PLIllinoishard
An Illinois producer deposits $4,800 of homeowner premium into an account that also holds the agency's payroll funds. Which Illinois rule is most directly violated, and what is the typical IDOI consequence?
A215 ILCS 5/151 rebating; civil penalty only
215 ILCS 5/500-115 fiduciary duty; suspension or revocation plus restitution under 500-70
C215 ILCS 5/143.17 non-renewal notice; carrier fine only
D50 Ill. Adm. Code 3119 pre-licensing; CE deficiency notice
Why this is the answer
Depositing premium into an account containing payroll funds commingles fiduciary money with the agency's operating funds, violating 215 ILCS 5/500-115. The breach is also enumerated as grounds for suspension or revocation under 215 ILCS 5/500-70, along with restitution and civil penalties up to $10,000 per occurrence. Rebating, non-renewal, and CE rules address different conduct and do not apply here.
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