State RegulationsIL specificDifficulty 2/5
A producer argues that because every statement he made about a policy was literally true, he had no further obligations when presenting it to the applicant. Is he right under Illinois law?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Avoiding misrepresentation under 215 ILCS 5/149 and satisfying disclosure under 215 ILCS 5/500-155 are distinct obligations. A producer can be perfectly truthful and still fall short by omitting required disclosures, so truthful speech is a floor, not full compliance.
Why the other options are wrong
- A) Truthfulness satisfies only the misrepresentation side; the affirmative duties of 215 ILCS 5/500-155 remain to be performed.
- B) The two rules are distinct: 215 ILCS 5/149 bans false or misleading statements, while 215 ILCS 5/500-155 requires affirmative disclosure regardless of what is said.
- D) Nothing in the Illinois Insurance Code confines producer disclosure duties to life insurance; they attach to the producer's transactions generally.
Memory hook
True is not the same as complete: 149 bans lies, 500-155 demands disclosure.