Illinois Casualty Insurance State Practice Exam

In which situation is no insurance license required?

1. Insurance agents selling controlled business

2. Attorneys offering legal advice

3. Administrators attending conferences

4. Salespersons offering special discounts

The correct answer is: Attorneys offering legal advice

In the context of insurance licensing regulations, attorneys offering legal advice do not require an insurance license because their services fall within the scope of legal practice rather than insurance sales. Legal professionals are trained to provide legal counsel and representation, and their activities are governed by the legal profession rather than insurance regulations. Thus, when attorneys give legal advice regarding insurance matters, they operate under the authority of their law license, without the necessity for a separate insurance license. The other situations mentioned typically involve activities that are more closely related to the sale or management of insurance products. Insurance agents dealing with controlled business must maintain licensure to engage in such transactions legally. Administrators attending conferences may gain insights related to the insurance industry, but they are often there to facilitate insurance-related functions and would typically require some level of licensure when engaging in specific business activities. Salespersons who offer discounts may also need to possess a license, especially if their actions are tied to selling insurance products. Thus, the correct answer reflects the distinction between the roles of legal practitioners and those who directly sell or manage insurance coverage.