State RegulationsIL specificDifficulty 2/5
A producer mails letters and makes telephone calls urging residents to purchase whole life policies. The producer argues that because no application has been signed yet, no solicitation has occurred. Is the producer correct?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Under the Illinois life solicitation regulation (50 Ill. Adm. Code 930), solicitation is defined broadly as an attempt to persuade a person to purchase individual life insurance, and it is not limited to face-to-face contacts or to the point at which an application is signed. Mailed and telephoned persuasion efforts are therefore within the rule, and the disclosure duties attach from the start of that process.
Why the other options are wrong
- A) The definition does not wait for a written application; the attempt to persuade is itself the solicitation.
- B) Telephone contacts are expressly within the broad definition of solicitation, not outside it.
- C) The rule is not limited to face-to-face meetings; mail and telephone persuasion also qualify as solicitation.
Memory hook
Persuasion is solicitation — by mail, by phone, or in person.