State RegulationsIL specificDifficulty 3/5
The Director of Insurance reviews the conduct of several Illinois licensees. Under 215 ILCS 5/500-70, for which reason may the Director deny, suspend, or revoke an insurance producer license?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
215 ILCS 5/500-70 lists the grounds on which the Director of Insurance may deny, suspend, or revoke an Illinois producer license, including obtaining or attempting to obtain a license through misrepresentation or fraud. Related disciplinary authority addresses felony convictions under 215 ILCS 5/500-95. The grounds all target dishonesty, unfitness, or violation of the insurance laws.
Why the other options are wrong
- A) An internal sales quota is a private business expectation, not a statutory ground for discipline under 215 ILCS 5/500-70.
- B) A lawful change of business address is an ordinary administrative matter and provides no basis for denial, suspension, or revocation under 215 ILCS 5/500-70.
- D) Representing several insurers simultaneously is a common and lawful agency arrangement; it is not among the disciplinary grounds in 215 ILCS 5/500-70.
Memory hook
Fraud loses the license — quotas, moves, and multi-carrier work never do.