State RegulationsIL specificDifficulty 2/5
A producer's radio spot promotes a whole life policy as "a flexible savings account that always earns a guaranteed return." Under the Illinois life insurance advertising rule, what is the problem?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
50 Ill. Adm. Code 909 prohibits describing a life insurance policy by terms that suggest it is something other than life insurance, such as calling it a savings account, a deposit, or an investment plan. Misleading nomenclature violates the rule even when the product itself is perfectly sound, because the harm is the false impression created in the prospect's mind. The rule applies across media, so a radio script is treated the same as a printed brochure.
Why the other options are wrong
- A) Actual dividend practice does not cure the problem; the violation is the misleading characterization of a life policy as a savings account.
- C) The advertising rule is medium-neutral; broadcast, print, scripts, and internet material are all covered.
- D) A trailing disclaimer cannot rehabilitate a fundamentally misleading description; the overall impression the ad creates is what counts.
Memory hook
A life policy is never a savings account: wrong words, wrong ad, wrong side of the rule.