State RegulationsIL specificDifficulty 1/5
Which Illinois authority specifically governs the handling of premium funds by licensed producers?
Select an option to reveal the answer and the full 3-part explanation — free, no signup.
Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
50 Ill. Adm. Code 3113 is the Illinois Administrative Code rule that governs producers' fiduciary handling of premium funds, working alongside the fiduciary provisions of 215 ILCS 5/500-115. Knowing where a rule lives helps a producer tell the regimes apart: claim-handling timing and Medicare supplement standards are separate bodies of Illinois law.
Why the other options are wrong
- B) 50 Ill. Adm. Code 919 sets claim-handling standards for insurers, not premium-fund handling by producers.
- C) 215 ILCS 5/363 governs Medicare supplement policies, which has nothing to do with a producer's premium trust duties.
- D) 215 ILCS 5/154.6 catalogues improper claims practices, a claims-handling regime rather than a premium-fiduciary rule.
Memory hook
3113 keeps premiums where they belong; 919 is about claims, not cash handling.