Current through Register Vol. 48, No. 12, March 22, 2024
a) General
1) The application for a policy shall contain
spaces for the name and signature of the producer or other licensee who
solicited and wrote the application, pursuant to Section 500-155 of the
Code.
2) The size of the type in
the declaration portion of an application must meet a reasonable standard of
legibility.
3) In applications
providing for home office endorsement, there shall be no change in the amount
of insurance or benefits, unless agreed to in writing by the
applicant.
4) Applications shall
fully comply with the applicable Sections of Article XL of the Code (Insurance
Information and Privacy Protection).
b) Health Questions
1) Questions requiring applicant's opinion
regarding past or present health of a person proposed for coverage shall be
asked as to the best of the applicant's knowledge and belief.
2) Questions regarding an applicant's past or
present health that are phrased so as to require factual information rather
than a statement of the applicant's opinion need not be qualified as described
in subsection (b)(1).
3) Medical
Authorization in an application may be handled in one of the following ways:
A) By a direct question to be answered "yes"
or "no" that clearly indicates the applicant has or has not waived the
privilege; or
B) By a statement in
the declaration immediately above or in close conjunction to the signature
line; or
C) By a separate
authorization requiring a separate signature of the applicant or other person
granting the authorization.
c) Automatic Premium Loan Provision
The application may provide for a specific election of an
automatic premium loan provision if that provision is offered in the policy.
Failure to elect on the part of the applicant shall result in no election of
the automatic premium loan provision, as provided for in Section
1405.40(c).
d) Dividend Election
If the contract applied for is participating, the application
shall provide for election of all available dividend options, as provided for
in Section
1405.40(i).
e) Replacement
Applications shall be drafted to comply with the replacement
provisions of 50 Ill. Adm. Code 917.