State RegulationsIL specificDifficulty 1/5
An Illinois producer uses a written sales proposal to illustrate a proposed replacement. What must the producer do with that proposal under the replacement rule?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
50 Ill. Adm. Code 917 requires the producer to leave a copy of the sales proposal with the applicant and to provide it through the replacing insurer, which furnishes the proposal to the existing insurer. The three-way circulation is deliberate: the owner keeps the document showing what was promised, and the existing insurer can use it to prepare an accurate summary of the policy the owner is being asked to give up.
Why the other options are wrong
- A) County recording plays no role in insurance replacement disclosure.
- C) Keeping the proposal solely in the producer's files defeats the rule's purpose, which is to put the comparison in the applicant's hands.
- D) Destruction after approval would erase the documentation trail and is contrary to the record-keeping design of the rule.
Memory hook
One proposal, three stops: applicant, replacing insurer, existing insurer.