PLIllinoismedium
Under 215 ILCS 5/500-80, when must an Illinois producer obtain a customer's written documented acknowledgment of compensation from an insurer?
AOnly when the producer earns more than $10,000 in annual commission
When the producer represents the customer and receives compensation beyond commission from the insurer
COnly on commercial lines policies
DNever; compensation disclosure is voluntary in Illinois
Why this is the answer
215 ILCS 5/500-80 requires producers acting as the customer's representative to obtain documented acknowledgment of any compensation paid by an insurer for placing the business, before the customer is bound. The rule applies on personal lines as well as commercial. Disclosure must identify the insurer and the nature of compensation. Failing to disclose can support a license action under 215 ILCS 5/500-70.
Studying for the Illinois Personal Lines exam?
This question comes from our PL bank. Take a free practice test — no signup.