State RegulationsIL specificDifficulty 1/5
What does an accelerated benefit provide under the Illinois framework for accelerated benefits?
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Answer & full 3-part explanation (select an option above, or peek)
Why C is correct
215 ILCS 5/4 supplies the Insurance Code definitions and 50 Ill. Adm. Code 1407 sets the standards under which accelerated benefits work: the insurer advances a portion of the death benefit to a living insured who meets qualifying conditions, such as a terminal illness. Because the money is paid before death, the amount advanced comes out of the benefit the beneficiary would otherwise receive.
Why the other options are wrong
- A) No new policy is issued; the existing policy's death benefit is simply advanced and reduced.
- B) The advance is not a cash-value loan and is not structured as a repayable debt; it reduces the death benefit.
- D) Accelerated benefits are contractual payments from the insurer under 50 Ill. Adm. Code 1407, not government program benefits.
Memory hook
Accelerated = death benefit paid early, while the insured is alive.