P&CIllinoismedium

Which of the following is NOT enumerated as a ground for IDOI to deny, suspend, revoke, or refuse renewal of a producer license under 215 ILCS 5/500-70?

Q: Which of the following is NOT enumerated as a ground for IDOI to deny, suspend, revoke, or refuse renewal of a producer license under 215 ILCS 5/500-70?

Failing to maintain a minimum net worth of $100,000 — 215 ILCS 5/500-70 lists grounds for IDOI license action including felony convictions involving moral turpitude, misappropriation of premium/fiduciary funds, material misrepresentation on the application, fraudulent acts, and unfair trade practices. Illinois does not impose a personal net-worth requirement on individual producers; net-worth thresholds apply to insurers' capital requirements (215 ILCS 5/13 et seq.), not individual producers. Trust account integrity is enforced through fiduciary rules in 215 ILCS 5/500-115, not net worth.

Failing to maintain a minimum net worth of $100,000

BConviction of a felony involving moral turpitude

CMisappropriating funds received in the course of insurance business

DProviding materially incorrect information on the license application

Why this is the answer

215 ILCS 5/500-70 lists grounds for IDOI license action including felony convictions involving moral turpitude, misappropriation of premium/fiduciary funds, material misrepresentation on the application, fraudulent acts, and unfair trade practices. Illinois does not impose a personal net-worth requirement on individual producers; net-worth thresholds apply to insurers' capital requirements (215 ILCS 5/13 et seq.), not individual producers. Trust account integrity is enforced through fiduciary rules in 215 ILCS 5/500-115, not net worth.

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