State RegulationsIL specificDifficulty 2/5
A domestic Illinois insurer resists an attempt to inspect its policy files and financial records. Which statement is correct under the Illinois Insurance Code?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
215 ILCS 5/403 empowers the Director of Insurance to make examinations and investigations of insurers as part of administering the Illinois Insurance Code, and 215 ILCS 5/132 supports the department's examination of insurer affairs. These department examinations are a core supervisory tool, and an insurer cannot withhold its records from the Director's examiners.
Why the other options are wrong
- A) No lawsuit or pending litigation is a prerequisite to a department examination under 215 ILCS 5/403.
- B) Examination of Illinois insurers is a function of the Illinois Director of Insurance under the Insurance Code, not an exclusively federal function.
- C) The statute imposes no consent requirement; the Director's examination authority does not depend on the insurer's approval.
Memory hook
The Director opens the books first and needs no permission slip.