State RegulationsIL specificDifficulty 1/5
When an Illinois life insurance application may result in replacement, what must the producer obtain from the applicant under 50 Ill. Adm. Code 917?
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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 obtain the applicant's signed replacement statement listing the existing life insurance to be replaced, and to submit it with the application so the replacing insurer can identify and notify the existing insurer. The signed statement is the backbone of the disclosure system: it documents that the applicant identified the affected coverage and anchors the comparisons the owner is entitled to receive.
Why the other options are wrong
- A) There is no waiver mechanism; the applicant's statutory disclosures cannot be replaced by a notarized surrender of rights.
- C) The existing insurer's consent or release is not part of the application process; it receives notice after the fact.
- D) No escrow deposit is contemplated by the replacement rule.
Memory hook
Signed, listed, submitted: the replacement statement rides with the application.