State RegulationsIL specificDifficulty 2/5
An applicant tells the producer, "I trust you — just skip the replacement forms and get my new policy issued." Under Illinois' replacement rule, what should the producer do?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
The duties in 50 Ill. Adm. Code 917 are imposed on the producer and the replacing insurer for the protection of the policyowner, and nothing in the rule lets an applicant's enthusiasm waive them. The producer must still obtain the signed replacement statement identifying the existing coverage; skipping the forms would expose the producer to discipline by the Illinois Department of Insurance and leave the sale undocumented.
Why the other options are wrong
- A) A verbal waiver has no effect; the rule contains no applicant-consent exception to the notice requirement.
- B) Documenting a waiver does not create one; the file note cannot transform a skipped disclosure into compliance.
- D) Reporting the applicant is not the contemplated remedy; the producer's obligation is simply to complete the required forms.
Memory hook
Trust is not a form: the paperwork is the producer's job, not the applicant's choice.