Illinois Life Producer State-designated Practice Exam

What document must be provided to clients when a policy is issued in Illinois?

1. Insurance company brochure

2. Policyholder annual report

3. Policy summary and buyers guide

4. Claim procedures document

The correct answer is: Policy summary and buyers guide

In Illinois, when a life insurance policy is issued, it is essential for clients to receive a policy summary and a buyer's guide. The policy summary provides crucial information about the specific terms and details of the insurance policy, including coverage amounts, premiums, and any relevant exclusions or riders. This transparency helps ensure that clients fully understand the product they are purchasing. The buyer's guide serves as a key educational tool, offering consumers basic information about life insurance products, illustrating the types of policies available, and explaining how they work. This empowers clients to make informed decisions regarding their life insurance options. By mandating the provision of these documents, Illinois law aims to promote clarity and transparency in the insurance marketplace, allowing consumers to engage with confidence and knowledge about their insurance choices.