Illinois Property and Casualty Practice Exam

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• Which of the following is an example of a direct loss?
• What is the classification of a first-time offense of misappropriating or illegally withholding funds?
• How does a mutual insurer benefit its policyholders?
• What is the required notice period for other reasons aside from nonpayment of premium when cancelling a BOP?
• In Coverage A, what type of liability does the insurer cover for bodily injury and property damage?
• Which of the following items is specifically excluded from Coverage C in a dwelling policy?
• What is a stock insurer?
• What is the minimum amount of reinsurance from the Fund required per residential/commercial line?
• What are the three types of hazards in insurance?
• If an insurer wants to change the terms of a policy, what clause allows for this as long as it benefits the insured?
• What type of insurance is meant to cover “coast to coast; land, air, entry waterways”?
• What is the renewal fee for a business entity license in Illinois?
• Which type of damages compensates for out-of-pocket expenses like medical costs?
• Which type of coverage does Coverage A in a dwelling policy refer to?
• What does the government do under the Terrorism Risk Insurance Act with respect to paid losses?
• What does agreed value provision in an insurance policy do?
• How long does an applicant have to request a hearing if their license is suspended, revoked, or denied?
• What expenses does medical payments coverage include?
• How are property damage damages measured in casualty insurance?
• Which coverage does not exist for an HO-4 form?
• What is the primary purpose of ISO in relation to insurance policies?
• What are the two main types of risk?
• What is the coverage limit for newly acquired buildings under Business Personal Property?
• How many hours of classroom ethics are required in continuing education?
• In the context of an insurance application, what does it mean to have material misrepresentation?
• Which of the following is NOT included as an additional coverage for Business Personal Property?
• Which areas are included in the coverage territory?
• What is the maximum civil penalty for a business entity knowingly violating insurance regulations in Illinois?
• Which individual is primarily responsible for paying premiums in a commercial insurance policy?
• What do endorsements in an insurance policy do?
• Which of the following is included in the coverage of a Furrier's Block policy?
• Which item is specifically excluded from personal property coverage under Coverage C?
• Which condition must be met to be eligible for flood insurance?
• What is the time frame for return premiums to be paid?
• What must an insurance producer pay if they renew their license after it has lapsed?
• Who must be considered competent parties in a contract?
• Which of the following represents a cause of loss covered in a Broad CPP?
• Which damages are excluded under the HO-3 policy?
• What does the insuring agreement in an insurance policy describe?
• What happens to Coverage E under a dwelling policy?
• What is the principal coverage limitation for art glass under commercial fine art coverage?
• What is the key characteristic of vicarious liability?
• What type of liability arises from the assumption of legal liability through a contract?
• Which types of artworks are excluded from commercial fine art coverage?
• How long does a subject of examination have to request a hearing after receiving a report?
• Where are exclusions typically found in an insurance policy?
• What is the maximum aggregate liability for bond requirements in Illinois?
• Which type of coverage deals with specific items or property?
• What type of coverage does the fair rental value provide under the DP policy?
• What is the primary purpose of the Businessowners Policy (BOP)?
• What is the primary function of a notice of claim?
• What happens if a regulatory written order is violated?
• For which situation is the HO-8 Modified Coverage Form primarily used?
• What type of damages are considered punitive in nature?
• What is the limit of coverage for Other Structures under Coverage B?
• For claims related to hate crimes, what must an insured provide as evidence?
• Which of the following best describes named peril coverage?
• What grounds can lead to cancellation of a personal property policy in force for 1 year?
• What does Coverage D primarily compensate for?
• What does Coverage B in a dwelling policy cover?
• What is the limit for coverage on jewelry and furs under the DP policy?
• What is the primary requirement of the Terrorism Risk Insurance Act (TRIA) for commercial insurance companies?
• Which of the following is covered under the Business Personal Property policy for property off-premises?
• What is the maximum time an insurance producer can hold premiums?
• Which HO form provides coverage for the dwelling and other structures on an open peril basis?
• What is a key feature of Coverage D and E in a dwelling policy?
• What does blanket coverage provide?
• What type of coverage does the equipment breakdown form entail?
• What is the primary feature distinguishing pure risk from speculative risk?
• In insurance terms, what is proximate cause?
• How many hours of continuing education are required in Illinois, including ethics?
• What does the element of legality in a contract ensure?
• What is concealment in the context of insurance?
• When does coverage for newly acquired property begin under Business Personal Property?
• What is an endorsement in the context of insurance?
• Which of the following describes Builders Risk Coverage Form?
• What does the Extra Expense Coverage Form provide?
• What notice period is required for cancellation of a commercial auto policy in force for less than 60 days?
• What is the correct definition of a warranty in insurance?
• What is the purpose of the Fair Credit Reporting Act?
• What is one of the core elements of a contract that involves mutual agreement between parties?
• What does insurance primarily do?
• What constitutes a direct loss in the context of insurance?
• What does a Bailee's Customer Policy cover?
• Which of the following perils is specifically included in the DP-2 policy?
• What type of coverage is provided for liability arising from the use of hired or nonowned autos in business?
• What term is used for damages specifically intended to punish a defendant for extreme behavior?
• What type of risk does gambling represent?
• How often must insurance producers post books and records?
• After how many years are personal auto/property policies no longer grounds for cancellation?
• How often must a resident producer license be renewed?
• What is NOT a part of the 7 coverage parts of a Commercial Package Policy (CPP)?
• What is the minimum percentage of Coverage A that Coverage C must be?
• Which coverages are included in all three types of dwelling policies?
• What are representations in the context of insurance applications?
• Which of the following is NOT typically covered under a Special Commercial Property Policy?
• What is the main challenge in determining the value of bodily injury damages?
• What is the term used when the applicant's home state issues a nonresident producer's license to residents of Illinois?
• How is a vacant property defined?
• What does the Illinois Insurance Guarantee Fund do?
• What is the waiting period for flooding coverage to take effect after purchase?
• What constitutes a misrepresentation in an insurance application?
• What type of coverage is provided by the HO-6 Condominium Owners Form?
• What does indirect loss refer to in insurance?
• Does the DP policy include automatic increases in insurance coverage?
• What is a binder in insurance terms?
• What is the classification of a violation for misappropriating collected funds?
• What do the numbers in a 25/50/25 insurance coverage policy represent?
• Which application form must business entities use to obtain an insurance license?
• What does the jewelers block coverage form protect?
• Which type of business is generally inappropriate for a Businessowners Policy?
• What does unoccupied property refer to?
• Who is required to have an insurance license?
• Which of the following defines risk in the context of insurance?
• Which type of coverage is NOT included in Coverage B?
• What is the difference between an accident and an occurrence?
• What is the main distinction between indemnity and subrogation?
• What is the coverage limit for firearms and related equipment under the DP policy?
• What does the DP-2 policy primarily expand upon compared to DP-1?
• What does business income calculation include?
• What does the HO-4 form cover?
• What is the role of additional insured individuals in a policy?
• What is the maximum fine for violating a regulatory examination written order?
• What does the Gramm-Leach-Bliley Act require from financial institutions?
• Which type of risk is considered insurable?
• Which of the following is a provision of the Gramm-Leach-Bliley Act?
• What is the key difference between occurrence made and claims made policies in insurance?
• What are the three elements necessary for an insurable risk?
• What additional perils can be covered under a DP-1 policy for an extra premium?
• What is an aggregate limit in an insurance policy?
• What do mortgagee rights refer to?
• Which is true about the additional insured?
• How many days' notice is required for cancellation due to nonpayment of premium within the first 60 days?
• How long must a producer wait to reapply after their license has been revoked?
• Which fine range is associated with the act of defamation in insurance marketing?
• In the context of a Broad CPP, which of the following is a covered loss?
• What is the purpose of a stated value in a property policy?
• Which HO form provides open perils coverage for the dwelling, other structures, and personal property?
• What is the purpose of a Liberalization Clause in an insurance policy?
• Which limit represents the total amount a policy will pay for all losses from one occurrence?
• What must a statement of proof of loss include?
• What is the maximum coverage limit for money, bank notes, and bullion under the DP policy?
• In a 25/50/25 policy, what does the first '25' specifically cover?
• Business Personal Property coverage includes which of the following?
• Who is authorized to provide insurance advice for a fee?
• What action must an insurance producer take if they have misappropriated funds?
• What is a proof of loss?
• Which type of hazard is characterized by an insured's indifference due to having insurance?
• Which type of insurance covers losses to a customer's property in the care of the insured?
• When can indemnity be claimed?
• What distinguishes open perils coverage from named perils coverage?
• For personal effects and property of others, what is the coverage limit in Business Personal Property?
• Which of the following describes the DP-1 dwelling policy?
• What factor does not affect the market value of property?
• What percentage of new property can be included in commercial fine art coverage?
• What are extra expenses in business insurance?
• When must Coverages D and E be included in a dwelling policy?
• What is the coverage limit for outdoor property under Business Personal Property?
• What does Equipment Breakdown coverage provide protection against?
• What does a notice of claim refer to?
• If an insurance producer allows their license to lapse, how long do they have to renew it without passing a written exam?
• What does per occurrence coverage limit in a policy signify?
• What term describes conditions that increase the likelihood of an insured loss?
• Which of the following statements best describes strict liability?
• How is replacement cost defined?
• Which of the following describes actual cash value?
• What is the minimum delinquency charge specified in a premium finance agreement?
• What percentage of total premium accounts receivable indicates that an insurance producer is considered to be financing insurance premiums?
• What is the minimum number of hours required for prelicensing education for any line in Illinois?
• Which liability type addresses defective products and their safety?
• Coverage A in homeowners insurance primarily covers what?
• What is the coverage for property removed in a DP policy for 5 days?
• Which type of liability is characterized by an absolute guarantee of protection?
• How much will a mobile homeowner's policy pay to relocate a home to prevent loss from peril?
• What does open perils insurance cover?
• Which type of weather damage is excluded under the HO-2 policy unless specified?
• How much notice is required for cancellation of a Businessowners Policy for nonpayment of premium?
• Which exclusion is common in a Special CPP?
• Which principle allows an insurer to recover costs after paying a claim?
• In the context of homeowners insurance, what does the term "moral hazard" refer to?
• In insurance terms, what does "mine subsidence" typically relate to?
• What does market value refer to in the context of property valuation?
• Which of the following is NOT typically covered in Coverage A?
• What is referred to as the cause of loss in insurance?
• Which coverage is associated with not covering employee theft in a CPP?
• What type of coverage does the Electronic Data Processing Policy include?
• Which factor is considered a cause of loss in the Basic Commercial Property Policy?
• Are maids or butlers considered covered employees under a homeowners policy?
• What does Coverage D in a dwelling policy provide for?
• What must insurers do if a claim amount is determined and not in dispute?
• Who is referred to as the named insured in an insurance policy?
• What is the application fee for processing a request for an insurance license?
• What is defined as a statement that would lead to a different underwriting decision if known?
• What is the bond requirement amount for insurance producers in Illinois?