State RegulationsIL specificDifficulty 3/5
Which of the following actions would be LEAST likely to expose an Illinois producer to discipline under 215 ILCS 5/500-70?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Staying under the controlled-business limits complies with 215 ILCS 5/500-125, so it supplies no ground for discipline under 215 ILCS 5/500-70. By contrast, the producer-licensing article treats the other choices as violations: paying commissions for unlicensed activity under 215 ILCS 5/500-80, misusing fiduciary premium funds under 215 ILCS 5/500-115, and effectuating insurance through a revoked producer are all disciplinary grounds.
Why the other options are wrong
- A) Compensating unlicensed insurance activity violates the compensation rules and exposes the license to discipline.
- B) Misappropriating fiduciary premium funds is a classic ground for suspension or revocation.
- C) Effectuating insurance through a producer whose license has been revoked is itself a disciplinary violation.
Memory hook
Inside the controlled cap? No collar.