L&HIllinoismedium
The Standard Nonforfeiture Law for individual life insurance in Illinois, found at 215 ILCS 5/229.2, primarily requires that:
AInsurers refund all premiums if the policy lapses within 5 years
Policies provide a minimum guaranteed cash surrender value and paid-up nonforfeiture benefits based on prescribed mortality and interest assumptions
CPolicies allow unlimited policy loans at no interest
DInsurers waive premiums during any period of unemployment
Why this is the answer
The Standard Nonforfeiture Law (215 ILCS 5/229.2) requires individual life policies issued in Illinois to provide minimum guaranteed cash surrender values, paid-up insurance, and extended term insurance as nonforfeiture options when premiums are not paid. Values are computed using prescribed mortality tables (typically the CSO table in effect at issue) and statutory interest rates. The law protects policyowners from total forfeiture of accrued value upon lapse.
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