State RegulationsIL specificDifficulty 1/5
An Illinois producer misses the renewal date and then renews her license late. Under Illinois renewal rules, what is the late-renewal penalty?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under the Illinois Department of Insurance's renewal rules, the late-renewal penalty is double the unpaid license fee, so a producer who lets the 2-year renewal lapse pays twice the regular amount. Once the license has expired, it also cannot be renewed through the ordinary online renewal process, making timely renewal the far cheaper path.
Why the other options are wrong
- A) $50 is the temporary insurance producer license fee under 215 ILCS 5/500-135; it is not the late-renewal penalty.
- B) The penalty doubles the unpaid fee under Illinois renewal rules; it does not triple it.
- C) A penalty does apply; late renewal costs double the unpaid license fee rather than the regular amount.
Memory hook
Late to renew? Pay double — twice the fee, every time.