P&CIllinoismedium
A producer licensed in good standing in Indiana applies for an Illinois non-resident P&C license. Under 215 ILCS 5/500-40, which condition primarily governs issuance?
AThe producer must complete Illinois' 47.5-hour pre-licensing course before applying
BThe producer must pass the Illinois PSI examination as a substitute for reciprocity
CThe producer must reside in Illinois for at least 90 days before licensure
The license is issued reciprocally if Indiana grants equivalent treatment to IL residents and the home-state license is current
Why this is the answer
Under 215 ILCS 5/500-40 Illinois grants non-resident producer licenses on a reciprocal basis: the applicant must hold a current license in good standing in the home state, the home state must extend equivalent treatment to IL residents, and the applicant must submit the NAIC uniform application with the fee. Illinois exempts non-residents from IL pre-licensing and from IL CE if the producer maintains CE compliance in the home state. The non-resident license has the same lines of authority as the home-state license.
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