102ND GENERAL ASSEMBLY
State of Illinois
2021 and 2022
SB3466

 

Introduced 1/18/2022, by Sen. Antonio Muņoz

 

SYNOPSIS AS INTRODUCED:
 
215 ILCS 5/151  from Ch. 73, par. 763

    Amends the Illinois Insurance Code. In provisions concerning prohibited payment or acceptance of rebates, provides that nothing in the language shall prohibit an insurer, by or through its employees, affiliates, insurance producers, or third-party representatives, or an insurance producer acting on its own behalf, from offering or providing products or services that are at least tangentially related to an insurance contract or the administration of an insurance contract for free or for less than fair market value as long as the receipt of the products or services is not contingent upon the purchase of insurance and the products or services are offered on the same terms to all potential insurance customers based on documented objective criteria and in a manner that is not unfairly discriminatory.


LRB102 22346 BMS 32944 b

 

 

A BILL FOR

 

SB3466LRB102 22346 BMS 32944 b

1    AN ACT concerning regulation.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Insurance Code is amended by
5changing Section 151 as follows:
 
6    (215 ILCS 5/151)  (from Ch. 73, par. 763)
7    Sec. 151. Payment or acceptance of rebates prohibited. (1)
8No company doing business in this State and no insurance agent
9or broker shall offer, promise, allow, give, set off or pay,
10directly or indirectly, any rebate of or part of the premium
11payable on the policy, or on any policy or agent's commission
12thereon or earnings, profits, dividends or other benefits
13founded, arising, accruing or to accrue thereon or therefrom,
14or any special advantage in date of policy or age of issue, or
15any paid employment or contract for services of any kind or any
16other valuable consideration or inducement to or for insurance
17on any risk in this State, now or hereafter to be written, or
18for or upon any renewal of any such insurance, which is not
19specified in the policy contract of insurance, or offer,
20promise, give, option, sell, purchase any stocks, bonds,
21securities or property or any dividends or profits accruing or
22to accrue thereon, or other thing of value whatsoever as
23inducement to insurance or in connection therewith, or any

 

 

SB3466- 2 -LRB102 22346 BMS 32944 b

1renewal thereof which is not specified in the policy. Nothing
2in this Section shall prevent a company from paying a bonus to
3policyholders or otherwise abating their premiums in whole or
4in part out of surplus accumulated from nonparticipating
5insurance nor prevent a company which transacts industrial
6life insurance on a weekly payment plan from returning to
7policyholders who have made premium payments for a period of
8at least one year directly to the company at its home or
9district offices the percentage of premium which the company
10would otherwise have paid for the weekly collection of such
11premium nor shall this Section be construed to prevent the
12taking of a bona fide obligation, with interest at six per
13centum per annum, in payment of any premium.
14    Nothing in this Section shall prevent a company from
15offering a child passenger restraint system or a discount from
16the purchase price of a child passenger restraint system to
17policyholders, when the purpose of such restraint system is
18the safety of a child and compliance with the "Child Passenger
19Protection Act", approved June 27, 1983, as amended.
20    Nothing in this Section shall prohibit an insurer, by or
21through its employees, affiliates, insurance producers, or
22third-party representatives, or an insurance producer acting
23on its own behalf, from offering or providing products or
24services that are at least tangentially related to an
25insurance contract or the administration of an insurance
26contract for free or for less than fair market value as long as

 

 

SB3466- 3 -LRB102 22346 BMS 32944 b

1the receipt of the products or services is not contingent upon
2the purchase of insurance and the products or services are
3offered on the same terms to all potential insurance customers
4based on documented objective criteria and in a manner that is
5not unfairly discriminatory.
6    (2) No insured person or party or applicant for insurance
7shall directly or indirectly receive or accept, or agree to
8receive or accept any rebate of premium or of any part thereof
9or all or any part of any agent's or broker's commission
10thereon, or any favor or advantage, or share in any benefit to
11accrue under any policy of insurance, or any valuable
12consideration or inducement, other than such as is specified
13in the policy.
14(Source: P.A. 83-1320.)