PLIllinoismedium
An Illinois producer collects a homeowner premium check made payable to the insurer. Under 215 ILCS 5/500-115, how must the producer treat that money?
AAs personal compensation, deposited into the producer's operating account
As fiduciary funds held in trust for the insurer or insured
CAs a loan to the agency, repayable within 30 days
DAs taxable revenue requiring Form 1099 issuance
Why this is the answer
215 ILCS 5/500-115 imposes a fiduciary duty on Illinois producers handling premium funds. The producer must segregate the money — typically in a premium trust account — and forward it promptly to the insurer or refund it to the insured. Commingling with personal or operating funds is grounds for license discipline under 215 ILCS 5/500-70. Even if the producer is owed commission, the gross premium is not the producer's property.
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