P&CIllinoiseasy
Under 215 ILCS 5/424, Illinois rates for property and casualty insurance must not be which of the following?
AHigher than the national average for the line
BLower than the insurer's projected loss ratio
Excessive, inadequate, or unfairly discriminatory
DDifferent from filings made by advisory organizations
Why this is the answer
215 ILCS 5/424 establishes the substantive standard that all Illinois property and casualty rates must satisfy: rates shall not be excessive, inadequate, or unfairly discriminatory. Even though Illinois operates under open competition without prior approval, this three-part standard remains enforceable by the IDOI Director, who may investigate and order corrective action against any rate that fails the test. The standard mirrors the NAIC model and underlies actuarial soundness review.
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