State RegulationsIL specificDifficulty 3/5
An Illinois producer both places newspaper advertisements for a term life product and sits with applicants to complete their applications. Which statement correctly separates the two governing rules?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
Illinois separates these functions: 50 Ill. Adm. Code 909 is the life advertising rule that regulates how life insurance may be advertised, while 50 Ill. Adm. Code 930 is the life solicitation rule that regulates the disclosures given to prospective individual policy purchasers during the sales process. A producer who both advertises and solicits must satisfy both regimes, and the Illinois Department of Insurance enforces each one.
Why the other options are wrong
- A) This reverses the two rules; advertising content is governed by the advertising rule, and solicitation disclosures by the solicitation rule.
- B) The suitability rule addresses whether a recommended product fits the customer, not the separate advertising and solicitation disclosure regimes.
- C) Life insurance advertisements are regulated under the Illinois life advertising rule; they are not unregulated.
Memory hook
Ads answer to 909; applicants answer to 930.