insurance director - ANSWERSappointed by the governor and has the power and duty to enforce and execute the insurance laws of illinois
actions the insurance director cannot take - ANSWERSnot empowered to adjust claims, act as a judge in a lawsuit involving claims, advise any insured of any legal...
AD Banker Illinois State Laws Questions &
Answers
insurance director - ANSWERSappointed by the governor and has the power and duty
to enforce and execute the insurance laws of illinois
actions the insurance director cannot take - ANSWERSnot empowered to adjust claims,
act as a judge in a lawsuit involving claims, advise any insured of any legal action to be
taken against an insurer, or make any state law
cease and desist order - ANSWERS-hearing is to be held within 20-30 days from
notification date
-violator must pay a fine of $100/day up to $5,000
-license may also be revoked
director examinations - ANSWERSdetermine the non-financial business practices,
performance, and operations of any company
-examinee must pay all expenses incurred to help with an examination
hearings and subpoenas - ANSWERS-examinee must be given 10 days to request a
hearing from the director in writing
-director must give examinee at least 10 days' notice before date of hearing
-director must issue a written order based on examination within 90 days
-violators of written order may be fined up to $5,000
-persons failing to obey a subpoena/refuses to testify has a penalty up to $2,000
Regulatory Examination - ANSWERSdirector may examine any applicant or holder of a
producer license, limited line producer license, temporary producer license, or business
entity license
-director must issue a written order based on examination within 90 days
-violators of written order are guilty of a business offense and license may be revoked or
a civil penalty up to $20,000
insurance producer - ANSWERSa person may not sell, solicit, or negotiate insurance in
this state for any class of insurance unless licensed for that line of authority
-cannot charge a fee unless licensed, an attorney, bank trust officer/CPA
-person acting as a producer without a license is guilty of a Class A misdemeanor
-misappropriating collected funds is guilty of a Class 4 felony
Nonresident License - ANSWERS-allows reciprocal licensing of Illinois residents on the
same basis
-certifies that the producer hold a current, valid license in good standing in that state
, business entities - ANSWERSa business entity acting as an insurance producer must
obtain a producer license in order to transact any insurance business in Illinois
temporary insurance licensing - ANSWERS-director may issue a temp for up to 180
days for surviving spouse, employee when the designated producer dies or becomes
disabled, designee of producer entering the military
-director may grant temp license for 90 days without requiring exam (must be enrolled in
a training course)
qualifications for licensing - ANSWERS-be at least 18 years old
-be sufficiently rehabilitated if the applicant has committed any act that is a ground for
denial, suspension, or revocation
-complete a prelicensing course for the lines of authority for which the person has
applied
-pay required fees
-pass examinations
license fees - ANSWERS-insurance producer license: $180 ($250 for nonresidents),
payable every 2 years
-temporary producer license: $50
-business entity license: $150, payable every 2 years
-limited line producer license: $50 annually
-processing fee for producer exam application: $50
bond requirement - ANSWERSa producer must maintain a bond to place insurance with
an insurer with which the producer does not have an agent contract (i.e. field officer)
continuing education - ANSWERSbefore each 2-year license renewal, a producer must
complete at least 24 hours course study for CE, 3 of the 24 hours must include
classroom ethics instruction
controlled business - ANSWERS-insurance written to cover the risks on the producer's
own life/spouse/property or the life/property/risks of the producer's employer or own
business
-producer's license will be denied if director has reason to believe the producer has
written more controlled than regular business before or within the 12-month period
immediately following the issuance or license renewal
reinstatement - ANSWERSan individual producer who allows their license to lapse may
reinstate the license within 12 months after the due date of the renewal fee
change of address - ANSWERSlicensees must inform the director of a change of
address within 30 days after the change
license suspension, revocation or denial - ANSWERScommon sense reasons plus (see
list on book pg. 10)
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