State RegulationsIL specificDifficulty 2/5
An Illinois employer purchases a group life master contract to provide coverage for its employees, and the insurer asks whether policy summaries must be prepared for each employee under the life solicitation regulation. Which answer is correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The Illinois life solicitation regulation (50 Ill. Adm. Code 930) directs its policy summary and Buyer's Guide requirements at the solicitation of individual life policies, and its exemption provisions exclude group plan arrangements from that individual-sale disclosure machinery. Group life in Illinois is still subject to other statutory and regulatory oversight by the Illinois Department of Insurance; the exemption affects the individual-sale disclosure documents, not all regulation.
Why the other options are wrong
- B) The summary requirement is not universal; the regulation's exemptions remove group plan arrangements from it.
- C) The disclosure obligation does not depend on employer preference; the exemption applies to the arrangement itself.
- D) Group life insurance remains regulated under Illinois law; the exemption concerns the individual-sale disclosure documents only.
Memory hook
Group master plans are exempt from the individual-sale summary rule.