IL • P&C

Illinois Property & Casualty Insurance Exam — Practice Test & Study Guide

Sell property, casualty, auto and commercial lines insurance. Covers homeowners, commercial property, liability coverage, business owner policies, and underwriting fundamentals.

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Questions

100

scored items

Time limit

120 min

IDOI format

Passing score

70%

raw or scaled

Pre-licensing

20h

required in IL

Exam content outline

From the official IDOI P&C content outline. Mock exams sample at these weights.

Section	Weight	≈ Questions
National-PC-I Property Policies	16%	16
National-PC-II Property Terms & Concepts	12%	12
National-PC-III Property Provisions & Contract Law	10%	10
National-PC-IV Casualty Types & Bonds	17%	17
National-PC-V Casualty Terms & Concepts	12%	12
National-PC-VI Casualty Provisions	13%	13
National-PC-VII Federal Regulation	10%	10
National-PC-VIII Marine	5%	5
National-PC-IX Specialty Lines	5%	5

Sample questions

Items from our P&C bank, aligned to the IL IDOI outline — see the difficulty and explanation depth.

Q1 • Specialty Linesmedium

A multinational employer's Kidnap, Ransom & Extortion (K&R) policy includes both 'Ransom Monies' coverage and a 'Threat Insurance' insuring agreement. A foreign actor sends a credible extortion email threatening employees but no actual ransom is paid. How do the two insuring agreements interact?

AOnly the Ransom Monies insuring agreement can respond, and it pays solely when a ransom is actually surrendered to the perpetrator after a covered event, so a credible threat producing no ransom payment leaves the entire policy wholly unresponsive to the incident

BRansom Monies reimburses sums actually surrendered; the Threat Insurance / Crisis Response agreement responds to credible threats and funds threat-response services regardless of whether ransom is paid — both may apply to one incident, each to its own limit

CThreat Insurance is a state-mandated coverage variant filed only in certain jurisdictions and is generally unavailable within standard K&R policy forms

DThe two insuring agreements are mutually exclusive by policy condition, so only one of them can be triggered for any single kidnap or extortion incident

Why

Ransom Monies reimburses actual ransom paid; Threat Insurance funds threat response regardless of payment.

Q2 • Casualty Terms & Conceptseasy

Under the majority approach reflected in Restatement (Second) of Torts §286, what is the effect of a defendant's unexcused violation of a safety statute designed to protect the class of persons to which the plaintiff belongs?

AIt establishes negligence per se, conclusively proving breach of duty

BIt is merely some evidence of negligence the jury may weigh

CIt creates a rebuttable presumption that the plaintiff assumed the risk

DIt is irrelevant unless the statute expressly creates a private right of action

Why

Majority rule: unexcused safety-statute violation is negligence per se — conclusive breach.

Q3 • Casualty Provisionsmedium

A CGL insurer pays a $400,000 settlement after the insured's tenant suffered injury caused by a defective elevator maintained by an outside vendor. The insurer now seeks recovery from the elevator-maintenance vendor. Under CGL Section IV.8 Transfer of Rights of Recovery Against Others to Us, what must the insured do?

AThe insured retains all recovery rights; the insurer's subrogation right is barred by the Anti-Subrogation Rule because both insureds are in the same policy

BThe insured must do nothing after loss to impair those rights, and at the insurer's request must transfer the rights and help enforce them

CThe insured may negotiate directly with the vendor and keep the recovery, but must reimburse the insurer for defense costs only

DThe insurer must obtain the insured's written consent before exercising subrogation, and consent may be reasonably withheld

Why

Insured must preserve subrogation rights and, at insurer's request, transfer them and help enforce.

Q4 • Property Provisions & Contract Lawmedium

A commercial property policy contains a clause fixing damages at $500/day for the insurer's delay in claim payment beyond 30 days after proof of loss. Under Restatement (Second) Contracts §356, this clause is enforceable as liquidated damages only if:

AThe stipulated amount equals or exceeds the insurer's actual damages in every conceivable case, guaranteeing the insured a recovery no smaller than its proven loss from the delay

BThe amount is reasonable in light of either the anticipated or the actual loss caused by the breach, and the actual damages from the delay are difficult to prove with certainty

CThe clause was added by the insurer unilaterally after the loss occurred, since post-loss insertion is what gives the stipulated-damages provision its binding force under the policy

DThe stipulated per-day amount, when accumulated over the period of delay, exceeds the applicable policy limit and thereby signals a genuine pre-estimate of the insured's harm

Why

§356 enforces liquidated damages only if the amount is reasonable and actual damages are difficult to prove.

Q5 • Property Provisions & Contract Lawhard

A property policy endorsement states: 'If the insured fails to install a required burglar alarm within 90 days, the insured shall pay $10,000 to the insurer as agreed damages, regardless of any loss.' This provision is most likely:

AEnforceable as liquidated damages, because the parties expressly characterized the $10,000 figure as 'agreed damages,' and that contractual label is wholly dispositive of the provision's validity under §356

BUnenforceable as a penalty under Restatement (Second) Contracts §356, because the fixed sum bears no relation to anticipated harm from non-installation and is triggered regardless of whether any loss occurs

CEnforceable, because requirements compelling installation of burglar alarms are strongly favored on public-policy grounds and any stipulated sum supporting such loss-prevention measures will be upheld by the courts

DEnforceable, but only if the insured separately signs a standalone written waiver acknowledging the $10,000 charge, after which the agreed-damages provision becomes fully binding upon any later non-installation

Why

Substance over form: a fixed sum unrelated to anticipated harm and operating in terrorem is a penalty regardless of label.

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Illinois state law module

State-specific laws and regulations make up 10–20% of the IL P&C exam. Our markdown-based state-law module walks through what IDOI actually tests.

Read IL P&C state law

Illinois P&C Exam FAQ

How many questions are on the IL P&C exam?

The Illinois Property & Casualty licensing exam has 100 scored questions plus a few unscored pretest items. You have 120 minutes to complete it.

What's the passing score for IL P&C?

70% is the passing score in Illinois, calculated against the scored question count. IDOI reports results immediately at the test center.

How long should I study for the IL P&C exam?

Most P&C candidates spend 40–80 hours over 3–6 weeks. Start with the free diagnostic — it’ll tell you which sections to focus on instead of cramming the whole outline evenly.

Where do I take the Illinois P&C exam?

IDOI contracts with major proctored-exam vendors. Check the Illinois Department of Insurance website for an up-to-date list of test centers in Illinois.

Are these practice questions matched to the IL outline?

Yes — we follow the IDOI content outline section by section, and our IL P&C bank includes 252 state-tagged items alongside the national NAIC content. Mock exams are composed from real section weights, not a generic question dump.

How much does EstatePass cost? Do I need a separate plan for P&C?

No — one EstatePass Pro plan covers Real Estate, Insurance License (L&H / P&C / Personal Lines), MLO, and Contractor exam prep. Free tier includes 20 practice answers/day and the diagnostic. Pro is $9.99/mo, $19.99/quarter, or $39.99 Lifetime — unlimited practice, mock exams, AI tier-3 explanations, and every channel.