State RegulationsIL specificDifficulty 1/5
Which of the following solicitations is generally exempt from the policy summary requirement of the Illinois life solicitation regulation?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
The exemption provisions of the Illinois life solicitation regulation (50 Ill. Adm. Code 930) remove certain specialized arrangements from the full disclosure apparatus, and credit life insurance issued in connection with a loan is a recognized example. By contrast, ordinary individual whole life sales to consumers — whether standard, limited-payment, or single-premium — are the very transactions the policy summary requirement was designed to cover, as enforced by the Illinois Department of Insurance.
Why the other options are wrong
- A) A standard individual whole life sale to a consumer is the core transaction the policy summary requirement governs.
- C) A limited-payment whole life policy sold to an individual is an individual life sale and is not within the exemption.
- D) A single-premium whole life policy sold to an individual remains an individual life sale subject to the disclosure requirements.
Memory hook
Loan-tied credit life steps aside; consumer whole life stays fully disclosed.