Illinois Life Producer State-designated Practice Exam

What must be delivered to a policy owner upon the sale of an individual life insurance policy in Illinois?

1. Policy summary and buyers guide

2. Insurance contract and monthly statements

3. Premium payment schedule and coverage explanation

4. Terms of service and fee structure

The correct answer is: Policy summary and buyers guide

When an individual life insurance policy is sold in Illinois, the requirements include providing important documentation that helps the policy owner understand the specifics of the policy they are purchasing. This includes a policy summary, which outlines the key features, benefits, and limitations of the insurance policy, and a buyers guide, which is designed to educate consumers about the different types of life insurance products available. Both documents are essential for promoting transparency and informed decision-making for the consumer. These materials are explicitly required by Illinois law to ensure that policy owners are fully aware of what they are buying, thereby giving them the opportunity to ask questions or seek clarification about any elements of the policy that they do not understand. This transparency is a protective measure that helps potential policyholders feel more confident in their purchasing decisions. In contrast, the other options do not align with the specific legal requirements for documentation upon the sale of an individual life insurance policy in Illinois. While monthly statements, coverage explanations, and terms of service might be relevant in different contexts, they do not fulfill the specific legal obligation to provide a policy summary and buyers guide at the time of sale.