State RegulationsIL specificDifficulty 2/5
An insurer's home-office employee in Springfield performs several tasks for the company. Under 215 ILCS 5/500-15 and 215 ILCS 5/500-20, which activity requires the employee to hold an Illinois insurance producer license?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
215 ILCS 5/500-15 defines producer activity in terms of selling, soliciting, or negotiating insurance, and 215 ILCS 5/500-20 requires a license for anyone performing those acts. An employee who solicits insurance for the insurer on a compensated basis is therefore acting as a producer and must be licensed, while purely internal administrative functions fall outside the licensing requirement.
Why the other options are wrong
- A) Internal premium accounting is an administrative function; it is not selling, soliciting, or negotiating insurance under 215 ILCS 5/500-15.
- B) Drafting internal underwriting guidelines serves the insurer's own operations and does not constitute producer activity requiring a license.
- D) Clerical records work is administrative in nature and does not trigger the licensing requirement of 215 ILCS 5/500-20.
Memory hook
Sell, solicit, negotiate = license; shuffle paper = no license.