State RegulationsIL specificDifficulty 1/5
Under 215 ILCS 5/154.6, which of the following is an improper claims-settlement practice in Illinois?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
215 ILCS 5/154.6 catalogues the improper claims practices Illinois prohibits, including misrepresenting pertinent facts or insurance policy provisions relating to the coverages at issue. Investigating claims reasonably, acknowledging communications, and explaining denials are the affirmative conduct the statute expects, not violations.
Why the other options are wrong
- B) Reasonable, prompt investigation standards are required conduct; failing to maintain them is the violation, not maintaining them.
- C) Explaining denial reasons is proper claims handling under the Illinois Insurance Code, not an improper practice.
- D) Acknowledging claimant communications promptly is expected conduct; the catalogue punishes the failure to do so.
Memory hook
154.6 punishes the sneak, not the straight shooter: no twisting facts or policy terms.