(215 ILCS 5/397.1) (from Ch. 73, par. 1009.1)
Sec. 397.1.
Certificate regarding payment of taxes and expenses on
property sustaining loss.
(a) It shall be unlawful for any company transacting insurance business
in this State to pay a claim of an insured property owner for loss by fire
or explosion to a structure located in this State where the amount
recoverable for loss to the structure under a policy exceeds $25,000, until
the insurance company receives the certificate required by this Section. A
notice, to the State's Attorney of the county where the structure is
located, of the insurers intent to pay a claim shall include the name of
the property owner, the address of the property, its legal description, the
permanent real estate index number that identifies the property for
purposes of taxation, and the amount of the claim to be paid.
(b) For purposes of this Section, the following definitions are
applicable:
(1) "Insured property owner" is a person named as an |
| insured who is the owner, title-holder or mortgagee of a structure, the holder of an interest secured by the structure, the beneficiary of a land trust owning or holding title to a structure, the lessee of a structure with a contractual obligation for property taxes, or the assignee of any such person.
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(2) "Amount recoverable" is the dollar amount payable
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| under all insurance policies for loss to the structure.
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(3) "Proceeds" is the dollar amount payable for loss
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| to the structure under an insurance policy.
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(4) "Delinquent property taxes" are those property
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| taxes on the property which are delinquent pursuant to Section 21-15, 21-20, or 21-25 of the Property Tax Code, including those delinquent taxes on property forfeited under Section 21-225 of the Property Tax Code, as of the date of loss.
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In determining delinquent property taxes under this
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| Section, the amount of property taxes for which a certificate of error has been issued pursuant to Section 14-10 or 14-20 of the Property Tax Code shall not be considered delinquent.
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(5) "Incurred demolition expense" is: a. the cost of
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| demolishing or removing a structure from property by or at the expense of a unit of local government if the demolition or removal occurs on a date preceding the later of (i) the acceptance by the insurance company of a Proof of Loss for an agreed amount of proceeds, or (ii) the date of receipt by the unit of local government of a request for execution of the certificate required by this Section; or b. the amount estimated by the unit of local government when it receives a request to execute the certificate required by this Section; or c. the amount ordered to be withheld by a court within 28 days after a unit of local government receives a request for execution of the certificate required by this Section. The unit of local government must be a party to such proceeding.
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Incurred demolition expense shall be determined under
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| subparagraph a. whenever possible. In determining the incurred demolition expense under subparagraph b., the unit of local government shall make its estimate and execute the certificate within 30 days after receiving a request for execution. If the unit of local government shall fail within 30 days to execute the certificate, as required by subparagraph a., the company can proceed to make payment of the claim as if the certificate had been received showing no unpaid demolition costs. The request for execution may be served personally, and may be proven by a written receipt signed by the local official as of the date the request was made or by service on the local official by certified mail, return receipt requested. A court order under subparagraph c. shall supersede an estimate under subparagraph b.
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(6) "Property" is the lot on which the structure is
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(7) "Structure" is a building.
(8) "Claim" is the demand by an insured for payment
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| under an insurance policy or policies.
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(9) "Proof of Loss" is the document on which an
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| insured formally presents his claim to an insurance company.
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(10) "Certificate" is the executed form prescribed by
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| the Director of Insurance.
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(11) "Executed" means signed by the appropriate
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| official or unit of government.
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(c) For any claim to which this Section is applicable, an insured
property owner must submit one of the following to the insurance
company:
(1) a certificate that with respect to the property
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a. no delinquent property taxes, and
b. no unpaid incurred demolition expenses;
(2) a certificate setting forth with respect to the
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a. the amount of unpaid delinquent property taxes,
b. the amount of unpaid incurred demolition
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c. a direction by an insured property owner to
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| the insurance company to pay the unpaid delinquent property taxes and unpaid incurred demolition expenses.
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(d) (1) Except as provided in paragraph (2) of this
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| subsection (d), if a certificate is submitted pursuant to paragraph (2) of subsection (c) of this Section, the insurance company shall pay the unpaid delinquent property taxes and unpaid incurred demolition expense from the proceeds payable by issuing a draft or check payable to the appropriate tax collector or unit of local government.
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Any proceeds remaining shall be paid to the insured
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(2) In the event incurred demolition expense is
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| determined by estimation under paragraph (5) of subsection (b) of this Section in cities of over 2,000,000, the insurance company shall hold the amount estimated until an amended certificate executed by the appropriate local government official is submitted stating (i) that no demolition expense will be incurred or (ii) the actual unpaid incurred demolition expense. The insurance company shall then issue a draft or check payable to the unit of local government for the actual unpaid incurred demolition expense. Any proceeds remaining shall be paid to the insured property owner.
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In determining the amount of proceeds remaining under
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| this paragraph, the insured property owner shall receive interest on the amount withheld from the date the certificate is executed as provided in Section 2 of the Interest Act.
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(e) If, under this Section, the proceeds payable are less than the
amount of the unpaid delinquent property taxes and unpaid incurred
demolition expense, unpaid property taxes shall be paid first.
(f) If incurred demolition expense withheld pursuant to
subparagraphs b. or c. of paragraph 5 of subsection (b) of this Section
exceeds the ultimate cost of demolition, the excess shall first be
applied to unpaid delinquent property taxes. Any amount of proceeds
remaining shall be paid to the insured property owner.
(g) Nothing in this Section shall be construed as:
(1) making an insurance company liable for any amount
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| in excess of the proceeds payable under its insurance policy unless the insurance company shall have made payment to the named insured without satisfying the requirements of this Section;
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(2) making a unit of local government or tax
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| collector an insured under an insurance policy; or
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(3) creating an obligation for an insurance company
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| to pay unpaid delinquent property taxes or unpaid incurred demolition expense other than as provided in subsection (d) of this Section.
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(h) An insurance company making a payment of proceeds under this
Section for unpaid delinquent taxes or unpaid incurred demolition
expense shall be entitled to the full benefit of such payment, including
subrogation rights and other rights of assignment.
(i) Unpaid property taxes and unpaid incurred demolition expense for
a claim for loss to a structure occurring after the issuance of a tax
deed pursuant to Section 22-40 of the Property Tax Code shall not include any
unpaid property tax or unpaid demolition expense arising before the issuance of
the tax deed.
(j) The county collector shall be designated as the local
official who shall execute the certificate required by this Section regarding
delinquent property taxes. The village clerk or city clerk in incorporated
areas and the official in charge of the county building department in
unincorporated areas shall be designated as
the local official who shall execute the certificate required by this Section
regarding demolition expenses.
(k) A fee not to exceed $5 may be charged by a unit of local
government for execution of the certificate required by this Section.
(l) This Section shall retroactively apply to any policy issued or renewed
on or after January 1, 1978 for which a claim subject to this Section remains
unpaid as of the effective date of this amendatory Act of 1978.
(Source: P.A. 87-507; 88-667, eff. 9-16-94; 88-670, eff. 12-2-94.)
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(215 ILCS 5/401) (from Ch. 73, par. 1013)
Sec. 401. General powers of the director. The Director is charged with the rights, powers and duties appertaining
to the enforcement and execution of all the insurance laws of this State.
He shall have the power
(a) to make reasonable rules and regulations as may |
| be necessary for making effective such laws;
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(b) to conduct such investigations as may be
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| necessary to determine whether any person has violated any provision of such insurance laws;
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(c) to conduct such examinations, investigations and
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| hearings in addition to those specifically provided for, as may be necessary and proper for the efficient administration of the insurance laws of this State; and
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(d) to institute such actions or other lawful
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| proceedings as he may deem necessary for the enforcement of the Illinois Insurance Code or of any Order or action made or taken by him under this Code. The Attorney General, upon request of the Director, may proceed in the courts of this State to enforce an Order or decision in any court proceeding or in any administrative proceeding before the Director.
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Whenever the Director is authorized or
required by law to consider some aspect of criminal history record
information for the purpose of carrying out his statutory powers and
responsibilities, then, upon request and payment of fees in conformance
with the requirements of Section 2605-400 of the Illinois State Police Law, the Illinois State Police is
authorized to furnish, pursuant to positive identification, such
information contained in State files as is necessary to meet the
requirements of such authorization or statutes.
(Source: P.A. 102-538, eff. 8-20-21.)
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(215 ILCS 5/401.1) (from Ch. 73, par. 1013.1)
Sec. 401.1.
(1) This Section applies to all companies and persons subject to
examination by the Director, or purporting to do insurance business in
this State, or in the process of organization with intent to do such
business therein, or for whom a Certificate of Authority is required for
the transaction of business, or whose Certificate of Authority is
revoked or suspended.
(2) Whenever it appears to the Director that any person or company
subject to this Code is conducting its business and affairs in such a
manner as to threaten to render it insolvent, or that it is in a
hazardous condition, or is conducting its business and affairs in a
manner which is hazardous to its policyholders, creditors or the public,
or that it has committed or engaged in, or is committing or engaging in,
any unlawful act, or any act, practice or transaction which under any
provision of this Code would constitute ground rendering the person
subject to conservation, liquidation or rehabilitation proceedings and
that irreparable loss and injury to the property and business of a
person or company has occurred or may occur unless the Director acts
immediately, the Director may, without notice, and before hearing, issue
and cause to be served upon such person or company an order requiring
such person or company to forthwith cease and desist from engaging
further in the acts, practices or transactions which are causing such
conduct, condition or ground to exist.
(3) At the same time an order is served pursuant to paragraph (2) of
this Section, the Director must issue and also serve upon the person or
company a notice of hearing to be held at a time and place fixed therein
which may not be less than 20 or more than 30 days after the service
thereof. The notice must contain a statement of the conduct, condition
or ground which the Director deems violative of the provisions of this
Section.
(4) If, after hearing as provided by paragraph (3) of this Section,
any of the statements as to conduct, conditions or grounds in the notice
are found to be true, the Director may make such order or orders as may
be reasonably necessary to correct, eliminate or remedy such conduct,
conditions or grounds.
(5) Any person or company subject to an order pursuant
to this Article is entitled to judicial review of the order in accordance
with the provisions of the Administrative Review Law.
(6) If any person or company violates or fails to comply with any
order of the Director or any part thereof which as to such person has
become final and is still in effect, the Director may, after a hearing
and notice at which it is determined that a violation of such order has
been committed, further order that:
(a) Such person shall forfeit and pay to the State of Illinois a sum
not to exceed $100 per day for each and every day that such violation or
failure to comply shall continue, but in no event to exceed a maximum
amount of $5,000. Such liability shall be enforced in an action brought
in any court of competent jurisdiction by the Director in the name of
the people of the State of Illinois; and
(b) Proceedings be commenced to revoke or suspend any license or
Certificate of Authority held by such person under this Code, in
accordance with the procedures provided therefor.
(7) The powers vested in the Director by this Section are additional
to any and all other powers and remedies vested in the Director by law,
and nothing herein shall be construed as requiring that the Director
shall employ the powers conferred herein instead of or as a condition
precedent to the exercise of any other power or remedy vested in the
Director.
(8) Any order or notice of the Director hereunder may be served on
any person, in the same manner and with the same effect as provided for
in civil actions in a Circuit Court of this State.
(Source: P.A. 82-783.)
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(215 ILCS 5/401.5)
Sec. 401.5.
Investigation of insurance law violations.
(a) If the Director of Insurance has cause to
believe that a person has engaged in, or is engaging in, an act,
activity, or practice that constitutes a business offense,
misdemeanor, or felony violation of the Illinois Insurance Code or related
insurance laws, he or she shall designate appropriate investigators or
agents to investigate the violations. For purposes of carrying
out investigations under this Section, the Department of Insurance is deemed a
criminal justice agency under all federal and State laws
and regulations, and as such shall have access to any information that concerns
or relates to a violation of the Illinois Insurance Code or
related insurance laws and that is available to criminal justice
agencies.
(b) The Director of Insurance may
transmit or receive written or oral information relating to possible violations
of the insurance laws of this State received by or from any other criminal
justice agencies, whether federal, State, or local, if, in the opinion of
the Director, the transmittal is appropriate and may further the
effective prevention of criminal activities.
(c) The Department of Insurance's papers, documents, reports,
or evidence relevant to the subject of an investigation under this Section
is not subject to public inspection for so long as the
Department deems reasonably necessary to complete the investigation, to protect
the person investigated
from unwarranted injury, or to be in the public interest. Further, the papers,
documents, reports, or evidence relevant to the subject of an
investigation under this Section is not subject to
subpoena until opened for public inspection by the Department, unless the
Department consents, or until, after notice to the Department and a hearing,
the court determines the Department would not be unnecessarily hindered by
the subpoena. No officer, agent, or employee of the
Department is subject to subpoena in civil actions by a court of this State to
testify concerning a matter of which
they have knowledge under a pending insurance fraud
investigation by the Department.
(d) No insurer, or employees or agents of an
insurer, are subject
to civil liability for libel or otherwise by virtue of furnishing information
required by the insurance laws of this State or required by the Department
of Insurance as a result of its investigation. No cause of action exists and
no liability may be imposed, either civil or criminal,
against the State, the Director, any officer, agent, or employee of the
Department of Insurance, or individuals employed or retained by the Director,
for an act or omission by them in the performance of a
power or duty authorized by this Section, unless the act or
omission
was performed in bad faith and with intent to injure a particular person.
(e) The powers vested in the Director by this Section are
additional to other powers and remedies vested in the Director
by law, and nothing in this Section shall be construed as
requiring that the Director shall employ the powers conferred in this
Section instead of or as a condition precedent to the exercise of
any other power or remedy vested in the Director. The Director may establish
systems and procedures for carrying out investigations under this Section as
are necessary to avoid the impairment or compromise of his or her authority
under this Section or any other law relating to the regulation of insurance.
(Source: P.A. 89-234, eff. 1-1-96.)
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(215 ILCS 5/403) (from Ch. 73, par. 1015)
Sec. 403.
Power to subpoena and examine witnesses.
(1) In the conduct of any examination, investigation or hearing provided
for by this Code, the Director or other officer designated by him or her to
conduct the same, shall have power to compel the attendance of any person
by subpoena, to administer oaths and to examine any person under oath
concerning the business, conduct or affairs of any company or person
subject to the provisions of this Code, and in connection therewith to
require the production of any books, records or papers relevant to the
inquiry.
(2) If a person subpoenaed to attend such inquiry fails to obey the
command of the subpoena without reasonable excuse, or if a person in
attendance upon such inquiry shall, without reasonable cause, refuse to be
sworn or to be examined or to answer a question or to produce a book or
paper when ordered to do so by any officer conducting such inquiry, or if
any person fails to perform any act required hereunder to be performed,
he or she shall be required to pay a penalty of not more than $2,000
to be recovered in the name of the People of the State of Illinois by the
State's Attorney
of the county in which the violation occurs, and the penalty so recovered
shall be paid into the county treasury.
(3) When any person neglects or refuses without reasonable cause to obey
a subpoena issued by the Director, or refuses without reasonable cause to
testify, to be sworn or to produce any book or paper described in the
subpoena, the Director may file a petition against such person in the
circuit court of the county in which the testimony is desired to be or has
been taken or has been attempted to be taken, briefly setting forth the
fact of such refusal or neglect and attaching a copy of the subpoena and
the return of service thereon and applying for an order requiring such
person to attend, testify or produce the books or papers before the
Director or his or her actuary, supervisor, deputy or examiner, at such
time or place as may be specified in such order. Any circuit court of this
State, upon the filing of such petition, either before or after
notice to such person, may, in the judicial discretion of such court, order
the attendance of such person, the production of books
and papers and the giving of testimony before the Director or any of his
or her actuaries, supervisors, deputies or examiners. If such person shall fail or
refuse to obey the order of the court and it shall appear to the court that
the failure or refusal of such person to obey its order is wilful, and
without lawful excuse, the court shall punish such person by fine or
imprisonment in the county jail, or both, as the nature of the case may
require, as is now, or as may hereafter be lawful for the court to do in
cases of contempt of court.
(4) The fees of witnesses for attendance and travel shall be the same as
the fees of witnesses before the circuit courts of this State. When a
witness is subpoenaed by or testifies at the instance of the Director or
other officer designated by him or her, such fees shall be paid in the
same manner as other expenses of the Department. When a witness is subpoenaed
or
testifies at the instance of any other party to any such proceeding, the
cost of the subpoena or subpoenas duces tecum and the fee of the witness
shall be borne by the party at whose instance a witness is summoned. In
such case, the Department in its discretion, may require a deposit to cover
the cost of such service and witness fees.
(Source: P.A. 93-32, eff. 7-1-03.)
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(215 ILCS 5/404) (from Ch. 73, par. 1016)
Sec. 404. Office of Director; a public office; destruction or
disposal of records, papers, documents, and memoranda.
(1)(a) The office of the Director shall be a public office and the
records,
books, and papers thereof on file
therein, except those records
or documents containing or disclosing any analysis, opinion, calculation,
ratio, recommendation, advice, viewpoint, or estimation by any Department staff
regarding the financial or market condition of an insurer not otherwise made
part of the public record by the Director,
shall be accessible to the
inspection of the public, except as the Director, for good reason, may
decide otherwise, or except as may be otherwise provided in this Code or as otherwise provided in Section 7 of the Freedom of Information Act.
(b) Except where another provision of this Code expressly prohibits a
disclosure of confidential information to the specific officials or
organizations described in this subsection, the Director may disclose or share
any confidential records or information in his custody and control with any
insurance regulatory officials of any state or country, with the law
enforcement officials of this State, any other state, or the federal
government, or with the National Association of Insurance Commissioners, upon
the written agreement of the official or organization receiving the information
to hold the information or records confidential and in a manner consistent with
this Code.
(c) The Director shall maintain as confidential any records or
information received from the National Association of Insurance Commissioners
or insurance regulatory officials of other states which is confidential in that
other jurisdiction.
(2) Upon the filing of the examination to which they relate, the Director
is authorized to destroy or otherwise dispose of all working papers relative
to any company which has been examined at any time prior to that last
examination by the Department, so that in such circumstances only current
working papers of that last examination may be retained by the Department.
(3) Five years after the conclusion of the transactions to
which they relate, the Director is authorized to destroy or otherwise
dispose of all books, records, papers, memoranda and correspondence
directly related to consumer complaints or inquiries.
(4) Two years after the conclusion of the transactions to which they
relate, the Director is authorized to destroy or otherwise dispose of all
books, records, papers, memoranda, and correspondence directly related to
all void, obsolete, or superseded rate filings and schedules required to be
filed by statute; and all individual company rating experience data and all
records, papers, documents and memoranda in the possession of the Director
relating thereto.
(5) Five years after the conclusion of the transactions to which
they relate, the Director is authorized to destroy or otherwise dispose
of all examination reports of companies made by the insurance supervisory
officials of states other than Illinois; applications, requisitions, and
requests for licenses; all records of hearings; and all similar records,
papers, documents, and memoranda in the possession of the Director.
(6) Ten years after the conclusion of the transactions to which they
relate, the Director is authorized to destroy or otherwise dispose of all
official correspondence of foreign and alien companies, all foreign
companies' and alien companies' annual statements, valuation reports, tax
reports, and all similar records, papers, documents and memoranda in the
possession of the Director.
(7) Whenever any records, papers, documents or memoranda are
destroyed or otherwise disposed of pursuant to the provisions of this
section, the Director shall execute and file in a separate, permanent
office file a certificate listing and setting forth by summary
description the records, papers, documents or memoranda so destroyed or
otherwise disposed of, and the Director may, in his discretion, preserve
copies of any such records, papers, documents or memoranda by means of
microfilming or photographing the same.
(8) This Section shall apply to records, papers, documents, and
memoranda presently in the possession of the Director as well as to
records, papers, documents, and memoranda hereafter coming into his
possession.
(Source: P.A. 97-1004, eff. 8-17-12.)
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