State RegulationsIL specificDifficulty 2/5
Which Illinois authority sets the regulatory standards an insurer must follow when offering accelerated benefits under life policies?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Illinois addresses accelerated benefits through 50 Ill. Adm. Code 1407, which sets the substantive standards for how these provisions are structured, disclosed, and triggered, while 215 ILCS 5/4 supplies the Insurance Code definitions the outline pairs with the rule. An insurer designing or advertising accelerated benefits must conform its triggers and disclosures to that administrative rule.
Why the other options are wrong
- A) The producer licensing article governs who may sell insurance, not how product benefits are designed or advanced.
- C) Medicare supplement rules govern a separate product line with its own regulation and do not set accelerated-benefit standards.
- D) Federal privacy law plays no role in setting accelerated-benefit standards; the operative authority is Illinois administrative rule.
Memory hook
Accelerated benefits live in Part 1407; the definitions come from 5/4.