Answer the following :

1A. The Illinois Life and Health Insurance Guarranty Association may NOT do which of the following ?

A. Take Legal action as necessary to avoid payment of improper claims .

B. revoke the license of an insolvent insurer

C. Borrow money to carry out it's purpose under the law

D. Enters into contract to carry out it's provisions under the law .

Which of the following statements regarding compensation and service fees which an insurance producer may charge a consumer is correct ?

A If the policy or contract is cancelled after 40 days from inception , the insurance producer may keep the entire service fee .

B Under no circumstance may a service fee exceed 5% of the policy premium .

C The written signature of the consumer is required if the combined compensation on the service fee is more than 5% bur less than 10%

D . Service Fees , Unless fully earned , must be refunded on a prorated basis if cancellation by consumer is made within 90 days from the inception date of the policy .