Property & Casualty IL Law, IL Casualty Insurance Practice Test Questions, Casualty Producer The McCarran-Ferguson Act - Correct Answers ✅• Federal law that allows most insurance regulation to be done at the state level.Illinois Department of Insurance - Correct Answers ✅Overseen by governor-appointed "director" who has the
power to:
• Make reasonable rules and regulations to enforce insurance laws.• Conduct reasonable investigations to determine violations of state insurance requirements.• Issue immediate cease-and-desist orders to halt illegal insurance practices.• Issue subpoenas in order to obtain insurance documents.• Require individuals to testify under oath about insurance matters.• Issue, deny, suspend or revoke insurance licenses for individuals and businesses DOI Director - Correct Answers ✅• Failure to comply with director orders can result in $2,000 to $20,000 in additional fines.• Guilty party can be forced to pay for independent investigations. 1 / 4
Property & Casualty IL Law, IL Casualty Insurance Practice Test Questions, Casualty Producer • Cease-and-desist orders generally include the right to a hearing within 30 days.• Investigated parties must receive copies of reports before the public.Who Needs a License? - Correct Answers ✅Producer license generally required when doing any of the following for
compensation:
• Selling insurance.• Encouraging someone to buy insurance.• Negotiating terms of insurance.• Giving insurance advice.• Acting without a license is Class A misdemeanor ($2,500 and 1 year in jail).Unlicensed Persons - Correct Answers ✅• An insurer or producer cannot compensate an unlicensed person for selling
or negotiating insurance:
• Possible exception for a formerly licensed person who is receiving deferred compensation and was licensed at time of transaction. 2 / 4
Property & Casualty IL Law, IL Casualty Insurance Practice Test Questions, Casualty Producer Who Doesn't Need a License? - Correct Answers ✅An attorney giving legal advice about insurance laws or an insurance contract.• An accountant giving insurance-related advice as part of his or her job duties.• A public adjuster giving insurance-related opinions or advice as part of his or her job duties.• Officers, directors or employees of insurance businesses who don't receive any type of sales commission and whose jobs are managerial, executive, administrative or clerical in nature and aren't related directly to sales.• Certain people who have insurance-specific careers but don't receive any type of sales compensation (such as insurance employees who evaluate insurance applications, investigate claims or process insurance-related paperwork).• Group benefit administrators who aren't compensated by an insurance business.• Salaried, full-time risk managers who neither sell insurance nor receive insurance-related compensation.License Qualifications - Correct Answers ✅• 18 or older.• Pre-license education.• State exam.• Licensing fee.• Good moral character. 3 / 4
Property & Casualty IL Law, IL Casualty Insurance Practice Test Questions, Casualty Producer
• Might not be eligible if :
• Committed felony.• Fail to pay child support.• Had a license revoked in another state.What's on a License? - Correct Answers ✅• Producer's name.• License number.• Date of issuance.• Date of expiration.• Address.• Line of authority (Life, health, property, casualty, etc.).Lines of Authority - Correct Answers ✅• Each line generally requires 20 hours of prelicense education and a state exam.• Life.• Accident and health.• Property (Fire).• Casualty.
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