State RegulationsIL specificDifficulty 2/5
An Illinois producer wants to confirm the disclosure standards for illustrations used in life insurance sales. Which authority supplies those standards?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
Illustration standards are administrative: 50 Ill. Adm. Code 1406, under the Illinois Department of Insurance, sets what life insurance illustrations must contain, how non-guaranteed elements must be labeled, and how the documents may be used in sales. A producer with an illustration question consults that Part and the Department's guidance rather than the statutes governing other regimes.
Why the other options are wrong
- B) 215 ILCS 5/531.01 through 5/531.19 is the guaranty association article, which protects policyholders against insurer insolvency and says nothing about illustrations.
- C) 215 ILCS 5/159 governs viatical settlements, the sale of existing life policies, not the illustration of new sales.
- D) Guaranty association notice requirements concern disclosures about insolvency protection, not illustration content.
Memory hook
Illustrations = Part 1406, watched by the Illinois Department of Insurance.