Illinois General Assembly - Illinois Compiled Statutes

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215 ILCS 5/132

(215 ILCS 5/132) (from Ch. 73, par. 744)

Sec. 132.

Market conduct and non-financial examinations.

(1) The Director, for the purposes of ascertaining the
non-financial business practices, performance, and operations of any
company, may make
examinations of:

(a) any company transacting or being organized to

transact business in this State;

(b) any person engaged in or proposing to be engaged

in the organization, promotion, or solicitation of shares or capital contributions to or aiding in the formation of a company;

(c) any person having a contract, written or oral,

pertaining to the management or control of a company as general agent, managing agent, or attorney-in-fact;

(d) any licensed or registered producer, firm, or

administrator, or any person, organization, or corporation making application for any licenses or registration;

(e) any person engaged in the business of adjusting

losses or financing premiums; or

(f) any person, organization, trust, or corporation

having custody or control of information reasonably related to the operation, performance, or conduct of a company or person subject to the jurisdiction of the Director.

(2) Every company or person being examined and its officers, directors,
and agents must provide to the Director convenient and free access at
all reasonable hours at its office or location to all books, records,
documents, and any or all papers relating to the
business, performance, operations, and affairs of the company. The
officers, directors, and
agents of the company or person must facilitate the examination and aid
in the examination so far as it is in their power to do so.

The Director and any authorized examiner have the power to administer
oaths and examine under oath
any person relative to the business of the company being examined.

(3) The examiners designated by the Director under Section 402 must
make a full and true report of every examination made by them, which
contains only facts ascertained from the books, papers, records, or documents,
and other evidence obtained by investigation
and examined by them or ascertained from the testimony of officers or
agents or other persons examined under oath concerning the business,
affairs, conduct, and performance of the
company or person. The report of
examination must be verified by the oath of the examiner in charge
thereof, and when so verified is prima facie evidence in any action or
proceeding in the
name of the State against the company, its officers, or agents upon the
facts stated therein.

(4) The Director must notify the company or person made the subject of
any examination hereunder of the
contents of the verified examination report before filing it and making the
report public of any matters relating thereto, and must afford the
company or person an opportunity to demand a hearing with reference to
the facts and other evidence therein contained.

The company or person may request a hearing within 10 days after
receipt of the examination report by giving the Director written notice
of that request, together with a statement of its objections. The
Director must then conduct a hearing in accordance with Sections 402 and
403. He must issue a written order based upon the examination report and
upon the hearing within 90 days after the report is filed or within 90
days after the hearing.

If the examination reveals that the company is operating in violation
of any law, regulation, or prior order, the Director in the written
order may require the company or person to take any action he considers
necessary or appropriate in accordance with the report of examination
or any hearing thereon. The order is subject to judicial review under
the Administrative Review Law.
The Director may withhold any report from public
inspection for such time as he may deem proper and may, after filing the
same, publish any part or all of the report as he considers to be in the
interest of the public, in one or more newspapers in this State, without
expense to the company.

(5) Any company which or person who violates or aids and abets any
violation of a written order issued under this Section shall be guilty
of a business offense and may be fined not more than $5,000. The penalty
shall be paid into the General Revenue fund of the State of Illinois.

(Source: P.A. 87-108.)