Which insurance regulation ensures that policyholders are informed about their coverage limits?

The Illinois Insurance Code is the correct answer because it establishes comprehensive guidelines and requirements for insurance companies operating within the state. One of its key objectives is to ensure that policyholders clearly understand their insurance policies, which includes being informed about their coverage limits. The code mandates that insurers provide clear and understandable policy documents that outline coverage details, including limits, exclusions, and the rights of policyholders, thus ensuring transparency and consumer protection in the insurance market.

In contrast, the National Insurance Standards may provide general guidelines but do not specifically enforce state-level consumer protection regarding policy details. The Illinois Consumer Protection Act is designed to protect consumers from unfair business practices but does not directly focus on the specifics of insurance coverage information. The Fair Claims Settlement Practices Regulation primarily addresses how insurers must handle claims after a policy is enacted, rather than the pre-emptive clarity on coverage limits provided to policyholders at the time of policy purchase.