State RegulationsIL specificDifficulty 1/5
A client asks an Illinois producer to return part of his commission as a condition of buying the policy, and the producer agrees and the client accepts the money. Under Illinois law, who has committed an unlawful act?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Illinois makes receiving a rebate its own offense: 215 ILCS 5/153 provides that accepting or receiving any rebate prohibited by 215 ILCS 5/151 is itself unlawful. The producer violated the giving side, and the client violated the receiving side; the client's request and the parties' relationship change nothing.
Why the other options are wrong
- A) The client is not spared; 215 ILCS 5/153 expressly makes accepting a rebate unlawful, so the violation is not limited to licensees.
- C) The client's request is no defense for anyone; giving remains unlawful under 215 ILCS 5/151 and accepting remains unlawful under 215 ILCS 5/153.
- D) Disclosure to the insurer is irrelevant; the rebate prohibitions of 215 ILCS 5/151 and 215 ILCS 5/153 contain no disclosed-dealings exception.
Memory hook
Take the kickback, take the case: in Illinois the taker violates too.