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INSURANCE
(215 ILCS 5/) Illinois Insurance Code.

215 ILCS 5/815.1

    (215 ILCS 5/815.1)
    Sec. 815.1. Subrogation.
    (a) All insurers issuing mine subsidence policies shall retain the right of subrogation.
    (b) The Fund, on its own behalf, may exercise the right of subrogation.
    (c) Every insurer shall include in its reports an itemized list of all losses in subrogation and shall remit to the Fund all monies, less expenses, recovered as the result of subrogation actions.
(Source: P.A. 88-379.)

215 ILCS 5/817.1

    (215 ILCS 5/817.1)
    Sec. 817.1. Powers of Director. In addition to any powers conferred upon him by this or any other law, the Director shall have the authority to supervise the operations of the Fund and shall review the Fund's rates once every three years. In addition the Director or any person designated by him has the power:
        (a) to examine the operation of the Fund through free
    
access to all books, records, files, papers and documents relating to its operation and may summon, qualify and examine as witnesses all persons having knowledge of such operation, including officers, agents or employees thereof;
        (b) to do all things necessary to enable the State of
    
Illinois and any insurer participating in any program approved by the Director to fully participate in any federal program which may be enacted for purposes similar to the purposes of this Article;
        (c) to require such reports as the Director may deem
    
necessary.
(Source: P.A. 90-655, eff. 7-30-98.)

215 ILCS 5/Art. XXXVIII.5

 
    (215 ILCS 5/Art. XXXVIII.5 heading)
ARTICLE XXXVIII 1/2. GROUP SELF-INSURANCE PROGRAMS
(Repealed by P.A. 89-97, eff. 7-7-95)

215 ILCS 5/850

    (215 ILCS 5/850) (from Ch. 73, par. 1065.501)
    Sec. 850. (Repealed).
(Source: Repealed by P.A. 89-97, eff. 7-7-95.)

215 ILCS 5/Art. XXXIX

 
    (215 ILCS 5/Art. XXXIX heading)
ARTICLE XXXIX. GROUP LEGAL EXPENSE INSURANCE

215 ILCS 5/900

    (215 ILCS 5/900) (from Ch. 73, par. 1065.600)
    Sec. 900. Group legal expense defined. Group legal expense insurance means that form of legal expense insurance covering not less than 10 employees, members, or employees of members, written under a master policy issued to any governmental corporation, unit, agency or department thereof, or to any corporation, copartnership, individual employer, or to any association upon application of an executive officer or trustee of such association having a constitution or bylaws and formed in good faith for purposes other than that of obtaining insurance, where officers, members, employees, employees of members or classes or departments thereof may be insured for their individual benefit. In addition, a group legal expense policy may be written to insure any group which may be insured under a group life insurance policy. The term "employees" includes the officers, managers and employees or subsidiary or affiliated corporations, and the individual proprietors, partners, and employees of affiliated individuals and firms, when the business of such subsidiary or affiliated corporations, firms or individuals is controlled by a common employer through stock ownership, contract or otherwise.
(Source: P.A. 81-1361.)

215 ILCS 5/901

    (215 ILCS 5/901) (from Ch. 73, par. 1065.601)
    Sec. 901. Group legal expense insurance authorized.) Any insurance company authorized to write legal expense insurance in this State shall have the power to issue group legal expense insurance policies. No policy, certificate, endorsement, rider, or application which becomes or is designed to become a part of any such policy of group legal expense insurance may be issued or delivered in this State unless a copy of the form shall have been filed with the Director of Insurance in accordance with Section 143 of this Code. Such policy, certificate, endorsement, rider, or application must contain those provisions required by Sections 902 through 906 of the Code. No such policy, certificate, endorsement, application or rider shall contain any provision which would interfere with the freedom of choice by the insured in the selection of attorneys except that the insurer may select and contract with attorneys to verify plan coverage and to provide the insureds with legal services which consist of initial advice and consultation. Nothing herein shall prevent an insured, after plan coverage has been verified, from choosing to go directly to his or her own attorney of choice for initial advice and consultation, subject to applicable policy limitations. Every such policy, certificate, endorsement, application or rider shall prominently display language advising the insured of such freedom of choice by the insured in the selection of attorneys and that no company issuing such policy, certificate, endorsement, application or rider may require, suggest or recommend the use of any attorney or firm of attorneys, provided, however, that dissemination by an insurer of the names of attorneys who have agreed to accept legal expense insurance benefits as payment for certain legal services shall not constitute a requirement, suggestion or recommendation of the use of any attorney or firm of attorneys. The foregoing shall not prohibit referral of insured by the insurer to any lawyer referral service authorized or operated by a state, county, local or other bar association. Any insurance company issuing such policies shall in no way interfere with the attorney-client relationship nor with the independent exercise of professional judgment by any attorney.
(Source: P.A. 83-774.)

215 ILCS 5/902

    (215 ILCS 5/902) (from Ch. 73, par. 1065.602)
    Sec. 902. Entire contract specified. Each group legal expense insurance policy shall provide that the policy, the application of the employer, or executive officer or trustee of any association, and the individual applications, if any, of the employees, members or employees of members insured shall constitute the entire contract between the parties, and that all statements made by the employer, or the executive officer or trustee, or by the individual employees, members or employees of members shall, in the absence of fraud, be deemed representations and not warranties, and that no such statement shall be used in defense to a claim under the policy, unless it is contained in a written application.
(Source: P.A. 99-642, eff. 7-28-16.)

215 ILCS 5/903

    (215 ILCS 5/903) (from Ch. 73, par. 1065.603)
    Sec. 903. Certificates Required.) Each group legal expense insurance policy shall provide that the insurer shall 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 or she is entitled and to whom payable, if appropriate.
(Source: P.A. 81-1361.)

215 ILCS 5/904

    (215 ILCS 5/904) (from Ch. 73, par. 1065.604)
    Sec. 904. New Members of Group.) Each group legal expense 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. 81-1361.)

215 ILCS 5/905

    (215 ILCS 5/905) (from Ch. 73, par. 1065.605)
    Sec. 905. Conversion Rights.) Each group legal expense 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 or her the same limits of coverage.
(Source: P.A. 81-1361.)

215 ILCS 5/906

    (215 ILCS 5/906) (from Ch. 73, par. 1065.606)
    Sec. 906. Cancellation Restricted. An insurer may not cancel the coverage of an individual member of a group to which the insurer provides coverage under a group legal expense insurance policy except for the nonpayment of premium by such member, or the group policyholder if premium is paid or collected by it for transmittal to the insurer or unless the insurance for the entire group is cancelled. In the event of cancellation the insurer shall:
    (1) If it has in its actual possession the names and addresses of individual members insured under such group legal expense insurance policy, deliver to the individual member written notice of cancellation stating when, not less than 30 days thereafter, such cancellation shall be effective provided, however, that if such cancellation is the result of nonpayment of premium by such member or the group policyholder, a notice of 10 days shall be sufficient.
    (2) In the event the insurer does not administer the group legal expense insurance policy and is not in actual possession of the names and addresses of individual members insured under such policy, the insurer shall deliver 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 individual notice of cancellation forms stating when, not less than 30 days thereafter, such cancellation shall be effective provided, however, that if such cancellation is the result of nonpayment of premium a notice of 10 days shall be sufficient. The insurer shall not be required to furnish notice of cancellation under this Section to the group policyholder when an individual member's insurance is terminated by reason of nonpayment of premium unless it has specific knowledge of the individual's failure to pay premium.
    Delivery shall be considered effective by the mailing of such notice if subsection (1) above is applicable to the last address of the member as shown on the records of the insurer, and under subsection (2) by the mailing of such notice to the last address of the group policyholder as shown on the records of the insurer.
(Source: P.A. 81-1361.)

215 ILCS 5/Art. XL

 
    (215 ILCS 5/Art. XL heading)
ARTICLE XL. INSURANCE INFORMATION
AND PRIVACY PROTECTION

215 ILCS 5/1001

    (215 ILCS 5/1001) (from Ch. 73, par. 1065.701)
    Sec. 1001. Purpose. The purpose of this Article is to establish standards for the collection, use and disclosure of information gathered in connection with insurance transactions by insurance institutions, agents or insurance-support organizations; to maintain a balance between the need for information by those conducting the business of insurance and the public's need for fairness in insurance information practices, including the need to minimize intrusiveness; to establish a regulatory mechanism to enable natural persons to ascertain what information is being or has been collected about them in connection with insurance transactions and to have access to such information for the purpose of verifying or disputing its accuracy; to limit the disclosure of information collected in connection with insurance transactions; and to enable insurance applicants and policyholders to obtain the reasons for any adverse underwriting decision. Further, this Article shall grant the Director the authority to enforce Title V of the Gramm-Leach-Bliley Act (Public Law 106-102, 106th Congress).
(Source: P.A. 92-556, eff. 6-24-02.)

215 ILCS 5/1002

    (215 ILCS 5/1002) (from Ch. 73, par. 1065.702)
    Sec. 1002. Scope. (A) The obligations imposed by this Article shall apply to those insurance institutions, agents or insurance-support organizations which, on or after the effective date of this Article:
    (1) in the case of life, health or disability insurance:
    (a) collect, receive or maintain information in connection with insurance transactions which pertains to natural persons who are residents of this State, or
    (b) engage in insurance transactions with applicants, individuals or policyholders who are residents of this State, and
    (2) in the case of property or casualty insurance:
    (a) collect, receive or maintain information in connection with insurance transactions involving policies, contracts or certificates of insurance delivered, issued for delivery or renewed in this State, or
    (b) engage in insurance transactions involving policies, contracts or certificates of insurance delivered, issued for delivery or renewed in this State.
    (B) The rights granted by this Article shall extend to:
    (1) in the case of life, health or disability insurance, the following persons who are residents of this State:
    (a) natural persons who are the subject of information collected, received or maintained in connection with insurance transactions, and
    (b) applicants, individuals or policyholders who engage in or seek to engage in insurance transactions, and
    (2) in the case of property or casualty insurance, the following persons:
    (a) natural persons who are the subject of information collected, received or maintained in connection with insurance transactions involving policies, contracts or certificates of insurance delivered, issued for delivery or renewed in this State, and
    (b) applicants, individuals or policyholders who engage in or seek to engage in insurance transactions involving policies, contracts or certificates of insurance delivered, issued for delivery or renewed in this State.
    (C) For purposes of this Section, a person shall be considered a resident of this State if the person's last known mailing address, as shown in the records of the insurance institution, agent or insurance-support organization, is located in this State.
    (D) Notwithstanding subsections (A) and (B) above, this Article shall not apply to information collected from the public records of a governmental authority and maintained by an insurance institution or its representatives for the purpose of insuring the title to real property located in this State.
(Source: P.A. 81-1430.)

215 ILCS 5/1003

    (215 ILCS 5/1003) (from Ch. 73, par. 1065.703)
    Sec. 1003. Definitions. As used in this Article:
    (A) "Adverse underwriting decision" means:
        (1) any of the following actions with respect to
    
insurance transactions involving insurance coverage which is individually underwritten:
            (a) a declination of insurance coverage,
            (b) a termination of insurance coverage,
            (c) failure of an agent to apply for insurance
        
coverage with a specific insurance institution which the agent represents and which is requested by an applicant,
            (d) in the case of a property or casualty
        
insurance coverage:
                (i) placement by an insurance institution or
            
agent of a risk with a residual market mechanism, an unauthorized insurer or an insurance institution which specializes in substandard risks, or
                (ii) the charging of a higher rate on the
            
basis of information which differs from that which the applicant or policyholder furnished, or
            (e) in the case of life, health or disability
        
insurance coverage, an offer to insure at higher than standard rates.
        (2) Notwithstanding paragraph (1) above, the
    
following actions shall not be considered adverse underwriting decisions but the insurance institution or agent responsible for their occurrence shall nevertheless provide the applicant or policyholder with the specific reason or reasons for their occurrence:
            (a) the termination of an individual policy form
        
on a class or statewide basis,
            (b) a declination of insurance coverage solely
        
because such coverage is not available on a class or statewide basis, or
            (c) the rescission of a policy.
    (B) "Affiliate" or "affiliated" means a person that directly, or indirectly through one or more intermediaries, controls, is controlled by or is under common control with another person.
    (C) "Agent" means an individual, firm, partnership, association or corporation who is involved in the solicitation, negotiation or binding of coverages for or on applications or policies of insurance, covering property or risks located in this State. For the purposes of this Article, both "Insurance Agent" and "Insurance Broker", as defined in Section 490, shall be considered an agent.
    (D) "Applicant" means any person who seeks to contract for insurance coverage other than a person seeking group insurance that is not individually underwritten.
    (E) "Director" means the Director of Insurance.
    (F) "Consumer report" means any written, oral or other communication of information bearing on a natural person's credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics or mode of living which is used or expected to be used in connection with an insurance transaction.
    (G) "Consumer reporting agency" means any person who:
        (1) regularly engages, in whole or in part, in the
    
practice of assembling or preparing consumer reports for a monetary fee,
        (2) obtains information primarily from sources other
    
than insurance institutions, and
        (3) furnishes consumer reports to other persons.
    (H) "Control", including the terms "controlled by" or "under common control with", means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of a person, whether through the ownership of voting securities, by contract other than a commercial contract for goods or nonmanagement services, or otherwise, unless the power is the result of an official position with or corporate office held by the person.
    (I) "Declination of insurance coverage" means a denial, in whole or in part, by an insurance institution or agent of requested insurance coverage.
    (J) "Individual" means any natural person who:
        (1) in the case of property or casualty insurance, is
    
a past, present or proposed named insured or certificateholder;
        (2) in the case of life, health or disability
    
insurance, is a past, present or proposed principal insured or certificateholder;
        (3) is a past, present or proposed policyowner;
        (4) is a past or present applicant;
        (5) is a past or present claimant; or
        (6) derived, derives or is proposed to derive
    
insurance coverage under an insurance policy or certificate subject to this Article.
    (K) "Institutional source" means any person or governmental entity that provides information about an individual to an agent, insurance institution or insurance-support organization, other than:
        (1) an agent,
        (2) the individual who is the subject of the
    
information, or
        (3) a natural person acting in a personal capacity
    
rather than in a business or professional capacity.
    (L) "Insurance institution" means any corporation, association, partnership, reciprocal exchange, inter-insurer, Lloyd's insurer, fraternal benefit society or other person engaged in the business of insurance, health maintenance organizations as defined in Section 2 of the Health Maintenance Organization Act, voluntary health services plans as defined in Section 2 of the Voluntary Health Services Plans Act, and dental service plans as defined in Section 4 of the Dental Service Plan Act. "Insurance institution" shall not include agents or insurance-support organizations.
    (M) "Insurance-support organization" means:
        (1) any person who regularly engages, in whole or in
    
part, in the practice of assembling or collecting information about natural persons for the primary purpose of providing the information to an insurance institution or agent for insurance transactions, including:
            (a) the furnishing of consumer reports or
        
investigative consumer reports to an insurance institution or agent for use in connection with an insurance transaction, or
            (b) the collection of personal information from
        
insurance institutions, agents or other insurance-support organizations for the purpose of detecting or preventing fraud, material misrepresentation or material nondisclosure in connection with insurance underwriting or insurance claim activity.
        (2) Notwithstanding paragraph (1) above, the
    
following persons shall not be considered "insurance-support organizations" for purposes of this Article: agents, government institutions, insurance institutions, medical care institutions and medical professionals.
    (N) "Insurance transaction" means any transaction involving insurance primarily for personal, family or household needs rather than business or professional needs which entails:
        (1) the determination of an individual's eligibility
    
for an insurance coverage, benefit or payment, or
        (2) the servicing of an insurance application,
    
policy, contract or certificate.
    (O) "Investigative consumer report" means a consumer report or portion thereof in which information about a natural person's character, general reputation, personal characteristics or mode of living is obtained through personal interviews with the person's neighbors, friends, associates, acquaintances or others who may have knowledge concerning such items of information.
    (P) "Medical-care institution" means any facility or institution that is licensed to provide health care services to natural persons, including but not limited to: hospitals, skilled nursing facilities, home-health agencies, medical clinics, rehabilitation agencies and public-health agencies and health-maintenance organizations.
    (Q) "Medical professional" means any person licensed or certified to provide health care services to natural persons, including but not limited to, a physician, dentist, nurse, optometrist, chiropractor, naprapath, pharmacist, physical or occupational therapist, psychiatric social worker, speech therapist, clinical dietitian or clinical psychologist.
    (R) "Medical-record information" means personal information which:
        (1) relates to an individual's physical or mental
    
condition, medical history or medical treatment, and
        (2) is obtained from a medical professional or
    
medical-care institution, from the individual, or from the individual's spouse, parent or legal guardian.
    (S) "Person" means any natural person, corporation, association, partnership or other legal entity.
    (T) "Personal information" means any individually identifiable information gathered in connection with an insurance transaction from which judgments can be made about an individual's character, habits, avocations, finances, occupation, general reputation, credit, health or any other personal characteristics. "Personal information" includes an individual's name and address and "medical-record information" but does not include "privileged information".
    (U) "Policyholder" means any person who:
        (1) in the case of individual property or casualty
    
insurance, is a present named insured;
        (2) in the case of individual life, health or
    
disability insurance, is a present policyowner; or
        (3) in the case of group insurance which is
    
individually underwritten, is a present group certificateholder.
    (V) "Pretext interview" means an interview whereby a person, in an attempt to obtain information about a natural person, performs one or more of the following acts:
        (1) pretends to be someone he or she is not,
        (2) pretends to represent a person he or she is not
    
in fact representing,
        (3) misrepresents the true purpose of the interview,
    
or
        (4) refuses to identify himself or herself upon
    
request.
    (W) "Privileged information" means any individually identifiable information that: (1) relates to a claim for insurance benefits or a civil or criminal proceeding involving an individual, and (2) is collected in connection with or in reasonable anticipation of a claim for insurance benefits or civil or criminal proceeding involving an individual; provided, however, information otherwise meeting the requirements of this subsection shall nevertheless be considered "personal information" under this Article if it is disclosed in violation of Section 1014 of this Article.
    (X) "Residual market mechanism" means an association, organization or other entity described in Article XXXIII of this Act, or Section 7-501 of The Illinois Vehicle Code.
    (Y) "Termination of insurance coverage" or "termination of an insurance policy" means either a cancellation or nonrenewal of an insurance policy, in whole or in part, for any reason other than the failure to pay a premium as required by the policy.
    (Z) "Unauthorized insurer" means an insurance institution that has not been granted a certificate of authority by the Director to transact the business of insurance in this State.
(Source: P.A. 90-7, eff. 6-10-97; 90-177, eff. 7-23-97; 90-372, eff. 7-1-98; 90-655, eff. 7-30-98.)

215 ILCS 5/1004

    (215 ILCS 5/1004) (from Ch. 73, par. 1065.704)
    Sec. 1004. Pretext Interviews. No insurance institution, agent or insurance-support organization shall use or authorize the use of pretext interviews to obtain information in connection with an insurance transaction; provided, however, a pretext interview may be undertaken to obtain information from a person or institution that does not have a generally or statutorily recognized privileged relationship with the person about whom the information relates for the purpose of investigating a claim where, based upon specific information available for review by the Director, there is a reasonable basis for suspecting criminal activity, fraud, material misrepresentation or material nondisclosure in connection with the claim.
(Source: P.A. 82-108.)

215 ILCS 5/1005

    (215 ILCS 5/1005) (from Ch. 73, par. 1065.705)
    Sec. 1005. Notice of Insurance Information Practices. (A) An insurance institution or agent shall provide a notice of information practices to all applicants or policyholders in connection with insurance transactions as provided below:
    (1) in the case of an application for insurance, a notice shall be provided no later than:
    (a) at the time of the delivery of the insurance policy or certificate when personal information is collected only from the applicant or from public records, or
    (b) at the time the collection of personal information is initiated when personal information is collected from a source other than the applicant or public records;
    (2) in the case of a policy renewal, a notice shall be provided no later than the policy renewal date, except that no notice shall be required in connection with a policy renewal if:
    (a) personal information is collected only from the policyholder or from public records, or
    (b) a notice meeting the requirements of this Section has been given within the previous 24 months; or
    (3) in the case of a policy reinstatement or change in insurance benefits, a notice shall be provided no later than the time a request for a policy reinstatement or change in insurance benefits is received by the insurance institution, except that no notice shall be required if personal information is collected only from the policyholder or from public records.
    (B) The notice required by subsection (A) shall be in writing and shall state:
    (1) whether personal information may be collected from persons other than the individual or individuals proposed for coverage;
    (2) the types of personal information that may be collected and the types of sources and investigative techniques that may be used to collect such information;
    (3) the types of disclosures identified in subsections (B), (C), (D), (E), (F), (I), (K), (L) and (N) of Section 1014 of this Article and the circumstances under which such disclosures may be made without prior authorization; provided, however, only those circumstances need be described which occur with such frequency as to indicate a general business practice;
    (4) a description of the rights established under Sections 1009 and 1010 of this Article and the manner in which such rights may be exercised; and
    (5) that information obtained from a report prepared by an insurance-support organization may be retained by the insurance-support organization and disclosed to other persons.
    (C) In lieu of the notice prescribed in subsection (B), the insurance institution or agent may provide an abbreviated notice informing the applicant or policyholder that:
    (1) personal information may be collected from persons other than the individual or individuals proposed for coverage,
    (2) such information as well as other personal or privileged information subsequently collected by the insurance institution or agent may in certain circumstances be disclosed to third parties without authorization,
    (3) a right of access and correction exists with respect to all personal information collected, and
    (4) the notice prescribed in subsection (B) will be furnished to the applicant or policyholder upon request.
    (D) The obligations imposed by this Section upon an insurance institution or agent may be satisfied by another insurance institution or agent authorized to act on its behalf.
(Source: P.A. 82-108.)

215 ILCS 5/1006

    (215 ILCS 5/1006) (from Ch. 73, par. 1065.706)
    Sec. 1006. Marketing and Research Surveys. An insurance institution or agent shall clearly specify those questions designed to obtain information solely for marketing or research purposes from an individual in connection with an insurance transaction.
(Source: P.A. 82-108.)

215 ILCS 5/1007

    (215 ILCS 5/1007) (from Ch. 73, par. 1065.707)
    Sec. 1007. Content of Disclosure Authorization Forms. Notwithstanding any other provision of law of this State, no insurance institution, agent or insurance-support organization may utilize as its disclosure authorization form in connection with insurance transactions a form or statement which authorizes the disclosure of personal or privileged information about an individual to the insurance institution, agent or insurance-support organization unless the form or statement:
    (A) is written in plain language;
    (B) is dated;
    (C) specifies the types of persons authorized to disclose information about the individual;
    (D) specifies the nature of the information authorized to be disclosed;
    (E) names the insurance institution or agent and identifies by generic reference representatives of the insurance institution to whom the individual is authorizing information to be disclosed;
    (F) specifies the purposes for which the information is collected;
    (G) specifies the length of time such authorization shall remain valid, which shall be no longer than:
    (1) in the case of authorizations signed for the purpose of collecting information in connection with an application for an insurance policy, a policy reinstatement or a request for change in policy benefits:
    (a) 30 months from the date the authorization is signed if the application or request involves life, health or disability insurance,
    (b) one year from the date the authorization is signed if the application or request involves property or casualty insurance;
    (2) in the case of authorizations signed for the purpose of collecting information in connection with a claim for benefits under an insurance policy,
    (a) the term of coverage of the policy if the claim is for a health insurance benefit,
    (b) the duration of the claim if the claim is not for a health insurance benefit; and
    (H) advises the individual or a person authorized to act on behalf of the individual that the individual or the individual's authorized representative is entitled to receive a copy of the authorization form.
(Source: P.A. 82-108.)

215 ILCS 5/1008

    (215 ILCS 5/1008) (from Ch. 73, par. 1065.708)
    Sec. 1008. Investigative Consumer Reports. (A) No insurance institution, agent or insurance-support organization may prepare or request an investigative consumer report about an individual in connection with an insurance transaction involving an application for insurance, a policy renewal, a policy reinstatement or a change in insurance benefits unless the insurance institution or agent informs the individual:
    (1) that he or she may request to be interviewed in connection with the preparation of the investigative consumer report, and
    (2) that upon a request pursuant to Section 1009, he or she is entitled to receive a copy of the investigative consumer report.
    (B) If an investigative consumer report is to be prepared by an insurance institution or agent, the insurance institution or agent shall institute reasonable procedures to conduct a personal interview requested by an individual.
    (C) If an investigative consumer report is to be prepared by an insurance-support organization, the insurance institution or agent desiring such report shall inform the insurance-support organization whether a personal interview has been requested by the individual. The insurance-support organization shall institute reasonable procedures to conduct such interviews, if requested.
(Source: P.A. 82-108.)

215 ILCS 5/1009

    (215 ILCS 5/1009) (from Ch. 73, par. 1065.709)
    Sec. 1009. Access to Recorded Personal Information. (A) If any individual, after proper identification, submits a written request to an insurance institution, agent or insurance-support organization for access to recorded personal information about the individual which is reasonably described by the individual and reasonably locatable and retrievable by the insurance institution, agent or insurance-support organization, the insurance institution, agent or insurance-support organization shall within 30 business days from the date such request is received:
    (1) inform the individual of the nature and substance of such recorded personal information in writing, by telephone or by other oral communication, whichever the insurance institution, agent or insurance-support organization prefers;
    (2) permit the individual to see and copy, in person, such recorded personal information pertaining to him or her or to obtain a copy of such recorded personal information by mail, whichever the individual prefers, unless such recorded personal information is in coded form, in which case an accurate translation in plain language shall be provided in writing;
    (3) disclose to the individual the identity, if recorded, of those persons to whom the insurance institution, agent or insurance-support organization has disclosed such personal information within 2 years prior to such request, and if the identity is not recorded, the names of those insurance institutions, agents, insurance-support organizations or other persons to whom such information is normally disclosed; and
    (4) provide the individual with a summary of the procedures by which he or she may request correction, amendment or deletion of recorded personal information.
    (B) Any personal information provided pursuant to subsection (A) above shall identify the source of the information if such source is an institutional source.
    (C) Medical-record information supplied by a medical-care institution or medical professional and requested under subsection (A), together with the identity of the medical professional or medical care institution which provided such information, shall be supplied either directly to the individual or to a medical professional designated by the individual and licensed to provide medical care with respect to the condition to which the information relates, whichever the insurance institution, agent or insurance-support organization prefers. If it elects to disclose the information to a medical professional designated by the individual, the insurance institution, agent or insurance-support organization shall notify the individual, at the time of the disclosure, that it has provided the information to the medical professional.
    (D) Except for personal information provided under Section 1011, an insurance institution, agent or insurance-support organization may charge a reasonable fee to cover the costs incurred in providing a copy of recorded personal information to individuals.
    (E) The obligations imposed by this Section upon an insurance institution or agent may be satisfied by another insurance institution or agent authorized to act on its behalf. With respect to the copying and disclosure of recorded personal information pursuant to a request under subsection (A), an insurance institution, agent or insurance-support organization may make arrangements with an insurance-support organization or a consumer reporting agency to copy and disclose recorded personal information on its behalf.
    (F) The rights granted to individuals in this Section shall extend to all natural persons to the extent information about them is collected and maintained by an insurance institution, agent or insurance-support organization in connection with an insurance transaction. The rights granted to all natural persons by this subsection shall not extend to information about them that relates to and is collected in connection with or in reasonable anticipation of a claim or civil or criminal proceeding involving them.
    (G) For purposes of this Section, the term "insurance-support organization" does not include "consumer reporting agency".
(Source: P.A. 82-108.)

215 ILCS 5/1010

    (215 ILCS 5/1010) (from Ch. 73, par. 1065.710)
    Sec. 1010. Correction, Amendment or Deletion of Recorded Personal Information. (A) Within 30 business days from the date of receipt of a written request from an individual to correct, amend or delete any recorded personal information about the individual within its possession, an insurance institution, agent or insurance-support organization shall either:
    (1) correct, amend or delete the portion of the recorded personal information in dispute; or
    (2) notify the individual of:
    (a) its refusal to make such correction, amendment or deletion,
    (b) the reasons for the refusal, and
    (c) the individual's right to file a statement as provided in subsection (C).
    (B) If the insurance institution, agent or insurance-support organization corrects, amends or deletes recorded personal information in accordance with paragraph (1) of subsection (A) above, the insurance institution, agent or insurance-support organization shall so notify the individual in writing and furnish the correction, amendment or fact of deletion to:
    (1) any person specifically designated by the individual who may have, within the preceding 2 years, received such recorded personal information;
    (2) any insurance-support organization whose primary source of personal information is insurance institutions, if the insurance-support organization has systematically received such recorded personal information from the insurance institution within the preceding 7 years; provided, however, that the correction, amendment or fact of deletion need not be furnished if the insurance-support organization no longer maintains recorded personal information about the individual; and
    (3) any insurance-support organization that furnished the personal information that has been corrected, amended or deleted.
    (C) Whenever an individual disagrees with an insurance institution's, agent's or insurance-support organization's refusal to correct, amend or delete recorded personal information, the individual shall be permitted to file with the insurance institution, agent or insurance-support organization:
    (1) a concise statement setting forth what the individual thinks is the correct, relevant or fair information, and
    (2) a concise statement of the reasons why the individual disagrees with the insurance institution's, agent's or insurance-support organization's refusal to correct, amend or delete recorded personal information.
    (D) In the event an individual files either statement as described in subsection (C) above, the insurance institution, agent or support organization shall:
    (1) file the statement with the disputed personal information and provide a means by which anyone reviewing the disputed personal information will be made aware of the individual's statement and have access to it, and
    (2) in any subsequent disclosure by the insurance institution, agent or support organization of the recorded personal information that is the subject of disagreement, clearly identify the matter or matters in dispute and provide the individual's statement along with the recorded personal information being disclosed; and
    (3) furnish the statement to the persons and in the manner specified in subsection (B) above.
    (E) The rights granted to individuals in this Section shall extend to all natural persons to the extent information about them is collected and maintained by an insurance institution, agent or insurance-support organization in connection with an insurance transaction. The rights granted to all natural persons by this subsection shall not extend to information about them that relates to and is collected in connection with or in reasonable anticipation of a claim or civil or criminal proceeding involving them.
    (F) For purposes of this Section, the term "insurance-support organization" does not include "consumer reporting agency".
(Source: P.A. 82-108.)

215 ILCS 5/1011

    (215 ILCS 5/1011) (from Ch. 73, par. 1065.711)
    Sec. 1011. Reasons for Adverse Underwriting Decisions. (A) In the event of an adverse underwriting decision the insurance institution or agent responsible for the decision shall:
    (1) either provide the applicant, policyholder or individual proposed for coverage with the specific reason or reasons for the adverse underwriting decision in writing or advise such person that upon written request he or she may receive the specific reason or reasons in writing, and
    (2) provide the applicant, policyholder or individual proposed for coverage with a summary of the rights established under subsection (B) and Sections 1009 and 1010 of this Article.
    (B) Upon receipt of a written request within 90 business days from the date of the mailing of notice or other communication of an adverse underwriting decision to an applicant, policyholder or individual proposed for coverage, the insurance institution or agent shall furnish to such person within 21 business days from the date of receipt of such written request:
    (1) the specific reason or reasons for the adverse underwriting decision, in writing, if such information was not initially furnished in writing pursuant to paragraph (1) of subsection (A);
    (2) the specific items of personal and privileged information that support those reasons; provided, however:
    (a) the insurance institution or agent shall not be required to furnish specific items of privileged information if it has reasonable suspicion, based upon specific information available for review by the Director, that the applicant, policyholder or individual proposed for coverage has engaged in criminal activity, fraud, material misrepresentation or material nondisclosure, and
    (b) specific items of medical-record information supplied by a medical-care institution or medical professional shall be disclosed either directly to the individual about whom the information relates or to a medical professional designated by the individual and licensed to provide medical care with respect to the condition to which the information relates, whichever the insurance institution or agent prefers; and
    (3) the names and addresses of the institutional sources that supplied the specific items of information pursuant to paragraph (2) of subsection (B); provided, however, that the identity of any medical professional or medical-care institution shall be disclosed either directly to the individual or to the designated medical professional, whichever the insurance institution or agent prefers.
    (C) The obligations imposed by this Section upon an insurance institution or agent may be satisfied by another insurance institution or agent authorized to act on its behalf.
    (D) When an adverse underwriting decision results solely from an oral request or inquiry, the explanation of reasons and summary of rights required by subsection (A) may be given orally.
(Source: P.A. 82-108.)

215 ILCS 5/1012

    (215 ILCS 5/1012) (from Ch. 73, par. 1065.712)
    Sec. 1012. Information Concerning Previous Adverse Underwriting Decisions. No insurance institution, agent or insurance-support organization may seek information in connection with an insurance transaction concerning:
    (A) any previous adverse underwriting decision experienced by an individual, or
    (B) any previous insurance coverage obtained by an individual through a residual market mechanism,
unless such inquiry also requests the reasons for any previous adverse underwriting decision or the reasons why insurance coverage was previously obtained through a residual market mechanism.
(Source: P.A. 81-1430.)

215 ILCS 5/1013

    (215 ILCS 5/1013) (from Ch. 73, par. 1065.713)
    Sec. 1013. Previous Adverse Underwriting Decisions. No insurance institution or agent may base an adverse underwriting decision in whole or in part:
    (A) on the fact of a previous adverse underwriting decision or on the fact that an individual previously obtained insurance coverage through a residual market mechanism; provided, however, an insurance institution or agent may base an adverse underwriting decision on further information obtained from an insurance institution or agent responsible for a previous adverse underwriting decision;
    (B) on personal information received from an insurance-support organization whose primary source of information is insurance institutions; provided, however, an insurance institution or agent may base an adverse underwriting decision on further personal information obtained as the result of information received from such insurance-support organization.
(Source: P.A. 82-108.)

215 ILCS 5/1014

    (215 ILCS 5/1014) (from Ch. 73, par. 1065.714)
    Sec. 1014. Disclosure Limitations and Conditions. An insurance institution, agent or insurance-support organization shall not disclose any personal or privileged information about an individual collected or received in connection with an insurance transaction unless the disclosure is:
    (A) with the written authorization of the individual, provided:
    (1) if such authorization is submitted by another insurance institution, agent or insurance-support organization, the authorization meets the requirements of Section 1007 of this Article, or
    (2) if such authorization is submitted by a person other than an insurance institution, agent or insurance-support organization, the authorization is:
    (a) dated,
    (b) signed by the individual, and
    (c) obtained one year or less prior to the date a disclosure is sought pursuant to this subsection; or
    (B) to a person other than an insurance institution, agent or insurance-support organization, provided such disclosure is reasonably necessary:
    (1) to enable such person to perform a business, professional or insurance function for the disclosing insurance institution, agent or insurance-support organization and such person agrees not to disclose the information further without the individual's written authorization unless the further disclosure:
    (a) would otherwise be permitted by this Section if made by an insurance institution, agent, or insurance-support organization, or
    (b) is reasonably necessary for such person to perform its function for the disclosing insurance institution, agent, or insurance-support organization, or
    (2) to enable such person to provide information to the disclosing insurance institution, agent, or insurance-support organization for the purpose of:
    (a) determining an individual's eligibility for an insurance benefit or payment, or
    (b) detecting or preventing criminal activity, fraud, material misrepresentation or material nondisclosure in connection with an insurance transaction; or
    (C) to an insurance institution, agent, insurance-support organization or self-insurer, provided the information disclosed is limited to that which is reasonably necessary:
    (1) to detect or prevent criminal activity, fraud, material misrepresentation or material nondisclosure in connection with insurance transactions, or
    (2) for either the disclosing or receiving insurance institution, agent or insurance-support organization to perform its function in connection with an insurance transaction involving the individual; or
    (D) to a medical care institution or medical professional for the purpose of:
    (1) verifying insurance coverage or benefits,
    (2) informing an individual of a medical problem of which the individual may not be aware, or
    (3) conducting an operations or services audit, provided only such information is disclosed as is reasonably necessary to accomplish the foregoing purposes; or
    (E) to an insurance regulatory authority; or
    (F) to a law enforcement or other governmental authority:
    (1) to protect the interests of the insurance institution, agent or insurance-support organization in preventing or prosecuting the perpetration of fraud upon it, or
    (2) if the insurance institution, agent or insurance-support organization reasonably believes that illegal activities have been conducted by the individual; or
    (G) otherwise permitted or required by law; or
    (H) in response to a facially valid administrative or judicial order, including a search warrant or subpoena; or
    (I) made for the purpose of conducting actuarial or research studies provided:
    (1) no individual may be identified in any actuarial or research report,
    (2) materials allowing the individual to be identified are returned or destroyed as soon as they are no longer needed, and
    (3) the actuarial or research organization agrees not to disclose the information unless the disclosure would otherwise be permitted by this Section if made by an insurance institution, agent or insurance-support organization; or
    (J) to a party or a representative of a party to a proposed or consummated sale, transfer, merger or consolidation of all or part of the business of the insurance institution, agent or insurance support organization, provided:
    (1) prior to the consummation of the sale, transfer, merger or consolidation only such information is disclosed as is reasonably necessary to enable the recipient to make business decisions about the purchase, transfer, merger or consolidation, and
    (2) the recipient agrees not to disclose the information unless the disclosure would otherwise be permitted by this Section if made by an insurance institution, agent or insurance-support organization; or
    (K) to a person whose only use of such information will be in connection with the marketing of a product or service, provided:
    (1) no medical-record information, privileged information, or personal information relating to an individual's character, personal habits, mode of living or general reputation is disclosed, and no classification derived from such information is disclosed,
    (2) the individual has been given an opportunity to indicate that he or she does not want personal information disclosed for marketing purposes and has given no indication that he or she does not want the information disclosed, and
    (3) the person receiving such information agrees not to use it except in connection with the marketing of a product or service; or
    (L) to an affiliate whose only use of the information will be in connection with an audit of the insurance institution or agent or the marketing of an insurance product or service, provided the affiliate agrees not to disclose the information for any other purpose or to unaffiliated persons; or
    (M) by a consumer reporting agency, provided: the disclosure is to a person other than an insurance institution or agent; or
    (N) to a group policyholder for the purpose of reporting claims experience or conducting an audit of the insurance institution's or agent's operations or services, provided the information disclosed is reasonably necessary for the group policyholder to conduct the review or audit; or
    (O) to a professional peer review organization for the purpose of reviewing the service or conduct of a medical-care institution or medical professional; or
    (P) to a governmental authority for the purpose of determining the individual's eligibility for health benefits for which the governmental authority may be liable; or
    (Q) to a certificateholder or policyholder for the purpose of providing information regarding the status of an insurance transaction; or
    (R) to a lienholder, mortgagee, assignee, lessee, or other person shown on the records of an insurance institution or agent as having a legal or beneficial interest in a policy of insurance; provided that information disclosed is limited to that which is reasonably necessary to permit such person to protect its interest in such policy.
(Source: P.A. 82-108.)

215 ILCS 5/1015

    (215 ILCS 5/1015) (from Ch. 73, par. 1065.715)
    Sec. 1015. Powers of Director. (A) The Director shall have power to examine and investigate into the affairs of every insurance institution or agent doing business in this State to determine whether the insurance institution or agent has been or is engaged in any conduct in violation of this Article.
    (B) The Director shall have the power to examine and investigate into the affairs of every insurance-support organization acting on behalf of an insurance institution or agent which either transacts business in this State or transacts business outside this State that has an effect on a person residing in this State, in order to determine whether such insurance-support organization has been or is engaged in any conduct in violation of this Article.
(Source: P.A. 81-1430.)

215 ILCS 5/1016

    (215 ILCS 5/1016) (from Ch. 73, par. 1065.716)
    Sec. 1016. Hearings, Witnesses, Appearances, Production of Books and Service of Process. (A) Whenever the Director has reason to believe that an insurance institution, agent or insurance-support organization has been or is engaged in conduct in this State which violates this Article, or if the Director believes that an insurance-support organization has been or is engaged in conduct outside this State which has an effect on a person residing in this State and violates this Article, the Director shall issue and serve upon such insurance institution, agent or insurance-support organization a statement of charges and notice of hearing to be held at a time and place fixed in the notice. Such hearing shall be conducted pursuant to Sections 401, 402 and 403 of this Act, and any applicable rules of the Department.
    (B) At the time and place fixed for such hearing the insurance institution, agent or insurance-support organization charged shall have an opportunity to answer the charges against it and present evidence on its behalf. Upon good cause shown, the Director shall permit any adversely affected person to intervene, appear and be heard at such hearing by counsel or in person.
(Source: P.A. 81-1430.)

215 ILCS 5/1017

    (215 ILCS 5/1017) (from Ch. 73, par. 1065.717)
    Sec. 1017. Service of Process - Insurance-Support Organizations. For the purpose of this Article, an insurance-support organization transacting business outside this State which has an effect on a person residing in this State shall be deemed to have appointed the Director to accept service of process on its behalf, provided the Director causes a copy of such service to be mailed forthwith by registered mail to the insurance-support organization at its last known principal place of business. The return postcard receipt for such mailing shall be sufficient proof that the same was properly mailed by the Director.
(Source: P.A. 81-1430.)

215 ILCS 5/1018

    (215 ILCS 5/1018) (from Ch. 73, par. 1065.718)
    Sec. 1018. Cease and Desist Orders and Reports. (A) If, after a hearing, the Director determines that the insurance institution, agent or insurance-support organization charged has engaged in conduct or practices in violation of this Article, he shall reduce his findings to writing and shall issue and cause to be served upon such insurance institution, agent or insurance-support organization a copy of such findings and an order requiring such insurance institution, agent or insurance-support organization to cease and desist from the conduct or practices constituting a violation of this Article.
    (B) If, after a hearing, the Director determines that the insurance institution, agent or insurance-support organization charged has not engaged in conduct or practices in violation of this Article, he shall prepare a written report which sets forth findings of fact and conclusions of law. Such report shall be served upon the insurance institution, agent or insurance-support organization charged and upon the person or persons, if any, whose rights under this Article were allegedly violated.
(Source: P.A. 81-1430.)

215 ILCS 5/1019

    (215 ILCS 5/1019) (from Ch. 73, par. 1065.719)
    Sec. 1019. Judicial Review. (1) Any order or decision made, issued or executed by the Director under this Article whereby any person or company is aggrieved is subject to review by the Circuit Court of Sangamon County.
    (2) The Administrative Review Law, as now or hereafter amended, and the rules adopted pursuant thereto, applies to and governs all proceedings for review of final administrative decisions of the Director provided for in this Section. The term "administrative decision" is defined as in Section 3-101 of the Code of Civil Procedure.
(Source: P.A. 82-783.)

215 ILCS 5/1020

    (215 ILCS 5/1020) (from Ch. 73, par. 1065.720)
    Sec. 1020. Penalties.
    (A) In any case where a hearing pursuant to Section 1016 results in the finding of a knowing violation of this Article, the Director may, in addition to the issuance of a cease and desist order as prescribed in Section 1018, order payment of a monetary penalty of not more than $1,000 for each violation but not to exceed $20,000 in the aggregate for multiple violations.
    (B) Any person who violates a cease and desist order of the Director under Section 1018 of this Article may, after notice and hearing and upon order of the Director, be subject to one or more of the following penalties, at the discretion of the Director:
        (1) a monetary fine of not more than $20,000 for each
    
violation,
        (2) a monetary fine of not more than $100,000 if the
    
Director finds that violations have occurred with such frequency as to constitute a general business practice, or
        (3) suspension or revocation of an insurance
    
institution's or agent's license.
(Source: P.A. 93-32, eff. 7-1-03.)

215 ILCS 5/1021

    (215 ILCS 5/1021) (from Ch. 73, par. 1065.721)
    Sec. 1021. Individual Remedies. (A) If any insurance institution, agent or insurance-support organization fails to comply with Sections 1009, 1010 or 1011 of this Article with respect to the rights granted under those Sections, any person whose rights are violated may apply to the circuit court of this State, or any other court of competent jurisdiction, for appropriate equitable relief.
    (B) An insurance institution, agent or insurance-support organization which discloses information in violation of Section 1014 of this Article shall be liable for damages sustained by the individual about whom the information relates; provided, however, that no individual shall be entitled to a monetary award which exceeds the actual damages sustained by the individual as a result of a violation of Section 1014 of this Article.
    (C) In any action brought pursuant to this Section, the court may award the cost of the action and reasonable attorney's fees to the prevailing party.
    (D) An action under this Section must be brought within 2 years from the date the alleged violation is or should have been discovered.
    (E) Except as specifically provided in this Section, there shall be no remedy or recovery available to individuals, in law or in equity, for occurrences constituting a violation of any provision of this Article.
(Source: P.A. 82-108.)

215 ILCS 5/1022

    (215 ILCS 5/1022) (from Ch. 73, par. 1065.722)
    Sec. 1022. Immunity. No cause of action in the nature of defamation, invasion of privacy or negligence shall arise against any person for disclosing personal or privileged information in accordance with this Article, nor shall such a cause of action arise against any person for furnishing personal or privileged information to an insurance institution, agent or insurance-support organization; provided, however, this Section shall provide no immunity for disclosing or furnishing false information with malice or willful intent to injure any person.
(Source: P.A. 82-108.)

215 ILCS 5/1023

    (215 ILCS 5/1023) (from Ch. 73, par. 1065.723)
    Sec. 1023. Obtaining Information Under False Pretenses. Any person who knowingly and willfully obtains information about an individual from an insurance institution, agent or insurance-support organization under false pretenses shall be guilty of a Class 4 felony.
(Source: P.A. 81-1430.)

215 ILCS 5/1023.5

    (215 ILCS 5/1023.5)
    Sec. 1023.5. Federal privacy protections.
    (A) In addition to the requirements of this Article, licensees shall comply with the privacy protection provisions of Title V of the federal Gramm-Leach-Bliley Act (Public Law 106-102, 106th Congress).
    (B) The Director shall have authority to enforce the requirements of the privacy protection provisions of Title V of the federal Gramm-Leach-Bliley Act, employing powers granted to him under this Article and this Code.
    (C) The Director shall make reasonable rules as may be necessary to make effective the privacy provisions of Title V of the federal Gramm-Leach-Bliley Act (Public Law 106-102, 106th Congress).
    (D) For purposes of this Section, "licensee" means all insurers, insurance producers, and other persons licensed or required to be licensed, authorized or required to be authorized, registered or required to be registered, or domiciled, pursuant to this Code or any other insurance law of this State administered by the Department. "Licensee" also includes unauthorized insurers who accept business placed through a licensed surplus line producer in this State, but only in regard to the surplus line placements placed pursuant to Section 445 of this Code. However, this Section does not apply to "service contract providers" as defined by the Service Contract Act.
(Source: P.A. 92-556, eff. 6-24-02.)

215 ILCS 5/1024

    (215 ILCS 5/1024) (from Ch. 73, par. 1065.724)
    Sec. 1024. This Article takes effect on July 1, 1981. The rights granted under Sections 1009, 1010 and 1014 of this Article shall take effect on July 1, 1981, regardless of the date of the collection or receipt of the information which is the subject of such Sections.
(Source: P.A. 81-1430.)

215 ILCS 5/Art. XLI

 
    (215 ILCS 5/Art. XLI heading)
ARTICLE XLI. RISK RETENTION ARRANGEMENTS FOR
BANKING ASSOCIATIONS

215 ILCS 5/1101

    (215 ILCS 5/1101) (from Ch. 73, par. 1065.801)
    Sec. 1101. Scope of Article. This Article applies only to trusts sponsored by domestic banking associations and organized under this Article to provide casualty insurance authorized under Section 5 of the Illinois Banking Act, as now or hereafter amended, for association member banks.
(Source: P.A. 84-1431.)

215 ILCS 5/1102

    (215 ILCS 5/1102) (from Ch. 73, par. 1065.802)
    Sec. 1102. Definitions. As used in this Article, the following terms have the following meanings:
    (1) "Banking association" means any Illinois corporation, whether for-profit or not-for-profit, which functions as a professional or trade association of dues-paying member commercial banks. For purposes of this Article, "banking association" does not include any corporation which directly or indirectly (a) accepts deposits which the depositor has a right to withdraw on demand by check or negotiable order, or (b) engages in the business of making loans, or both.
    (2) "Trust sponsor" means a banking association which has created a risk retention trust under this Article.
    (3) "Pool retention fund" means a separate fund maintained for payment of first dollar claims, up to a specific amount per claim ("specific retention") and up to an aggregate amount for a 12-month period ("aggregate retention").
    (4) "Contingency reserve fund" means a separate fund maintained for payment of claims in excess of the pool retention fund amount.
    (5) "Coverage grant" means the document describing specific coverages and terms of coverage which are provided by a risk retention trust created under this Article.
    (6) "Licensed service company" means an entity licensed under Section 464a of the Illinois Insurance Code to perform claims adjusting, loss control and data processing.
(Source: P.A. 84-1431.)

215 ILCS 5/1103

    (215 ILCS 5/1103) (from Ch. 73, par. 1065.803)
    Sec. 1103. Name. The corporate name of any trust organized under this Article shall not be the same as or deceptively similar to the name of any domestic insurance company or of any foreign or alien insurance company authorized to transact business in this State.
(Source: P.A. 84-1431.)

215 ILCS 5/1104

    (215 ILCS 5/1104) (from Ch. 73, par. 1065.804)
    Sec. 1104. Principal Office and Place of Business. The principal office of any trust organized under this Article shall be located in this State.
(Source: P.A. 84-1431.)

215 ILCS 5/1105

    (215 ILCS 5/1105) (from Ch. 73, par. 1065.805)
    Sec. 1105. Risk Retention Trust. (1) Any banking association which has been in existence for a period of not less than 2 years may create a risk retention trust for the pooling of risks in order to provide casualty coverage authorized under Section 5 of the Illinois Banking Act, as now or hereafter amended, for its member banks. Such trust shall be administered by at least 3 trustees who are appointed by the trust sponsor and who represent association member banks which have agreed in writing to participate in the trust.
    (2) The trustees shall appoint a qualified administrator who shall administer the affairs of the risk retention trust.
    (3) The trustees shall retain a licensed service company to perform claims adjusting, loss control and data processing.
    (4) The trust sponsor, the trustees and the trust administrator shall be fiduciaries of the trust.
    (5) Any trust created under this Article shall be consummated by a written trust agreement and shall be subject to the laws of this State governing the creation and operation of trusts, to the extent not inconsistent with this Article.
(Source: P.A. 84-1431.)

215 ILCS 5/1106

    (215 ILCS 5/1106) (from Ch. 73, par. 1065.806)
    Sec. 1106. Trust - Participation. (1) A banking association and its member banks may participate in any trust created under this Article if it:
    (a) Meets the underwriting standards for acceptance into the trust;
    (b) Files a written application for coverage, agreeing to meet all of the membership conditions of the trust;
    (c) Is a member of the association sponsoring the trust;
    (d) Agrees to meet the ongoing loss control provisions and risk pooling arrangements set forth by the trustees;
    (e) Pays its premium contribution on a timely basis as required; and
    (f) Pays its predetermined annual required contribution into the contingency reserve fund.
    (2) Any bank accepted for trust membership and participating in the trust under this Article shall be liable for payment to the trust of the amount of its annual premium contribution and its annual predetermined contingency reserve fund contribution.
(Source: P.A. 84-1431.)

215 ILCS 5/1107

    (215 ILCS 5/1107) (from Ch. 73, par. 1065.807)
    Sec. 1107. Trust - Coverage Grants - Payment of Claims. (1) No risk retention trust created under this Article may issue coverage grants until it has procured 100 bonafide applications for coverage with the first premium contribution in cash for each kind of coverage which the trust undertakes to write, and has a contingency reserve fund of at least $2,500,000. Every trust subject to this Article must have, and at all times maintain a pool retention fund at least equal to its unpaid liabilities and an unimpaired minimum contingency reserve fund of $1,500,000. The contingency reserve fund requirements shall be deemed satisfied if the required contribution into such fund by any participating member bank is obtained by a certificate of deposit redeemable by the trust in an amount not greater than the amount insured by the Federal Deposit Insurance Corporation.
    (2) Every coverage grant issued or delivered in this State by any trust subject to this Article shall provide for the liability of trust members to the extent that funds are needed to pay a member's share of the depleted contingency reserve fund needed to maintain the reserves required by this Section.
    (3) The Director may after notice and hearing suspend or revoke the license of any trust that fails to maintain the minimum reserves required by this Section.
    (4) All claims shall first be paid from the pool retention fund. If that fund becomes depleted, any additional claims shall be paid from the contingency reserve fund.
    (5) On the basis of an annual independent certified audit, the Director may require the risk retention trust to purchase insurance in amounts required to provide additional protection to member banks in excess of the contingency reserve fund.
(Source: P.A. 84-1431.)

215 ILCS 5/1108

    (215 ILCS 5/1108) (from Ch. 73, par. 1065.808)
    Sec. 1108. Trust; filing requirements; records.
    (1) Any risk retention trust created under this Article shall file with the Director:
        (a) A statement of intent to provide named coverages.
        (b) The trust agreement between the trust sponsor and
    
the trustees, detailing the organization and administration of the trust and fiduciary responsibilities.
        (c) Signed risk pooling agreements from each trust
    
member describing their intent to participate in the trust and maintain the contingency reserve fund.
        (d) By April 1 of each year a financial statement for
    
the preceding calendar year ending December 31, and a list of all beneficiaries during the year. The financial statement and report shall be in such form as the Director of Insurance may prescribe. The truth and accuracy of the financial statement shall be attested to by each trustee. Each Risk Retention Trust shall file with the Director by June 1 an opinion of an independent certified public accountant on the financial condition of the Risk Retention Trust for the most recent calendar year and the results of its operations, changes in financial position and changes in capital and surplus for the year then ended in conformity with accounting practices permitted or prescribed by the Illinois Department of Insurance.
        (e) The name of a bank or trust company with whom the
    
trust will enter into an escrow agreement which shall state that the contingency reserve fund will be maintained at the levels prescribed in this Article.
        (f) Copies of coverage grants it will issue.
    (2) The Director of Insurance shall charge, collect and give proper acquittances for the payment of the following fees and charges:
        (a) For filing trust instruments, amendments thereto
    
and financial statement and report of the trustees, $50.
        (b) For copies of papers or records per page, $2.
        (c) For certificate to copy of paper, $10.
        (d) For filing an application for the licensing of a
    
risk retention trust, $1,000.
    (3) The trust shall keep its books and records in accordance with the provisions of Section 133 of this Code. The Director may examine such books and records from time to time as provided in Sections 132 through 132.7 of this Code and may charge the expense of such examination to the trust as provided in subsection (3) of Section 408 of this Code.
    (4) Trust funds established under this Section and all persons interest therein or dealing therewith shall be subject to the provisions of Sections 133, 144.1, 149, 401, 401.1, 402, 403, 403A, 412, and all of the provisions of Articles VII, VIII, XII 1/2 and XIII of the Code, as amended. Except as otherwise provided in this Section, trust funds established under and which fully comply with this Section, shall not be subjected to any other provision of the Code.
    (5) The Director of Insurance may make reasonable rules and regulations pertaining to the standards of coverage and administration of the trust authorized by this Section. Such rules may include but need not be limited to reasonable standards for fiduciary duties of the trustees, standards for the investment of funds, limitation of risks assumed, minimum size, capital, surplus, reserves, and contingency reserves.
(Source: P.A. 93-32, eff. 7-1-03.)

215 ILCS 5/1109

    (215 ILCS 5/1109) (from Ch. 73, par. 1065.809)
    Sec. 1109. Illinois Insurance Guaranty Fund - Inapplicability. The provisions of Article XXXIV of this Code shall not apply to any risk retention trust created under this Article.
(Source: P.A. 84-1431.)

215 ILCS 5/Art. XLII

 
    (215 ILCS 5/Art. XLII heading)
ARTICLE XLII.
INSURANCE COST CONTAINMENT

215 ILCS 5/1200

    (215 ILCS 5/1200) (from Ch. 73, par. 1065.900)
    Sec. 1200. This Article shall be known and may be cited as the "Illinois Insurance Cost Containment Act".
(Source: P.A. 84-1431.)

215 ILCS 5/1201

    (215 ILCS 5/1201) (from Ch. 73, par. 1065.901)
    Sec. 1201. Purpose of Article. The purpose of this Article is to promote the public welfare by studying the relationship of insurance premium and related income as compared to insurance costs and expenses. The General Assembly finds and declares that stabilizing the cost of insurance is a vital concern to the people of this State.
    It is the legislative intent, pursuant to this declared public concern, to develop measures which will stabilize prices while continuing to provide quality insurance products to all sectors of the citizenry. It is the express intent of this Article to permit and encourage competition between companies on a sound financial basis to the fullest extent possible and to establish a mechanism to ensure the provision of adequate insurance at reasonable rates to the citizens of this State.
    The General Assembly finds that while the gathering of insurance cost data has been attempted on a voluntary basis in the past, the lack of a uniform system for the collection and analysis of data and the lack of full participation by insurers has led to inadequate and unusable data. In order to remedy this problem, the General Assembly find it necessary to create a mandated uniform system in Illinois for the collection, analysis and distribution of insurance cost data.
(Source: P.A. 84-1431.)

215 ILCS 5/1202

    (215 ILCS 5/1202) (from Ch. 73, par. 1065.902)
    Sec. 1202. Duties. The Director shall:
        (a) determine the relationship of insurance premiums
    
and related income as compared to insurance costs and expenses and provide such information to the General Assembly and the general public;
        (b) study the insurance system in the State of
    
Illinois, and recommend to the General Assembly what it deems to be the most appropriate and comprehensive cost containment system for the State;
        (c) respond to the requests by agencies of government
    
and the General Assembly for special studies and analysis of data collected pursuant to this Article. Such reports shall be made available in a form prescribed by the Director. The Director may also determine a fee to be charged to the requesting agency to cover the direct and indirect costs for producing such a report, and shall permit affected insurers the right to review the accuracy of the report before it is released. The fees shall be deposited into the Technology Management Revolving Fund and credited to the account of the Department of Insurance;
        (d) make an interim report to the General Assembly no
    
later than August 15, 1987, and an annual report to the General Assembly no later than July 1 every year thereafter which shall include the Director's findings and recommendations regarding its duties as provided under subsections (a), (b), and (c) of this Section.
(Source: P.A. 99-642, eff. 7-28-16; 100-23, eff. 7-6-17.)

215 ILCS 5/1203

    (215 ILCS 5/1203) (from Ch. 73, par. 1065.903)
    Sec. 1203. Powers and Additional Duties. (a) The Director may enter into any agreement with any corporation, association or other entity he or she deems appropriate to undertake the process described in this Article for the compilation and analysis of data collected by the Department and may conduct or contract for studies on insurance-related questions carried out in pursuance of the purposes of this Article. The agreement may provide for the corporation, association or entity to prepare and distribute or make available data to insurers, government and the general public.
    (b) The Director shall require, and the designated corporation, association or entity shall prepare, semi-annual basic reports in the aggregate on insurance cost trends in Illinois. The Director shall provide these reports to the General Assembly, and upon request, to the public.
    (c) Prior to the release or dissemination of these reports, the Director or the designated corporation, association or entity, shall permit insurers the opportunity to verify the accuracy of any information pertaining to the insurer. The insurer may submit to the Director any corrections or errors in the compilation of the data together with any supporting evidence and documents the insurer may provide.
(Source: P.A. 84-1431.)

215 ILCS 5/1204

    (215 ILCS 5/1204) (from Ch. 73, par. 1065.904)
    (Text of Section WITH the changes made by P.A. 94-677, which has been held unconstitutional)
    Sec. 1204. (A) The Secretary shall promulgate rules and regulations which shall require each insurer licensed to write property or casualty insurance in the State and each syndicate doing business on the Illinois Insurance Exchange to record and report its loss and expense experience and other data as may be necessary to assess the relationship of insurance premiums and related income as compared to insurance costs and expenses. The Secretary may designate one or more rate service organizations or advisory organizations to gather and compile such experience and data. The Secretary shall require each insurer licensed to write property or casualty insurance in this State and each syndicate doing business on the Illinois Insurance Exchange to submit a report, on a form furnished by the Secretary, showing its direct writings in this State and companywide.
    (B) Such report required by subsection (A) of this Section may include, but not be limited to, the following specific types of insurance written by such insurer:
        (1) Political subdivision liability insurance
    
reported separately in the following categories:
            (a) municipalities;
            (b) school districts;
            (c) other political subdivisions;
        (2) Public official liability insurance;
        (3) Dram shop liability insurance;
        (4) Day care center liability insurance;
        (5) Labor, fraternal or religious organizations
    
liability insurance;
        (6) Errors and omissions liability insurance;
        (7) Officers and directors liability insurance
    
reported separately as follows:
            (a) non-profit entities;
            (b) for-profit entities;
        (8) Products liability insurance;
        (9) Medical malpractice insurance;
        (10) Attorney malpractice insurance;
        (11) Architects and engineers malpractice insurance;
    
and
        (12) Motor vehicle insurance reported separately for
    
commercial and private passenger vehicles as follows:
            (a) motor vehicle physical damage insurance;
            (b) motor vehicle liability insurance.
    (C) Such report may include, but need not be limited to the following data, both specific to this State and companywide, in the aggregate or by type of insurance for the previous year on a calendar year basis:
        (1) Direct premiums written;
        (2) Direct premiums earned;
        (3) Number of policies;
        (4) Net investment income, using appropriate
    
estimates where necessary;
        (5) Losses paid;
        (6) Losses incurred;
        (7) Loss reserves:
            (a) Losses unpaid on reported claims;
            (b) Losses unpaid on incurred but not reported
        
claims;
        (8) Number of claims:
            (a) Paid claims;
            (b) Arising claims;
        (9) Loss adjustment expenses:
            (a) Allocated loss adjustment expenses;
            (b) Unallocated loss adjustment expenses;
        (10) Net underwriting gain or loss;
        (11) Net operation gain or loss, including net
    
investment income;
        (12) Any other information requested by the Secretary.
    (C-3) Additional information by an advisory organization as defined in Section 463 of this Code.
        (1) An advisory organization as defined in Section
    
463 of this Code shall report annually the following information in such format as may be prescribed by the Secretary:
            (a) paid and incurred losses for each of the past
        
10 years;
            (b) medical payments and medical charges, if
        
collected, for each of the past 10 years;
            (c) the following indemnity payment information:
        
cumulative payments by accident year by calendar year of development. This array will show payments made and frequency of claims in the following categories: medical only, permanent partial disability (PPD), permanent total disability (PTD), temporary total disability (TTD), and fatalities;
            (d) injuries by frequency and severity;
            (e) by class of employee.
        (2) The report filed with the Secretary of Financial
    
and Professional Regulation under paragraph (1) of this subsection (C-3) shall be made available, on an aggregate basis, to the General Assembly and to the general public. The identity of the petitioner, the respondent, the attorneys, and the insurers shall not be disclosed.
        (3) Reports required under this subsection (C-3)
    
shall be filed with the Secretary no later than September 1 in 2006 and no later than September 1 of each year thereafter.
    (C-5) Additional information required from medical malpractice insurers.
        (1) In addition to the other requirements of this
    
Section, the following information shall be included in the report required by subsection (A) of this Section in such form and under such terms and conditions as may be prescribed by the Secretary:
            (a) paid and incurred losses by county for each
        
of the past 10 policy years;
            (b) earned exposures by ISO code, policy type,
        
and policy year by county for each of the past 10 years; and
            (c) the following actuarial information:
                (i) Base class and territory equivalent
            
exposures by report year by relative accident year.
                (ii) Cumulative loss array by accident year
            
by calendar year of development. This array will show frequency of claims in the following categories: open, closed with indemnity (CWI), closed with expense (CWE), and closed no pay (CNP); paid severity in the following categories: indemnity and allocated loss adjustment expenses (ALAE) on closed claims; and indemnity and expense reserves on pending claims.
                (iii) Cumulative loss array by report year by
            
calendar year of development. This array will show frequency of claims in the following categories: open, closed with indemnity (CWI), closed with expense (CWE), and closed no pay (CNP); paid severity in the following categories: indemnity and allocated loss adjustment expenses (ALAE) on closed claims; and indemnity and expense reserves on pending claims.
                (iv) Maturity year and tail factors.
                (v) Any expense, contingency ddr (death,
            
disability, and retirement), commission, tax, and/or off-balance factors.
        (2) The following information must also be annually
    
provided to the Department:
            (a) copies of the company's reserve and surplus
        
studies; and
            (b) consulting actuarial report and data
        
supporting the company's rate filing.
        (3) All information collected by the Secretary under
    
paragraphs (1) and (2) shall be made available, on a company-by-company basis, to the General Assembly and the general public. This provision shall supersede any other provision of State law that may otherwise protect such information from public disclosure as confidential.
    (D) In addition to the information which may be requested under subsection (C), the Secretary may also request on a companywide, aggregate basis, Federal Income Tax recoverable, net realized capital gain or loss, net unrealized capital gain or loss, and all other expenses not requested in subsection (C) above.
    (E) Violations - Suspensions - Revocations.
        (1) Any company or person subject to this Article,
    
who willfully or repeatedly fails to observe or who otherwise violates any of the provisions of this Article or any rule or regulation promulgated by the Secretary under authority of this Article or any final order of the Secretary entered under the authority of this Article shall by civil penalty forfeit to the State of Illinois a sum not to exceed $2,000. Each day during which a violation occurs constitutes a separate offense.
        (2) No forfeiture liability under paragraph (1) of
    
this subsection may attach unless a written notice of apparent liability has been issued by the Secretary and received by the respondent, or the Secretary 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 this Article, rule, regulation or order of which a violation is charged.
        (3) No forfeiture liability under paragraph (1) of
    
this subsection 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 $100,000.
        (4) All administrative hearings conducted pursuant to
    
this Article are subject to 50 Ill. Adm. Code 2402 and all administrative hearings are subject to the Administrative Review Law.
        (5) 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 office.
        (6) In any case where the Secretary 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 Secretary 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.
        (7) When any person or company has a license or
    
certificate of authority under this Code and knowingly fails or refuses to comply with a lawful order of the Secretary requiring compliance with this Article, entered after notice and hearing, within the period of time specified in the order, the Secretary may, in addition to any other penalty or authority provided, revoke or refuse to renew the license or certificate of authority of such person or company, or may suspend the license or certificate of authority of such person or company until compliance with such order has been obtained.
        (8) When any person or company has a license or
    
certificate of authority under this Code and knowingly fails or refuses to comply with any provisions of this Article, the Secretary may, after notice and hearing, in addition to any other penalty provided, revoke or refuse to renew the license or certificate of authority of such person or company, or may suspend the license or certificate of authority of such person or company, until compliance with such provision of this Article has been obtained.
        (9) No suspension or revocation under this Section
    
may become effective until 5 days from the date that the notice of suspension or revocation has been personally delivered or delivered by registered or certified mail to the company or person. A suspension or revocation under this Section is stayed upon the filing, by the company or person, of a petition for judicial review under the Administrative Review Law.
(Source: P.A. 94-277, eff. 7-20-05; 94-677, eff. 8-25-05; 95-331, eff. 8-21-07.)
 
    (Text of Section WITHOUT the changes made by P.A. 94-677, which has been held unconstitutional)
    Sec. 1204. (A) The Director shall promulgate rules and regulations which shall require each insurer licensed to write property or casualty insurance in the State and each syndicate doing business on the Illinois Insurance Exchange to record and report its loss and expense experience and other data as may be necessary to assess the relationship of insurance premiums and related income as compared to insurance costs and expenses. The Director may designate one or more rate service organizations or advisory organizations to gather and compile such experience and data. The Director shall require each insurer licensed to write property or casualty insurance in this State and each syndicate doing business on the Illinois Insurance Exchange to submit a report, on a form furnished by the Director, showing its direct writings in this State and companywide.
    (B) Such report required by subsection (A) of this Section may include, but not be limited to, the following specific types of insurance written by such insurer:
        (1) Political subdivision liability insurance
    
reported separately in the following categories:
            (a) municipalities;
            (b) school districts;
            (c) other political subdivisions;
        (2) Public official liability insurance;
        (3) Dram shop liability insurance;
        (4) Day care center liability insurance;
        (5) Labor, fraternal or religious organizations
    
liability insurance;
        (6) Errors and omissions liability insurance;
        (7) Officers and directors liability insurance
    
reported separately as follows:
            (a) non-profit entities;
            (b) for-profit entities;
        (8) Products liability insurance;
        (9) Medical malpractice insurance;
        (10) Attorney malpractice insurance;
        (11) Architects and engineers malpractice insurance;
    
and
        (12) Motor vehicle insurance reported separately for
    
commercial and private passenger vehicles as follows:
            (a) motor vehicle physical damage insurance;
            (b) motor vehicle liability insurance.
    (C) Such report may include, but need not be limited to the following data, both specific to this State and companywide, in the aggregate or by type of insurance for the previous year on a calendar year basis:
        (1) Direct premiums written;
        (2) Direct premiums earned;
        (3) Number of policies;
        (4) Net investment income, using appropriate
    
estimates where necessary;
        (5) Losses paid;
        (6) Losses incurred;
        (7) Loss reserves:
            (a) Losses unpaid on reported claims;
            (b) Losses unpaid on incurred but not reported
        
claims;
        (8) Number of claims:
            (a) Paid claims;
            (b) Arising claims;
        (9) Loss adjustment expenses:
            (a) Allocated loss adjustment expenses;
            (b) Unallocated loss adjustment expenses;
        (10) Net underwriting gain or loss;
        (11) Net operation gain or loss, including net
    
investment income;
        (12) Any other information requested by the Director.
    (C-3) Additional information by an advisory organization as defined in Section 463 of this Code.
        (1) An advisory organization as defined in Section
    
463 of this Code shall report annually the following information in such format as may be prescribed by the Secretary:
            (a) paid and incurred losses for each of the past
        
10 years;
            (b) medical payments and medical charges, if
        
collected, for each of the past 10 years;
            (c) the following indemnity payment information:
        
cumulative payments by accident year by calendar year of development. This array will show payments made and frequency of claims in the following categories: medical only, permanent partial disability (PPD), permanent total disability (PTD), temporary total disability (TTD), and fatalities;
            (d) injuries by frequency and severity;
            (e) by class of employee.
        (2) The report filed with the Secretary of Financial
    
and Professional Regulation under paragraph (1) of this subsection (C-3) shall be made available, on an aggregate basis, to the General Assembly and to the general public. The identity of the petitioner, the respondent, the attorneys, and the insurers shall not be disclosed.
        (3) Reports required under this subsection (C-3)
    
shall be filed with the Secretary no later than September 1 in 2006 and no later than September 1 of each year thereafter.
    (D) In addition to the information which may be requested under subsection (C), the Director may also request on a companywide, aggregate basis, Federal Income Tax recoverable, net realized capital gain or loss, net unrealized capital gain or loss, and all other expenses not requested in subsection (C) above.
    (E) Violations - Suspensions - Revocations.
        (1) Any company or person subject to this Article,
    
who willfully or repeatedly fails to observe or who otherwise violates any of the provisions of this Article or any rule or regulation promulgated by the Director under authority of this Article or any final order of the Director entered under the authority of this Article shall by civil penalty forfeit to the State of Illinois a sum not to exceed $2,000. Each day during which a violation occurs constitutes a separate offense.
        (2) No forfeiture liability under paragraph (1) of
    
this subsection 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 this Article, rule, regulation or order of which a violation is charged.
        (3) No forfeiture liability under paragraph (1) of
    
this subsection 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 $100,000.
        (4) All administrative hearings conducted pursuant to
    
this Article are subject to 50 Ill. Adm. Code 2402 and all administrative hearings are subject to the Administrative Review Law.
        (5) 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 office.
        (6) 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.
        (7) When any person or company has a license or
    
certificate of authority under this Code and knowingly fails or refuses to comply with a lawful order of the Director requiring compliance with this Article, entered after notice and hearing, within the period of time specified in the order, the Director may, in addition to any other penalty or authority provided, revoke or refuse to renew the license or certificate of authority of such person or company, or may suspend the license or certificate of authority of such person or company until compliance with such order has been obtained.
        (8) When any person or company has a license or
    
certificate of authority under this Code and knowingly fails or refuses to comply with any provisions of this Article, the Director may, after notice and hearing, in addition to any other penalty provided, revoke or refuse to renew the license or certificate of authority of such person or company, or may suspend the license or certificate of authority of such person or company, until compliance with such provision of this Article has been obtained.
        (9) No suspension or revocation under this Section
    
may become effective until 5 days from the date that the notice of suspension or revocation has been personally delivered or delivered by registered or certified mail to the company or person. A suspension or revocation under this Section is stayed upon the filing, by the company or person, of a petition for judicial review under the Administrative Review Law.
(Source: P.A. 94-277, eff. 7-20-05; 95-331, eff. 8-21-07.)

215 ILCS 5/1205

    (215 ILCS 5/1205) (from Ch. 73, par. 1065.905)
    Sec. 1205. Employees and Professional Consultants. The Department may employ and fix the compensation of such employees, and may enter into contractual agreements with technical and professional consultants as it deems necessary to expedite the purposes of this Article.
(Source: P.A. 84-1431.)

215 ILCS 5/1206

    (215 ILCS 5/1206) (from Ch. 73, par. 1065.906)
    Sec. 1206. Expenses. The companies required to file reports under this Article shall pay a reasonable fee established by the Director sufficient to cover the total cost of the Department incident to or associated with the administration and enforcement of this Article, including the collection, analysis and distribution of the insurance cost data, the conversion of hard copy reports to tape, and the compilation and analysis of basic reports. The Director may establish a schedule of fees for this purpose. Expenses for additional reports shall be billed to those requesting the reports. Any such fees collected under this Section shall be paid to the Director of Insurance and deposited into the Technology Management Revolving Fund and credited to the account of the Department of Insurance.
(Source: P.A. 100-23, eff. 7-6-17.)

215 ILCS 5/Art. XLIII

 
    (215 ILCS 5/Art. XLIII heading)
ARTICLE XLIII.
Mortgage Insurance Consolidation

215 ILCS 5/1300

    (215 ILCS 5/1300) (from Ch. 73, par. 1065.1000)
    Sec. 1300. Title. This Article may be cited as the Mortgage Insurance Consolidation Law.
(Source: P.A. 86-378.)

215 ILCS 5/1301

    (215 ILCS 5/1301) (from Ch. 73, par. 1065.1001)
    Sec. 1301. Purpose. The purpose of this Article is to protect the interests of Illinois insureds by:
    (1) establishing minimum standards and procedures for the effectuation of mortgage insurance consolidations;
    (2) establishing disclosure requirements specific to mortgage insurance consolidations and requiring insurers to make such disclosures on a timely basis;
    (3) clarifying the applicability of the unfair rate discrimination provisions of this Code to consolidations involved in loan transfers so as to prevent premium increases for consumers resulting from mandatory premium recalculation;
    (4) requiring that group mortgage life insurance certificates contain minimum standard provisions including conversion rights; and
    (5) preventing the arbitrary termination of mortgage insurance coverage in connection with consolidations.
(Source: P.A. 86-378.)

215 ILCS 5/1302

    (215 ILCS 5/1302) (from Ch. 73, par. 1065.1002)
    Sec. 1302. Scope. (a) This Article applies:
    (1) To all insurance companies authorized to transact the business of insurance in this State of the kind or kinds of business described in Class 1(a) and (b) and Class 2(a) of Section 4 of this Code except for the kind or kinds of business described in Article IX 1/2 of this Code.
    (2) To all mortgage insurance coverage offered, issued, or issued for delivery in this State, by mail or otherwise, in connection with consolidations regardless of whether the financial institution involved is located in or outside Illinois.
    (3) To all consolidations whether the old coverage is provided under an individual or group policy.
    (b) Except as otherwise specifically provided, it is not intended that this Article conflict with or supersede any other provisions of this Code, or any rules promulgated by the Department of Insurance implementing any such provisions.
(Source: P.A. 86-378.)

215 ILCS 5/1303

    (215 ILCS 5/1303) (from Ch. 73, par. 1065.1003)
    Sec. 1303. Definitions. The following definitions shall apply to this Article:
    "Consolidation" means any transaction in which a financial institution makes its premium collection services available to its mortgage debtors in connection with a particular insurer's ("new insurer") offer of mortgage insurance, which offer is made to debtors who, immediately prior to the offer, had mortgage insurance with another insurer ("old insurer") and were paying premiums for that insurance with their monthly mortgage payments.
    "Financial institution" or "servicer" means any entity or organization that services mortgage loans by collecting and accounting for monthly mortgage insurance premiums as part of the debtor's monthly mortgage payment for one or more insurers.
    "Insured" means the individual loan customer or certificate holder.
    "Loan transfer" means a transaction in which the servicing of a block of mortgage loans is transferred from one servicer to another servicer. This shall include, but not be limited to, mergers or acquisitions.
    "Loan transfer consolidation" means a consolidation in which coverage is limited to insureds whose mortgage loans have been sold or transferred in the secondary market from one servicer to another.
    "Group-to-group consolidation" means a consolidation in which coverages under both the old plan and the new plan is provided under group policies.
    "Mortgage insurance" means mortgage life insurance (term or ordinary), mortgage disability insurance, mortgage accidental death insurance, or any combination thereof, including both individual and group policies, and any certificates issued thereunder, on credit transactions of more than 10 years duration and written in connection with a credit transaction that is secured by a first mortgage or deed of trust and made to finance the purchase of real property or the construction of a dwelling thereon or to refinance a prior credit transaction made for such a purpose.
    "New coverage" or "new plan" means the mortgage insurance coverage or plan for which a financial institution collects premium beginning on the effective date of a consolidation.
    "New insurer" means any insurer who offers mortgage insurance coverage to borrowers of the financial institution who can no longer remit monthly premiums for the old insurer along with their monthly mortgage payment.
    "Old coverage" or "old plan" means the mortgage insurance coverage or plan for which a financial institution collects premiums immediately prior to a consolidation.
    "Old insurer" means any insurer for whom a financial institution will no longer make its premium collection facilities available for all or some of the insurer's policyholders or certificate holders.
(Source: P.A. 100-201, eff. 8-18-17.)

215 ILCS 5/1304

    (215 ILCS 5/1304) (from Ch. 73, par. 1065.1004)
    Sec. 1304. General requirements. Except as provided in Section 1305, no insurer shall participate in any consolidation unless, in addition to all other requirements provided by law, it complies with the following:
    (1) The new insurer must calculate premiums for the new coverage on the basis of its own rates, the prospective insured's then attained age, if applicable, and the amount of insurance offered.
    (2) Notice of the new premium shall be mailed, together with the offer of new coverage, to the prospective insured at least 30 days prior to the effective date of the new coverage.
    (3) The new coverage shall be put into effect only after the new insurer receives an application which has been signed by the prospective insured.
    (4) Whenever the existing coverage is provided under individual policies, the new insurer shall comply with the requirements of Part 917 of Title 50 of the Illinois Administrative Code, promulgated by the Department of Insurance.
    (5) All riders which are a part of the existing insurance shall be offered without proof of insurability to all policyholders (or certificate holders) obtained by consolidation, including, but not limited to, waiver of premium and accidental death insurance.
    (6) Prospective insureds shall be given the option to name the beneficiary of their choice by the new insurer, if the previous beneficiary is other than a financial institution.
    (7) Regulations including, but not limited to, those promulgated by the Department of Insurance implementing Sections 143, 149, 151, 236, 237, 421, 424 and 507.1 of this Code concerning misrepresentations to any policyholder for the purpose of inducing or tending to induce such policyholder to lapse, forfeit or surrender his insurance, unfair or deceptive practices, complaints, solicitation and replacement of life insurance, compensation, and rebating shall be complied with.
(Source: P.A. 86-378.)

215 ILCS 5/1305

    (215 ILCS 5/1305) (from Ch. 73, par. 1065.1005)
    Sec. 1305. Loan transfer consolidations. In a consolidation conducted as a result of a loan transfer, the offer of new coverage may be based on the same premium the insured was paying for his old coverage only if, in addition to all other requirements provided by law, the following conditions are met:
    (1) Both the old and the new coverage must be provided under a group policy.
    (2) An offer of new coverage must be made as soon as reasonably possible after the loan transfer. If an offer of new coverage is not made within 30 days after the loan transfer, or at least 30 days prior to the proposed effective date of the new coverage, the insurer shall notify the debtor, in writing, that he has the right to an unconditional refund of all premiums paid for the new coverage as long as he exercises that right, in writing, within 30 days from the date of the notification.
    (3) The new coverage offered to the prospective insured must be the same as the old coverage, including all supplemental benefits provided under the old plan. If the coverage offered is not the same, then all the requirements of Section 1304 shall apply.
    (4) In addition to the requirements of Section 1307, the certificate shall contain the following notice, printed in bold type on page one of the certificate:
IMPORTANT NOTICE
    This certificate is issued to you in connection with a mortgage insurance consolidation. It is the intention of the Company to provide you group coverage which is equal to or better than the group coverage you had before. To the extent the benefits provided or the provisions of your prior certificate of insurance are more liberal than those under this certificate, the provisions of your prior certificate will control. Therefore, you should keep your old certificate along with this certificate for comparison purposes.
    (5) The information contained in the notice prescribed by paragraph (4) shall also be disclosed in writing (separate from the certificate of insurance) to each prospective insured at the time the offer of new coverage is made.
    (6) Only the group coverage written in connection with the loans which are the subject of the loan transfer may be consolidated pursuant to this Section.
    (7) Payment of the required premium shall constitute acceptance of the new coverage if:
    (A) such acceptance mechanism is clearly explained to the debtor; and
    (B) All other disclosure requirements of this Article are met.
    (8) Regulations including, but not limited to, those promulgated by the Department of Insurance implementing Sections 143, 149, 151, 236, 237, 421, 424 and 507.1 of this Code concerning misrepresentations to any policyholder for the purpose of inducing or tending to induce such policyholder to lapse, forfeit or surrender his insurance, unfair or deceptive practices, complaints, solicitation and replacement of life insurance, compensation and rebating shall be complied with.
    (9) If an insurer charges debtor insureds the same premium for the new coverage that they were paying for the old coverage, and, as a result, debtor insureds of a financial institution are charged different premium rates for the same coverage, such rate differences shall not constitute unfair discrimination under Sections 236 and 364 of this Code provided all the other applicable requirements of this Code are met.
(Source: P.A. 86-378.)

215 ILCS 5/1306

    (215 ILCS 5/1306) (from Ch. 73, par. 1065.1006)
    Sec. 1306. Out-of-state consolidations. If Illinois residents whose loans are serviced outside Illinois are involved in a group-to-group consolidation by an out-of-state servicer, Section 1305 may be employed if the Illinois residents are an incidental part of the consolidation. Otherwise the provisions of this Article shall apply to any consolidation insofar as it involves Illinois residents. For purposes of this provision "incidental" shall mean that the Illinois residents comprise less than 25% or 100 lives of the total lives involved in the consolidation, whichever is less.
(Source: P.A. 86-378.)

215 ILCS 5/1307

    (215 ILCS 5/1307) (from Ch. 73, par. 1065.1007)
    Sec. 1307. Group certificates. No insurer may participate in a group-to-group consolidation or a loan transfer consolidation unless in addition to all other requirements provided by law, it complies with the following:
    (1) A group certificate must be delivered to each debtor insured under the new plan, which certificate shall include the following information:
    (A) the name or names of the single or joint insureds;
    (B) identification of the insured mortgage;
    (C) the amount of insurance under the new plan;
    (D) the premium for the new coverage;
    (E) the effective date of the new coverage;
    (F) the beneficiary for the new coverage.
    (2) The new coverage offered to the prospective insured must be the same coverage as the old coverage, including all supplemental benefits, or the same type of coverage as the old coverage, whichever is otherwise required by this Article.
    (3) A group certificate evidencing the new coverage may not include a contestability clause or, in the case of mortgage life insurance, a provision excluding suicide.
(Source: P.A. 86-378.)

215 ILCS 5/1308

    (215 ILCS 5/1308) (from Ch. 73, par. 1065.1008)
    Sec. 1308. Conversion privilege. Notwithstanding the provisions of Section 231.1(H) of this Code, all group mortgage life insurance policies and any certificates issued thereunder shall include a conversion privilege permitting a debtor insured to convert, without evidence of insurability, to an individual policy of decreasing term insurance within 30 days of the date the debtor insured's group coverage is terminated for any reason other than the nonpayment of premiums. The initial amount of coverage under the individual policy shall be an amount equal to the amount of coverage terminated under the group policy and shall decrease over a term that corresponds with the scheduled term of the insured debtor's mortgage loan. The premium for the individual policy shall be the same premium the debtor insured was paying under the group policy.
(Source: P.A. 86-378.)

215 ILCS 5/1309

    (215 ILCS 5/1309) (from Ch. 73, par. 1065.1009)
    Sec. 1309. Required disclosures. (a) In conjunction with the offer of new coverage involving any consolidation, the new insurer shall disclose in writing to each insured under the old plan or plans at least 30 days prior to the effective date of the new coverage the following:
    (1) Identification of the insured mortgage.
    (2) The name of the insured or insureds.
    (3) Name of the owner of the individual policy or master policy (if group insurance) under both the new and old plans, if known.
    (4) The premium for the new and old coverage.
    (5) Amount of coverage for both the new and old plans. If the amount of coverage for the old plan is not known, a statement that the amount may be scheduled and it may be less than or greater than the amount of the loan and the insured should check the policy schedule for an exact amount of coverage.
    (6) Effective dates of the old coverage if the contestable or suicide period have not expired as of the effective date of the new coverage. If the new insurer waives the contestable and suicide period, then the effective date of the old coverage does not need to be disclosed.
    (7) Name of the beneficiary under the old plan, if known.
    (8) A statement as to whether the old plan was an individual or group plan and a statement as to whether the new plan is an individual or a group plan.
    (9) A statement that neither the old plan or new plan is required.
    (10) A statement that the prospective insured may have the right to continue or convert his old coverage by paying premiums directly to the old insurer, and what the prospective insured must do to keep the old coverage in effect including, but not limited to, the name and address of the company involved, the policy number or other information which reasonably identifies the insured's plan of coverage, the amount of the premium and where it is to be sent.
    (11) A statement that the mortgage payment will be reduced by the amount of the old plan premium if the new plan is not accepted.
    (12) Name and home office address of the new and old insurer, as well as the address and phone number for the customer services office for Illinois insureds.
    (13) The effective date of the new coverage.
    (14) Whether premium rates under the new plan are guaranteed.
    (15) Material differences, if any between the new plan and the old plan.
    (b) Any insurer which fails to provide the written notice required by subsection (a) at least 30 days prior to the effective date of the new coverage shall notify the debtor, in writing, that he has the right to an unconditional refund of all premiums paid for the new coverage as long as he exercises that right, in writing, within 30 days from that notification.
(Source: P.A. 86-378.)

215 ILCS 5/1310

    (215 ILCS 5/1310) (from Ch. 73, par. 1065.1010)
    Sec. 1310. Compensation. No sponsorship fees, or other special fees designed to induce their participation, shall be paid to a financial institution in connection with any mortgage consolidation, and any compensation paid to either the financial institution or any of its representatives shall be only in accordance with Section 151 and all other applicable provisions of this Code.
(Source: P.A. 86-378.)

215 ILCS 5/1311

    (215 ILCS 5/1311) (from Ch. 73, par. 1065.1011)
    Sec. 1311. No group policy or group certificate of mortgage insurance used in connection with a consolidation, nor any application, endorsement or rider which becomes a part of any such group policy or certificate, may be issued or delivered in this State until a copy of the form has been filed with and approved by the Director.
(Source: P.A. 86-378.)

215 ILCS 5/1312

    (215 ILCS 5/1312) (from Ch. 73, par. 1065.1012)
    Sec. 1312. The Director is authorized to adopt such rules governing mortgage insurance consolidations as he deems necessary to implement or enforce this Article.
(Source: P.A. 86-378.)

215 ILCS 5/Art. XLIV

 
    (215 ILCS 5/Art. XLIV heading)
Article XLIV. FINANCIAL INSTITUTIONS
INSURANCE SALES LAW

215 ILCS 5/1400

    (215 ILCS 5/1400)
    Sec. 1400. Title. This Article may be cited as the Financial Institutions Insurance Sales Law.
(Source: P.A. 90-41, eff. 10-1-97.)

215 ILCS 5/1401

    (215 ILCS 5/1401)
    Sec. 1401. Purpose. The purpose of this Article is to increase the availability of insurance products to the citizens of this State by expanding those businesses authorized to sell insurance products to include financial institutions, and to protect the interests of the citizens of this State by regulating their authority to do so. This Article does not apply to activities or services conducted in this State by or for a financial institution that do not require licensure as an insurance producer, temporary insurance producer, limited insurance representative, or registered firm.
(Source: P.A. 90-41, eff. 10-1-97.)

215 ILCS 5/1402

    (215 ILCS 5/1402)
    Sec. 1402. Definitions. For the purposes of this Article:
    "Financial institution" means:
        (1) a State bank, a national bank, or an out-of-state
    
bank, as those terms are defined in the Illinois Banking Act, or any subsidiary of a State bank, a national bank, or an out-of-state bank;
        (2) a foreign banking corporation, as that term is
    
defined in the Foreign Banking Office Act, or any subsidiary of a foreign banking corporation;
        (3) a corporate fiduciary, as that term is defined in
    
the Corporate Fiduciary Act;
        (4) a savings bank organized under the Savings Bank
    
Act, an out-of-state savings bank chartered under the laws of a state other than Illinois, a territory of the United States, or the District of Columbia, or a federal savings bank organized under federal law, or any subsidiary of a savings bank, an out-of-state savings bank or a federal savings bank;
        (5) an association or federal association, as those
    
terms are defined in the Illinois Savings and Loan Act of 1985, or any subsidiary of an association or federal association;
        (6) an out-of-state savings and loan association
    
chartered under the laws of a state other than Illinois, a territory of the United States or the District of Columbia, or a federal savings and loan association organized under federal law whose principal business office is located outside of Illinois, or any subsidiary of an out-of-state savings and loan association or federal savings and loan association whose principal business office is located outside of Illinois; or
        (7) a credit union as defined in the Illinois Credit
    
Union Act, or any subsidiary of a credit union.
    To the extent that any entity other than a financial institution conducts insurance activities in this State on behalf of or on the premises of the financial institution, such entity shall be subject to this Article for the purposes of those activities.
    "Insurance" means all lines of insurance defined and regulated as insurance under this Code, but for the purposes of this Article, "insurance" shall not include the following lines of insurance, provided that this paragraph shall not be deemed to preclude or otherwise limit regulation of the following lines of insurance pursuant to and to the extent otherwise provided by any other insurance law of this State:
        (1) credit life, credit accident and health, credit
    
involuntary unemployment, credit casualty and credit property insurance;
        (2) extended service contracts and warranty
    
agreements;
        (3) insurance obtained by the debtor to provide
    
payment for the difference between the remaining balance on a loan or other extension of credit and the amount of insurance coverage on the collateral securing the loan or other extension of credit;
        (4) insurance placed by a financial institution on
    
collateral used in connection with a loan or other extension of credit when a debtor breaches the contractual obligation to provide that insurance;
        (5) title insurance regulated by the Title Insurance
    
Act; and
        (6) private mortgage insurance and financial
    
guarantee insurance.
(Source: P.A. 90-41, eff. 10-1-97.)

215 ILCS 5/1403

    (215 ILCS 5/1403)
    Sec. 1403. Licensure requirements for financial institutions.
    (a) A financial institution transacting insurance business in this State shall register with the Director pursuant to the Illinois Insurance Code and shall be subject to the laws, rules, and penalties of the Illinois Insurance Code.
    (b) The solicitation and sale of insurance by a financial institution shall be conducted only by individuals who have been issued and maintain an insurance producer's license pursuant to the Illinois Insurance Code and shall be subject to the laws, rules, and penalties of the Illinois Insurance Code.
    (c) For the purposes of this Section, a "financial institution" means the subsidiary of a financial institution when the financial institution is transacting insurance business in this State only through the subsidiary. For the purposes of Section 499.1 of the Illinois Insurance Code, a financial institution shall be deemed to be a corporation.
    (d) Nothing in Section 500-100 of this Code shall be construed to require a limited lines producer license or any other form or class of producer's license for financial institutions, or their employees, if the financial institution has purchased or sponsored a group credit life, credit accident and health, credit casualty, credit property, or other group credit insurance policy or program under which the financial institution enrolls or performs other administrative services, or both, to enable individuals to purchase insurance coverage under the group credit insurance policy sold by a licensed producer in compliance with Section 155.56. A financial institution that performs enrollment or other administrative services, or both, with respect to its group credit insurance policies or programs shall be deemed to be in compliance with paragraph (2) of subsection (b) of Section 500-20 of this Code.
(Source: P.A. 100-349, eff. 8-25-17.)

215 ILCS 5/1404

    (215 ILCS 5/1404)
    Sec. 1404. Subsidiaries or divisions. A financial institution shall not qualify for registration as a registered firm under Section 499.1 of this Code unless: (1) it establishes a separate subsidiary that acts as the registered firm or (2) it is otherwise permitted by law to sell insurance directly through the financial institution, and it establishes a separate division within the financial institution to conduct the business of the registered firm. The subsidiary or division acting as a registered firm shall maintain records for insurance transactions that are separate and distinct from the records of the financial institution.
(Source: P.A. 90-41, eff. 10-1-97.)

215 ILCS 5/1405

    (215 ILCS 5/1405)
    Sec. 1405. Extensions of credit. A financial institution shall not delay or impede the completion of a loan transaction or other transactions involving the extension of credit for the purpose of influencing a customer's selection of any insurance product.
(Source: P.A. 90-41, eff. 10-1-97.)

215 ILCS 5/1406

    (215 ILCS 5/1406)
    Sec. 1406. Insurance and financial institution products.
    (a) No financial institution may offer banking products or services, or fix or vary the consideration of the offer, on a condition or requirement that the customer obtain insurance from the financial institution or any affiliate of the financial institution.
    (b) A financial institution that offers banking products or services in conformity with the provisions of Section 106 of the Bank Holding Company Act Amendments of 1970 (12 U.S.C. 1972) shall be deemed to be in compliance with the provisions of subsection (a) of this Section.
    (c) No financial institution shall require that a customer or prospective customer of the financial institution purchase an insurance product from any particular registered firm or insurance producer as a condition for the lending of money or extension of credit, the establishment or maintenance of a checking, savings, or other deposit account, or the establishment or maintenance of a trust account.
(Source: P.A. 90-41, eff. 10-1-97.)

215 ILCS 5/1407

    (215 ILCS 5/1407)
    Sec. 1407. Rebating and discounting.
    (a) No financial institution may offer a rebate on an insurance product in violation of Section 151 of this Code.
    (b) No financial institution may offer a discount on a loan or extension of credit for the purpose of inducing the customer to purchase insurance required in connection with the loan or extension of credit.
(Source: P.A. 90-41, eff. 10-1-97.)

215 ILCS 5/1408

    (215 ILCS 5/1408)
    Sec. 1408. Discrimination prohibited. No financial institution may:
    (1) require as a condition of providing any product or service or renewal of any contract for providing a product or service to any customer, that the customer acquire, finance, or negotiate any policy or contract of insurance through a particular insurer, insurance producer, or registered firm;
    (2) in connection with a loan or extension of credit that requires a borrower to obtain insurance, reject an insurance policy solely because the policy has been issued or underwritten by any person who is not associated with the financial institution;
    (3) impose any discriminatory requirement on any insurance producer who is not associated with the financial institution that is not imposed on any insurance producer who is associated with the financial institution; or
    (4) if the financial institution is a registered firm, require any debtor, insurer, or insurance producer to pay a separate charge in connection with the handling of insurance that is required under a contract, unless: (i) the financial institution is the registered firm providing the insurance, (ii) if the financial institution is not the registered firm providing the insurance, the charge would be uniformly applied if the financial institution was the registered firm providing the insurance, or (iii) the charge is otherwise permitted by this Code or other applicable State or federal law.
(Source: P.A. 90-41, eff. 10-1-97.)

215 ILCS 5/1409

    (215 ILCS 5/1409)
    Sec. 1409. Disclosure. A financial institution shall clearly and conspicuously disclose in any written advertisement or promotional or informational material regarding an insurance product that the insurance offered, recommended, sponsored, or sold:
    (1) is not a deposit;
    (2) is not insured by the Federal Deposit Insurance Corporation, or in the case of a credit union, by the National Credit Union Share Insurance Fund;
    (3) is not guaranteed by the financial institution or an affiliated insured depository institution; and
    (4) where appropriate, involves investment risk, including potential loss of principal.
(Source: P.A. 90-41, eff. 10-1-97.)

215 ILCS 5/1410

    (215 ILCS 5/1410)
    Sec. 1410. Misleading advertising. No financial institution or registered firm may employ any advertisement that would mislead or otherwise cause a reasonable person to believe mistakenly that the State of Illinois or the federal government is responsible for the insurance sales activities of the financial institution or stands behind the financial institution's credit, or that the financial institution, the State of Illinois, or the federal government guarantees any returns on insurance products or is a source of payment of any insurance obligation of or sold by the financial institution.
(Source: P.A. 90-41, eff. 10-1-97.)

215 ILCS 5/1411

    (215 ILCS 5/1411)
    Sec. 1411. Commissions and compensation. No financial institution shall pay, directly or indirectly, any commission, service fee, brokerage, or other valuable consideration to any person for services as an insurance producer, temporary insurance producer, or limited insurance representative, or for such services by the person's members, officers, directors or employees, unless the person, and any member, officer, director, or employee performing the service, held a valid license regarding the class of insurance as to which the service was rendered, or unless the person was a properly registered firm at the time the service was performed. No person, other than a person properly licensed or registered in accordance with Article XXXI of this Code at the time the person performs services as an insurance producer, temporary insurance producer, or limited insurance representative, shall accept any commission, service fee, brokerage, or other valuable consideration for such services. This Section shall not prevent payment or receipt of:
    (1) renewal or other deferred commissions to or by any person entitled thereto under this Section;
    (2) fees to or by a financial institution or any other person for services that do not require licensure as an insurance producer, temporary insurance producer, limited insurance representative, or registered firm; or
    (3) consideration paid to a financial institution by a registered firm, insurance producer, insurance company, or any other person pursuant to any lease agreement.
(Source: P.A. 90-41, eff. 10-1-97.)

215 ILCS 5/1412

    (215 ILCS 5/1412)
    Sec. 1412. Solicitations to loan applicants.
    (a) A financial institution that requires a customer to obtain insurance in connection with a loan or extension of credit and that offers that insurance either directly or through an affiliate shall clearly disclose to the customer in writing at the time of written application or at closing if no written application is obtained in a form substantially similar to the following:
        "You may obtain insurance required in connection with
    
your loan or extension of credit from any insurance agent, broker, or firm that sells such insurance. Your choice of insurance provider will not affect our credit decision or your credit terms.".
    (b) This Section shall not apply when a financial institution is contacting a customer in the course of direct or mass marketing to a group of persons in a manner that bears no relation to the customer's loan application or credit decision.
(Source: P.A. 90-41, eff. 10-1-97.)

215 ILCS 5/1413

    (215 ILCS 5/1413)
    Sec. 1413. Separate physical location and sales force when insurance is solicited or sold in connection with a loan.
    (a) An employee of a financial institution may not solicit or sell insurance at the same desk where a loan transaction is conducted when the insurance is solicited or sold in connection with the same loan.
    (b) A loan officer of a financial institution who is involved in the application, solicitation, or closing of a loan transaction may not solicit or sell insurance in connection with the same loan, but such loan officer may refer the loan customer to another insurance producer who is not involved in the application, solicitation, or closing of the same loan transaction.
    (c) Subsections (a) and (b) of this Section shall not apply to a financial institution, other than a credit union, or a branch location of a financial institution, other than a credit union, that has less than $100,000,000 in deposits.
    (d) Subsections (a) and (b) of this Section shall not apply to a credit union or a branch location of a credit union that has less than $30,000,000 in deposits.
(Source: P.A. 90-41, eff. 10-1-97.)

215 ILCS 5/1414

    (215 ILCS 5/1414)
    Sec. 1414. Signage. Signs concerning the availability of insurance products offered by the financial institution or by any registered firm shall be clearly displayed in the same area where applications for loans or other extensions of credit are being taken or closed and shall include the disclosure set forth in subsection (a) of Section 1412.
(Source: P.A. 90-41, eff. 10-1-97.)

215 ILCS 5/1415

    (215 ILCS 5/1415)
    Sec. 1415. Confidential customer information.
    (a) A financial institution that is a registered firm may not release a customer's insurance information to any person other than an officer, director, employee, agent, or affiliate of the financial institution without the written consent of the customer. For the purposes of this Section, "insurance information" means information concerning the premiums, terms and conditions of insurance coverage, insurance claims, and the insurance history of a customer contained in the financial institution's records.
    (b) Subsection (a) of this Section shall not apply to:
        (1) names, addresses, and telephone numbers derived
    
in any manner from the financial institution's records, or
        (2) the release of insurance information as otherwise
    
authorized by State or federal law.
    (c) A financial institution shall not require premium information when requiring evidence of insurance in connection with a loan or extension of credit and shall not use such premium information for the purpose of soliciting insurance without the written consent of the customer.
    (d) A financial institution may not use health information obtained from a customer's insurance records for any purpose other than for its activities as a registered firm pursuant to this Code.
(Source: P.A. 90-41, eff. 10-1-97.)

215 ILCS 5/1416

    (215 ILCS 5/1416)
    Sec. 1416. Prohibited defenses. A violation of any provision of this Article shall not be used as a defense by any person in any action by a financial institution to recover the amount owing on any loan or extension of credit.
(Source: P.A. 90-41, eff. 10-1-97.)

215 ILCS 5/Art. XLV

 
    (215 ILCS 5/Art. XLV heading)
ARTICLE XLV. PUBLIC ADJUSTERS

(Source: P.A. 96-1332, eff. 1-1-11.)

215 ILCS 5/1501

    (215 ILCS 5/1501)
    Sec. 1501. Short title. This Article may be cited as the Public Adjusters Law.
(Source: P.A. 96-1332, eff. 1-1-11.)

215 ILCS 5/1505

    (215 ILCS 5/1505)
    Sec. 1505. Purpose and scope. This Article governs the qualifications and procedures for the licensing of public adjusters. It specifies the duties of and restrictions on public adjusters, which include limiting their licensure to assisting insureds in first party claims.
(Source: P.A. 96-1332, eff. 1-1-11.)

215 ILCS 5/1510

    (215 ILCS 5/1510)
    Sec. 1510. Definitions. In this Article:
    "Adjusting a claim for loss or damage covered by an insurance contract" means negotiating values, damages, or depreciation or applying the loss circumstances to insurance policy provisions.
    "Business entity" means a corporation, association, partnership, limited liability company, limited liability partnership, or other legal entity.
    "Department" means the Department of Insurance.
    "Director" means the Director of Insurance.
    "Fingerprints" means an impression of the lines on the finger taken for the purpose of identification. The impression may be electronic or in ink converted to electronic format.
    "Home state" means the District of Columbia and any state or territory of the United States where the public adjuster's principal place of residence or principal place of business is located. If neither the state in which the public adjuster maintains the principal place of residence nor the state in which the public adjuster maintains the principal place of business has a substantially similar law governing public adjusters, the public adjuster may declare another state in which it becomes licensed and acts as a public adjuster to be the home state.
    "Individual" means a natural person.
    "Person" means an individual or a business entity.
    "Public adjuster" means any person who, for compensation or any other thing of value on behalf of the insured:
        (i) acts or aids, solely in relation to first party
    
claims arising under insurance contracts that insure the real or personal property of the insured, on behalf of an insured in adjusting a claim for loss or damage covered by an insurance contract;
        (ii) advertises for employment as a public adjuster
    
of insurance claims or solicits business or represents himself or herself to the public as a public adjuster of first party insurance claims for losses or damages arising out of policies of insurance that insure real or personal property; or
        (iii) directly or indirectly solicits business,
    
investigates or adjusts losses, or advises an insured about first party claims for losses or damages arising out of policies of insurance that insure real or personal property for another person engaged in the business of adjusting losses or damages covered by an insurance policy for the insured.
    "Uniform individual application" means the current version of the National Association of Directors (NAIC) Uniform Individual Application for resident and nonresident individuals.
    "Uniform business entity application" means the current version of the National Association of Insurance Commissioners (NAIC) Uniform Business Entity Application for resident and nonresident business entities.
(Source: P.A. 96-1332, eff. 1-1-11.)

215 ILCS 5/1515

    (215 ILCS 5/1515)
    Sec. 1515. License required.
    (a) A person shall not act, advertise, solicit, or hold himself out as a public adjuster or to be in the business of adjusting insurance claims in this State, nor attempt to obtain a contract for public adjusting services, unless the person is licensed as a public adjuster in accordance with this Article.
    (b) A person licensed as a public adjuster shall not misrepresent to a claimant that he or she is an adjuster representing an insurer in any capacity, including acting as an employee of the insurer or acting as an independent adjuster unless so appointed by an insurer in writing to act on the insurer's behalf for that specific claim or purpose. A licensed public adjuster is prohibited from charging that specific claimant a fee when appointed by the insurer and the appointment is accepted by the public adjuster.
    (c) A business entity acting as a public adjuster is required to obtain a public adjuster license. Application shall be made using the Uniform Business Entity Application. Before approving the application, the Director shall find that:
        (1) the business entity has paid the required fees
    
to be registered as a business entity in this State; and
        (2) all officers, shareholders, and persons with
    
ownership interests in the business entity are licensed public adjusters responsible for the business entity's compliance with the insurance laws, rules, and regulations of this State.
    (d) Notwithstanding subsections (a) through (c) of this Section, a license as a public adjuster shall not be required of the following:
        (1) an attorney admitted to practice in this State,
    
when acting in his or her professional capacity as an attorney;
        (2) a person who negotiates or settles claims arising
    
under a life or health insurance policy or an annuity contract;
        (3) a person employed only for the purpose of
    
obtaining facts surrounding a loss or furnishing technical assistance to a licensed public adjuster, including photographers, estimators, private investigators, engineers, and handwriting experts;
        (4) a licensed health care provider, or employee of a
    
licensed health care provider, who prepares or files a health claim form on behalf of a patient; or
        (5) a person who settles subrogation claims between
    
insurers.
(Source: P.A. 96-1332, eff. 1-1-11.)

215 ILCS 5/1520

    (215 ILCS 5/1520)
    Sec. 1520. Application for license.
    (a) A person applying for a public adjuster license shall make application to the Director on the appropriate uniform application or other application prescribed by the Director.
    (b) The applicant shall declare under penalty of perjury and under penalty of refusal, suspension, or revocation of the license that the statements made in the application are true, correct, and complete to the best of the applicant's knowledge and belief.
    (c) In order to make a determination of license eligibility, the Director is authorized to require all applicants for licensing, including renewal applicants, to undergo a fingerprint-based criminal history record check for the first year following the effective date of this amendatory Act of the 97th General Assembly. The fingerprints and the fee required to perform the criminal history record checks shall be submitted to the Department of State Police and the Federal Bureau of Investigation (FBI) to conduct a State and national criminal history record check. The Department of State Police and the Federal Bureau of Investigation shall furnish to the Department of Insurance all records of convictions, unless or until expunged, pursuant to the fingerprint-based criminal history records check. The Department of State Police shall charge a fee for conducting such checks, which fee shall be deposited into the State Police Services Fund and shall not exceed the cost of the inquiry. The applicant shall be required to pay all fees associated with conducting the criminal history record check.
    (d) The Director may adopt rules to establish procedures necessary to carry out the requirements of subsection (c) of this Section.
    (e) The Director is authorized to submit electronic fingerprint records and necessary identifying information to the NAIC, its affiliates, or subsidiaries for permanent retention in a centralized repository. The purpose of such a centralized repository is to provide Directors with access to fingerprint records in order to perform criminal history record checks.
    (f) Until such time as the Director can obtain and receive national criminal history records, the applicant shall obtain a copy of his or her fingerprints and complete criminal history record from the FBI Criminal Justice Information Services Division and the Illinois State Police and provide such information to the Department of Insurance.
(Source: P.A. 96-1332, eff. 1-1-11; 97-207, eff. 7-28-11.)

215 ILCS 5/1525

    (215 ILCS 5/1525)
    Sec. 1525. Resident license.
    (a) Before issuing a public adjuster license to an applicant under this Section, the Director shall find that the applicant:
        (1) is eligible to designate this State as his or her
    
home state or is a nonresident who is not eligible for a license under Section 1540;
        (2) is sufficiently rehabilitated in cases in which
    
the applicant has committed any act that is a ground for denial, suspension, or revocation of a license as set forth in Section 1555, other than convictions set forth in paragraph (6) of subsection (a) of Section 1555; with respect to applicants with convictions set forth in paragraph (6) of subsection (a) of Section 1555, the Director shall determine in accordance with Section 1550 that the conviction will not impair the ability of the applicant to engage in the position for which a license is sought;
        (3) is trustworthy, reliable, competent, and of good
    
reputation, evidence of which may be determined by the Director;
        (4) is financially responsible to exercise the
    
license and has provided proof of financial responsibility as required in Section 1560 of this Article; and
        (5) maintains an office in the home state of
    
residence with public access by reasonable appointment or regular business hours. This includes a designated office within a home state of residence.
    (b) In addition to satisfying the requirements of subsection (a) of this Section, an individual shall:
        (1) be at least 18 years of age;
        (2) have successfully passed the public adjuster
    
examination;
        (3) designate a licensed individual public adjuster
    
responsible for the business entity's compliance with the insurance laws, rules, and regulations of this State; and
        (4) designate only licensed individual public
    
adjusters to exercise the business entity's license.
    (c) The Director may require any documents reasonably necessary to verify the information contained in the application.
(Source: P.A. 100-286, eff. 1-1-18.)

215 ILCS 5/1530

    (215 ILCS 5/1530)
    Sec. 1530. Examination.
    (a) An individual applying for a public adjuster license under this Article must pass a written examination unless he or she is exempt pursuant to Section 1535 of this Article. The examination shall test the knowledge of the individual concerning the duties and responsibilities of a public adjuster and the insurance laws and regulations of this State. Examinations required by this Section shall be developed and conducted under rules and regulations prescribed by the Director.
    (b) The Director may make arrangements, including contracting with an outside testing service, for administering examinations and collecting the nonrefundable fee. Each individual applying for an examination shall remit a nonrefundable fee as prescribed by the Director. An individual who fails to appear for the examination as scheduled or fails to pass the examination shall reapply for an examination and remit all required fees and forms before being rescheduled for another examination. An individual who fails to pass the examination on his or her first attempt must wait 7 days prior to rescheduling an examination. An individual who fails to pass the examination on his or her second or subsequent attempt must wait 30 days prior to rescheduling an examination.
(Source: P.A. 99-266, eff. 1-1-16.)

215 ILCS 5/1535

    (215 ILCS 5/1535)
    Sec. 1535. Exemptions from examination.
    (a) An individual who applies for a public adjuster license in this State who was previously licensed as a public adjuster in another state based on a public adjuster examination shall not be required to complete any examination. This exemption is only available if (i) the person is currently licensed in that state or if the application is received within 12 months of the cancellation of the applicant's previous license; and (ii) if the prior state issues a certification that, at the time of cancellation, the applicant was in good standing in that state or the state's producer database records or records maintained by the NAIC, its affiliates, or subsidiaries, indicate that the public adjuster is or was licensed in good standing.
    (b) A person licensed as a public adjuster in another state based on a public adjuster examination who moves to this State shall submit an application within 90 days of establishing legal residence to become a resident licensee pursuant to Section 1525 of this Article. No prelicensing examination shall be required of that person to obtain a public adjuster license.
    (c) An individual who applies for a public adjuster license in this State who was previously licensed as a public adjuster in this State shall not be required to complete any prelicensing examination. This exemption is only available if the application is received within 12 months of the cancellation of the applicant's previous license in this State and if, at the time of cancellation, the applicant was in good standing in this State.
(Source: P.A. 96-1332, eff. 1-1-11; 97-207, eff. 7-28-11.)

215 ILCS 5/1540

    (215 ILCS 5/1540)
    Sec. 1540. Nonresident license reciprocity.
    (a) Unless denied licensure pursuant to Section 1555 of this Article, a nonresident person shall receive a nonresident public adjuster license if:
        (1) the person is currently licensed as a resident
    
public adjuster and in good standing in his or her home state;
        (2) the person has submitted the proper request for
    
licensure and has provided proof of financial responsibility as required in Section 1560 of this Article;
        (3) the person has submitted or transmitted to the
    
Director the appropriate completed application for licensure; and
        (4) the person's home state awards nonresident public
    
adjuster licenses to residents of this State on the same basis.
    (b) The Director may verify the public adjuster's licensing status through the producer database maintained by the NAIC, its affiliates, or subsidiaries.
    (c) As a condition to continuation of a public adjuster license issued under this Section, the licensee shall maintain a resident public adjuster license in his or her home state. The nonresident public adjuster license issued under this Section shall terminate and be surrendered immediately to the Director if the home state public adjuster license terminates for any reason, unless the public adjuster has been issued a license as a resident public adjuster in his or her new home state. Notification to the state or states where the nonresident license is issued must be made as soon as possible, yet no later than 30 days of change in new state resident license. The licensee shall include his or her new and old address on the notification. A new state resident license is required for nonresident licenses to remain valid. The new state resident license must have reciprocity with the licensing nonresident state or states for the nonresident license not to terminate.
(Source: P.A. 96-1332, eff. 1-1-11; 97-813, eff. 7-13-12.)

215 ILCS 5/1545

    (215 ILCS 5/1545)
    Sec. 1545. License.
    (a) Unless denied licensure under this Article, persons who have met the requirements of this Article shall be issued a public adjuster license.
    (b) A public adjuster license shall remain in effect unless revoked, terminated, or suspended as long as the requirements for license renewal are met by the due date.
    (c) The licensee shall inform the Director by any means acceptable to the Director of a change of address, change of legal name, or change of information submitted on the application within 30 days of the change.
    (d) A licensed public adjuster shall be subject to Article XXVI of this Code.
    (e) A public adjuster who allows his or her license to lapse may, within 12 months from the due date of the renewal, be issued a new public adjuster license without necessity of passing a written examination. However, a penalty in the amount of double the unpaid renewal fee shall be required for the issue of the new public adjuster license.
    (f) A licensed public adjuster that is unable to comply with license renewal procedures due to military service or a long-term medical disability may request a waiver of the procedures in subsection (e) of this Section. The public adjuster may also request a waiver of any examination requirement, fine, or other sanction imposed for failure to comply with renewal procedures.
    (g) The license shall contain the licensee's name, city and state of business address, personal identification number, the date of issuance, the expiration date, and any other information the Director deems necessary.
    (h) In order to assist in the performance of the Director's duties, the Director may contract with non-governmental entities, including the NAIC or any affiliates or subsidiaries that the NAIC oversees, to perform any ministerial functions, including the collection of fees and data, related to licensing that the Director may deem appropriate.
(Source: P.A. 96-1332, eff. 1-1-11.)

215 ILCS 5/1550

    (215 ILCS 5/1550)
    Sec. 1550. Applicant convictions.
    (a) The Director and the Department shall not require applicants to report the following information and shall not collect or consider the following criminal history records in connection with a public adjuster license application:
        (1) Juvenile adjudications of delinquent minors as
    
defined in Section 5-105 of the Juvenile Court Act of 1987, subject to the restrictions set forth in Section 5-130 of that Act.
        (2) Law enforcement records, court records, and
    
conviction records of an individual who was 17 years old at the time of the offense and before January 1, 2014, unless the nature of the offense required the individual to be tried as an adult.
        (3) Records of arrest not followed by a formal charge
    
or conviction.
        (4) Records of arrest where charges were dismissed
    
unless related to the duties and responsibilities of a public adjuster. However, applicants shall not be asked to report any arrests, and any arrest not followed by a conviction shall not be the basis of a denial and may be used only to assess an applicant's rehabilitation.
        (5) Convictions overturned by a higher court.
        (6) Convictions or arrests that have been sealed or
    
expunged.
    (b) The Director, upon a finding that an applicant for a license under this Act was previously convicted of a felony or misdemeanor involving dishonesty or fraud, shall consider any mitigating factors and evidence of rehabilitation contained in the applicant's record, including any of the following factors and evidence, to determine if a license may be denied because the prior conviction will impair the ability of the applicant to engage in the position for which a license is sought:
        (1) the bearing, if any, of the offense for which
    
the applicant was previously convicted on the duties, functions, and responsibilities of the position for which a license is sought;
        (2) whether the conviction suggests a future
    
propensity to endanger the safety and property of others while performing the duties and responsibilities for which a license is sought;
        (3) if the applicant was previously licensed or
    
employed in this State or other states or jurisdictions, then the lack of prior misconduct arising from or related to the licensed position or position of employment;
        (4) whether 5 years since a felony conviction or 3
    
years since release from confinement for the conviction, whichever is later, have passed without a subsequent conviction;
        (5) successful completion of sentence and, for
    
applicants serving a term of parole or probation, a progress report provided by the applicant's probation or parole officer that documents the applicant's compliance with conditions of supervision;
        (6) evidence of the applicant's present fitness and
    
professional character;
        (7) evidence of rehabilitation or rehabilitative
    
effort during or after incarceration or during or after a term of supervision, including, but not limited to, a certificate of good conduct under Section 5-5.5-25 of the Unified Code of Corrections or certificate of relief from disabilities under Section 5-5.5-10 of the Unified Code of Corrections; and
        (8) any other mitigating factors that contribute to
    
the person's potential and current ability to perform the duties and responsibilities of a public adjuster.
    (c) If a nonresident licensee meets the standards set forth in items (1) through (4) of subsection (a) of Section 1540 and has received consent pursuant to 18 U.S.C. 1033(e)(2) from his or her home state, the Director shall grant the nonresident licensee a license.
    (d) If the Director refuses to issue a license to an applicant based on a conviction or convictions, in whole or in part, then the Director shall notify the applicant of the denial in writing with the following included in the notice of denial:
        (1) a statement about the decision to refuse to issue
    
a license;
        (2) a list of convictions that the Director
    
determined will impair the applicant's ability to engage in the position for which a license is sought;
        (3) a list of the convictions that were the sole or
    
partial basis for the refusal to issue a license; and
        (4) a summary of the appeal process or the earliest
    
the applicant may reapply for a license, whichever is applicable.
(Source: P.A. 100-286, eff. 1-1-18.)

215 ILCS 5/1555

    (215 ILCS 5/1555)
    Sec. 1555. License denial, nonrenewal, or revocation.
    (a) The Director may place on probation, suspend, revoke, deny, or refuse to issue or renew a public adjuster's license or may levy a civil penalty or any combination of actions, for any one or more of the following causes:
        (1) providing incorrect, misleading, incomplete, or
    
materially untrue information in the license application;
        (2) violating any insurance laws, or violating any
    
regulation, subpoena, or order of the Director or of another state's Director;
        (3) obtaining or attempting to obtain a license
    
through misrepresentation or fraud;
        (4) improperly withholding, misappropriating, or
    
converting any monies or properties received in the course of doing insurance business;
        (5) intentionally misrepresenting the terms of an
    
actual or proposed insurance contract or application for insurance;
        (6) having been convicted of a felony or misdemeanor
    
involving dishonesty or fraud, unless the individual demonstrates to the Director sufficient rehabilitation to warrant the public trust; consideration of such conviction of an applicant shall be in accordance with Section 1550;
        (7) having admitted or been found to have committed
    
any insurance unfair trade practice or insurance fraud;
        (8) using fraudulent, coercive, or dishonest
    
practices; or demonstrating incompetence, untrustworthiness, or financial irresponsibility in the conduct of business in this State or elsewhere;
        (9) having an insurance license or public adjuster
    
license or its equivalent, denied, suspended, or revoked in any other state, province, district, or territory;
        (10) forging another's name to an application for
    
insurance or to any document related to an insurance transaction;
        (11) cheating, including improperly using notes or
    
any other reference material, to complete an examination for an insurance license or public adjuster license;
        (12) knowingly accepting insurance business from or
    
transacting business with an individual who is not licensed but who is required to be licensed by the Director;
        (13) failing to comply with an administrative or
    
court order imposing a child support obligation;
        (14) failing to pay State income tax or comply with
    
any administrative or court order directing payment of State income tax;
        (15) failing to comply with or having violated any of
    
the standards set forth in Section 1590 of this Law; or
        (16) failing to maintain the records required by
    
Section 1585 of this Law.
    (b) If the action by the Director is to nonrenew, suspend, or revoke a license or to deny an application for a license, the Director shall notify the applicant or licensee and advise, in writing, the applicant or licensee of the reason for the suspension, revocation, denial, or nonrenewal of the applicant's or licensee's license. The applicant or licensee may make written demand upon the Director within 30 days after the date of mailing for a hearing before the Director to determine the reasonableness of the Director's action. The hearing must be held within not fewer than 20 days nor more than 30 days after the mailing of the notice of hearing and shall be held pursuant to 50 Ill. Adm. Code 2402.
    (c) The license of a business entity may be suspended, revoked, or refused if the Director finds, after hearing, that an individual licensee's violation was known or should have been known by one or more of the partners, officers, or managers acting on behalf of the business entity and the violation was neither reported to the Director, nor corrective action taken.
    (d) In addition to or in lieu of any applicable denial, suspension or revocation of a license, a person may, after hearing, be subject to a civil penalty. In addition to or instead of any applicable denial, suspension, or revocation of a license, a person may, after hearing, be subject to a civil penalty of up to $10,000 for each cause for denial, suspension, or revocation, however, the civil penalty may total no more than $100,000.
    (e) The Director shall retain the authority to enforce the provisions of and impose any penalty or remedy authorized by this Article against any person who is under investigation for or charged with a violation of this Article even if the person's license or registration has been surrendered or has lapsed by operation of law.
    (f) Any individual whose public adjuster's license is revoked or whose application is denied pursuant to this Section shall be ineligible to apply for a public adjuster's license for 5 years. A suspension pursuant to this Section may be for any period of time up to 5 years.
(Source: P.A. 100-286, eff. 1-1-18.)

215 ILCS 5/1560

    (215 ILCS 5/1560)
    Sec. 1560. Bond or letter of credit.
    (a) Prior to the issuance of a license as a public adjuster and for the duration of the license, the applicant shall secure evidence of financial responsibility in a format prescribed by the Director through a surety bond or irrevocable letter of credit, subject to all of the following requirements:
        (1) A surety bond executed and issued by an insurer
    
authorized to issue surety bonds in this State, which bond:
            (A) shall be in the minimum amount of $20,000;
            (B) shall be in favor of this State and shall
        
specifically authorize recovery by the Director on behalf of any person in this State who sustained damages as the result of erroneous acts, failure to act, conviction of fraud, or conviction of unfair practices in his or her capacity as a public adjuster; and
            (C) shall not be terminated unless at least 30
        
days' prior written notice will have been filed with the Director and given to the licensee; and
        (2) An irrevocable letter of credit issued by a
    
qualified financial institution, which letter of credit:
            (A) shall be in the minimum amount of $20,000;
            (B) shall be to an account to the Director and
        
subject to lawful levy of execution on behalf of any person to whom the public adjuster has been found to be legally liable as the result of erroneous acts, failure to act, fraudulent acts, or unfair practices in his or her capacity as a public adjuster; and
            (C) shall not be terminated unless at least 30
        
days' prior written notice will have been filed with the and given to the licensee.
    (b) The issuer of the evidence of financial responsibility shall notify the Director upon termination of the bond or letter of credit, unless otherwise directed by the Director.
    (c) The Director may ask for the evidence of financial responsibility at any time he or she deems relevant.
    (d) The authority to act as a public adjuster shall automatically terminate if the evidence of financial responsibility terminates or becomes impaired.
(Source: P.A. 96-1332, eff. 1-1-11.)

215 ILCS 5/1563

    (215 ILCS 5/1563)
    Sec. 1563. Fees. The fees required by this Article are as follows:
        (1) Public adjuster license fee of $250, payable once
    
every 2 years.
        (2) Business entity license fee of $250, payable once
    
every 2 years.
        (3) Application fee of $50 for processing each
    
request to take the written examination for a public adjuster license.
(Source: P.A. 100-863, eff. 8-14-18.)

215 ILCS 5/1565

    (215 ILCS 5/1565)
    Sec. 1565. Continuing education.
    (a) An individual who holds a public adjuster license and who is not exempt under subsection (b) of this Section shall satisfactorily complete a minimum of 24 hours of continuing education courses, including 3 hours of classroom ethics instruction, reported on a biennial basis in conjunction with the license renewal cycle.
    The Director may not approve a course of study unless the course provides for classroom, seminar, or self-study instruction methods. A course given in a combination instruction method of classroom or seminar and self-study shall be deemed to be a self-study course unless the classroom or seminar certified hours meets or exceeds two-thirds of the total hours certified for the course. The self-study material used in the combination course must be directly related to and complement the classroom portion of the course in order to be considered for credit. An instruction method other than classroom or seminar shall be considered as self-study methodology. Self-study credit hours require the successful completion of an examination covering the self-study material. The examination may not be self-evaluated. However, if the self-study material is completed through the use of an approved computerized interactive format whereby the computer validates the successful completion of the self-study material, no additional examination is required. The self-study credit hours contained in a certified course shall be considered classroom hours when at least two-thirds of the hours are given as classroom or seminar instruction.
    The public adjuster must complete the course in advance of the renewal date to allow the education provider time to report the credit to the Department.
    (b) This Section shall not apply to:
        (1) licensees not licensed for one full year prior to
    
the end of the applicable continuing education biennium; or
        (2) licensees holding nonresident public adjuster
    
licenses who have met the continuing education requirements of their home state and whose home state gives credit to residents of this State on the same basis.
    (c) Only continuing education courses approved by the Director shall be used to satisfy the continuing education requirement of subsection (a) of this Section.
(Source: P.A. 96-1332, eff. 1-1-11.)

215 ILCS 5/1570

    (215 ILCS 5/1570)
    Sec. 1570. Public adjuster fees.
    (a) A public adjuster shall not pay a commission, service fee, or other valuable consideration to a person for investigating or settling claims in this State if that person is required to be licensed under this Article and is not so licensed.
    (b) A person shall not accept a commission, service fee, or other valuable consideration for investigating or settling claims in this State if that person is required to be licensed under this Article and is not so licensed.
    (c) A public adjuster may pay or assign commission, service fees, or other valuable consideration to persons who do not investigate or settle claims in this State, unless the payment would violate State law.
    (d) A public adjuster may not charge, agree to, or accept any compensation, payment, commissions, fee, or other valuable consideration in excess of 10% of the amount of the insurance settlement claim paid by the insurer on any claim resulting from a catastrophic event, unless approved in writing by the Director. Application for exception to the 10% limit must be made in writing. The request must contain specific reasons as to why the consideration should be in excess of 10% and proof that the policyholder would accept the consideration. The Director must act on any request within 5 business days after receipt of the request.
    For the purpose of this subsection (d), "catastrophic event" means an occurrence of widespread or severe damage or loss of property producing an overwhelming demand on State and local response resources and mechanisms and a severe long-term effect on general economic activity, and that severely affects State, local, and private sector capabilities to begin to sustain response activities resulting from any catastrophic cause, including, but not limited to, fire, including arson (provided the fire was not caused by the willful action of an owner or resident of the property), flood, earthquake, wind, storm, explosion, or extended periods of severe inclement weather as determined by declaration of a State of disaster by the Governor. This declaration may be made on a county-by-county basis and shall be in effect for 90 days, but may be renewed for 30-day intervals thereafter.
(Source: P.A. 98-701, eff. 1-1-15.)

215 ILCS 5/1575

    (215 ILCS 5/1575)
    Sec. 1575. Contract between public adjuster and insured.
    (a) Public adjusters shall ensure that all contracts for their services are in writing and contain the following terms:
        (1) legible full name of the adjuster signing the
    
contract, as specified in Department records;
        (2) permanent home state business address and phone
    
number;
        (3) license number;
        (4) title of "Public Adjuster Contract";
        (5) the insured's full name, street address,
    
insurance company name, and policy number, if known or upon notification;
        (6) a description of the loss and its location, if
    
applicable;
        (7) description of services to be provided to the
    
insured;
        (8) signatures of the public adjuster and the insured;
        (9) date and time the contract was signed by the
    
public adjuster and date and time the contract was signed by the insured;
        (10) attestation language stating that the public
    
adjuster is fully bonded pursuant to State law; and
        (11) full salary, fee, commission, compensation, or
    
other considerations the public adjuster is to receive for services.
    (b) The contract may specify that the public adjuster shall be named as a co-payee on an insurer's payment of a claim.
        (1) If the compensation is based on a share of the
    
insurance settlement, the exact percentage shall be specified.
        (2) Initial expenses to be reimbursed to the public
    
adjuster from the proceeds of the claim payment shall be specified by type, with dollar estimates set forth in the contract and with any additional expenses first approved by the insured.
        (3) Compensation provisions in a public adjuster
    
contract shall not be redacted in any copy of the contract provided to the Director.
    (c) If the insurer, not later than 5 business days after the date on which the loss is reported to the insurer, either pays or commits in writing to pay to the insured the policy limit of the insurance policy, the public adjuster shall:
        (1) not receive a commission consisting of a
    
percentage of the total amount paid by an insurer to resolve a claim;
        (2) inform the insured that loss recovery amount
    
might not be increased by insurer; and
        (3) be entitled only to reasonable compensation from
    
the insured for services provided by the public adjuster on behalf of the insured, based on the time spent on a claim and expenses incurred by the public adjuster, until the claim is paid or the insured receives a written commitment to pay from the insurer.
    (d) A public adjuster shall provide the insured a written disclosure concerning any direct or indirect financial interest that the public adjuster has with any other party who is involved in any aspect of the claim, other than the salary, fee, commission, or other consideration established in the written contract with the insured, including, but not limited to, any ownership of or any compensation expected to be received from, any construction firm, salvage firm, building appraisal firm, board-up company, or any other firm that provides estimates for work, or that performs any work, in conjunction with damages caused by the insured loss on which the public adjuster is engaged. The word "firm" shall include any corporation, partnership, association, joint-stock company, or person.
    (e) A public adjuster contract may not contain any contract term that:
        (1) allows the public adjuster's percentage fee to be
    
collected when money is due from an insurance company, but not paid, or that allows a public adjuster to collect the entire fee from the first check issued by an insurance company, rather than as a percentage of each check issued by an insurance company;
        (2) requires the insured to authorize an insurance
    
company to issue a check only in the name of the public adjuster;
        (3) precludes a public adjuster or an insured from
    
pursuing civil remedies;
        (4) includes any hold harmless agreement that
    
provides indemnification to the public adjuster by the insured for liability resulting from the public adjuster's negligence; or
        (5) provides power of attorney by which the public
    
adjuster can act in the place and instead of the insured.
    (f) The following provisions apply to a contract between a public adjuster and an insured:
        (1) Prior to the signing of the contract, the public
    
adjuster shall provide the insured with a separate signed and dated disclosure document regarding the claim process that states:
    "Property insurance policies obligate the insured to
    
present a claim to his or her insurance company for consideration. There are 3 types of adjusters that could be involved in that process. The definitions of the 3 types are as follows:
            (A) "Company adjuster" means the insurance
        
adjusters who are employees of an insurance company. They represent the interest of the insurance company and are paid by the insurance company. They will not charge you a fee.
            (B) "Independent adjuster" means the insurance
        
adjusters who are hired on a contract basis by an insurance company to represent the insurance company's interest in the settlement of the claim. They are paid by your insurance company. They will not charge you a fee.
            (C) "Public adjuster" means the insurance
        
adjusters who do not work for any insurance company. They work for the insured to assist in the preparation, presentation and settlement of the claim. The insured hires them by signing a contract agreeing to pay them a fee or commission based on a percentage of the settlement, or other method of compensation.".
        (2) The insured is not required to hire a public
    
adjuster to help the insured meet his or her obligations under the policy, but has the right to do so.
        (3) The public adjuster is not a representative or
    
employee of the insurer.
        (4) The salary, fee, commission, or other
    
consideration is the obligation of the insured, not the insurer, except when rights have been assigned to the public adjuster by the insured.
    (g) The contracts shall be executed in duplicate to provide an original contract to the public adjuster, and an original contract to the insured. The public adjuster's original contract shall be available at all times for inspection without notice by the Director.
    (h) The public adjuster shall provide the insurer with an exact copy of the contract by the insured, authorizing the public adjuster to represent the insured's interest.
    (i) The public adjuster shall give the insured written notice of the insured's rights as a consumer under the law of this State.
    (j) A public adjuster shall not provide services until a written contract with the insured has been executed, on a form filed with and approved by the Director. At the option of the insured, any such contract shall be voidable for 5 business days after execution. The insured may void the contract by notifying the public adjuster in writing by (i) registered or certified mail, return receipt requested, to the address shown on the contract or (ii) personally serving the notice on the public adjuster.
    (k) If the insured exercises the right to rescind the contract, anything of value given by the insured under the contract will be returned to the insured within 15 business days following the receipt by the public adjuster of the cancellation notice.
(Source: P.A. 96-1332, eff. 1-1-11; 97-333, eff. 8-12-11.)

215 ILCS 5/1580

    (215 ILCS 5/1580)
    Sec. 1580. Escrow or trust accounts. A public adjuster who receives, accepts, or holds any funds on behalf of an insured towards the settlement of a claim for loss or damage shall deposit the funds in a non-interest bearing escrow or trust account in a financial institution that is insured by an agency of the federal government in the public adjuster's home state or where the loss occurred.
(Source: P.A. 96-1332, eff. 1-1-11.)

215 ILCS 5/1585

    (215 ILCS 5/1585)
    Sec. 1585. Record retention.
    (a) A public adjuster shall maintain a complete record of each transaction as a public adjuster. The records required by this Section shall include the following:
        (1) name of the insured;
        (2) date, location and amount of the loss;
        (3) a copy of the contract between the public
    
adjuster and insured and a copy of the separate disclosure document;
        (4) name of the insurer, amount, expiration date and
    
number of each policy carried with respect to the loss;
        (5) itemized statement of the insured's recoveries;
        (6) itemized statement of all compensation received
    
by the public adjuster, from any source whatsoever, in connection with the loss;
        (7) a register of all monies received, deposited,
    
disbursed, or withdrawn in connection with a transaction with an insured, including fees transfers and disbursements from a trust account and all transactions concerning all interest bearing accounts;
        (8) name of public adjuster who executed the contract;
        (9) name of the attorney representing the insured, if
    
applicable, and the name of the claims representatives of the insurance company; and
        (10) evidence of financial responsibility in a format
    
prescribed by the Director.
    (b) Records shall be maintained for at least 7 years after the termination of the transaction with an insured and shall be open to examination by the Director at all times.
    (c) Records submitted to the Director in accordance with this Section that contain information identified in writing as proprietary by the public adjuster shall be treated as confidential by the Director and shall not be subject to the Freedom of Information Act.
(Source: P.A. 96-1332, eff. 1-1-11.)

215 ILCS 5/1590

    (215 ILCS 5/1590)
    Sec. 1590. Standards of conduct of public adjuster.
    (a) A public adjuster is obligated, under his or her license, to serve with objectivity and complete loyalty for the interests of his client alone, and to render to the insured such information, counsel, and service, as within the knowledge, understanding, and opinion in good faith of the licensee, as will best serve the insured's insurance claim needs and interest.
    (b) A public adjuster may not propose or attempt to propose to any person that the public adjuster represent that person while a loss-producing occurrence is continuing, nor while the fire department or its representatives are engaged at the damaged premises, nor between the hours of 7:00 p.m. and 8:00 a.m.
    (c) A public adjuster shall not permit an unlicensed employee or representative of the public adjuster to conduct business for which a license is required under this Article.
    (d) A public adjuster shall not have a direct or indirect financial interest in any aspect of the claim, other than the salary, fee, commission, or other consideration established in the written contract with the insured, unless full written disclosure has been made to the insured as set forth in subsection (g) of Section 1575.
    (e) A public adjuster shall not acquire any interest in the salvage of property subject to the contract with the insured unless the public adjuster obtains written permission from the insured after settlement of the claim with the insurer as set forth in subsection (g) of Section 1575 of this Article.
    (f) The public adjuster shall abstain from referring or directing the insured to get needed repairs or services in connection with a loss from any person, unless disclosed to the insured:
        (1) with whom the public adjuster has a financial
    
interest; or
        (2) from whom the public adjuster may receive direct
    
or indirect compensation for the referral.
    (g) The public adjuster shall disclose to an insured if he or she has any interest or will be compensated by any construction firm, salvage firm, building appraisal firm, board-up company, or any other firm that performs any work in conjunction with damages caused by the insured loss. The word "firm" shall include any corporation, partnership, association, joint-stock company or individual as set forth in Section 1575 of this Article.
    (h) Any compensation or anything of value in connection with an insured's specific loss that will be received by a public adjuster shall be disclosed by the public adjuster to the insured in writing including the source and amount of any such compensation.
    (i) In all cases where the loss giving rise to the claim for which the public adjuster was retained arise from damage to a personal residence, the insurance proceeds shall be delivered to the named insured or his or her designee. Where proceeds paid by an insurance company are paid jointly to the insured and the public adjuster, the insured shall release such portion of the proceeds that are due the public adjuster within 30 calendar days after the insured's receipt of the insurance company's check, money order, draft, or release of funds. If the proceeds are not so released to the public adjuster within 30 calendar days, the insured shall provide the public adjuster with a written explanation of the reason for the delay.
    (j) Public adjusters shall adhere to the following general ethical requirements:
        (1) a public adjuster shall not undertake the
    
adjustment of any claim if the public adjuster is not competent and knowledgeable as to the terms and conditions of the insurance coverage, or which otherwise exceeds the public adjuster's current expertise;
        (2) a public adjuster shall not knowingly make any
    
oral or written material misrepresentations or statements which are false or maliciously critical and intended to injure any person engaged in the business of insurance to any insured client or potential insured client;
        (3) no public adjuster, while so licensed by the
    
Department, may represent or act as a company adjuster or independent adjuster on the same claim;
        (4) the contract shall not be construed to prevent an
    
insured from pursuing any civil remedy after the 5-business day revocation or cancellation period;
        (5) a public adjuster shall not enter into a contract
    
or accept a power of attorney that vests in the public adjuster the effective authority to choose the persons who shall perform repair work;
        (6) a public adjuster shall ensure that all contracts
    
for the public adjuster's services are in writing and set forth all terms and conditions of the engagement; and
        (7) a public adjuster shall not advance money or any
    
valuable consideration, except emergency services to an insured pending adjustment of a claim.
    (k) A public adjuster may not agree to any loss settlement without the insured's knowledge and consent and shall, upon the insured's request, provide the insured with a document setting forth the scope, amount, and value of the damages prior to request by the insured for authority to settle the loss.
    (l) A public adjuster shall not provide legal advice or representation to the insured or engage in the unauthorized practice of law.
    (m) A public adjuster shall not represent that he or she is a representative of an insurance company, a fire department, or the State of Illinois, that he or she is a fire investigator, that his or her services are required for the insured to submit a claim to the insured's insurance company, or that he or she may provide legal advice or representation to the insured. A public adjuster may represent that he or she has been licensed by the State of Illinois.
(Source: P.A. 96-1332, eff. 1-1-11.)

215 ILCS 5/1595

    (215 ILCS 5/1595)
    Sec. 1595. Reporting of actions.
    (a) The public adjuster shall report to the Director any administrative action taken against the public adjuster in another jurisdiction or by another governmental agency in this State within 30 days of the final disposition of the matter. This report shall include a copy of the order, consent to order, or other relevant legal documents.
    (b) Within 30 days of the initial pretrial hearing date, the public adjuster shall report to the Director any criminal prosecution of the public adjuster taken in any jurisdiction. The report shall include a copy of the initial complaint filed, the order resulting from the hearing, and any other relevant legal documents.
(Source: P.A. 96-1332, eff. 1-1-11.)

215 ILCS 5/1600

    (215 ILCS 5/1600)
    Sec. 1600. Examinations.
    (a) The Director shall have the power to examine any applicant or any person licensed or registered pursuant to this Article.
    (b) Every person being examined and its officers, directors, and members must provide to the Director convenient and free access, at all reasonable hours, to all books, records, documents, and other papers relating to its public adjusting affairs. The officers, directors, members, and employees must facilitate and aid in such examinations so far as it is in their power to do so.
    (c) Examiners may be designated by the Director. Such examiners shall make their reports to the Director pursuant to this Section. Any report alleging substantive violations shall be in writing and shall be based upon the facts ascertained from the books, records, documents, papers, and other evidence obtained by the examiners or ascertained from the testimony of the officers, directors, members, or other individuals examined under oath or ascertained by notarized affidavits received by the examiners. The reports shall be verified by the examiners.
(Source: P.A. 96-1332, eff. 1-1-11.)

215 ILCS 5/1605

    (215 ILCS 5/1605)
    Sec. 1605. Injunctive relief. Any person who acts as or holds himself out to be a public adjuster without holding a valid and current license to do so is hereby declared to be inimical to the public welfare and to constitute a public nuisance. The Director may report such practice to the Attorney General of the State of Illinois whose duty it is to apply forthwith by complaint on relation of the Director in the name of the people of the State of Illinois, as plaintiff, for injunctive relief in the circuit court of the county where such practice occurred to enjoin the person from engaging in such practice; and upon the filing of a verified petition in such court, the court, if satisfied by affidavit or otherwise that the person has been engaged in such practice without a valid and current license to do so, may enter a temporary restraining order without notice or bond enjoining the defendant from such further practice. A copy of the verified complaint shall be served upon the defendant and the proceedings shall thereafter be conducted as in other civil cases. If it is established that the defendant has been or is engaged in such unlawful practice, then the court may enter an order or judgment perpetually enjoining the defendant from such further practice. In all proceedings hereunder, the court, in its discretion, may apportion the costs among the parties interested in the action, including the costs of filing the complaint, service of process, witness fees and expenses, court reporter charges, and reasonable attorney fees. In case of violation of any injunctive order entered under the provisions of this Section, the court may try and punish the offender for contempt of court. Such injunction proceedings shall be in addition to, and not in lieu of, all penalties and other remedies.
(Source: P.A. 96-1332, eff. 1-1-11.)

215 ILCS 5/1610

    (215 ILCS 5/1610)
    Sec. 1610. Additional penalties. In addition to any other penalty set forth in this Article, any person violating Section 1605 of this Code shall be guilty of a Class A misdemeanor and any person misappropriating or converting any monies collected as a public adjuster, whether licensed or not, shall be guilty of a Class 4 felony.
(Source: P.A. 96-1332, eff. 1-1-11.)

215 ILCS 5/1615

    (215 ILCS 5/1615)
    Sec. 1615. Rules. The Director shall promulgate reasonable rules as are necessary or proper to carry out the purposes of this Article.
(Source: P.A. 96-1332, eff. 1-1-11.)