Illinois Statutes & Regulations - Life Insurance

Question 1

What is the required grace period provision?

Answer 1

Premiums must be paid within 30 days or one month of the due date

Question 2

What is the required settlement provision?

Answer 2

Death claims must be settled within two months and interest accrues at 10% annually on amounts do you be on 31 days

Question 3

What is the required “Right to Return” or “Free Look” Provision

Answer 3

Life policies must contain a 10 day rate to return or free look provision

Question 4

How long must insurers maintain all advertising files?

Answer 4

Four years or until the next examination whichever is longer

Question 5

What is a replacement transaction?

Answer 5

A transaction in which a life insurance or annuity is to be purchased and as part of the transaction existing life insurance is to be -Lapse surrendered forfeited or otherwise terminated -Converted to reduced paid up insurance or extended term insurance - amended to reduce benefits or term of coverage -Re-issued with a reduction in cash value or used in a financed purchase

Question 6

What are the Illinois state regulations that all producers who initiate replacement applications must follow?

Answer 6

1) Present an important notice regarding replacement of life insurance to the applicant and have it signed 2) Provide the applicant with copies of any sales proposals use 3) Submit an important notice regarding replacement of life insurance and copies of all sales proposal signed by the applicant to replacing ensure

Question 7

What are the Illinois state regulations for insurers who are issuing replacement contracts?

Answer 7

1) Replacing insurers must within three working days notify each existing in sure who’s insurance is being replaced 2) Insurers must provide a 20 day free look back on replacements 3) Copies of the notification regarding replacement must be retained for at least three years