State RegulationsIL specificDifficulty 1/5
Under Illinois law, who may lawfully receive a commission for the sale of an insurance policy?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
215 ILCS 5/500-80 and 215 ILCS 5/151 tie commission eligibility to holding the proper producer license for the transaction. Compensation for an insurance sale is reserved to licensed producers, so internal designations, agency employment, or product training cannot substitute for the license itself.
Why the other options are wrong
- A) An insurer's written designation cannot override 215 ILCS 5/500-80; the license is the statutory qualification for receiving commissions.
- B) Agency employment is not enough; each person receiving commission compensation must be individually licensed under Illinois law.
- D) Product training is not a license; 215 ILCS 5/151 reserves commission compensation to licensed producers regardless of training credentials.
Memory hook
The commission follows the license, not the desk or the training badge.