a controlled business and what are the licensing limitations.

A

1) Insurance producer who just issues insurance licenses for his/her own benefit (self, spouse, own business).
2) Limits 1. Director will not grant a license if two years prior all controlled business exceeded general public insurance business 2. 12 months following insurance license issuance total premiums on controlled business exceeded General insurance business

29
Q

A producer who allows their license to lapse may have it reinstated within the following time frame and with what penalties.

A

1) within 12 months of renewal fee due date
2) paying double the unpaid renewal fee
* no re-testing needed

30
Q

What are reasons the Director would be able to suspend, revoke or refuse to issue or renew a producers license?

A

1) Provided incorrect misleading incomplete or material untrue information in the license application
2) Violated any law rules and regulation subpoena or order of the director or of another state director
3) Obtained a license to by fraud or misrepresentation
4) Cheated on a licensing exam
5) Failed to pay child support
6) Failed to pay federal or state income tax
7) Misappropriated funds or properties
8) Intentionally misrepresented terms of an insurance contract or application
9) Felony conviction
10) Committed any insurance unfair trade practices
11) Was fraudulent coercive or diss honest and demonstrated incompetence on trustworthiness or financial irresponsibility
12) Had an insurance license denied or suspended in another state
13) Forged another person’s name
14) Knowingly excepted insurance business from an unlicensed individual

31
Q

Suspension/Revocation Rules

A

1) Applicant or licensee must receive a written notice of reasons to renew suspend or revoke her license
2) Hearings may be requested within 30 days of the notice and it must be held between 20 to 30 days of the mailing of the notice of hearing
3) Civil penalties of up to $10,000 per cause and $100,000 of all causes may be levied
4) A person is in ineligible to apply for any license for three years following revocation suspension or denial

32
Q

What are the penalties for illegally withholding or misappropriating fiduciary funds (premiums received by the producer in the process of selling insurance)

A

1) $150 or less class a misdemeanor
2) $150 or less repeatedly class four felony
3) More than $150 class III felony

33
Q

What are the unfair claims settlement practices?

A

1) Knowingly misrepresenting relevant facts or policy provision
2) Failing to acknowledge communications regarding claims
3) Feeling to implement procedures for the prompt investigation and settlement of claims
4) Refusing to pay claims without conducting a reasonable investigation
5) Failing to affirm or deny coverage within a reasonable time after completing a claim investigation
6) Not attempting in good faith to bring up route prompt fair and equitable settlement of claims submitted in which the liability has become reasonably clear
7) Compelling insured’s to institute suits to recover amounts due under their policy by offering substantially less then the amounts ultimately recovered in suits brought by then
8) Attempting to settle claims for less than the amount the insured was reasonably led to believe in what she was entitled
9) Attempting to settle claims on an application that was altered without the insured’s knowledge and consent
10) Making claims payments without indicating the coverage under which each payment is being made
11) Denying a claim or offering a compromise settlement without a prompt explanation for such actions
12) Unreasonably delaying the claim investigation or payment by requiring both a formal proof of loss and subsequent verification that duplicates the information
13) Feeling to settle claims promptly were liability has become reasonably clear under one portion of insurance coverage in order to influence settlement under other portion of the insurance policy
14) Feeling to promptly provide a reasonable explanation for the basis for the denial of the claim

34
Q

Penalties for failing to obey a cease and desist order by the Director?

A

1) Revocation of a company certificate of authority for six months
2) A civil penalty of up to $250,000
3) Or a combination of both

35
Q

What is the unfair trade practice of rebating?

A

Offering valuable consideration other than that which is offered in the contract as a motivation to get someone purchase a policy.

-Forms of rebating include kickbacks of commission, extraordinary gifts, payment of consulting fees or offering to pay the insurance premium

36
Q

What is the unfair trade practices of defamation and what are the fines?

A

1) Defamation is the illegal practice of making statements written or oral that are false or maliciously critical of the financial condition of an insurance company or a producer representing the company
2) Fines are between $200 and $10,000

37
Q

What is the unfair trade practice of discrimination?

A

1) Discriminating between individuals of the same class and equal life expectancy in the rates dividends benefits or terms of any life or life annuity contract
2) Discriminating between neighbors with an a municipality of an essentially same hazard potential
3) Using sex orientation in the underwriting process or in the determination of insurability

38
Q

What is the unfair trade practices of boycotting?

A

A group that avoids a certain company or producer to see your business to another company or producer

39
Q

What is the unfair trade practices of coercion?

A

1) Forcing a person to buy insurance through a particular company or producer

40
Q

What is the unfair trade practice of intimidation

A

Use of words or actions to make a consumer buy insurance from the producer a company

41
Q

What is the Illinois life and health insurance guaranty Association?

A

To provide for the payment of covered claims of an insult and insurer

Absolutely cannot be used for marketing purposes to sell insurance

42
Q

What are the Illinois life and health insurance guaranty Association coverage limits?

A

1) life insurance benefits $300,000
2) net cash surrender and withdraw values $100,000
3) present value of annuity benefits $250,000
4) health insurance benefits $300,000
5) 5 million and benefits irrespective of the number of contracts with respect to the contract owner or plan sponsor