Legal Reserve Life Insurance (life insurance and annuity contracts)

What this document is

215 ILCS 5, Article XIV - Legal Reserve Life Insurance (life insurance and annuity contracts) is a state statute published by Illinois General Assembly, Legislative Reference Bureau (ilga.gov). It is one of the Illinois documents that insurance license exam questions are written from, including illinois life & health practice questions. This page summarizes it and points to the official version, which is the text to rely on.

Sections cited in practice questions

Each practice answer shows the exact passage it comes from. These are sections of this document that questions cite, with a short excerpt from the source text.

• 215 ILCS 5 § 224(1)(c) (Standard provisions for life policies, entire contract and incontestability)

  “A provision that the policy, together with the application therefor, a copy of which shall be endorsed upon or attached to the policy and made a part thereof, shall constitute the entire contract between the parties and that after it has been in force during the lifetime of the insured a specified...”

• 215 ILCS 5 § 224(1)(b) (Standard provisions for life policies, grace period)

  “A provision that the insured is entitled to a grace period either of 30 days or of one month within which the payment of any premium after the first may be made, subject at the option of the company to an interest charge not in excess of 6% per annum for the number of days of grace elapsing before...”

• 215 ILCS 5 § 224(1)(d) (Standard provisions for life policies, misstatement of age)

  “A provision that if it is found at any time before final settlement under the policy that the age of the insured (or the age of the beneficiary, if considered in determining the premium) has been misstated, the amount payable under the policy shall be such as the premium would have purchased at the...”

• 215 ILCS 5 § 224(1)(f) (Standard provisions for life policies, policy loans)

  “A provision that after the policy has been in force 3 full years the company at any time, while the policy is in force, will advance, on proper assignment or pledge of the policy and on the sole security thereof, at a specified maximum fixed or adjusted rate of interest in accordance with Section...”

• 215 ILCS 5 § 238(a) (Exemption)

  “All proceeds payable because of the death of the insured and the aggregate net cash value of any or all life and endowment policies and annuity contracts payable to a wife or husband of the insured, or to a child, parent or other person dependent upon the insured, whether the power to change the...”

• 215 ILCS 5/224(1)(l) (Standard provisions for life policies; interest on death proceeds)

  “(l) Interest shall accrue on the proceeds payable because of the death of the insured, from date of death, at the rate of 10% annually on the total amount payable or the face amount if payments are to be made in installments until the total payment or first installment is paid, unless payment is...”

• 215 ILCS 5/231.1(H)(4) (Group Life Insurance Standard Provision; notice of the conversion right)

  “(4) If any individual insured under a group life insurance policy becomes entitled under the terms of such policy to have an individual policy of life insurance issued and if such individual is not given notice of the existence of such right at least 15 days prior to the expiration date of such...”

• 215 ILCS 5/234 (Notice of premium required)

  “Sec. 234. Notice of premium required. (1) No life company doing business in this State shall declare any policy forfeited or lapsed within six months after default in payment of any premium installment or interest or any portion thereof, nor shall any such policy be forfeited or lapsed by reason of...”

• 215 ILCS 5/235.1 (Notice of cancellation; secondary addressee)

  “Sec. 235.1. Notice of cancellation; secondary addressee. (a) A life company issuing an individual life insurance contract on or after January 1, 2022 shall notify an applicant, in writing on a form prescribed by the company at the time of application for the policy, of the applicant's right to...”

• 215 ILCS 5/236(e) (Discrimination prohibited; lawful travel)

  “(e) An insurer or producer authorized to issue policies of insurance in this State may not make a distinction or otherwise discriminate between persons, reject an applicant, cancel a policy, or demand or require a higher rate of premium for reasons based solely upon an applicant's or insured's past...”

• 215 ILCS 5/225(1)(a), (b) (Prohibited Provisions for Life Policies)

  “A provision limiting the time within which any action may be commenced to less than 3 years after the cause of action accrues. (b) A provision by which the policy purports to be issued or take effect more than 6 months before the original application for the insurance was made, but this provision...”

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