Illinois Life Producer State-designated Practice Exam

Which law requires that a producer must provide a buyer's guide prior to the sale of life insurance?

1. National Insurance Act

2. Illinois Insurance Code

3. Consumer Protection Law

4. Life Insurance Regulation Act

The correct answer is: Illinois Insurance Code

The Illinois Insurance Code is the law that mandates producers to provide buyers with a buyer's guide prior to the sale of life insurance policies. This requirement is designed to help consumers make informed choices by providing them relevant information about the life insurance products available, including key features, benefits, and the obligations of both the insurer and the insured. The buyer's guide serves as an educational tool, promoting transparency in the insurance purchasing process and ensuring that prospective policyholders fully understand the terms and conditions of the products they are considering. This regulatory approach reinforces consumer protection and fosters trust in the insurance industry.