Under 215 ILCS 5/149, which of the following is an unlawful misrepresentation by a producer selling accident and health insurance in Illinois?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
215 ILCS 5/149 makes it unlawful to misrepresent the terms, benefits, or advantages of any policy issued or to be issued for the purpose of inducing its purchase. The same statute also bars misleading statements about the financial condition of any person. For accident and health insurance, 50 Ill. Adm. Code 2002 reinforces this standard on the advertising side, so an exaggerated or false description of what an A&H policy pays is both a statutory misrepresentation and a regulatory advertising violation. The practical consequence is discipline against the producer and the insurer for a practice that is never a permissible sales technique in Illinois.
Why the other options are wrong
- B) Fully and truthfully describing the policy's exclusions is accurate disclosure, the opposite of misrepresentation, and is exactly what Illinois law expects of a producer.
- C) Quoting the premium exactly as filed is an accurate statement of the policy's terms, so there is no misrepresentation under 215 ILCS 5/149.
- D) Truthfully describing a territorial limitation informs the applicant rather than misleading them, and accurate disclosure does not violate 215 ILCS 5/149.
Memory hook
Misrepresenting benefits breaks 5/149; telling the truth never does.