Illinois Compiled Statutes
Information maintained by the Legislative Reference Bureau
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INSURANCE215 ILCS 5/393d
(215 ILCS 5/) Illinois Insurance Code.
(215 ILCS 5/393d)
(from Ch. 73, par. 1005d)
Each group professional liability insurance policy shall provide that the insurer will
issue to the employer, or to the executive officer or trustee of the
association, for delivery to the employee, member or employee of a member,
who is insured under such policy, an individual certificate setting forth a
statement as to the insurance protection to which he is entitled and to
(Source: P.A. 79-685.)
215 ILCS 5/393e
(215 ILCS 5/393e)
(from Ch. 73, par. 1005e)
members of group.)
Each group professional liability insurance policy shall provide that to the group or
class thereof originally insured shall be added from time to time all new
employees of the employer, members of the association or employees of
members eligible to and applying for insurance in such group or class but
participation in the group plan shall not be required as a condition of
employment, nor shall any member not participating in the plan be coerced
or discriminated against.
(Source: P.A. 79-685.)
215 ILCS 5/393f
(215 ILCS 5/393f)
(from Ch. 73, par. 1005f)
Each group professional liability insurance policy shall provide that any member of the
group shall have the right to convert his group policy to an individual
standard policy of insurance in the same company as offered by the insurer
to the non-group insureds upon termination of his connection with the group
extending to him the same limits of coverage.
(Source: P.A. 79-685.)
215 ILCS 5/393g
(215 ILCS 5/393g)
(from Ch. 73, par. 1005g)
An insurer may not cancel the insurance of an individual member of a
group covered by a group professional liability insurance policy except for the
non-payment of premium by such member or unless the insurance for the
entire group is cancelled. In such cases notice of cancellation as provided
in like non-group policies shall be given to each member.
(Source: P.A. 79-685.)
215 ILCS 5/395
(215 ILCS 5/395)
(from Ch. 73, par. 1007)
Reserves for marine and inland marine.
In the case of policies
of marine or inland navigation or transportation insurance the unearned
premium reserve, to be charged as a liability, shall be fifty per centum of
the amount of the premiums upon risks covering not more than one passage
not terminated and shall be upon a pro rata basis for all other policies.
(Source: Laws 1937, p. 696.)
215 ILCS 5/396
(215 ILCS 5/396)
(from Ch. 73, par. 1008)
loss expense reserves.
(1) Every company authorized to transact in this State any of the kinds
of business described in Class 3 of Section 4 shall, at all times, maintain
reserves in an amount estimated in the aggregate to provide for the payment
of all losses and claims incurred, whether reported or unreported, which
are unpaid and for which such company may be liable, and to provide for the
expenses of adjustment or settlement of such losses and claims. For the
purpose of such reserves, the company shall keep a complete and itemized
record showing all losses and claims on which it has received notice,
including all notices received by it of the occurrence of any event which
may result in a loss. Such record shall be opened in chronological receipt
order, with each notice of loss or claim identified by appropriate number
(2) Whenever the loss and loss expense experience of such company shows
the reserves, calculated in accordance with the foregoing provisions, to be
inadequate, the Director may require such company to maintain additional
(Source: Laws 1967, p. 1819.)
215 ILCS 5/397
(215 ILCS 5/397)
(from Ch. 73, par. 1009)
Standard fire policy.) The Director of Insurance shall
promulgate such rules and regulations as may be necessary to effect
uniformity in all basic policies of fire and lightning insurance issued
in this State, to the end that there be concurrency of contract where
two or more companies insure the same risk.
(Source: P.A. 80-1441.)
215 ILCS 5/397.05
(215 ILCS 5/397.05)
(from Ch. 73, par. 1009.05)
Standard fire policy; appraisal.
When an insured
requests an appraisal under a policy of fire and extended coverage
insurance, as defined in subsection (b) of Section 143.13, and the
insured's full amount of appraised loss is upheld by agreement of the
appraisers or the umpire, then the insured's appraisal fee and umpire's
appraisal fee shall be paid by the insurer.
(Source: P.A. 87-681.)
215 ILCS 5/397.1
(215 ILCS 5/397.1)
(from Ch. 73, par. 1009.1)
Certificate regarding payment of taxes and expenses on
property sustaining loss.
(a) It shall be unlawful for any company transacting insurance business
in this State to pay a claim of an insured property owner for loss by fire
or explosion to a structure located in this State where the amount
recoverable for loss to the structure under a policy exceeds $25,000, until
the insurance company receives the certificate required by this Section. A
notice, to the State's Attorney of the county where the structure is
located, of the insurers intent to pay a claim shall include the name of
the property owner, the address of the property, its legal description, the
permanent real estate index number that identifies the property for
purposes of taxation, and the amount of the claim to be paid.
(b) For purposes of this Section, the following definitions are
(1) "Insured property owner" is a person named as an
insured who is the owner, title-holder or mortgagee of a structure, the holder of an interest secured by the structure, the beneficiary of a land trust owning or holding title to a structure, the lessee of a structure with a contractual obligation for property taxes, or the assignee of any such person.
(2) "Amount recoverable" is the dollar amount payable
under all insurance policies for loss to the structure.
(3) "Proceeds" is the dollar amount payable for loss
to the structure under an insurance policy.
(4) "Delinquent property taxes" are those property
taxes on the property which are delinquent pursuant to Section 21-15, 21-20, or 21-25 of the Property Tax Code, including those delinquent taxes on property forfeited under Section 21-225 of the Property Tax Code, as of the date of loss.
In determining delinquent property taxes under this
Section, the amount of property taxes for which a certificate of error has been issued pursuant to Section 14-10 or 14-20 of the Property Tax Code shall not be considered delinquent.
(5) "Incurred demolition expense" is: a. the cost of
demolishing or removing a structure from property by or at the expense of a unit of local government if the demolition or removal occurs on a date preceding the later of (i) the acceptance by the insurance company of a Proof of Loss for an agreed amount of proceeds, or (ii) the date of receipt by the unit of local government of a request for execution of the certificate required by this Section; or b. the amount estimated by the unit of local government when it receives a request to execute the certificate required by this Section; or c. the amount ordered to be withheld by a court within 28 days after a unit of local government receives a request for execution of the certificate required by this Section. The unit of local government must be a party to such proceeding.
Incurred demolition expense shall be determined under
subparagraph a. whenever possible. In determining the incurred demolition expense under subparagraph b., the unit of local government shall make its estimate and execute the certificate within 30 days after receiving a request for execution. If the unit of local government shall fail within 30 days to execute the certificate, as required by subparagraph a., the company can proceed to make payment of the claim as if the certificate had been received showing no unpaid demolition costs. The request for execution may be served personally, and may be proven by a written receipt signed by the local official as of the date the request was made or by service on the local official by certified mail, return receipt requested. A court order under subparagraph c. shall supersede an estimate under subparagraph b.
(6) "Property" is the lot on which the structure is
(7) "Structure" is a building.
(8) "Claim" is the demand by an insured for payment
under an insurance policy or policies.
(9) "Proof of Loss" is the document on which an
insured formally presents his claim to an insurance company.
(10) "Certificate" is the executed form prescribed by
the Director of Insurance.
(11) "Executed" means signed by the appropriate
official or unit of government.
(c) For any claim to which this Section is applicable, an insured
property owner must submit one of the following to the insurance
(1) a certificate that with respect to the property
a. no delinquent property taxes, and
b. no unpaid incurred demolition expenses;
(2) a certificate setting forth with respect to the
a. the amount of unpaid delinquent property taxes,
b. the amount of unpaid incurred demolition
c. a direction by an insured property owner to
the insurance company to pay the unpaid delinquent property taxes and unpaid incurred demolition expenses.
(d) (1) Except as provided in paragraph (2) of this
subsection (d), if a certificate is submitted pursuant to paragraph (2) of subsection (c) of this Section, the insurance company shall pay the unpaid delinquent property taxes and unpaid incurred demolition expense from the proceeds payable by issuing a draft or check payable to the appropriate tax collector or unit of local government.
Any proceeds remaining shall be paid to the insured
(2) In the event incurred demolition expense is
determined by estimation under paragraph (5) of subsection (b) of this Section in cities of over 2,000,000, the insurance company shall hold the amount estimated until an amended certificate executed by the appropriate local government official is submitted stating (i) that no demolition expense will be incurred or (ii) the actual unpaid incurred demolition expense. The insurance company shall then issue a draft or check payable to the unit of local government for the actual unpaid incurred demolition expense. Any proceeds remaining shall be paid to the insured property owner.
In determining the amount of proceeds remaining under
this paragraph, the insured property owner shall receive interest on the amount withheld from the date the certificate is executed as provided in Section 2 of the Interest Act.
(e) If, under this Section, the proceeds payable are less than the
amount of the unpaid delinquent property taxes and unpaid incurred
demolition expense, unpaid property taxes shall be paid first.
(f) If incurred demolition expense withheld pursuant to
subparagraphs b. or c. of paragraph 5 of subsection (b) of this Section
exceeds the ultimate cost of demolition, the excess shall first be
applied to unpaid delinquent property taxes. Any amount of proceeds
remaining shall be paid to the insured property owner.
(g) Nothing in this Section shall be construed as:
(1) making an insurance company liable for any amount
in excess of the proceeds payable under its insurance policy unless the insurance company shall have made payment to the named insured without satisfying the requirements of this Section;
(2) making a unit of local government or tax
collector an insured under an insurance policy; or
(3) creating an obligation for an insurance company
to pay unpaid delinquent property taxes or unpaid incurred demolition expense other than as provided in subsection (d) of this Section.
(h) An insurance company making a payment of proceeds under this
Section for unpaid delinquent taxes or unpaid incurred demolition
expense shall be entitled to the full benefit of such payment, including
subrogation rights and other rights of assignment.
(i) Unpaid property taxes and unpaid incurred demolition expense for
a claim for loss to a structure occurring after the issuance of a tax
deed pursuant to Section 22-40 of the Property Tax Code shall not include any
unpaid property tax or unpaid demolition expense arising before the issuance of
the tax deed.
(j) The county collector shall be designated as the local
official who shall execute the certificate required by this Section regarding
delinquent property taxes. The village clerk or city clerk in incorporated
areas and the official in charge of the county building department in
unincorporated areas shall be designated as
the local official who shall execute the certificate required by this Section
regarding demolition expenses.
(k) A fee not to exceed $5 may be charged by a unit of local
government for execution of the certificate required by this Section.
(l) This Section shall retroactively apply to any policy issued or renewed
on or after January 1, 1978 for which a claim subject to this Section remains
unpaid as of the effective date of this amendatory Act of 1978.
(Source: P.A. 87-507; 88-667, eff. 9-16-94; 88-670, eff. 12-2-94.)
215 ILCS 5/399
(215 ILCS 5/399)
(from Ch. 73, par. 1011)
Two or more companies authorized to transact business in this State
may issue a combination or group form of policy, using a distinctive
title therefor, which title shall appear at the head of such policy
followed by the titles of the companies obligated thereupon, and which
policy shall be executed by the officers of each such companies;
provided, that before such companies shall issue such combination or
group policy, the title of such proposed policy and the terms of the
additional provisions thereof, hereby authorized, shall have been filed
with the Director, which terms, in addition to the provisions of the
standard policy and not inconsistent therewith, shall provide
substantially under a separate title therein, as follows:
(a) that each company executing such policy shall be liable for the
full amount of any loss or damage, according to the terms of the policy,
or a specific percentage thereof;
(b) that service of process, or of any notice or proof of loss
required by the said policy, upon any of the companies executing the
same shall be deemed to be service upon all; and provided further that
the unearned premium liability on each policy so issued shall be
maintained by each of such companies on the basis of the liability of
each to the insured thereunder.
(Source: Laws 1937, p. 696.)
215 ILCS 5/400
(215 ILCS 5/400)
(from Ch. 73, par. 1012)
Supplemental or comprehensive contracts.
Forms for supplemental contracts or comprehensive contracts whereby
the property described may be insured against one or more risks
specified in Class 2 or Class 3 of Section 4, in addition to the risk of
direct loss or damage by fire, and forms of fire policies on farm
property may be approved by the Director and their use in connection
with or in lieu of a standard fire insurance policy may be authorized by
(Source: Laws 1937, p. 696.)
215 ILCS 5/400.1
(215 ILCS 5/400.1)
(from Ch. 73, par. 1012.1)
Group for master policy-certificate inland marine
(1) Any insurance company authorized to write inland
marine insurance in this State may issue group or master policy-certificate inland
marine policies which may include coverages incidental or supplemental to the
inland marine policy, if the insurer is authorized to write the class of coverage
which is incidental or supplemental. No policy, certificate of insurance, memorandum
of insurance, application for insurance, endorsement or rider, may be issued
in this State unless a copy of the form thereof shall have been filed with the Director
of Insurance and approved, or unless exempted from filing by such
rules and regulations as may be promulgated by the Director.
(2) The Director shall within 90 days after the filing of such forms disapprove
form if the benefits provided therein are not reasonable in relation to
the premium charged, or
if it contains provisions that are unjust, unfair, inequitable, misleading,
encourage misrepresentation of the coverage, or are contrary to any provision
of the Insurance
Code, or any rule or regulation promulgated thereunder. The Director may,
upon written notice
within such waiting period to the company which made the filing, extend
such waiting period for
an additional 30 days. A filing shall be deemed to meet the requirements
of this Section unless
disapproved by the Director within the waiting period or the extension thereof.
(3) If the Director notifies the insurer that the form is disapproved,
the insurer shall not
issue or use such form. In such notice the Director shall specify the reason
for his disapproval.
The company may request a hearing on such disapproval within 30 days after
receipt of such
disapproval. The Director shall grant a hearing subsequent to the receipt
of such request.
(4) The Director may, at any time after a hearing held not less than 20
days after written
notice to the insurer, withdraw his approval of any such form on any ground set forth in
subsection (2) above. The written notice of such hearing shall state the
reason for the proposed
(5) It is not lawful for the insurer to issue such forms or use them after
date of such withdrawal.
(6) The Director may at any time require the filing of the schedules of premium rates
used or to be used in connection with the specific policy filings required.
(7) The Director shall promulgate such rules and regulations as he may
deem necessary to
provide for the filing and review of premium rates schedules, and for the
disapproval of those
he may deem to be inadequate, excessive or unfairly discriminatory.
(8) Any order or final determination of the Director under the provisions
of this Section
shall be subject to judicial review.
(Source: P.A. 79-931
215 ILCS 5/Art. XXIV
(215 ILCS 5/Art. XXIV heading)
DIRECTOR OF INSURANCE, HEARINGS AND REVIEW
215 ILCS 5/401
(215 ILCS 5/401)
(from Ch. 73, par. 1013)
General powers of the director.
The Director is charged with the rights, powers and duties appertaining
to the enforcement and execution of all the insurance laws of this State.
He shall have the power
(a) to make reasonable rules and regulations as may
be necessary for making effective such laws;
(b) to conduct such investigations as may be
necessary to determine whether any person has violated any provision of such insurance laws;
(c) to conduct such examinations, investigations and
hearings in addition to those specifically provided for, as may be necessary and proper for the efficient administration of the insurance laws of this State; and
(d) to institute such actions or other lawful
proceedings as he may deem necessary for the enforcement of the Illinois Insurance Code or of any Order or action made or taken by him under this Code. The Attorney General, upon request of the Director, may proceed in the courts of this State to enforce an Order or decision in any court proceeding or in any administrative proceeding before the Director.
Whenever the Director is authorized or
required by law to consider some aspect of criminal history record
information for the purpose of carrying out his statutory powers and
responsibilities, then, upon request and payment of fees in conformance
with the requirements of Section 2605-400 of the Department of State Police Law
(20 ILCS 2605/2605-400), the Department of State Police is
authorized to furnish, pursuant to positive identification, such
information contained in State files as is necessary to meet the
requirements of such authorization or statutes.
(Source: P.A. 91-239, eff. 1-1-00
215 ILCS 5/401.1
(215 ILCS 5/401.1)
(from Ch. 73, par. 1013.1)
(1) This Section applies to all companies and persons subject to
examination by the Director, or purporting to do insurance business in
this State, or in the process of organization with intent to do such
business therein, or for whom a Certificate of Authority is required for
the transaction of business, or whose Certificate of Authority is
revoked or suspended.
(2) Whenever it appears to the Director that any person or company
subject to this Code is conducting its business and affairs in such a
manner as to threaten to render it insolvent, or that it is in a
hazardous condition, or is conducting its business and affairs in a
manner which is hazardous to its policyholders, creditors or the public,
or that it has committed or engaged in, or is committing or engaging in,
any unlawful act, or any act, practice or transaction which under any
provision of this Code would constitute ground rendering the person
subject to conservation, liquidation or rehabilitation proceedings and
that irreparable loss and injury to the property and business of a
person or company has occurred or may occur unless the Director acts
immediately, the Director may, without notice, and before hearing, issue
and cause to be served upon such person or company an order requiring
such person or company to forthwith cease and desist from engaging
further in the acts, practices or transactions which are causing such
conduct, condition or ground to exist.
(3) At the same time an order is served pursuant to paragraph (2) of
this Section, the Director must issue and also serve upon the person or
company a notice of hearing to be held at a time and place fixed therein
which may not be less than 20 or more than 30 days after the service
thereof. The notice must contain a statement of the conduct, condition
or ground which the Director deems violative of the provisions of this
(4) If, after hearing as provided by paragraph (3) of this Section,
any of the statements as to conduct, conditions or grounds in the notice
are found to be true, the Director may make such order or orders as may
be reasonably necessary to correct, eliminate or remedy such conduct,
conditions or grounds.
(5) Any person or company subject to an order pursuant
to this Article is entitled to judicial review of the order in accordance
with the provisions of the Administrative Review Law.
(6) If any person or company violates or fails to comply with any
order of the Director or any part thereof which as to such person has
become final and is still in effect, the Director may, after a hearing
and notice at which it is determined that a violation of such order has
been committed, further order that:
(a) Such person shall forfeit and pay to the State of Illinois a sum
not to exceed $100 per day for each and every day that such violation or
failure to comply shall continue, but in no event to exceed a maximum
amount of $5,000. Such liability shall be enforced in an action brought
in any court of competent jurisdiction by the Director in the name of
the people of the State of Illinois; and
(b) Proceedings be commenced to revoke or suspend any license or
Certificate of Authority held by such person under this Code, in
accordance with the procedures provided therefor.
(7) The powers vested in the Director by this Section are additional
to any and all other powers and remedies vested in the Director by law,
and nothing herein shall be construed as requiring that the Director
shall employ the powers conferred herein instead of or as a condition
precedent to the exercise of any other power or remedy vested in the
(8) Any order or notice of the Director hereunder may be served on
any person, in the same manner and with the same effect as provided for
in civil actions in a Circuit Court of this State.
(Source: P.A. 82-783.)
215 ILCS 5/401.5
(215 ILCS 5/401.5)
Investigation of insurance law violations.
(a) If the Director of Insurance has cause to
believe that a person has engaged in, or is engaging in, an act,
activity, or practice that constitutes a business offense,
misdemeanor, or felony violation of the Illinois Insurance Code or related
insurance laws, he or she shall designate appropriate investigators or
agents to investigate the violations. For purposes of carrying
out investigations under this Section, the Department of Insurance is deemed a
criminal justice agency under all federal and State laws
and regulations, and as such shall have access to any information that concerns
or relates to a violation of the Illinois Insurance Code or
related insurance laws and that is available to criminal justice
(b) The Director of Insurance may
transmit or receive written or oral information relating to possible violations
of the insurance laws of this State received by or from any other criminal
justice agencies, whether federal, State, or local, if, in the opinion of
the Director, the transmittal is appropriate and may further the
effective prevention of criminal activities.
(c) The Department of Insurance's papers, documents, reports,
or evidence relevant to the subject of an investigation under this Section
is not subject to public inspection for so long as the
Department deems reasonably necessary to complete the investigation, to protect
the person investigated
from unwarranted injury, or to be in the public interest. Further, the papers,
documents, reports, or evidence relevant to the subject of an
investigation under this Section is not subject to
subpoena until opened for public inspection by the Department, unless the
Department consents, or until, after notice to the Department and a hearing,
the court determines the Department would not be unnecessarily hindered by
the subpoena. No officer, agent, or employee of the
Department is subject to subpoena in civil actions by a court of this State to
testify concerning a matter of which
they have knowledge under a pending insurance fraud
investigation by the Department.
(d) No insurer, or employees or agents of an
insurer, are subject
to civil liability for libel or otherwise by virtue of furnishing information
required by the insurance laws of this State or required by the Department
of Insurance as a result of its investigation. No cause of action exists and
no liability may be imposed, either civil or criminal,
against the State, the Director, any officer, agent, or employee of the
Department of Insurance, or individuals employed or retained by the Director,
for an act or omission by them in the performance of a
power or duty authorized by this Section, unless the act or
was performed in bad faith and with intent to injure a particular person.
(e) The powers vested in the Director by this Section are
additional to other powers and remedies vested in the Director
by law, and nothing in this Section shall be construed as
requiring that the Director shall employ the powers conferred in this
Section instead of or as a condition precedent to the exercise of
any other power or remedy vested in the Director. The Director may establish
systems and procedures for carrying out investigations under this Section as
are necessary to avoid the impairment or compromise of his or her authority
under this Section or any other law relating to the regulation of insurance.
(Source: P.A. 89-234, eff. 1-1-96.)
215 ILCS 5/402
(215 ILCS 5/402)
(from Ch. 73, par. 1014)
Examinations, investigations and hearings.
(1) All examinations, investigations and hearings provided for by this
Code may be conducted either by the Director personally, or by one or more
of the actuaries, technical advisors, deputies, supervisors or examiners
employed or retained by the Department and designated by the Director for
such purpose. When necessary to supplement its examination procedures, the
Department may retain independent actuaries deemed competent by the
Director, independent certified public accountants, or qualified
examiners of insurance companies deemed competent by the Director, or any
combination of the foregoing, the cost of which shall be borne by the
company or person being examined. The Director may compensate independent
actuaries, certified public accountants and qualified examiners retained
for supplementing examination procedures in amounts not to exceed the
reasonable and customary charges for such services. The Director
may also accept as a part of the Department's examination of any company or
person (a) a report by an independent actuary deemed competent by the
Director or (b) a report of an audit made by an independent certified
public accountant. Neither those persons so designated nor any members of
their immediate families shall be officers of, connected with, or
financially interested in any company other than as policyholders, nor
shall they be financially interested in any other corporation or person
affected by the examination, investigation or hearing.
(2) All hearings provided for in this Code shall, unless otherwise
specially provided, be held at such time and place as shall be designated
in a notice which shall be given by the Director in writing to the person
or company whose interests are affected, at least 10 days before the date
designated therein. The notice shall state the subject of inquiry and the
specific charges, if any. The hearings shall be held in the City of
Springfield, the City of Chicago, or in the county where the principal
business address of the person or company affected is located.
(Source: P.A. 87-757.)
215 ILCS 5/403
(215 ILCS 5/403)
(from Ch. 73, par. 1015)
Power to subpoena and examine witnesses.
(1) In the conduct of any examination, investigation or hearing provided
for by this Code, the Director or other officer designated by him or her to
conduct the same, shall have power to compel the attendance of any person
by subpoena, to administer oaths and to examine any person under oath
concerning the business, conduct or affairs of any company or person
subject to the provisions of this Code, and in connection therewith to
require the production of any books, records or papers relevant to the
(2) If a person subpoenaed to attend such inquiry fails to obey the
command of the subpoena without reasonable excuse, or if a person in
attendance upon such inquiry shall, without reasonable cause, refuse to be
sworn or to be examined or to answer a question or to produce a book or
paper when ordered to do so by any officer conducting such inquiry, or if
any person fails to perform any act required hereunder to be performed,
he or she shall be required to pay a penalty of not more than $2,000
to be recovered in the name of the People of the State of Illinois by the
of the county in which the violation occurs, and the penalty so recovered
shall be paid into the county treasury.
(3) When any person neglects or refuses without reasonable cause to obey
a subpoena issued by the Director, or refuses without reasonable cause to
testify, to be sworn or to produce any book or paper described in the
subpoena, the Director may file a petition against such person in the
circuit court of the county in which the testimony is desired to be or has
been taken or has been attempted to be taken, briefly setting forth the
fact of such refusal or neglect and attaching a copy of the subpoena and
the return of service thereon and applying for an order requiring such
person to attend, testify or produce the books or papers before the
Director or his or her actuary, supervisor, deputy or examiner, at such
time or place as may be specified in such order. Any circuit court of this
State, upon the filing of such petition, either before or after
notice to such person, may, in the judicial discretion of such court, order
the attendance of such person, the production of books
and papers and the giving of testimony before the Director or any of his
or her actuaries, supervisors, deputies or examiners. If such person shall fail or
refuse to obey the order of the court and it shall appear to the court that
the failure or refusal of such person to obey its order is wilful, and
without lawful excuse, the court shall punish such person by fine or
imprisonment in the county jail, or both, as the nature of the case may
require, as is now, or as may hereafter be lawful for the court to do in
cases of contempt of court.
(4) The fees of witnesses for attendance and travel shall be the same as
the fees of witnesses before the circuit courts of this State. When a
witness is subpoenaed by or testifies at the instance of the Director or
other officer designated by him or her, such fees shall be paid in the
same manner as other expenses of the Department. When a witness is subpoenaed
testifies at the instance of any other party to any such proceeding, the
cost of the subpoena or subpoenas duces tecum and the fee of the witness
shall be borne by the party at whose instance a witness is summoned. In
such case, the Department in its discretion, may require a deposit to cover
the cost of such service and witness fees.
(Source: P.A. 93-32, eff. 7-1-03.)
215 ILCS 5/403A
(215 ILCS 5/403A)
(from Ch. 73, par. 1015A)
Violations; Notice of Apparent Liability; Limitation
of Forfeiture Liability.
(1) Any company or person, agent or broker,
officer or director and any other person subject to this Code and as may
be defined in Section 2 of this Code, who willfully or repeatedly fails
to observe or who otherwise violates any of the provisions of this Code
or any rule or regulation promulgated by the Director under authority
of this Code or any final order of the Director entered under the authority
of this Code shall by civil penalty forfeit to the State of Illinois a sum
not to exceed $2,000. Each day during which a violation occurs
a separate offense. The civil penalty provided for in this Section shall
apply only to those Sections of this Code or administrative regulations
thereunder that do not otherwise provide for a monetary civil penalty.
(2) No forfeiture liability under paragraph (1) of this Section
may attach unless a written notice of apparent liability has been issued
by the Director and received by the respondent, or the Director sends written
notice of apparent liability by registered or certified mail, return receipt
requested, to the last known address of the respondent. Any respondent so
notified must be granted an opportunity to request a
hearing within 10 days from receipt of notice, or to show in writing,
why he should not be held liable. A notice issued under this Section must
set forth the date, facts and nature of the act or omission with which the
respondent is charged and must specifically identify the particular
provision of the Code, rule, regulation or order of which a violation is
(3) No forfeiture liability under paragraph (1) of this Section
may attach for any violation occurring more than 2 years prior to the date
of issuance of the notice of apparent liability and in no event may the total
civil penalty forfeiture imposed for the acts or omissions set forth in any
one notice of apparent liability exceed $500,000.
(4) The civil penalty forfeitures provided for in this Section
are payable to the General Revenue Fund of the State of Illinois, and
may be recovered in a civil suit in the name of the State of Illinois brought
in the Circuit Court in Sangamon County, or in the Circuit Court of the
county where the respondent is domiciled or has its principal operating
(5) In any case where the Director issues a notice of apparent
liability looking toward the imposition of a civil penalty forfeiture
under this Section, that fact may not be used in any other proceeding before
the Director to the prejudice of the respondent to whom the notice was issued,
unless (a) the civil penalty forfeiture has been paid, or (b) a court has
ordered payment of the civil penalty
forfeiture and that order has become final.
(Source: P.A. 93-32, eff. 7-1-03.)
215 ILCS 5/404
(215 ILCS 5/404)
(from Ch. 73, par. 1016)
Office of Director; a public office; destruction or
disposal of records, papers, documents, and memoranda.
(1)(a) The office of the Director shall be a public office and the
books, and papers thereof on file
therein, except those records
or documents containing or disclosing any analysis, opinion, calculation,
ratio, recommendation, advice, viewpoint, or estimation by any Department staff
regarding the financial or market condition of an insurer not otherwise made
part of the public record by the Director,
shall be accessible to the
inspection of the public, except as the Director, for good reason, may
decide otherwise, or except as may be otherwise provided in this Code or as otherwise provided in Section 7 of the Freedom of Information Act.
(b) Except where another provision of this Code expressly prohibits a
disclosure of confidential information to the specific officials or
organizations described in this subsection, the Director may disclose or share
any confidential records or information in his custody and control with any
insurance regulatory officials of any state or country, with the law
enforcement officials of this State, any other state, or the federal
government, or with the National Association of Insurance Commissioners, upon
the written agreement of the official or organization receiving the information
to hold the information or records confidential and in a manner consistent with
(c) The Director shall maintain as confidential any records or
information received from the National Association of Insurance Commissioners
or insurance regulatory officials of other states which is confidential in that
(2) Upon the filing of the examination to which they relate, the Director
is authorized to destroy or otherwise dispose of all working papers relative
to any company which has been examined at any time prior to that last
examination by the Department, so that in such circumstances only current
working papers of that last examination may be retained by the Department.
(3) Five years after the conclusion of the transactions to
which they relate, the Director is authorized to destroy or otherwise
dispose of all books, records, papers, memoranda and correspondence
directly related to consumer complaints or inquiries.
(4) Two years after the conclusion of the transactions to which they
relate, the Director is authorized to destroy or otherwise dispose of all
books, records, papers, memoranda, and correspondence directly related to
all void, obsolete, or superseded rate filings and schedules required to be
filed by statute; and all individual company rating experience data and all
records, papers, documents and memoranda in the possession of the Director
(5) Five years after the conclusion of the transactions to which
they relate, the Director is authorized to destroy or otherwise dispose
of all examination reports of companies made by the insurance supervisory
officials of states other than Illinois; applications, requisitions, and
requests for licenses; all records of hearings; and all similar records,
papers, documents, and memoranda in the possession of the Director.
(6) Ten years after the conclusion of the transactions to which they
relate, the Director is authorized to destroy or otherwise dispose of all
official correspondence of foreign and alien companies, all foreign
companies' and alien companies' annual statements, valuation reports, tax
reports, and all similar records, papers, documents and memoranda in the
possession of the Director.
(7) Whenever any records, papers, documents or memoranda are
destroyed or otherwise disposed of pursuant to the provisions of this
section, the Director shall execute and file in a separate, permanent
office file a certificate listing and setting forth by summary
description the records, papers, documents or memoranda so destroyed or
otherwise disposed of, and the Director may, in his discretion, preserve
copies of any such records, papers, documents or memoranda by means of
microfilming or photographing the same.
(8) This Section shall apply to records, papers, documents, and
memoranda presently in the possession of the Director as well as to
records, papers, documents, and memoranda hereafter coming into his
(Source: P.A. 97-1004, eff. 8-17-12.)