State RegulationsIL specificDifficulty 3/5
Which practice by an Illinois accident and health producer is lawful?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
An accurate, truthful comparison of coverage, exclusions, and premiums is lawful and is exactly the kind of disclosure Illinois law encourages. By contrast, 215 ILCS 5/149 prohibits exaggerating benefits and misstating an insurer's financial condition, and 215 ILCS 5/151 prohibits rebating premium as an inducement. The producer's safe path in Illinois is full, accurate disclosure: the A&H advertising standards of 50 Ill. Adm. Code 2002 punish the exaggeration, not the honest side-by-side comparison.
Why the other options are wrong
- A) Calling a limited benefit practically unlimited is a misrepresentation of policy terms under 215 ILCS 5/149 and violates the A&H advertising standards.
- B) Rebating premium as an inducement is prohibited by 215 ILCS 5/151, which contains no general exception that would allow it here.
- C) Misstating an insurer's financial condition is unlawful misrepresentation under 215 ILCS 5/149, even when the statement favors the producer's own insurer.
Memory hook
Compare truthfully and you are safe; exaggerate, rebate, or smear and you are not.