Section 754.50   Prohibited Acts and Practices

a)         The purpose of Article XXVI of the Illinois Insurance Code, entitled "Unfair Methods of Competition and Unfair and Deceptive Acts and Practices", according to Section 421 is to regulate trade practices in the business of insurance in accordance with the intent of Congress as expressed in the Act of Congress of March 9, 1945 (Regulation of Insurance 15 U.S.C.A. 1011 et seq.) by prohibiting such trade practices.

b)         Violation of the Regulations, which are made by the Director of Insurance in effecting or implementing Article XXVI and Article VII-4, or any Articles of the Illinois Insurance Code are violations of the Articles themselves and subjects the violators to the procedures and penalties provided by these Articles.

c)         Acts and practices related to activities authorized or permitted by Article VII-A and this Part 754 Rules, which are prohibited by Article XXVI of the Act as constituting unfair methods of competition or unfair and deceptive acts and practices, whether committed or practiced by a company, an advisory organization or companies constituting a group, association, or organization authorized to engage in joint underwriting or joint reinsurance activities include the following:

1)         Two or more companies, unless permitted or authorized by Article VII-A of the Act, this Part 754 Rules or Section 478.1 of the Act, may not act in concert with each other with respect to the compilation of insurance statistics; the preparation of insurance policies, bond forms, and underwriting rules; and the furnishing of that which it compiles and prepares to insurance companies, nor with respect to the activities of making rates.

2)         Two or more companies engaged in authorized joint underwriting or joint reinsurance activities, unless permitted or authorized by Article VII-A of the Act, this Part 754 Rules, or Section 478.1 of the Act, may not act in concert with each other with respect to the activities enumerated in Section 754.50(c)(1) nor with respect to the activity of making rates.

3)         All companies making rate level changes which require the filing of a Form RF-3 under Section 754.10(f)(2) or 754.20(a) are prohibited from continuing to use the new rate level if the Form RF-3 has not been submitted to the Illinois Department of Insurance within ten days after its effective date.

4)         All companies making a rule reference filing under Section 754.10(c)(2) are prohibited from continuing to use the rule reference after ten days from its effective date filing unless or until the Form RF-1 required by Section 754.10(j) is submitted to the Illinois Department of Insurance.

5)         All companies authorizing an advisory organization to make a rule filing on its behalf under Section 754.10(c)(3) are prohibited from continuing to use the rule filings after ten days from its effective date unless or until the required rule authorization letter required by Section 754.10(m) is submitted to the Illinois Department of Insurance.

6)         Groups, associations, organizations of companies authorized to engage in joint underwriting and joint reinsurance activities are prohibited from establishing rules which in any way unreasonably inhibit a company from individually underwriting any risks.

7)         All companies, advisory organizations, and groups, associations, or organizations of companies authorized to engage in joint underwriting activities are prohibited from practicing or sanctioning any plan or act of boycott or intimidation tending to result in the unreasonable restraint of trade or in a monopoly in the business of insurance.

8)         All companies, advisory organizations, and group, association, or organization or companies authorized to engage in joint underwriting activities are prohibited from willfully withholding information from, or knowingly give false information or misleading information to the Director or to any organization authorized by him to receive information relative to underwriting rules, rating systems or rate filings required by Article VII-A of the Act or this Part 754 rules.

9)         All companies required by Section 754.30(d)(2) above to file an individual risk authorization letter are prohibited from using the rate developed unless or until the individual risk authorization letter has been submitted to the Illinois Department of Insurance.

(Source: Amended at 4 Ill. Reg. 26, p. 164, effective July 1, 1980)