State RegulationsIL specificDifficulty 2/5
How do the Illinois minimum-standards regulation for individual A&H policies and the Illinois Insurance Code's mandatory A&H provisions work together?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
The two layers operate side by side. The Illinois Insurance Code mandates specific provisions in individual A&H policies, such as claim-notice and proof-of-loss requirements under 215 ILCS 5/357.6 and 215 ILCS 5/357.8. The minimum-standards regulation, 50 Ill. Adm. Code 2007, then prescribes minimum standards and prohibits provisions that are unfair, misleading, or deceptive, so an individual policy cannot be drafted below the state's floor. Neither layer displaces the other, and no written deviation mechanism lets an insurer opt out.
Why the other options are wrong
- A) The regulation supplements rather than replaces the Code's mandatory provisions; both the statute and 50 Ill. Adm. Code 2007 apply to individual A&H policies.
- B) 50 Ill. Adm. Code 2007 applies to individual A&H policies, not to group coverage.
- D) There is no general written-deviation mechanism; the minimum standards apply to individual A&H policies issued in Illinois.
Memory hook
The statute mandates the provisions; the regulation keeps the whole policy above the floor.