Full Text of SB1647 96th General Assembly
SB1647 96TH GENERAL ASSEMBLY
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96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010 SB1647
Introduced 2/19/2009, by Sen. William R. Haine SYNOPSIS AS INTRODUCED: |
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215 ILCS 5/1402 |
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215 ILCS 5/1407 |
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Amends the Illinois Insurance Code. Provides that the definition for "financial institution" includes any farm credit lending institution, including, but not limited to, a farm credit bank, farm credit association, or production credit association, whether operating under the authority of the federal Farm Credit Administration or any similar federal or State authority, and any subsidiary of that farm credit lending institution. Provides that no discount on or return of any portion of a premium or commission, whether in the form of a rebate or as part of any dividend or other financial consideration offered to a customer of any financial institution, may be offered or paid if that discount or return would provide an incentive for the customer to purchase an insurance policy, to purchase additional insurance coverage, or to obtain credit from or through a particular financial institution. Effective immediately.
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A BILL FOR
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SB1647 |
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| AN ACT concerning insurance.
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| Be it enacted by the People of the State of Illinois,
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| represented in the General Assembly:
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| Section 5. The Illinois Insurance Code is amended by | 5 |
| changing Sections 1402 and 1407 as follows:
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| (215 ILCS 5/1402)
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| Sec. 1402. Definitions. For the purposes of this Article:
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| "Financial institution" means:
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| (1) a State bank, a national bank, or an out-of-state | 10 |
| bank, as those terms
are defined in the Illinois Banking | 11 |
| Act, or any subsidiary of a State bank, a
national bank, or | 12 |
| an out-of-state bank;
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| (2) a foreign banking corporation, as that term is | 14 |
| defined in the Foreign
Banking Office Act, or any | 15 |
| subsidiary of a foreign banking corporation;
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| (3) a corporate fiduciary, as that term is defined in | 17 |
| the Corporate
Fiduciary
Act;
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| (4) a savings bank organized under the Savings Bank | 19 |
| Act, an out-of-state
savings bank chartered under the laws | 20 |
| of a state other than Illinois, a
territory of the United | 21 |
| States, or the District of Columbia, or a federal
savings | 22 |
| bank
organized under federal law, or any subsidiary of a | 23 |
| savings bank, an
out-of-state savings bank or a federal |
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LRB096 08490 RPM 18610 b |
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| savings bank;
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| (5) an association or federal association, as those | 3 |
| terms are defined in
the
Illinois Savings and Loan Act of | 4 |
| 1985, or any subsidiary of an association or
federal | 5 |
| association;
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| (6) an out-of-state savings and loan association | 7 |
| chartered under the laws
of
a state other than Illinois, a | 8 |
| territory of the United States or the District
of Columbia, | 9 |
| or a federal savings and loan association organized under | 10 |
| federal
law whose principal business office is located | 11 |
| outside of Illinois, or any
subsidiary of an out-of-state | 12 |
| savings and loan association or federal savings
and loan | 13 |
| association whose principal business office is located | 14 |
| outside of
Illinois; or
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| (7) a credit union as defined in the Illinois Credit | 16 |
| Union Act, or any
subsidiary of a credit union ; or .
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| (8) any farm credit lending institution, including, | 18 |
| but not limited to, a farm credit bank, farm credit | 19 |
| association, and production credit association, whether | 20 |
| operating under the authority of the federal Farm Credit | 21 |
| Administration or any similar federal or State authority, | 22 |
| and any subsidiary of that farm credit lending institution. | 23 |
| To the extent that any entity other than a financial | 24 |
| institution conducts
insurance activities in this State on | 25 |
| behalf of or on the premises of the
financial
institution, such | 26 |
| entity shall be subject to this Article for the purposes of
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| those activities.
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| "Insurance" means all lines of insurance defined and | 3 |
| regulated as insurance
under this Code, but for the purposes of | 4 |
| this Article, "insurance" shall not
include the following lines | 5 |
| of insurance, provided that this paragraph shall
not be deemed | 6 |
| to preclude or otherwise limit regulation of the following | 7 |
| lines
of insurance pursuant to and to the extent otherwise | 8 |
| provided by any other
insurance law of this State:
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| (1) credit life, credit accident and health, credit | 10 |
| involuntary
unemployment,
credit casualty and credit | 11 |
| property insurance;
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| (2) extended service contracts and warranty | 13 |
| agreements;
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| (3) insurance obtained by the debtor to provide payment | 15 |
| for the difference
between the remaining balance on a loan | 16 |
| or other extension of credit and the
amount of insurance | 17 |
| coverage on the collateral securing the loan or other
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| extension of credit;
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| (4) insurance placed by a financial institution on | 20 |
| collateral used in
connection with a loan or other | 21 |
| extension of credit when a debtor breaches the
contractual | 22 |
| obligation to provide that insurance;
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| (5) title insurance regulated by the Title Insurance | 24 |
| Act; and
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| (6) private mortgage insurance and financial guarantee | 26 |
| insurance.
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| (Source: P.A. 90-41, eff. 10-1-97.)
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| (215 ILCS 5/1407)
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| Sec. 1407. Rebating and discounting.
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| (a) No financial institution may offer a rebate on
an | 5 |
| insurance product in violation of Section 151 of this
Code. No | 6 |
| discount on or return of any portion of a premium or | 7 |
| commission, whether in the form of a rebate or as part of any | 8 |
| dividend or other financial consideration offered to a customer | 9 |
| of any financial institution, may be offered or paid if that | 10 |
| discount or return would provide an incentive for the customer | 11 |
| to purchase an insurance policy, to purchase additional | 12 |
| insurance coverage, or to obtain credit from or through a | 13 |
| particular financial institution.
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| (b) No financial institution may offer a discount on a loan | 15 |
| or extension of
credit for the purpose of inducing the customer | 16 |
| to purchase insurance required
in connection with the loan or | 17 |
| extension of credit.
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| (Source: P.A. 90-41, eff. 10-1-97.)
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| Section 99. Effective date. This Act takes effect upon | 20 |
| becoming law.
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