State RegulationsIL specificDifficulty 1/5
Beyond false statements about a policy's terms and benefits, what else does the misrepresentation prohibition of 215 ILCS 5/149 reach?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
215 ILCS 5/149 makes it unlawful to misrepresent not only policy terms, benefits, or conditions but also the financial condition of any person. Telling an applicant that an insurer is financially troubled when it is not falls squarely within the prohibition, whether said in writing or orally.
Why the other options are wrong
- A) The prohibition is not limited to writing; oral misrepresentations about financial condition are equally unlawful under 215 ILCS 5/149.
- C) The statute covers the financial condition of any person, so statements about other insurers' finances are within 215 ILCS 5/149 as well.
- D) The misrepresentation rule targets sales and marketing conduct; claims handling is governed separately by 215 ILCS 5/154.6.
Memory hook
149 covers both the product and the pocketbook: terms, benefits, and financial condition.