State RegulationsIL specificDifficulty 1/5
Which Illinois administrative rule addresses the suitability of recommendations in the sale of life insurance and annuities?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
Suitability in the sale of life insurance and annuities in Illinois is governed by Reg. 3120 (50 Ill. Adm. Code 3120), which requires producers to develop a reasonable basis for believing a recommended product fits the customer's needs and objectives. It operates alongside the solicitation disclosure rule (50 Ill. Adm. Code 930) and the advertising rule (50 Ill. Adm. Code 909), all under the oversight of the Illinois Department of Insurance.
Why the other options are wrong
- A) 50 Ill. Adm. Code 2012 governs long-term care insurance, a distinct product-specific regime.
- B) 50 Ill. Adm. Code 930 governs solicitation disclosures such as the Buyer's Guide and policy summary, not the suitability standard.
- D) 50 Ill. Adm. Code 909 governs life insurance advertising content, not suitability of recommendations.
Memory hook
Three-one-twenty decides if the product fits the person.