Evergreen Insurance Prep

Illinois Property & Casualty Insurance License, Practice Exams

Illinois Property & Casualty producer licensing. National P&C insurance knowledge plus Illinois insurance law (auto, property and homeowners, workers' compensation), authored from public-domain statutes.
Content last updated 1 July 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 licenses Property and Casualty producers through Pearson VUE, split into a general section and an Illinois state-law section, each requiring a scaled score of 70 to pass. This bank covers the national property & casualty material plus Illinois law - auto, property and homeowners, and workers' compensation.

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 Compiled Statutes (215 ILCS 5, 625 ILCS 5, 820 ILCS 305) for the state-law questions, with the statute section cited in each explanation.

How many practice questions are included?

The full Illinois bank contains 1056 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 Property & Casualty Insurance License practice questions

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

The CAN-SPAM Act primarily regulates:

  1. In-person sales
  2. Flood policy issuance
  3. Commercial email messages, requiring honest headers, a valid opt-out, and a physical address ✓
  4. Telephone solicitations

Why: CAN-SPAM sets rules for commercial email, including truthful subject lines and sender information, a functioning opt-out, and inclusion of a valid postal address.

An insurer changes a coverage clause on the insured's application after submission — without the insured's notice, knowledge, or consent — and then uses the altered application to settle the claim. Under Section 154.6, this is:

  1. An improper claims practice ✓
  2. Allowed if the change favors the insured
  3. Permitted with the Director's approval
  4. Required by the proof-of-loss rules

Why: Section 154.6(k) lists attempting to settle claims on the basis of an application which was altered without notice to, or knowledge or consent of, the insured.

Section 424(1) folds the acts prohibited by several other Code sections into the definition of unfair practices. Which of the following sections is among those expressly cross-referenced?

  1. Section 143 (policy forms)
  2. Section 149 (misrepresentation and defamation) ✓
  3. Section 132 (examinations)
  4. Section 407 (judicial review) in most situations

Why: Section 424(1) defines as unfair the commission of acts prohibited by Sections 134, 143.24c, 147, 148, 149, 151, 155.22, 155.22a, 155.42, 236, 237, 364, 469, and 513b1 — which expressly includes Section 149.

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Electronic equipment such as a permanently installed aftermarket sound/navigation system not factory-installed is, under the unendorsed PAP, generally:

  1. Subject to exclusion or limitation unless added by endorsement ✓
  2. Covered only under Part B
  3. Covered without limitation
  4. Always replaced new

Why: The PAP limits or excludes certain non-factory permanently installed electronic equipment; broader coverage requires an endorsement.

Within compensatory damages, payments for tangible, measurable losses such as medical bills and lost wages are called:

  1. Punitive damages
  2. General damages
  3. Nominal damages
  4. Special damages ✓

Why: Special damages are specific, quantifiable economic losses such as medical expenses and lost income.

'Perils of the sea' in ocean marine refers to:

  1. Crew negligence only
  2. Fortuitous accidents or casualties of the sea, such as heavy weather, sinking, and stranding ✓
  3. All possible causes of loss
  4. Ordinary wear and tear from normal sailing

Why: Perils of the sea are extraordinary, fortuitous events peculiar to the sea, like storms, stranding, collision, and sinking—not the ordinary action of wind and waves.

A bar overserves a patron who then injures a third party in a fight. Which coverage is designed to respond to the bar's liability?

  1. Workers Compensation
  2. Liquor Liability / Dram Shop coverage ✓
  3. Surety bond
  4. CGL Coverage A

Why: Because the CGL excludes the liquor business's liability, the bar needs liquor liability/dram shop coverage for injuries connected to serving alcohol.

A coal miner who develops pneumoconiosis (black lung disease) from workplace dust exposure may receive benefits under:

  1. The Defense Base Act
  2. The Jones Act
  3. The Black Lung Benefits Act (Federal Mine Safety) ✓
  4. FELA

Why: The Black Lung Benefits Act provides compensation to coal miners who are totally disabled by pneumoconiosis (black lung) arising from mine employment.

In a reinsurance arrangement, the company that transfers (gives up) part of its risk is called the:

  1. Attorney-in-fact
  2. Reinsurer
  3. Ceding insurer ✓
  4. Surplus lines broker

Why: The ceding insurer is the original insurer that cedes a portion of its risk to a reinsurer.

The CGL pollution exclusion generally bars coverage for:

  1. Bodily injury and property damage arising from the discharge, dispersal, or release of pollutants ✓
  2. Slander and libel
  3. Auto theft
  4. All fire losses

Why: The pollution exclusion removes coverage for injury/damage from the release of pollutants, subject to limited exceptions.

Under the GLBA privacy rule, an insurer that intends to share a customer's nonpublic personal financial information with a nonaffiliated third party generally must first:

  1. Obtain a court order
  2. Notify FEMA
  3. Cancel the policy
  4. Provide a privacy notice and the opportunity to opt out ✓

Why: GLBA requires insurers to deliver a privacy notice and, before sharing nonpublic personal information with nonaffiliated third parties, give the consumer a chance to opt out.

Coverage E (Personal Liability) typically does NOT cover:

  1. Bodily injury arising out of the insured's business activities ✓
  2. Property damage the insured negligently causes to a neighbor's property
  3. Liability for an accidental injury at a child's birthday party
  4. Bodily injury to a guest from a fall on the premises

Why: Business pursuits are generally excluded from Coverage E unless a business pursuits endorsement is added; ordinary personal liability situations are covered.

The voluntary and intentional giving up of a known right is called:

  1. Estoppel
  2. Waiver ✓
  3. Concealment
  4. Subrogation

Why: A waiver is the intentional and voluntary relinquishment of a known legal right.

The standard CGL excludes liability for professional services. An architect, accountant, or doctor would address this gap with:

  1. A higher CGL aggregate
  2. Professional Liability / Errors & Omissions coverage ✓
  3. An umbrella only
  4. Medical payments coverage

Why: Professional services are excluded under the CGL and must be insured with a Professional Liability/E&O policy.

Under 215 ILCS 5/143a, an insurer writing UM property damage coverage MAY limit recovery to losses caused by:

  1. Collisions occurring on public highways only
  2. Damage exceeding $500
  3. Single-vehicle accidents
  4. Actual physical contact of the uninsured vehicle with the insured vehicle ✓

Why: Section 143a(2) permits the insurer to provide that UM property-damage losses are limited to damages caused by actual physical contact of the uninsured vehicle with the insured vehicle.

The Joint Ownership Coverage endorsement is used when a PAP needs to cover:

  1. A leased fleet of vehicles
  2. Individuals who are not married but jointly own a covered auto (or non-resident relatives) ✓
  3. A vehicle owned by a corporation
  4. A vehicle used as a livery

Why: Joint ownership coverage adapts the PAP for vehicles owned by two or more individuals not married to each other, or by an individual and one or more relatives who don't all reside together.

The requirement that contracting parties be of legal age, sane, and not under the influence refers to which contract element?

  1. Offer and acceptance
  2. Competent parties ✓
  3. Legal purpose
  4. Consideration

Why: Competent parties means each party must have the legal capacity to contract, being of legal age, mentally competent, and sober.

Under 215 ILCS 5/143a, uninsured motorist (UM) bodily-injury coverage must be provided in what amount unless properly rejected?

  1. At least $100,000 per person
  2. Twice the policy's bodily-injury liability limits
  3. A flat $20,000 per person
  4. Limits equal to those set in Section 7-203 of the Vehicle Code ✓

Why: Section 143a requires UM coverage in the bodily-injury/death limits set forth in Section 7-203 of the Illinois Vehicle Code.

Under 215 ILCS 5/537.4, once the Guaranty Fund pays covered claims, it is deemed the insolvent company to that extent and, among other rights, may do what?

  1. Reinstate the insolvent company's certificate of authority
  2. Assess individual policyholders for the shortfall
  3. Pursue and retain salvage and subrogation recoveries on paid covered claim obligations ✓
  4. Recover reinsurance proceeds directly

Why: Section 537.4 gives the Fund the rights of the insolvent company, including the right to pursue and retain salvage and subrogation recoveries on paid claims; the liquidator retains the sole right to reinsurance proceeds.

Every Illinois employer must post a conspicuous notice at the place of employment stating:

  1. Only the employer's federal EIN
  2. The weekly maximum benefit rate
  3. Whether it is insured (with carrier name, policy number, and dates) or is an approved self-insurer ✓
  4. The names of all injured employees

Why: Section 6(a) requires a posted notice stating whether the employer is insured (naming carrier, policy number, effective and termination dates) or is operating as a self-insured employer.

For a property owner to be eligible to purchase NFIP flood insurance, the property must be located in:

  1. A coastal county
  2. A federally declared disaster area
  3. A community that participates in the NFIP ✓
  4. A state with a FAIR Plan

Why: NFIP coverage is only available in communities that have agreed to adopt and enforce floodplain management ordinances and thus participate in the program.

Under the CGL, the duty to defend ends when:

  1. The policy is renewed
  2. The applicable limit of insurance has been exhausted by payment of judgments or settlements ✓
  3. The insured hires its own attorney
  4. The first claim is filed

Why: The insurer's duty to defend ceases once the applicable limit is used up by judgments or settlements.

Directors and Officers (D&O) liability insurance primarily protects:

  1. The company's products
  2. Customers who slip and fall
  3. Employees injured on the job
  4. Corporate directors and officers (and often the entity) against claims alleging wrongful acts in managing the organization ✓

Why: D&O covers directors, officers, and frequently the entity for losses from alleged wrongful management acts.

Which marine coverage would insure a bank's exposure for valuable customer securities documents lost in a fire on premises?

  1. Freight coverage
  2. Ocean marine cargo
  3. Hull coverage
  4. Valuable Papers and Records floater ✓

Why: The Valuable Papers and Records inland marine floater covers the cost to reconstruct or replace important documents and records destroyed by a covered peril.

A primary reason an organization purchases an umbrella in addition to its CGL, auto, and employers liability is to:

  1. Obtain a single high layer of catastrophic liability protection above several underlying policies ✓
  2. Cover first-party property damage
  3. Lower its primary deductibles
  4. Eliminate the need for workers compensation

Why: Umbrellas provide a consolidated high limit of catastrophic excess protection over multiple underlying liability policies.

Which statement about Part Two (Employers Liability) limits and Part One is correct?

  1. Part One has no policy limit; Part Two has stated dollar limits ✓
  2. Part Two has no policy limit; Part One has stated dollar limits
  3. Neither Part has any limits
  4. Both Part One and Part Two have stated dollar limits

Why: Part One has no policy limit (the statute controls benefits), while Part Two carries stated dollar limits for the three employers liability exposures.

When a Commissioner determines an Illinois employer knowingly failed to provide required coverage, the failure is deemed an immediate serious danger to the public, justifying:

  1. Automatic seizure of company assets
  2. Immediate revocation of the employer's business license by the Secretary of State
  3. A mandatory rate increase
  4. A work-stop order requiring cessation of the employer's business operations at the place of employment or jobsite ✓

Why: Section 4(d) authorizes service of a work-stop order requiring cessation of all business operations; the order is lifted upon proof of the required insurance.

Shareholders sue a corporation's board alleging mismanagement caused a stock drop. Which policy responds?

  1. CGL Coverage B
  2. Directors and Officers (D&O) Liability ✓
  3. Liquor liability
  4. EPLI

Why: Claims against directors and officers for wrongful management acts are handled by D&O liability insurance.

A captive insurer is best distinguished from a captive agent in that the captive insurer:

  1. Is a residual market
  2. Sells policies for only one insurer
  3. Is a consumer reporting agency
  4. Is an insurance company owned by its parent to insure the parent's own risks ✓

Why: A captive insurer is owned by its parent and primarily insures the parent's risks; this is distinct from a captive agent, who merely represents only one insurer.

How do CGL aggregate limits reinstate?

  1. They reinstate automatically at the start of each new policy period (annual policy term) ✓
  2. They reinstate after each occurrence
  3. They never reinstate
  4. They reinstate only after a claim is paid

Why: Aggregate limits are the most paid during the policy period and reset at each new annual policy term, not after each claim.