State RegulationsIL specificDifficulty 2/5
An Illinois producer is completing a policy summary for an applicant for a universal life policy and realizes that a drafted figure in the summary does not match the policy's actual premium schedule. What does the life solicitation regulation require of the producer?
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Answer & full 3-part explanation (select an option above, or peek)
Why A is correct
The agents' responsibility provisions of the Illinois life solicitation rule (50 Ill. Adm. Code 930) require the producer to furnish accurate and complete disclosure information. A summary figure that conflicts with the policy's actual premium schedule must be corrected before the applicant relies on it, because an inaccurate summary functions as a misrepresentation that the Illinois Department of Insurance can act on.
Why the other options are wrong
- B) Cherry-picking favorable features turns the summary into a misleading document, contrary to the rule's accuracy requirement.
- C) The producer who solicits the sale shares responsibility for the accuracy of the disclosure documents.
- D) The summary is a standard disclosure document; it is not conditioned on the applicant's written request.
Memory hook
Fix the figure before the applicant relies on it.