State RegulationsIL specificDifficulty 3/5
How is the regulation of unfair claims-settlement practices structured in Illinois?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
Illinois layers the regime: 215 ILCS 5/154.5 states the prohibition on unfair claim settlement practices, 215 ILCS 5/154.6 catalogues the specific improper acts, and 50 Ill. Adm. Code 919 sets the detailed claim-handling time standards insurers must follow. A complete picture requires both the statute and the administrative rule.
Why the other options are wrong
- A) The statute is not the whole story; 50 Ill. Adm. Code 919 adds administrative time standards for claim handling.
- C) The administrative rules rest on statutory footing: 215 ILCS 5/154.5 and 215 ILCS 5/154.6 are the Code's claims-practice provisions.
- D) 215 ILCS 5/224 sets standard policy provisions for life policies; the claims-practices regime lives in 215 ILCS 5/154.5, 215 ILCS 5/154.6, and 50 Ill. Adm. Code 919.
Memory hook
Statute says no, 154.6 lists how, and 919 clocks the days.