You're partially correct, but it depends on the type of chili that is being made.
From the International Chili Society's Contest Rules, Chapter 3
ICS-SANCTIONED COOKING CATEGORIES FOR ADULTS AND YOUTHS
Traditional Red Chili
is any kind of meat, or combination of meats, cooked with red chili peppers, various spices and other ingredients. Beans and non-vegetable fillers such as rice and pasta are not allowed. Preference is not given to either cut meat, ground meat, shredded meat or cubed meat.
Homestyle Chili
is any kind of meat, or combination of meats, and/or vegetables cooked with beans, chili peppers, various spices and other ingredients. Homestyle chili may be any color. Beans are required and should be visible in every spoonful. Preference is not given to either cut, ground, shredded or cubed meat.
Chili Verde
is any kind of meat, or combination of meats, cooked with green chili peppers, various spices and other ingredients. Beans and non-vegetable fillers such as rice and pasta are not allowed. Preference is not given to either cut meat, ground meat, shredded meat or cubed meat.
Veggie
is any kind of vegetable or combination of vegetables, cooked with chili peppers, various spices and other ingredients. The use of meat and/or any meat by-product is not allowed. The use of soy and meatless "meat" substitutes is allowed. Veggie chili can be any color. Beans are allowed.
Have you seen the Yellow Sign?
Quando omni flunkus moritati