Evergreen Insurance Prep

Illinois Life & Health Insurance License, Practice Exams

Illinois Life and Accident & Health producer licensing. General insurance knowledge plus the Illinois Insurance Code, authored from public-domain statutes.
Content last updated 3 August 2026

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Each module is scored separately here so you know exactly where you stand. To pass the real Illinois exam you need a scaled score of 70.

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The free sample gives you about 20 questions per module. The full bank contains every question — general insurance plus state law — with written, statute-cited explanations. $49, one time, lifetime access on up to 3 devices — every state and line we add later included.

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Frequently asked questions

How is the Illinois producer licensing exam structured?

Illinois tests Life and Accident & Health separately and splits each into a General and a State module - four Pearson VUE exams in all (Life: 50 general plus 31 state; Accident & Health: 50 general plus 39 state), each requiring a scaled score of 70. This bank covers the general insurance material and the Illinois state-law material for both lines.

What score do I need to pass?

You need a scaled score of 70. Revise each module to that level in Revision Mode, then run the full exam simulation in Exam Mode before your test date.

Are these real exam questions?

No vendor publishes the live exam. Every question here is original, written to the official content outline and grounded in public-domain sources — including the Illinois Insurance Code (215 ILCS 5) for the state-law questions, with the statute section cited in each explanation.

How many practice questions are included?

The full Illinois bank contains 1014 questions (general insurance plus Illinois law), with written, source-cited explanations. The free sample gives you about 20 questions per module.

What does access cost?

$49, one time, for lifetime access — and it includes every state and line we add later, at no extra charge. No subscription.

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Yes. One purchase works on up to 3 of your devices, for example your laptop, phone and tablet, so you can practise wherever you are. Your progress is saved on each device.

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No. The practice tests run in your browser with no signup. Your score history is saved on your own device.

Sample Illinois Life & Health Insurance License practice questions

A selection of free questions with answers and explanations. Use the interactive modules above for timed, scored drills.

In an equity-indexed annuity using the 'annual point-to-point' crediting method, interest is based on the index value:

  1. At the start of the year compared to the end of the year ✓
  2. Measured continuously on every single trading day of the year
  3. At the single highest point the index reached during the term
  4. Averaged across all twelve monthly closing values of the year

Why: Annual point-to-point compares the index at the beginning and end of the year; high-water mark and monthly averaging are alternative methods.

An insured returns to work, then becomes disabled again from the same cause five months later. Under a recurrent disability provision (six-month period), the insured:

  1. Continues the prior claim with no new elimination period ✓
  2. Must satisfy a brand-new elimination period first
  3. Receives only half of the original monthly benefit
  4. Loses all coverage for that recurring condition

Why: A recurrence from the same cause within the stated period is treated as a continuation, so no new elimination period applies.

Under the industrial life beneficiary provision, if proof of claim with surrender of the policy is not made by the named beneficiary within how many days after the insured's death, the company may pay any person permitted by the policy?

  1. Fifteen days ✓
  2. Thirty days
  3. Ten days
  4. Sixty days

Why: Section 229(3) provides that unless proof of claim with surrender is made within fifteen days after the insured's death, the company may pay to any person permitted by the policy.

Show more sample questions with answers & explanations

A policyowner stops paying premiums but wants to keep some permanent coverage with no further premiums due. The best nonforfeiture option is:

  1. Reduced paid-up insurance ✓
  2. Extended term insurance
  3. Cash surrender value
  4. Automatic premium loan

Why: Reduced paid-up uses the cash value to buy a smaller, fully paid-up permanent policy — permanent coverage with no further premiums.

Once issued under Sections 500-25 and 500-30, an Illinois insurance producer license is issued for what term?

  1. A 1-year period
  2. A perpetual term until revoked
  3. A 2-year period ✓
  4. A 3-year period renewable annually

Why: Section 500-35(a) provides that qualifying persons shall be issued a 2-year insurance producer license.

An applicant deliberately withholds a known heart condition from the application. This is:

  1. Concealment of a material fact ✓
  2. An innocent misrepresentation
  3. A permissible omission
  4. A warranty of good health

Why: Intentionally withholding a known material fact is concealment, which can void the contract.

An insured with a $100,000 policy dies during the grace period while owing a $200 premium. The beneficiary receives:

  1. $99,800 ✓
  2. $100,000
  3. $0
  4. $50,000

Why: Coverage stays in force during the grace period; the claim is paid with the overdue premium deducted: $100,000 − $200 = $99,800.

Under the employer insurable-interest rule, an employer's consent requirement for covering an employee's life is satisfied if the insured receives written notice and does not reject coverage within:

  1. 30 days of receipt of the notice ✓
  2. 10 days of receipt
  3. 60 days of receipt
  4. 90 days of receipt

Why: Section 224.1 provides the consent requirement is satisfied if the insured is given written notice and does not reject coverage within 30 days of receipt.

A licensed producer is convicted of a felony. Under Section 500-95, within what period must the producer report the conviction to the Director?

  1. Within 30 days after the entry date of the judgment, along with relevant documents ✓
  2. Within 60 days after the entry of judgment, but documents are optional
  3. Within 10 days after sentencing, with no documentation required
  4. At the next license renewal following the conviction

Why: Section 500-95 requires reporting within 30 days after the entry date of the judgment and providing copies of the judgment and related documents.

Under Section 151, which of the following does the statute expressly permit, notwithstanding the general rebating prohibition?

  1. Giving an applicant a paid employment contract as an inducement to insure
  2. Taking a bona fide premium obligation bearing interest at six percent per annum ✓
  3. Setting off part of the agent's commission against the premium
  4. Promising the applicant securities whose profits accrue as an inducement

Why: Section 151(1) states the Section is not to be construed to prevent the taking of a bona fide obligation, with interest at six per centum per annum, in payment of any premium. The other options are prohibited inducements.

An employee has $100,000 of employer-paid group term life. The amount subject to imputed income is:

  1. $50,000 ✓
  2. $100,000
  3. $0
  4. $25,000

Why: The first $50,000 is tax-free; the cost of the remaining $50,000 is imputed taxable income.

A blanket health policy is designed to cover:

  1. A group of people who are not individually named, such as passengers or students ✓
  2. One named individual and that person's immediate dependents only
  3. Only employees who have passed a full individual medical examination
  4. Retirees who have already enrolled in both Medicare Parts A and B

Why: A blanket policy covers a constantly changing group of unnamed people defined by a relationship (airline passengers, students, sports teams).

Annuitization differs from a systematic withdrawal because annuitization:

  1. Converts the account into a guaranteed stream of income payments ✓
  2. Lets the owner take any amount at any time with no schedule at all
  3. Always returns the full account value in one immediate lump sum
  4. Permanently freezes the account so no further access is possible

Why: Annuitization exchanges the accumulated value for a guaranteed income stream; systematic withdrawal keeps the account and takes flexible amounts.

An annuitant has a $50,000 cost basis and a $100,000 expected return. Of each $10,000 annual payment, how much is taxable?

  1. $5,000 ✓
  2. $2,500
  3. $10,000
  4. $0

Why: Exclusion ratio = basis ÷ expected return = 50,000/100,000 = 50%. Half of each $10,000 payment ($5,000) is excluded; the other $5,000 is taxable.

A 'future increase option' (guaranteed insurability) rider on a disability policy lets the insured:

  1. Increase the benefit amount later without proving insurability again ✓
  2. Receive an automatic refund of premiums if never disabled
  3. Shorten the elimination period after each year the policy is held
  4. Add a spouse to the policy at any time with no additional premium

Why: This rider allows scheduled increases in the monthly benefit (as income rises) without new evidence of medical insurability.

A war exclusion in a life policy generally:

  1. Excludes death caused by an act of war ✓
  2. Pays an additional benefit when the insured dies while on active military duty
  3. Applies only to commercial airline passengers and never to military personnel
  4. Voids the entire policy if the insured ever travels outside the country

Why: A war exclusion excludes or limits payment for death resulting from war (and, in the broader 'status' form, death while in military service), often refunding premiums instead.

In group underwriting, a 'guaranteed issue' limit is the amount of coverage that:

  1. Members can obtain without providing individual evidence of insurability ✓
  2. The employer must purchase for every employee regardless of cost
  3. Is automatically doubled for any employee who has dependents
  4. Each member must pay for entirely out of their own pocket

Why: Up to the guaranteed issue limit, members are covered without individual medical evidence; amounts above it require proof of insurability.

An individual submits a written request to correct disputed recorded personal information. Within how many business days must the institution either make the correction or notify the individual of its refusal?

  1. 30 business days from receipt of the request ✓
  2. 21 business days from receipt of the request
  3. 45 business days from receipt of the request
  4. 90 business days from receipt of the request

Why: Section 1010(A) requires the institution, within 30 business days of receiving the written request, to either make the correction or notify the individual of its refusal and the reasons.

An individual producer lets his license lapse. Under what condition may he be reissued a license without retaking the written examination?

  1. Within 24 months of the due date upon paying triple the renewal fee unless an exception clearly applies for the coverage that is in force
  2. Within 12 months after the due date of the renewal fee, subject to a penalty of double the unpaid renewal fee ✓
  3. At any time, provided he completes 48 CE hours first
  4. Within 6 months of the due date with no additional penalty

Why: Section 500-35(d) allows reissuance without exam within 12 months of the due date, with a penalty of double the unpaid renewal fee.

Under Section 363, the maximum period for which a Medicare supplement policy may deny a claim for losses attributable to a preexisting condition is:

  1. 3 months from the effective date
  2. 6 months from the effective date ✓
  3. 12 months from the effective date
  4. 24 months from the effective date

Why: Section 363(5) provides a Medicare supplement policy may not deny a claim for losses incurred more than 6 months from the effective date of coverage for a preexisting condition.

A mortgage protection (mortgage redemption) policy is usually written as decreasing term, and its death benefit is paid to:

  1. The insured's family or estate ✓
  2. The lending bank as the named first-position beneficiary on the policy contract
  3. The state insurance guaranty fund
  4. The producer who arranged the original mortgage loan

Why: Mortgage protection is owned by the borrower and pays the family/estate (who then choose to pay off the loan); credit life, by contrast, pays the creditor directly.

Illinois law requires interest to accrue on life insurance death proceeds from the date of death, at an annual rate of:

  1. 10% ✓
  2. 6%
  3. 3.5%
  4. 8%

Why: Section 224(1)(l) provides interest accrues on death proceeds from date of death at 10% annually unless payment is made within 31 days of the triggering events.

Under Section 70, if prior authorization for covered post-stabilization services is required, the plan must provide access to designated decision-makers:

  1. During normal business hours only
  2. 24 hours a day, 7 days a week, with determinations made by a health care professional ✓
  3. Within 21 days of the request
  4. Only through the enrollee's primary care physician unless an exception clearly applies for the coverage that is in force

Why: Section 70(a) requires the plan to provide access 24 hours a day, 7 days a week to designated persons to make determinations, provided any determination is made by a health care professional.

An out-of-pocket maximum (stop-loss) in a health plan:

  1. Caps the total cost-sharing an insured pays in a policy year ✓
  2. Sets the smallest claim amount the plan is willing to process
  3. Is the fixed monthly premium the insured must pay the insurer
  4. Limits how much the provider may bill for any single service

Why: Once the insured's deductible, copays, and coinsurance reach the out-of-pocket maximum, the plan pays 100% of covered costs for the rest of the year.

Under Section 427, the Director's authority to modify or set aside a cease and desist order before the time for filing a complaint for review expires is governed by the time period allowed under which section for filing such a complaint?

  1. Section 401
  2. Section 407 ✓
  3. Section 426
  4. Section 430

Why: Section 427(2) ties the Director's power to modify or set aside an order to the time allowed under Section 407 of the Code for filing a complaint for review.

When the Department retains independent actuaries or certified public accountants to supplement an examination, who bears the cost of those services?

  1. The company or person being examined ✓
  2. The Insurance Financial Regulation Fund exclusively
  3. The Attorney General's office
  4. The National Association of Insurance Commissioners

Why: Section 402(1) provides that the cost of retained independent actuaries, CPAs, or qualified examiners shall be borne by the company or person being examined.

An equity-indexed annuity with a 0% floor credits no negative interest. In a year the index drops 12%, the contract is credited:

  1. 0% (principal is protected by the floor) ✓
  2. -12% (the full index loss)
  3. -6% (half the index loss)
  4. +12% (the inverse of the loss)

Why: The floor (commonly 0%) prevents negative crediting, so a down year credits the floor rather than a loss.

A 'bed reservation' benefit in a long-term care policy:

  1. Continues paying to hold the resident's bed during a hospital stay ✓
  2. Guarantees a private room in any nursing home nationwide
  3. Pays a cash bonus for each day the insured stays healthy
  4. Reserves a hospital bed in advance of any planned surgery

Why: A bed reservation benefit keeps paying the facility (for a limited number of days) to hold the insured's bed while they are temporarily hospitalized.

Under Section 75, a health care plan's required consumer advisory committee:

  1. Has authority to hear and finally resolve individual enrollee grievances unless an exception clearly applies for the coverage that is in force according to the insurer's rules
  2. Identifies and reviews consumer concerns and makes advisory recommendations, but refers specific complaints to the plan's grievance committee ✓
  3. Sets the plan's premium rates each year
  4. Replaces the plan's internal quality assessment program

Why: Section 75(a) gives the consumer advisory committee authority to identify and review consumer concerns and make advisory recommendations, but it shall not hear or resolve specific complaints or grievances and instead refers them to the plan's grievance committee.

A 68-year-old retiree wants income payments to begin next month from a lump sum. The suitable product is a(n):

  1. Single-premium immediate annuity ✓
  2. Flexible-premium deferred annuity
  3. 20-year level term policy
  4. Variable universal life policy

Why: A single-premium immediate annuity converts a lump sum into income beginning within one payment period.