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 23 June 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. Practice each module to that level and run the full exam simulation 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 1008 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.

Can I use it on more than one device?

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.

Do I need to create an account?

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.

A rider that pays an additional amount (often double the face) if the insured dies in an accident is the:

  1. Waiver of premium rider
  2. Accidental death benefit rider ✓
  3. The guaranteed future insurability rider
  4. Cost-of-living rider

Why: The accidental death benefit (double indemnity) rider adds a benefit for accidental death.

For long-term care coverage sold by an agent, Section 351A-8 requires the outline of coverage to be delivered at what point?

  1. Within 30 days after the policy is issued
  2. Prior to the presentation of an application or enrollment form ✓
  3. Only upon the applicant's written request
  4. At the same time the first premium is collected

Why: Sec. 351A-8(a)(2) requires an agent to deliver the outline of coverage prior to the presentation of an application or enrollment form.

To whom must the Director make an annual report, including abstracts of company annual statements and the Department's receipts and expenditures?

  1. The Governor ✓
  2. The Secretary of State
  3. The Chief Justice of the Illinois Supreme Court
  4. The National Association of Insurance Commissioners

Why: Section 406 requires the Director to report annually, or oftener at the request of the Governor, to the Governor, including abstracts of annual statements and a statement of receipts and expenditures.

Show more sample questions with answers & explanations

Under Section 159, when notice of a merger meeting is given by newspaper publication, it must be published once weekly for how many successive weeks, with the last publication at least 20 days before the meeting?

  1. 2 successive weeks
  2. 4 successive weeks
  3. 6 successive weeks
  4. 3 successive weeks ✓

Why: Section 159(1) provides that notice by publication approved by the Director shall be published once weekly on 3 successive weeks, the last publication to be at least 20 days and not more than 40 days before the meeting.

Under Section 153, a witness compelled to testify at a rebating hearing despite self-incrimination concerns receives what protection?

  1. The witness may refuse to testify entirely on Fifth Amendment grounds unless an exception clearly applies for the coverage that is in force according to the insurer's rules
  2. The witness is granted immunity and may not be prosecuted for any act about which compelled to testify, except for perjury in that testimony ✓
  3. The witness receives a reduced penalty but may still be charged
  4. The witness must testify but the testimony is sealed for ten years

Why: Section 153 grants immunity: a person compelled to testify or produce evidence in a Section 151 rebating proceeding shall not be prosecuted for any act about which compelled to testify, except for perjury committed in so testifying.

A 'stock' insurance company is:

  1. Owned by stockholders and may pay them dividends ✓
  2. Owned by its policyholders, who receive policy dividends
  3. A nonprofit organized under the lodge system
  4. An unincorporated group of subscribers

Why: A stock insurer is owned by shareholders (dividends are taxable shareholder dividends); a mutual insurer is owned by policyholders.

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.

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.

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.

Under the required 'Entire Contract; Changes' provision, who has authority to change an Illinois accident and health policy or waive any of its provisions?

  1. Any licensed producer who solicited the application
  2. The insured, by submitting a written request to the home office for the coverage that is in force
  3. Only an executive officer of the company, with the change endorsed on or attached to the policy ✓
  4. Any claims adjuster assigned to the file at the time of loss

Why: Sec. 357.2 states no change is valid until approved by an executive officer and endorsed on or attached to the policy, and no agent has authority to change the policy or waive its provisions.

A 'Social Insurance Supplement' (SIS) rider stops paying once the insured:

  1. Begins receiving the expected Social Security benefit ✓
  2. Returns to any form of part-time employment
  3. Reaches the policy's stated benefit maximum age
  4. Recovers fully from the disabling condition

Why: An SIS rider supplements income while Social Security is not yet payable; it reduces or stops once Social Security benefits begin.

Historically, the Medicare Part D 'coverage gap' (donut hole) was:

  1. A phase where the enrollee temporarily paid a larger share of drug costs (since phased out, and eliminated in 2025) ✓
  2. A period when no prescription drugs are covered under any circumstances
  3. The time before age 65 when a person cannot enroll in Part D
  4. A permanent exclusion of all brand-name medications from coverage

Why: Between initial and catastrophic coverage, enrollees historically paid a higher share in the coverage gap. The gap was gradually closed and, under the Inflation Reduction Act, eliminated in 2025 in favor of an annual out-of-pocket cap on covered drugs.

A producer tells a client false negative information about a competing insurer to win the sale. This is:

  1. Defamation ✓
  2. Rebating
  3. Twisting
  4. Coercion

Why: Making false, maligning statements about another insurer is defamation, an unfair trade practice.

The difference between a conditional and a binding receipt is that the conditional receipt:

  1. Provides coverage only if the applicant is insurable as applied for ✓
  2. Provides immediate coverage regardless of insurability
  3. Is used only for automobile insurance
  4. Never provides any coverage before issue

Why: Conditional coverage depends on the applicant being insurable; a binding receipt grants immediate temporary coverage.

Under Section 424, entering into an agreement to commit, or by concerted action committing, any act of boycott, coercion, or intimidation is an unfair practice when it results in or tends to result in:

  1. A material misrepresentation of policy terms in that particular circumstance
  2. Unreasonable restraint of, or monopoly in, the business of insurance ✓
  3. An improper claims settlement
  4. A prohibited rebate

Why: Section 424(2) defines as unfair any agreement or concerted action constituting boycott, coercion, or intimidation resulting in or tending to result in unreasonable restraint of, or monopoly in, the business of insurance.

Reinsurance is best described as:

  1. One insurer transferring part of its risk to another insurer ✓
  2. An insured purchasing a second policy from a competing company
  3. A state fund that pays claims when an insurer becomes insolvent
  4. The process of reinstating a policy that previously lapsed for nonpayment

Why: Reinsurance lets the original (ceding) insurer transfer some risk to a reinsurer, stabilizing results and increasing capacity.

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.

A deferred income (longevity) annuity is designed to:

  1. Begin income at an advanced age to guard against outliving assets ✓
  2. Pay income immediately after a single premium
  3. Provide a death benefit with no income option
  4. Return all premiums if the owner stays healthy under the policy's terms

Why: A longevity/deferred income annuity starts payments at an advanced age (e.g., 80+), hedging the risk of outliving one's savings.

Before an Illinois ordinary life policy must make a policy loan available against its cash value, the policy must have been in force for at least:

  1. 3 full years ✓
  2. 6 months
  3. 1 full year
  4. 5 full years

Why: Section 224(1)(f) requires the company to advance a loan after the policy has been in force 3 full years.

Under Sec. 226.1, an annuity contract may be issued without a life-contingency payment option when used to fund a program of an institution having assets in excess of:

  1. $25,000,000 ✓
  2. $5,000,000
  3. $10,000,000
  4. $50,000,000

Why: Section 226.1(5) permits issuance without a life-contingency option to fund a program of an institution having assets in excess of $25,000,000.

Under Section 500-80, if a separate fee exceeds what percentage of the directly attributable premium, the disclosure must also include the consumer's signature?

  1. More than 5% of the premium
  2. More than 10% of the premium ✓
  3. More than 15% of the premium
  4. More than 25% of the premium

Why: Section 500-80(e)(2) requires the consumer's acknowledging signature if the fee exceeds 10% of a directly attributable premium.

A temporary insurance license is most commonly issued to:

  1. Continue the business of a producer who died or became disabled ✓
  2. Anyone who has not yet taken the licensing exam in most situations
  3. Replace continuing-education requirements
  4. Allow unlimited sales for one year

Why: Temporary licenses (no exam) let someone service an existing book when a producer dies, becomes disabled, or enters military service.

Standardized Medicare Supplement (Medigap) plans are labeled:

  1. With letters such as A through N ✓
  2. With numbers 1 through 10
  3. By the insurer's own brand names
  4. By the beneficiary's state of residence

Why: Medigap plans are standardized by letter (A–N in most states); the same letter offers the same core benefits across insurers.

Under the entire-contract requirement for industrial life policies, the policy may NOT incorporate by reference which of the following unless it is endorsed on or attached to the policy?

  1. The insurer's constitution, bylaws, rules, or application ✓
  2. The statutory grace-period schedule
  3. The Standard Nonforfeiture Law tables under the policy's terms
  4. The Director's replacement regulation

Why: Section 229(1)(b) requires that nothing be incorporated by reference to any constitution, bylaws, rules, application, or other writing unless endorsed upon or attached to the policy.

An employee is discharged after admitting to theft committed in connection with his work, for which the employer was in no way responsible. Under Section 367e, what is the effect on group continuation rights?

  1. Continuation is available for the full 12-month period
  2. Continuation is available but limited to 30 days
  3. Continuation is not available to that employee ✓
  4. Continuation is available only for the employee's dependents

Why: Sec. 367e(8) makes continuation unavailable to an employee discharged because of a felony or theft connected with his work, where there is admission, conviction, or order of supervision.

For how long may a license be placed on inactive status due to a government-employment conflict of interest before extension limits apply under Section 500-120?

  1. For a 1-year period, extendable to 3 years total unless an exception clearly applies for the coverage that is in force
  2. For a 2-year period, extendable for a successive 2-year period not to exceed a cumulative 4-year inactive period ✓
  3. Indefinitely, until the conflict ends
  4. For a 6-month period, renewable once

Why: Section 500-120(c) allows a 2-year inactive period, extendable for a successive 2-year period not to exceed a cumulative 4 years.

Absent an earlier terminating event, group continuation coverage under Section 367e ends no later than what point?

  1. 6 months after the date coverage would otherwise have terminated
  2. The date 12 months after the date the insurance would otherwise have terminated ✓
  3. 18 months after termination of employment
  4. 36 months after a qualifying event

Why: Sec. 367e(6)(a) sets the maximum continuation period at the date 12 months after the insurance would otherwise have terminated.

A licensed producer dies. To whom may the Director issue a temporary producer license to allow time to service or sell the business under Section 500-60?

  1. Any licensed producer who applies to take over the book of business under the policy's terms
  2. The surviving spouse or court-appointed personal representative of the deceased producer ✓
  3. The appointing insurer's regional sales manager automatically
  4. Any heir of the producer who is at least 18 years of age

Why: Section 500-60(a)(1) authorizes a temporary license to the surviving spouse or court-appointed personal representative of a producer who dies.

A Section 125 cafeteria plan allows employees to:

  1. Choose among qualified benefits using pre-tax dollars ✓
  2. Withdraw retirement savings early without any tax penalty
  3. Buy individual life insurance at government-subsidized rates
  4. Receive employer-paid coverage with no choice of benefits at all

Why: A cafeteria (Section 125) plan lets employees select among qualified benefits, funding them with pre-tax salary reductions.

After a hearing under Section 154.7, if the Director finds a company has engaged in an improper claims practice, the maximum civil penalty the Director may impose is:

  1. $10,000
  2. $50,000
  3. $100,000
  4. $250,000 ✓

Why: Section 154.8(1) authorizes the Director, in addition to a cease and desist order, to suspend the certificate of authority for up to 6 months or impose a civil penalty of up to $250,000, or both.