Property and Casualty Illinois practice exam
UPDATED ACTUAL Questions and CORRECT
Answers|2025-2026!!
Part 1: Illinois Department of Insurance & Licensing (Regulations)
1. The head of the Illinois Department of Insurance (DOI) holds which title?
A. Commissioner
B. Superintendent
C. Director
D. Secretary
Correct Answer: C
Rationale: Unlike many states that have a "Commissioner," Illinois is governed by an
appointed Director. The Director has broad authority to issue subpoenas, conduct
examinations, and issue cease and desist orders .
2. The Illinois Director of Insurance is appointed by whom?
A. The State Legislature
B. The Insurance Producers of Illinois
C. The Governor
D. The Attorney General
Correct Answer: C
Rationale: The Director is appointed by the Governor and oversees the Department of
Insurance to enforce state insurance laws .
3. How often must the Director conduct an examination of a domestic insurance company?
A. Every 2 years
B. Every 3 years
C. Every 4 years
D. Every 5 years
Correct Answer: D
Rationale: To ensure solvency and compliance, the Director is required to examine insurers
not less frequently than once every 5 years .
,4. An Insurance Producer who violates a "Cease and Desist" order may have their license
revoked and face a maximum fine of:
A. $1,000
B. $2,500
C. $5,000
D. $10,000
Correct Answer: C
Rationale: Violating a Cease and Desist order is serious; the maximum fine imposed by the
Director for such a violation is $5,000 .
5. If a person disobeys a Cease and Desist order, the Director may assess a daily fine. What
is the amount of that fine?
A. $25 per day
B. $50 per day
C. $100 per day
D. $500 per day
Correct Answer: C
Rationale: To compel compliance, a fine of $100 per day (not exceeding $5,000 total) can be
levied for each day the order is ignored .
6. A licensed producer convicted of a felony must report this conviction to the Director
within how many days of the judgment?
A. 10 days
B. 15 days
C. 30 days
D. 60 days
Correct Answer: C
Rationale: The producer has a duty to report the conviction within 30 days. Failure to do so is
grounds for further discipline .
7. An applicant for a Casualty license must complete a minimum number of prelicensing
study hours. How many are required?
A. 10 hours
B. 15 hours
C. 20 hours
D. 40 hours
Correct Answer: C
Rationale: Illinois requires 20 hours of prelicensing education for each major line (Property,
Casualty, Life, Health). Note that for P&C, this totals 40 hours combined .
, 8. A licensed producer must complete how many Continuing Education (CE) hours in each
compliance period?
A. 12 hours
B. 20 hours
C. 24 hours
D. 30 hours
Correct Answer: C
*Rationale: To maintain an active license, a producer must complete 24 hours of CE every 2-
year renewal period .*
9. The Illinois insurance producer exam consists of two parts. You must pass both parts
within how many days of each other?
A. 30 days
B. 60 days
C. 90 days
D. 180 days
Correct Answer: C
Rationale: If you pass one part (e.g., National) but fail the other (State Law), you have 90
days to pass the remaining part before you have to retake the passed section .
10. What is the standard fee for a 2-year insurance producer license in Illinois?
A. $90
B. $150
C. $180
D. $250
Correct Answer: C
Rationale: The biennial license fee set by law is $180 .
11. A temporary producer license (issued to a surviving spouse or executor of a deceased
agent) normally expires after:
A. 30 days
B. 90 days
C. 180 days
D. 1 year
Correct Answer: C
Rationale: The Director may issue a temporary license to allow the business to be sold or
transferred. It is valid for 180 days (approximately 6 months) .
12. Which of the following is NOT considered grounds for license suspension or
revocation?
A. Conviction of a felony
UPDATED ACTUAL Questions and CORRECT
Answers|2025-2026!!
Part 1: Illinois Department of Insurance & Licensing (Regulations)
1. The head of the Illinois Department of Insurance (DOI) holds which title?
A. Commissioner
B. Superintendent
C. Director
D. Secretary
Correct Answer: C
Rationale: Unlike many states that have a "Commissioner," Illinois is governed by an
appointed Director. The Director has broad authority to issue subpoenas, conduct
examinations, and issue cease and desist orders .
2. The Illinois Director of Insurance is appointed by whom?
A. The State Legislature
B. The Insurance Producers of Illinois
C. The Governor
D. The Attorney General
Correct Answer: C
Rationale: The Director is appointed by the Governor and oversees the Department of
Insurance to enforce state insurance laws .
3. How often must the Director conduct an examination of a domestic insurance company?
A. Every 2 years
B. Every 3 years
C. Every 4 years
D. Every 5 years
Correct Answer: D
Rationale: To ensure solvency and compliance, the Director is required to examine insurers
not less frequently than once every 5 years .
,4. An Insurance Producer who violates a "Cease and Desist" order may have their license
revoked and face a maximum fine of:
A. $1,000
B. $2,500
C. $5,000
D. $10,000
Correct Answer: C
Rationale: Violating a Cease and Desist order is serious; the maximum fine imposed by the
Director for such a violation is $5,000 .
5. If a person disobeys a Cease and Desist order, the Director may assess a daily fine. What
is the amount of that fine?
A. $25 per day
B. $50 per day
C. $100 per day
D. $500 per day
Correct Answer: C
Rationale: To compel compliance, a fine of $100 per day (not exceeding $5,000 total) can be
levied for each day the order is ignored .
6. A licensed producer convicted of a felony must report this conviction to the Director
within how many days of the judgment?
A. 10 days
B. 15 days
C. 30 days
D. 60 days
Correct Answer: C
Rationale: The producer has a duty to report the conviction within 30 days. Failure to do so is
grounds for further discipline .
7. An applicant for a Casualty license must complete a minimum number of prelicensing
study hours. How many are required?
A. 10 hours
B. 15 hours
C. 20 hours
D. 40 hours
Correct Answer: C
Rationale: Illinois requires 20 hours of prelicensing education for each major line (Property,
Casualty, Life, Health). Note that for P&C, this totals 40 hours combined .
, 8. A licensed producer must complete how many Continuing Education (CE) hours in each
compliance period?
A. 12 hours
B. 20 hours
C. 24 hours
D. 30 hours
Correct Answer: C
*Rationale: To maintain an active license, a producer must complete 24 hours of CE every 2-
year renewal period .*
9. The Illinois insurance producer exam consists of two parts. You must pass both parts
within how many days of each other?
A. 30 days
B. 60 days
C. 90 days
D. 180 days
Correct Answer: C
Rationale: If you pass one part (e.g., National) but fail the other (State Law), you have 90
days to pass the remaining part before you have to retake the passed section .
10. What is the standard fee for a 2-year insurance producer license in Illinois?
A. $90
B. $150
C. $180
D. $250
Correct Answer: C
Rationale: The biennial license fee set by law is $180 .
11. A temporary producer license (issued to a surviving spouse or executor of a deceased
agent) normally expires after:
A. 30 days
B. 90 days
C. 180 days
D. 1 year
Correct Answer: C
Rationale: The Director may issue a temporary license to allow the business to be sold or
transferred. It is valid for 180 days (approximately 6 months) .
12. Which of the following is NOT considered grounds for license suspension or
revocation?
A. Conviction of a felony
