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Illinois Compiled Statutes
Information maintained by the Legislative Reference Bureau Updating the database of the Illinois Compiled Statutes (ILCS) is an ongoing process. Recent laws may not yet be included in the ILCS database, but they are found on this site as Public Acts soon after they become law. For information concerning the relationship between statutes and Public Acts, refer to the Guide. Because the statute database is maintained primarily for legislative drafting purposes, statutory changes are sometimes included in the statute database before they take effect. If the source note at the end of a Section of the statutes includes a Public Act that has not yet taken effect, the version of the law that is currently in effect may have already been removed from the database and you should refer to that Public Act to see the changes made to the current law.
INSURANCE (215 ILCS 5/) Illinois Insurance Code. 215 ILCS 5/154.7
(215 ILCS 5/154.7) (from Ch. 73, par. 766.7)
Sec. 154.7.
Statement of Charges.) (1) Whenever the Director finds
that any company doing business in this State is engaging in any improper
claims practice as defined in Section 154.5, and that a proceeding in respect
thereto would be in the public interest, he shall issue and serve upon such
company a statement of the charges in that respect and a notice of hearing
thereon pursuant to Article XXIV, which notice shall set a hearing date
not less than 10 days from the date of the notice.
(2) The failure of a company to appear at a hearing after receipt of a
statement of the charges and notice of hearing is considered a waiver of
notice and hearing, a stipulation that the charges against the company are
true, immediately suspends such company's Certificate of Authority for 30
days, and subjects the company to any other applicable provisions of
this Code. The Director must notify the company of any suspension or action
taken under this Section.
(Source: P.A. 80-926.)
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215 ILCS 5/154.8
(215 ILCS 5/154.8) (from Ch. 73, par. 766.8)
Sec. 154.8. Cease and desist order; suspension of certificate; civil penalty; judicial review. (1) If, after a hearing pursuant to Section 154.7, the Director
finds that company has engaged in an improper claims practice, he shall
order such company to cease and desist from such practices and, in the
exercise of reasonable discretion, may suspend
the company's certificate of authority for a period not to exceed 6
months or impose a civil penalty of up to $250,000, or both.
Pursuant to Section 401, the Director shall adopt reasonable rules
establishing standards for the implementation of this Section.
(2) Any order of the Director pursuant to this Section is subject to
judicial review under Section 407 of this Code.
(Source: P.A. 101-81, eff. 7-12-19.)
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215 ILCS 5/154.9 (215 ILCS 5/154.9) Sec. 154.9. Payment of applicable use or occupation tax, title, and transfer fees on a private passenger total loss claim. (a) When an insurer determines that an insured's or third-party claimant's private passenger automobile is a total loss that is covered under the terms of a personal automobile policy issued or renewed on or after July 1, 2022 by the insurer, the insurer shall pay any use or occupation tax imposed by the State or a unit of local government and title and transfer fees as provided for in this Section. As used in this Section, "private passenger vehicle" means a private passenger motor vehicle, station wagon, or any other 4-wheeled motor vehicle with a load capacity of 1,500 pounds or less that is not used in the occupation, profession, or business of the insured or third-party claimant, not used as a public or livery conveyance for passengers, nor rented to others. (b) If the insurer elects to replace the insured vehicle, the insurer shall pay any use or occupation tax imposed by the State or a unit of local government tax and title and transfer fees on the replacement vehicle. (c) If a cash settlement is provided for the total loss private passenger vehicle, the insurer shall reimburse the insured or third-party claimant for any use or occupation tax imposed by the State or a unit of local government and title and transfer fees if the replacement vehicle is purchased or leased within 30 days after the receipt of the cash settlement by the insured or third-party claimant and the insured or third-party claimant substantiates such purchase and the payment of such taxes and fees by submission of appropriate documentation to the insurer within 33 days after the receipt of the settlement or receipt of the required reimbursement form from the insurer, whichever is later. (1) With respect to leased vehicles, use or | | occupation taxes and title and transfer fees shall be deemed to be incurred by the insured or the third-party claimant at the time the lease is entered into, but only if such use or occupation taxes and title and transfer fees are included in the cost of the lease or are paid directly by the insured or third-party claimant.
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| (2) The insurer is not required to reimburse the
| | insured or third-party claimant for any use or occupation taxes and title or transfer fees in excess of the amount payable based on the value of the total loss vehicle at the time of the loss or for taxes and title or transfer fees not actually paid by the insured or third-party claimant.
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| (3) In lieu of this reimbursement procedure, the
| | insurer may directly pay the required amount of any use or occupation taxes and title and transfer fees to the claimant at the time of settlement.
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| (4) If an insurer requires a particular form be
| | used to apply for reimbursement of any use or occupation taxes and title or transfer fees, the form must be delivered to the insured or third-party claimant at or before the time of settlement.
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| (d) The Department may adopt rules establishing uniform standards for implementation of this Section, including, but not limited to, prescribing the method of determining the market value of the insured's or third-party claimant's vehicle.
(Source: P.A. 102-69, eff. 7-1-22 .)
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215 ILCS 5/154.10 (215 ILCS 5/154.10) (This Section may contain text from a Public Act with a delayed effective date ) Sec. 154.10. Description of the determination of a total loss of a vehicle. Upon the determination of a total loss of an insured vehicle, the insurance company shall provide the insured with a brief description of how that determination was made, including any available repair estimate, estimated vehicle salvage value, assessed market value, and other costs and calculations used. This Section applies to policies issued or renewed on or after July 1, 2025.
(Source: P.A. 103-615, eff. 1-1-25.) |
215 ILCS 5/155
(215 ILCS 5/155) (from Ch. 73, par. 767)
Sec. 155.
Attorney fees.
(1) In any action by or against a company wherein
there is in issue the liability of a company on a policy or policies of
insurance or the amount of the loss payable thereunder, or for an unreasonable
delay in settling a claim, and it appears to the court that such action
or delay is vexatious and unreasonable, the court may allow as part of the
taxable costs in the action reasonable attorney fees, other costs, plus
an amount not to exceed any one of the following amounts:
(a) 60% of the amount which the court or jury finds | | such party is entitled to recover against the company, exclusive of all costs;
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(b) $60,000;
(c) the excess of the amount which the court or jury
| | finds such party is entitled to recover, exclusive of costs, over the amount, if any, which the company offered to pay in settlement of the claim prior to the action.
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(2) Where there are several policies insuring the same insured
against the same loss whether issued by the same or by different
companies, the court may fix the amount of the allowance so that the
total attorney fees on account of one loss shall not be increased by
reason of the fact that the insured brings separate suits on such policies.
(Source: P.A. 93-485, eff. 1-1-04.)
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215 ILCS 5/155.01
(215 ILCS 5/155.01) (from Ch. 73, par. 767.1)
Sec. 155.01.
Interlocking directorates - when prohibited.
Any person may be a director in two or more companies which are
competitors, provided no person at the same time shall be a director in
two or more companies where the effect may be to substantially lessen
competition generally or tend to create a monopoly. Whenever the Director
has reason to believe that there is a violation of this Section, the
Director shall proceed with respect to any person or company deemed by him
to be in violation of this Section, in accordance with the provisions of
Article XXIV and shall have power to issue an order directing such person
or company to cease and desist from such violation within such time, or
extension thereof, as may be specified by the Director. Any such order of
the Director shall be subject to review in accordance with the provisions
of Article XXIV.
(Source: Laws 1947, p. 1143 .)
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215 ILCS 5/155.03
(215 ILCS 5/155.03) (from Ch. 73, par. 767.3)
Sec. 155.03.
Defense of ultra vires.
No company doing business in this State shall assert by way of defense
or otherwise, in any suit, action or claim arising directly or indirectly
out of the issuance or delivery of any policy or certificate of insurance,
that such company was without capacity or power to issue such policy or
certificate or that such policy or certificate is void, invalid or
unenforceable because of such lack of capacity, if the coverage under the
policy or certificate was afforded with the express knowledge or the
consent or acquiescence of the company.
(Source: Laws 1959, p. 1970 .)
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215 ILCS 5/155.04
(215 ILCS 5/155.04) (from Ch. 73, par. 767.4)
Sec. 155.04.
Standards for companies and officials.
(1) The Director shall not approve any declaration of organization or
Articles of Incorporation or issue a Certificate of Authority to any
company until he has found that (a) the company has submitted a sound plan
of operation, and (b) the general character and experience of the
incorporators, directors and proposed officers is such as to assure
reasonable promise of a successful operation, based on the fact that such
persons are of known good character and that there is no good reason to
believe that they are affiliated, directly or indirectly, through
ownership, control, management, reinsurance transactions or other insurance
of business relations with any person or persons known to have been
involved in the improper manipulation of assets, accounts or reinsurance.
The Director may require, in substantially the same form, the information
required under Section 131.5 of this Code.
(2) All companies licensed to do business in this state must notify the
Director within 30 days of the appointment or election of any new officers
or directors.
(3) Except in cases where the Director deems that any officer or
director meets the standards set forth in this section, he shall, after
notice and hearing afforded to the officer or director, and after a finding
that the officer or director is incompetent or untrustworthy or of known
bad character, order the removal of the person. If a company does not
comply with a removal order within 30 days, the Director shall suspend that
company's Certificate of Authority until such time as the order is complied
with.
(4) It shall be unlawful for a company to borrow money or
receive a
loan or advance from anyone convicted of a felony, anyone who is
untrustworthy or of known bad character or anyone convicted of a criminal
offense involving
the conversion or misappropriation of fiduciary funds or insurance
accounts, theft, deceit, fraud, misrepresentation or corruption.
(Source: P.A. 89-97, eff. 7-7-95.)
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215 ILCS 5/155.05
(215 ILCS 5/155.05) (from Ch. 73, par. 767.5)
Sec. 155.05.
Payment of insurance in burial benefits prohibited.
No company, officer, director, agent or broker and no other person,
firm, association or corporation shall advertise, solicit, negotiate,
issue, effect or deliver in this State any policy or contract of insurance
or any series or combination of related or separate contracts, assignments,
endorsements or agreements for the purpose of making, or as part of a plan
which has the effect of making the proceeds of the policy, in event of
death, payable other than in lawful money of the United States or for the
purpose or as part of a plan which has the effect of depriving the family
or representative of the deceased of the advantages of open competition and
unrestricted choice in the procuring and purchasing in the open market of
supplies and services in connection with the burial of the deceased.
(Source: Laws 1947, p. 1152 .)
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215 ILCS 5/155.06
(215 ILCS 5/155.06) (from Ch. 73, par. 767.6)
Sec. 155.06.
Emergency by-laws may be adopted.
The board of directors of any domestic insurance company may adopt
emergency by-laws to be approved by the Director, which will become
operative during an emergency resulting from an attack upon the United
States by nuclear, chemical, bacteriological or biological weapons. The
emergency by-laws may include provisions relating to a line of succession
of the officers, the manner in which vacancies on the board of directors
shall be filled, how and when the emergency board of directors may transact
business, alternate locations for the principal and regional offices,
emergency maintenance of books and records, and any other measures
reasonably related to the interim management of company affairs. If
emergency by-laws are adopted, copies shall be sent to the shareholders, or
similar body in other than stock companies, who may repeal or modify them
at the annual meeting or at any special meeting called for that purpose.
(Source: Laws 1965, p. 418 .)
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215 ILCS 5/155.07
(215 ILCS 5/155.07) (from Ch. 73, par. 767.7)
Sec. 155.07.
Change of location of offices.
Where an emergency exists, as defined in Section 155.06, the board of
directors of a domestic insurance company may change the location of the
company's principal and regional offices, but must give written notice to
the Director within 10 days after such change stating the address of the
new and former locations.
(Source: Laws 1965, p. 418 .)
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215 ILCS 5/155.08
(215 ILCS 5/155.08) (from Ch. 73, par. 767.8)
Sec. 155.08.
Statutory provisions operative during emergency.
In the event that any domestic company has not adopted emergency
by-laws, the following provisions shall become operative during an
emergency as defined in Section 155.06:
(1) The board of directors acting during such period may take any and
every action reasonably necessary to enable the company to meet the
exigencies of the emergency and to continue the business.
(2) A quorum of the emergency board of directors shall consist of a
majority of the available surviving directors. If less than three directors
are able to convene, company officers may temporarily substitute as acting
directors until formal elections can be conducted or the regular directors
become available to resume their duties.
(3) The line of succession of the officers for the purpose of filling
temporary vacancies of company offices and maintaining a quorum of three
acting directors on the board in time of emergency shall be president,
secretary, and treasurer followed by the vice-presidents ranked according
to their seniority in the company.
(Source: Laws 1965, p. 418 .)
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215 ILCS 5/155.10
(215 ILCS 5/155.10) (from Ch. 73, par. 767.10)
Sec. 155.10.
(Repealed).
(Source: P.A. 86-1154; 86-1156. Repealed by P.A. 89-97, eff. 7-7-95.)
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215 ILCS 5/155.14
(215 ILCS 5/155.14) (from Ch. 73, par. 767.14)
Sec. 155.14.
(Repealed).
(Source: P.A. 77-305. Repealed by P.A. 89-97, eff. 7-7-95.)
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215 ILCS 5/155.15
(215 ILCS 5/155.15) (from Ch. 73, par. 767.15)
Sec. 155.15.
(Repealed).
(Source: P.A. 77-305. Repealed by P.A. 89-97, eff. 7-7-95.)
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215 ILCS 5/155.16
(215 ILCS 5/155.16) (from Ch. 73, par. 767.16)
Sec. 155.16.
(Repealed).
(Source: P.A. 77-305. Repealed by P.A. 89-97, eff. 7-7-95.)
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