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 2 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. 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 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.

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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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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.

How many times during his or her lifetime may an individual applicant hold a temporary insurance producer license under Section 500-65?

  1. One per line of authority sought
  2. No more than one during his or her lifetime ✓
  3. Up to two, separated by at least five years
  4. No fixed limit, subject to the Director's discretion

Why: Section 500-65(b) provides that an individual applicant may not hold more than one such temporary license during his or her lifetime.

Under 215 ILCS 5/143.19(f), cancellation is permitted where the named insured, within the preceding 36 months, was convicted of certain offenses OR had how many speeding/motor-vehicle-law misdemeanor violations within the prior 12 months?

  1. Five or more
  2. Three or more ✓
  3. Four or more
  4. Two or more

Why: Section 143.19(f)(5) permits cancellation for 3 or more speeding or motor-vehicle-law misdemeanor violations within the prior 12 months.

Liberalization is a policy condition that:

  1. Reduces coverage automatically unless an exception clearly applies for the coverage that is in force
  2. Adds liability
  3. Cancels the policy
  4. Automatically extends any broadened coverage to existing policyholders without additional premium ✓

Why: The liberalization clause provides that if the insurer broadens coverage without additional premium during the policy period, the broadened coverage applies automatically to the existing policy.

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If a surviving spouse who is receiving death benefits remarries and the decedent left no children then entitled to benefits, the surviving spouse receives:

  1. A lump sum equal to 2 years of compensation benefits, extinguishing further rights ✓
  2. Continued lifetime benefits
  3. A lump sum equal to 5 years of benefits unless an exception clearly applies for the coverage that is in force
  4. Nothing further

Why: Section 7(a) provides that on remarriage of a widow/widower where no entitled children survive, the surviving spouse is paid a lump sum equal to 2 years' compensation and all further rights are extinguished.

The section of a policy that contains the named insured, address, policy period, limits, and premium is the:

  1. Declarations ✓
  2. Exclusions
  3. Conditions
  4. Insuring agreement

Why: The declarations page personalizes the policy with the insured's identifying information, coverage limits, and premium.

A key function of the MCS-90 endorsement is that the insurer:

  1. Provides cargo coverage automatically
  2. Will never pay beyond the policy limits under any circumstance unless an exception clearly applies for the coverage that is in force
  3. Replaces the need for liability limits
  4. Must pay judgments for public liability even if the loss would otherwise be excluded, then may seek reimbursement from the insured ✓

Why: The MCS-90 obligates the insurer to pay covered public liability judgments even if the policy would not otherwise respond, with a right to recover those payments from the insured.

A products liability claim alleges a manufactured part injured a user three years after sale. This is covered under the CGL as:

  1. Premises and operations
  2. Damage to premises rented unless an exception clearly applies for the coverage that is in force
  3. Coverage B
  4. Products and completed operations, subject to that separate aggregate ✓

Why: Injury from a sold product is a products liability claim subject to the Products-Completed Operations Aggregate.

A statement that is guaranteed to be true and becomes part of the contract is a:

  1. Concealment
  2. Representation
  3. Warranty ✓
  4. Waiver

Why: A warranty is a statement that is guaranteed true and becomes part of the policy; its breach can void coverage.

Under 215 ILCS 5/143.14, a notice of cancellation is not effective unless the company does what?

  1. Publishes notice in a newspaper of general circulation unless an exception clearly applies for the coverage that is in force
  2. Obtains the insured's signed acknowledgment of receipt
  3. Mails it to the named insured at the last mailing address known and maintains proof of mailing ✓
  4. Delivers it in person to the named insured

Why: Section 143.14 requires the notice be mailed to the named insured at the last known mailing address and that the company maintain proof of mailing on a recognized U.S. Post Office form or acceptable equivalent.

The difference between an umbrella policy and a simple excess liability policy is that an umbrella:

  1. Provides lower limits
  2. Can broaden coverage and may pay for some claims not covered by the underlying policy, whereas excess simply follows the underlying form ✓
  3. Cannot be purchased by individuals unless an exception clearly applies for the coverage that is in force according to the insurer's rules in that particular circumstance
  4. Only covers auto

Why: Excess liability merely adds limits over an underlying policy following its terms; an umbrella both adds limits and can broaden coverage beyond the underlying policies.

Unless otherwise specially provided, a hearing under the Code may be held in the City of Springfield, the City of Chicago, or what other location?

  1. The federal judicial district nearest the insurer's home office under the policy's terms
  2. The county where the principal business address of the affected person is located ✓
  3. Only the county where the Director maintains his office
  4. Any county the complainant chooses

Why: Section 402(2) allows hearings in Springfield, Chicago, or the county where the principal business address of the person or company affected is located.

Under Section 428(2), a cease and desist order issued under Section 427 becomes final upon the expiration of the time allowed for filing a complaint for review (if none is filed) or upon:

  1. Publication of the order in the official record
  2. The entry of a final decision, order, or judgment of the court ✓
  3. The lapse of one year from service
  4. The Director's signature on the original findings

Why: Section 428(2) provides that the order becomes final upon expiration of the time to file a complaint for review if none is filed, or upon the entry of a final decision, order, or judgment of the court.

Under Section 424(6), failing to meet a requirement of the Unclaimed Life Insurance Benefits Act becomes an unfair practice when it occurs:

  1. Only if it causes actual monetary loss
  2. On any single occasion
  3. With such frequency as to constitute a general business practice ✓
  4. Only after a Director's cease and desist order under the policy's terms

Why: Section 424(6) defines as unfair the failure to meet any requirement of the Unclaimed Life Insurance Benefits Act with such frequency as to constitute a general business practice.

The 'other insurance' condition in a property policy generally provides that the policy will pay:

  1. The full loss regardless of other coverage according to the insurer's rules
  2. Its pro-rata share when other valid insurance exists on the same property ✓
  3. Nothing if any other policy exists
  4. Double the loss

Why: When more than one policy covers the same loss, the other insurance condition typically calls for pro-rata sharing based on each policy's limits.

Under 625 ILCS 5/3-707, a THIRD or subsequent violation of operating an uninsured vehicle is a business offense carrying a fine of:

  1. $1,000 ✓
  2. $1,500
  3. $500
  4. $2,500

Why: Section 3-707(c) provides that a third or subsequent violation is a business offense with a $1,000 fine.

Section I of a Businessowners Policy provides:

  1. Liability coverage
  2. Auto coverage
  3. Common conditions
  4. Property coverage ✓

Why: Section I of the BOP addresses property coverage (building and business personal property), while Section II addresses liability.

A commercial-lines property policy (not one of the personal lines in 143.13(a),(b),(c),(h)) is coming up for expiration. Under 215 ILCS 5/143.17a, how far in advance must the company mail notice of its intention NOT to renew?

  1. At least 30 days before expiration
  2. At least 90 days before expiration
  3. At least 45 days before expiration
  4. At least 60 days before expiration ✓

Why: Section 143.17a(a) requires a company to mail written notice of intention not to renew to the named insured at least 60 days before the current policy's expiration date for these commercial-type policies.

An employer that is found in noncompliance with the coverage requirement more than once faces:

  1. Only a warning letter
  2. No additional consequence
  3. Doubled minimum penalties and possible ineligibility to self-insure for one year (or until penalties are paid) ✓
  4. A reduction in future premiums unless an exception clearly applies for the coverage that is in force according to the insurer's rules

Why: Section 4(d) provides that if an employer is found non-compliant more than once, all minimum penalties double (minimum becomes $20,000, up to $1,000/day), and employers with 2 or more violations may not self-insure for one year or until all penalties are paid.

The chief purpose of insurance for the individual is to:

  1. Generate investment profit
  2. Eliminate physical hazards
  3. Avoid all possibility of loss unless an exception clearly applies for the coverage that is in force
  4. Indemnify against the financial consequences of an unexpected loss ✓

Why: Insurance restores an insured who suffers a loss to the same financial condition as before the loss; it indemnifies rather than profits the insured.

The 'your product' exclusion in the CGL means the policy will not pay for:

  1. Bodily injury caused by the product to a third party
  2. Property damage to the insured's own product itself ✓
  3. Medical payments
  4. Defense costs

Why: Damage to the insured's own product is excluded; injury the product causes to others remains covered.

A mortgagee's insurable interest in an insured building is generally limited to:

  1. The unpaid balance of the mortgage loan ✓
  2. The full replacement cost of the building
  3. The market value of the land only
  4. The borrower's down payment

Why: A mortgagee (lender) has an insurable interest equal to the outstanding balance of the loan it has secured by the property.

Business Income coverage is designed primarily to cover:

  1. Theft of money
  2. Liability claims from injured customers
  3. Loss of net income and continuing expenses during a covered shutdown ✓
  4. The cost to rebuild the damaged building in that particular circumstance

Why: Business Income covers the actual loss of net income plus continuing normal operating expenses (including payroll) during the period of restoration after a covered loss.

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 for the coverage that is in force
  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.

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.

In commercial auto, mobile equipment (e.g., a bulldozer) is generally:

  1. Covered under garagekeepers
  2. Covered as a covered auto under the BACF unless an exception clearly applies for the coverage that is in force
  3. Not a covered auto under the BACF and typically insured under general liability ✓
  4. Covered only under Symbol 1

Why: Self-propelled mobile equipment is excluded from the auto definition and is normally addressed under a commercial general liability policy.

The MCS-90 endorsement applies regardless of which auto is involved because it is primarily intended to:

  1. Lower the carrier's premium
  2. Protect the public by ensuring a source of recovery for injuries/damage caused by the motor carrier ✓
  3. Cover the carrier's own cargo unless an exception clearly applies for the coverage that is in force according to the insurer's rules
  4. Reward safe drivers

Why: The MCS-90 is a public-protection mechanism guaranteeing that injured members of the public can be paid, even if the specific vehicle was not scheduled.

Under PAP Part A, punitive or exemplary damages are:

  1. Always covered like compensatory damages unless an exception clearly applies for the coverage that is in force according to the insurer's rules
  2. Often excluded or not covered, as the policy responds to compensatory damages the insured is legally liable for ✓
  3. Paid as supplementary payments
  4. Covered only under Part B

Why: Liability coverage responds to compensatory damages; punitive damages are commonly excluded or unenforceable under the policy and many states' public policy.

Under Section 8(a), the employer must pay for necessary medical, surgical, and hospital services that are:

  1. Provided only within 30 days of the injury
  2. Requested by the employee regardless of relation to the injury
  3. Reasonably required to cure or relieve the effects of the accidental injury ✓
  4. Limited to emergency room visits

Why: Section 8(a) requires the employer to pay for all necessary first aid, medical, surgical, and hospital services reasonably required to cure or relieve from the effects of the accidental injury.

The PAP's out-of-state coverage provision does what when the insured travels to a state with higher required limits?

  1. Reduces coverage to the home-state minimum unless an exception clearly applies for the coverage that is in force
  2. Adds collision coverage automatically
  3. Voids the policy outside the home state
  4. Automatically increases the policy's liability limits to meet that state's compulsory minimums ✓

Why: The out-of-state provision raises the policy limits to the minimum amounts required by the other state's compulsory or financial responsibility law if they are higher.

Self-insurance is best defined as:

  1. Buying insurance from an offshore carrier unless an exception clearly applies for the coverage that is in force
  2. Purchasing an umbrella policy
  3. An entity setting aside its own funds to pay for its own anticipated losses rather than transferring the risk ✓
  4. Joining a FAIR Plan

Why: Self-insurance is a risk-retention technique in which an organization budgets and funds its own losses internally instead of transferring the risk to an insurer.