State RegulationsIL specificDifficulty 3/5
Which statement correctly describes what an Illinois individual A&H insurer may include in a policy under the minimum-standards regulation?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
50 Ill. Adm. Code 2007 sets minimum standards, so it functions as a floor rather than a ceiling. An individual A&H insurer may draft provisions and benefits that are more favorable to the policyowner than the standards require, but may not include provisions that fall below them or that are unfair, misleading, or deceptive. Filing the form does not cure a below-standard provision, and there is no premium-discount exception that legalizes weaker coverage under Illinois law.
Why the other options are wrong
- B) A reduced premium does not authorize provisions below the minimums; 50 Ill. Adm. Code 2007 applies regardless of pricing.
- C) Filing with the Director of Insurance does not validate a form that falls below the Illinois minimum standards.
- D) The standards are minimums, not exact templates; benefits and provisions more favorable than the standards are expressly permissible.
Memory hook
The regulation is a floor: above is fine, below is banned.