L&HIllinoismedium
Under 50 Ill. Adm. Code 917.100, what is the consequence available to IDOI when a producer or insurer materially violates the Illinois replacement regulation?
Suspension or revocation of producer license, civil penalties, and rescission of the replacement transaction
BOnly a written advisory letter with no financial penalty
CMandatory automatic 1035 reversal handled by the IRS
DCriminal felony charges only; no administrative remedies
Why this is the answer
Part 917.100 gives the Director of Insurance broad authority to enforce the replacement regulation. Sanctions can include suspension or revocation of producer or insurer licenses, civil monetary penalties under the Illinois Insurance Code, and an order voiding or rescinding the replacement transaction so the consumer is restored to the original policy. Advisory-letter-only and criminal-only options understate IDOI's available remedies, and the IRS does not police 1035 exchanges through Illinois law.
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