Free IL Accident and Health Producer State Practice Questions

Sample Practice Questions

Try these 10 sample questions from the IL Accident and Health Producer State practice bank. Each includes the answer and explanation. Continue with the interactive practice above to review the full question set.

1. 1The Illinois Director learns that a producer may be violating the Insurance Code. Which action falls within the Director's general statutory powers?

   1. A. Conduct an investigation to determine whether a violation occurred
   2. B. Rewrite the producer's private agency contract
   3. C. Set federal Medicare benefit levels
   4. D. Issue a criminal conviction without court proceedings

   Answer: A

   Explanation: The statute authorizes the Director "to conduct such investigations as may be necessary to determine whether any person has violated any provision of such insurance laws". That supports investigation, not judicial or federal benefit-setting powers.

   Reference: 215 ILCS 5/401 — Section 401(b) (215 ILCS 5/401(b))

2. 2An Illinois resident is age 65 and has just enrolled in Medicare Part B. How long is the statutory Medicare supplement open-enrollment window tied to that event?

   1. A. 6 months
   2. B. 3 months
   3. C. 9 months
   4. D. 12 months

   Answer: A

   Explanation: Section 2008.74 creates "the 6 month period beginning with the first day of the month in which an individual is both 65 years of age or older and is enrolled for benefits under Medicare Part B". The described window is six months.

   Reference: ADMINISTRATIVE CODE — Section 2008.74(a), title 50 Illinois Administrative Code

3. 3After issuing a lawful order under the Illinois Insurance Code, the Director needs court enforcement. Whom may the Director ask to proceed in court?

   1. A. A county State's Attorney
   2. B. The Attorney General
   3. C. The Director's administrative hearing officer
   4. D. The circuit court clerk

   Answer: B

   Explanation: Section 401(d) states: "The Attorney General, upon request of the Director, may proceed in the courts of this State to enforce an Order or decision". Therefore the Director may ask the Attorney General.

   Reference: 215 ILCS 5/401 — Section 401(d) (215 ILCS 5/401(d))

4. 4An Illinois Medigap insured is 70 and wants to use the annual birthday open-enrollment right. How long does that period last?

   1. A. 30 days
   2. B. 45 days
   3. C. 60 days
   4. D. 90 days

   Answer: B

   Explanation: Section 363(8) says the individual is entitled to "an annual open enrollment period lasting 45 days, commencing with the individual's birthday". Therefore the birthday period lasts 45 days.

   Reference: 215 ILCS 5/363 — Section 363(8) (215 ILCS 5/363(8))

5. 5During a regulatory examination of an Illinois producer, what access must the producer provide to the Director?

   1. A. Access only after a court subpoena
   2. B. Access only to filed tax returns
   3. C. Convenient and free access at reasonable hours to insurance-business books and records
   4. D. Remote access to every personal account at any hour

   Answer: C

   Explanation: Section 500-110(b) requires "convenient and free access, at all reasonable hours" to insurance-business books and records. Thus option C states the required access.

   Reference: 215 ILCS 5/500-110 — Section 500-110(b) (215 ILCS 5/500-110(b))

6. 6A limited health policy sold to a Medicare-eligible Illinois applicant provides some, but not all, state minimum Medigap standards. What disclosure is required?

   1. A. That the policy is Medicare Part C
   2. B. That all Medicare cost sharing is covered
   3. C. That it is not a Medicare supplement and does not meet Illinois minimum standards
   4. D. That the State guarantees the policy

   Answer: C

   Explanation: Section 363a(e) requires a statement that the policy "IS NOT A MEDICARE SUPPLEMENT POLICY" and does not meet Illinois's minimum Medigap standards. The consumer must receive that warning.

   Reference: 215 ILCS 5/363a — Section 363a(e) (215 ILCS 5/363a(e))

7. 7A producer receives a duplicate Illinois regulatory examination report and objects to its findings. How long does the producer have to request a hearing?

   1. A. 7 calendar days
   2. B. 10 calendar days
   3. C. 30 calendar days
   4. D. 14 calendar days

   Answer: D

   Explanation: The statute says the person "may request a hearing within 14 calendar days after he or she receives the duplicate of the examination report". Therefore the period is 14 calendar days.

   Reference: 215 ILCS 5/500-110 — Section 500-110(e) (215 ILCS 5/500-110(e))

8. 8When must the required not-a-Medicare-supplement notice generally be given with an Illinois application?

   1. A. After the first claim
   2. B. At the first renewal
   3. C. Only upon the applicant's written request
   4. D. As part of or together with the application

   Answer: D

   Explanation: The rule says duplicating policies must include the prescribed disclosure statement "on the application or together with the application". Thus the notice accompanies the application.

   Reference: ADMINISTRATIVE CODE — Section 2008.91

9. 9An Illinois resident plans to solicit accident and health coverage from the public. What must occur before the solicitation?

   1. A. The person must be licensed for that line of authority
   2. B. The person must obtain an insurer's certificate of authority
   3. C. The person must register as a public adjuster
   4. D. The person must form a business entity

   Answer: A

   Explanation: Section 500-15(a) provides that a person may not "sell, solicit, or negotiate insurance in this State for any class or classes of insurance unless the person is licensed" for that line. The resident must first obtain the applicable license.

   Reference: 215 ILCS 5/500-15 — Section 500-15(a) (215 ILCS 5/500-15(a))

10. 10What Medigap product availability must an Illinois issuer extend to a person under 65 who qualifies for Medicare because of disability?

    1. A. Each type the issuer offers to persons eligible by age
    2. B. Only the issuer's lowest-benefit plan
    3. C. Only employer-sponsored certificates
    4. D. No policy until the person reaches age 65

    Answer: A

    Explanation: The issuer must "make available to persons eligible for Medicare by reason of disability each type of Medicare supplement policy the issuer makes available to persons eligible for Medicare by reason of age". The disability-eligible applicant must have access to each offered type.

    Reference: 215 ILCS 5/363 — Section 363(6)(b) (215 ILCS 5/363(6)(b))