State RegulationsIL specificDifficulty 2/5
Under 215 ILCS 5/500-70, which of the following is a ground for the Director of Insurance to suspend or revoke an Illinois producer's license?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
215 ILCS 5/500-70 lists intentional misrepresentation of material facts in obtaining or transacting insurance among the grounds for suspending or revoking a producer's license. Fraud and misrepresentation strike at the trust the producer-licensing system depends on, and the Director of Insurance may discipline a license holder accordingly.
Why the other options are wrong
- B) Charging the insurer's filed premium rates is lawful conduct, not a disciplinary ground.
- C) Declining to pursue an application left incomplete by the applicant is not misconduct under 215 ILCS 5/500-70.
- D) Reporting suspected premium fraud to the Illinois Department of Insurance is protected, encouraged conduct.
Memory hook
Lie to get or sell insurance, lose the license.