State RegulationsIL specificDifficulty 2/5
During a presentation in Illinois, a prospect asks whether the dividends shown in an illustration are guaranteed. What must the producer do under the life solicitation framework?
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Answer & full 3-part explanation (select an option above, or peek)
Why D is correct
The agents' responsibilities under the Illinois life solicitation rule (50 Ill. Adm. Code 930) require honest, accurate answers that distinguish guaranteed policy elements from non-guaranteed ones such as projected dividends. Misrepresenting a non-guaranteed element as guaranteed is precisely the kind of deception the rule and the Illinois Department of Insurance's unfair trade practice enforcement target.
Why the other options are wrong
- A) Telling the prospect the dividends are guaranteed misrepresents a non-guaranteed element, which the rule forbids.
- B) The producer soliciting the sale must answer accurately; passing the question off to the home office is not a defense.
- C) Avoiding the question evades the producer's duty to provide accurate information during solicitation.
Memory hook
Guaranteed or not — say which, truthfully, every time.