State RegulationsIL specificDifficulty 2/5
A producer presents a policy to a client but omits the disclosures that Illinois law requires producers to make about the transaction. The producer made no false statements. What is the likely regulatory result?
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Answer & full 3-part explanation (select an option above, or peek)
Why B is correct
215 ILCS 5/500-155 imposes affirmative disclosure obligations on producers. The duty is the producer's to satisfy proactively: silence and omission count even where nothing said is false, and the Director of Insurance can pursue the producer's license for falling short.
Why the other options are wrong
- A) The duty under 215 ILCS 5/500-155 is not triggered by questions; producers must make required disclosures on their own initiative.
- C) Producers themselves owe disclosure duties under 215 ILCS 5/500-155; the obligation is not confined to insurers.
- D) The violation occurs when the required disclosure is not made; a later cancellation is not a precondition to enforcement.
Memory hook
Disclosure is a duty to volunteer, not a duty to answer only when asked.