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Illinois Compiled Statutes
Information maintained by the Legislative Reference Bureau Updating the database of the Illinois Compiled Statutes (ILCS) is an ongoing process. Recent laws may not yet be included in the ILCS database, but they are found on this site as Public Acts soon after they become law. For information concerning the relationship between statutes and Public Acts, refer to the Guide. Because the statute database is maintained primarily for legislative drafting purposes, statutory changes are sometimes included in the statute database before they take effect. If the source note at the end of a Section of the statutes includes a Public Act that has not yet taken effect, the version of the law that is currently in effect may have already been removed from the database and you should refer to that Public Act to see the changes made to the current law.
INSURANCE (215 ILCS 5/) Illinois Insurance Code. 215 ILCS 5/396
(215 ILCS 5/396) (from Ch. 73, par. 1008)
Sec. 396.
Loss and
loss expense reserves.
(1) Every company authorized to transact in this State any of the kinds
of business described in Class 3 of Section 4 shall, at all times, maintain
reserves in an amount estimated in the aggregate to provide for the payment
of all losses and claims incurred, whether reported or unreported, which
are unpaid and for which such company may be liable, and to provide for the
expenses of adjustment or settlement of such losses and claims. For the
purpose of such reserves, the company shall keep a complete and itemized
record showing all losses and claims on which it has received notice,
including all notices received by it of the occurrence of any event which
may result in a loss. Such record shall be opened in chronological receipt
order, with each notice of loss or claim identified by appropriate number
or coding.
(2) Whenever the loss and loss expense experience of such company shows
the reserves, calculated in accordance with the foregoing provisions, to be
inadequate, the Director may require such company to maintain additional
reserves.
(Source: Laws 1967, p. 1819.)
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215 ILCS 5/397
(215 ILCS 5/397) (from Ch. 73, par. 1009)
Sec. 397.
Standard fire policy.) The Director of Insurance shall
promulgate such rules and regulations as may be necessary to effect
uniformity in all basic policies of fire and lightning insurance issued
in this State, to the end that there be concurrency of contract where
two or more companies insure the same risk.
(Source: P.A. 80-1441.)
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215 ILCS 5/397.05
(215 ILCS 5/397.05) (from Ch. 73, par. 1009.05)
Sec. 397.05.
Standard fire policy; appraisal.
When an insured
requests an appraisal under a policy of fire and extended coverage
insurance, as defined in subsection (b) of Section 143.13, and the
insured's full amount of appraised loss is upheld by agreement of the
appraisers or the umpire, then the insured's appraisal fee and umpire's
appraisal fee shall be paid by the insurer.
(Source: P.A. 87-681.)
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215 ILCS 5/397.1
(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
| | under all insurance policies for loss to the structure.
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(3) "Proceeds" is the dollar amount payable for loss
| | to the structure under an insurance policy.
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(4) "Delinquent property taxes" are those property
| | 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
| | 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
| | 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
| | 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
| | under an insurance policy or policies.
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(9) "Proof of Loss" is the document on which an
| | insured formally presents his claim to an insurance company.
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(10) "Certificate" is the executed form prescribed by
| | the Director of Insurance.
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(11) "Executed" means signed by the appropriate
| | 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
| | 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
| | 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
| | 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
| | 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
| | 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
| | collector an insured under an insurance policy; or
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(3) creating an obligation for an insurance company
| | 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 5/399
(215 ILCS 5/399) (from Ch. 73, par. 1011)
Sec. 399.
Combination policies.
Two or more companies authorized to transact business in this State
may issue a combination or group form of policy, using a distinctive
title therefor, which title shall appear at the head of such policy
followed by the titles of the companies obligated thereupon, and which
policy shall be executed by the officers of each such companies;
provided, that before such companies shall issue such combination or
group policy, the title of such proposed policy and the terms of the
additional provisions thereof, hereby authorized, shall have been filed
with the Director, which terms, in addition to the provisions of the
standard policy and not inconsistent therewith, shall provide
substantially under a separate title therein, as follows:
(a) that each company executing such policy shall be liable for the
full amount of any loss or damage, according to the terms of the policy,
or a specific percentage thereof;
(b) that service of process, or of any notice or proof of loss
required by the said policy, upon any of the companies executing the
same shall be deemed to be service upon all; and provided further that
the unearned premium liability on each policy so issued shall be
maintained by each of such companies on the basis of the liability of
each to the insured thereunder.
(Source: Laws 1937, p. 696.)
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215 ILCS 5/400
(215 ILCS 5/400) (from Ch. 73, par. 1012)
Sec. 400.
Supplemental or comprehensive contracts.
Forms for supplemental contracts or comprehensive contracts whereby
the property described may be insured against one or more risks
specified in Class 2 or Class 3 of Section 4, in addition to the risk of
direct loss or damage by fire, and forms of fire policies on farm
property may be approved by the Director and their use in connection
with or in lieu of a standard fire insurance policy may be authorized by
the Director.
(Source: Laws 1937, p. 696.)
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215 ILCS 5/400.1
(215 ILCS 5/400.1) (from Ch. 73, par. 1012.1)
Sec. 400.1. Group or master policy-certificate inland marine
insurance authorized. (1) Any insurance company authorized to write inland
marine insurance in this State may issue group or master policy-certificate inland
marine policies which may include coverages incidental or supplemental to the
inland marine policy, if the insurer is authorized to write the class of coverage
which is incidental or supplemental. No policy, certificate of insurance, memorandum
of insurance, application for insurance, endorsement or rider, may be issued
for delivery
in this State unless a copy of the form thereof shall have been filed with the Director
of Insurance and approved, or unless exempted from filing by such
rules and regulations as may be promulgated by the Director.
(2) The Director shall within 90 days after the filing of such forms disapprove
any such
form if the benefits provided therein are not reasonable in relation to
the premium charged, or
if it contains provisions that are unjust, unfair, inequitable, misleading,
deceptive, or
encourage misrepresentation of the coverage, or are contrary to any provision
of this
Code, or any rule or regulation promulgated thereunder. The Director may,
upon written notice
within such waiting period to the company which made the filing, extend
such waiting period for
an additional 30 days. A filing shall be deemed to meet the requirements
of this Section unless
disapproved by the Director within the waiting period or the extension thereof.
(3) If the Director notifies the insurer that the form is disapproved,
the insurer shall not
issue or use such form. In such notice the Director shall specify the reason
for his disapproval.
The company may request a hearing on such disapproval within 30 days after
receipt of such
disapproval. The Director shall grant a hearing subsequent to the receipt
of such request.
(4) The Director may, at any time after a hearing held not less than 20
days after written
notice to the insurer, withdraw his approval of any such form on any ground set forth in
subsection (2) above. The written notice of such hearing shall state the
reason for the proposed
withdrawal.
(5) It is not lawful for the insurer to issue such forms or use them after
the effective
date of such withdrawal.
(6) The Director may at any time require the filing of the schedules of premium rates
used or to be used in connection with the specific policy filings required.
(7) The Director shall promulgate such rules and regulations as he may
deem necessary to
provide for the filing and review of premium rates schedules, and for the
disapproval of those
he may deem to be inadequate, excessive or unfairly discriminatory.
(8) Any order or final determination of the Director under the provisions
of this Section
shall be subject to judicial review.
(Source: P.A. 100-863, eff. 8-14-18.)
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215 ILCS 5/Art. XXIV
(215 ILCS 5/Art. XXIV heading)
ARTICLE XXIV.
DIRECTOR OF INSURANCE, HEARINGS AND REVIEW
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215 ILCS 5/401
(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
| | 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
| | 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
| | 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
(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 5/401.3 (215 ILCS 5/401.3) Sec. 401.3. Advisory council; powers and duties. There is created within the Department an advisory council to review and make recommendations to the Department regarding rules to be adopted with respect to continuing education courses for which the approval of the Department is required under the provisions of this Code. In addition, the advisory council shall make recommendations to the Department regarding rules with respect to course materials, curriculum, and credentials of instructors. The advisory council shall be comprised of 7 members appointed by the Director. One member shall be an educational instructor who has regularly provided educational offerings for more than 5 out of the last 10 years to individuals licensed under this Code. Three members shall be recommended by the leadership of 3 statewide trade organizations whose memberships are primarily composed of individuals licensed under this Code, none of which may come from the same organization. Three members shall represent a domestic company. The members' terms shall be 3 years or until their successors are appointed, and the expiration of their terms shall be staggered. No individual may serve more than 3 consecutive terms. The Director shall appoint an employee of the Department to serve as the chairperson of the advisory council, ex officio, without a vote. Four voting advisory council members shall constitute a quorum. A quorum is necessary for all advisory council decisions and recommendations.
(Source: P.A. 100-876, eff. 8-14-18.) |
215 ILCS 5/401.5
(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 5/402
(215 ILCS 5/402) (from Ch. 73, par. 1014)
Sec. 402.
Examinations, investigations and hearings.
(1) All examinations, investigations and hearings provided for by this
Code may be conducted either by the Director personally, or by one or more
of the actuaries, technical advisors, deputies, supervisors or examiners
employed or retained by the Department and designated by the Director for
such purpose. When necessary to supplement its examination procedures, the
Department may retain independent actuaries deemed competent by the
Director, independent certified public accountants, or qualified
examiners of insurance companies deemed competent by the Director, or any
combination of the foregoing, the cost of which shall be borne by the
company or person being examined. The Director may compensate independent
actuaries, certified public accountants and qualified examiners retained
for supplementing examination procedures in amounts not to exceed the
reasonable and customary charges for such services. The Director
may also accept as a part of the Department's examination of any company or
person (a) a report by an independent actuary deemed competent by the
Director or (b) a report of an audit made by an independent certified
public accountant. Neither those persons so designated nor any members of
their immediate families shall be officers of, connected with, or
financially interested in any company other than as policyholders, nor
shall they be financially interested in any other corporation or person
affected by the examination, investigation or hearing.
(2) All hearings provided for in this Code shall, unless otherwise
specially provided, be held at such time and place as shall be designated
in a notice which shall be given by the Director in writing to the person
or company whose interests are affected, at least 10 days before the date
designated therein. The notice shall state the subject of inquiry and the
specific charges, if any. The hearings shall be held in the City of
Springfield, the City of Chicago, or in the county where the principal
business address of the person or company affected is located.
(Source: P.A. 87-757.)
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215 ILCS 5/403
(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 5/403A
(215 ILCS 5/403A) (from Ch. 73, par. 1015A)
Sec. 403A.
Violations; Notice of Apparent Liability; Limitation
of Forfeiture Liability.
(1) Any company or person, agent or broker,
officer or director and any other person subject to this Code and as may
be defined in Section 2 of this Code, who willfully or repeatedly fails
to observe or who otherwise violates any of the provisions of this Code
or any rule or regulation promulgated by the Director under authority
of this Code or any final order of the Director entered under the authority
of this Code 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. The civil penalty provided for in this Section shall
apply only to those Sections of this Code or administrative regulations
thereunder that do not otherwise provide for a monetary civil penalty.
(2) No forfeiture liability under paragraph (1) of this Section
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 the Code, rule, regulation or order of which a violation is
charged.
(3) No forfeiture liability under paragraph (1) of this Section
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 $500,000.
(4) 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.
(5) 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.
(Source: P.A. 93-32, eff. 7-1-03.)
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215 ILCS 5/404
(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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215 ILCS 5/404.1
(215 ILCS 5/404.1) (from Ch. 73, par. 1016.1)
Sec. 404.1.
Safekeeping of deposits.
The Director may maintain with
a corporation qualified to administer trusts in this State under the
Corporate Fiduciary Act for the securities deposited with the
Director, a limited agency, custodial, or depository account, or other type
of account for the safekeeping of those securities, and for collecting the
income from those securities and providing supportive accounting services
relating to such safekeeping and collection. Such a corporation, in
safekeeping
such securities, shall have all the powers, rights, duties and responsibilities
that it has for holding securities in its fiduciary accounts under the
Securities in Fiduciary Accounts Act.
The Director shall arrange with any depository institution that has been
authorized to accept and execute trusts to provide for
collateralization of any cash accounts resulting from the failure of any
depositing company to give instruction regarding the investment of any such
cash amounts as provided for by Section 6 of the Public Funds Investment Act.
(Source: P.A. 93-477, eff. 1-1-04.)
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215 ILCS 5/405
(215 ILCS 5/405) (from Ch. 73, par. 1017)
Sec. 405.
Certificates and certified copies as evidence.
All certificates issued by the Director in accordance with the
provisions of the insurance laws and all copies of documents filed in his
office in accordance with the provisions of this Code when certified by
him, shall be taken and received in all courts, public offices, and
official bodies as prima facie evidence of the facts therein stated. A
certificate by the Director under the seal of the Department, as to the
existence or non-existence of the facts relating to companies which would
not appear from a certified copy of any of the foregoing documents or
certificates shall be taken and received in all courts, public offices, and
official bodies as prima facie evidence of the existence or non-existence
of the facts therein stated.
(Source: Laws 1937, p. 696.)
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215 ILCS 5/406
(215 ILCS 5/406) (from Ch. 73, par. 1018)
Sec. 406.
Annual
report.
The Director shall report annually, or oftener at the request of the
Governor, to the Governor his official transactions, and shall include in
such report abstracts of the annual statements of the several companies and
an exhibit of the financial condition and business transactions of the said
companies as disclosed by official examinations of the same or by their
annual statements. He shall also include therein a statement of the
receipts and expenditures of the Department for the preceding year and such
other information and recommendations relative to insurance and the
insurance laws of the State as he shall deem proper.
(Source: Laws 1937, p. 696.)
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215 ILCS 5/407
(215 ILCS 5/407) (from Ch. 73, par. 1019)
Sec. 407.
Court review of orders and decisions.
Except as to those
orders or decisions of the Director to make good an impairment of capital
or surplus or a deficiency in the amount of admitted assets, the provisions
of the Administrative Review Law, and all amendments and modifications
thereof, and the rules adopted pursuant thereto, shall apply to and govern
all proceedings for the judicial review of final administrative decisions
of the Department. The term "administrative decision" is defined as in
Section 3-101 of the Code of Civil Procedure.
The Department shall not be required to certify any record to the court
or file any answer in court or otherwise appear in any court in a judicial
review proceeding, unless there is filed in the court with the complaint
a receipt from the Department acknowledging payment of the costs of furnishing
and certifying the record, which costs shall be computed at the rate of $1
per page of such record. Failure on the part of the plaintiff to file such
receipt in Court shall be grounds for dismissal of the action.
(Source: P.A. 84-989.)
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215 ILCS 5/407.1
(215 ILCS 5/407.1) (from Ch. 73, par. 1019.1)
Sec. 407.1.
The provisions of "The Illinois Administrative
Procedure Act", as now or hereafter amended, are hereby
expressly adopted and incorporated herein as though a part
of this Act, and shall apply to all administrative rules
and procedures of the Department of Insurance under this Act.
(Source: P.A. 80-960.)
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215 ILCS 5/407.2
(215 ILCS 5/407.2) (from Ch. 73, par. 1019.2)
Sec. 407.2.
(1) 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, 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, refuse to renew or revoke 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.
(2) When any person or company has a license or certificate of authority
under this Code and knowingly fails or refuses to comply with any provision
of this Code, the Director may, after notice and hearing, in addition to
any other penalty provided, refuse to renew or revoke 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 the Code has been obtained.
(3) 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. 82-783.)
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215 ILCS 5/Art. XXV
(215 ILCS 5/Art. XXV heading)
ARTICLE XXV.
FEES, CHARGES AND TAXES
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215 ILCS 5/408
(215 ILCS 5/408) (from Ch. 73, par. 1020)
(Text of Section before amendment by P.A. 103-75 )
Sec. 408. Fees and charges.
(1) The Director shall charge, collect and
give proper acquittances for the payment of the following fees and charges:
(a) For filing all documents submitted for the | | incorporation or organization or certification of a domestic company, except for a fraternal benefit society, $2,000.
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|
(b) For filing all documents submitted for the
| | incorporation or organization of a fraternal benefit society, $500.
|
|
(c) For filing amendments to articles of
| | incorporation and amendments to declaration of organization, except for a fraternal benefit society, a mutual benefit association, a burial society or a farm mutual, $200.
|
|
(d) For filing amendments to articles of
| | incorporation of a fraternal benefit society, a mutual benefit association or a burial society, $100.
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|
(e) For filing amendments to articles of
| | incorporation of a farm mutual, $50.
|
|
(f) For filing bylaws or amendments thereto, $50.
(g) For filing agreement of merger or consolidation:
(i) for a domestic company, except for a
| | fraternal benefit society, a mutual benefit association, a burial society, or a farm mutual, $2,000.
|
|
(ii) for a foreign or alien company, except for a
| | fraternal benefit society, $600.
|
|
(iii) for a fraternal benefit society, a mutual
| | benefit association, a burial society, or a farm mutual, $200.
|
|
(h) For filing agreements of reinsurance by a
| |
(i) For filing all documents submitted by a foreign
| | or alien company to be admitted to transact business or accredited as a reinsurer in this State, except for a fraternal benefit society, $5,000.
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|
(j) For filing all documents submitted by a foreign
| | or alien fraternal benefit society to be admitted to transact business in this State, $500.
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|
(k) For filing declaration of withdrawal of a foreign
| |
(l) For filing annual statement by a domestic
| | company, except a fraternal benefit society, a mutual benefit association, a burial society, or a farm mutual, $200.
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|
(m) For filing annual statement by a domestic
| | fraternal benefit society, $100.
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|
(n) For filing annual statement by a farm mutual, a
| | mutual benefit association, or a burial society, $50.
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|
(o) For issuing a certificate of authority or renewal
| | thereof except to a foreign fraternal benefit society, $400.
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|
(p) For issuing a certificate of authority or renewal
| | thereof to a foreign fraternal benefit society, $200.
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|
(q) For issuing an amended certificate of authority,
| |
(r) For each certified copy of certificate of
| |
(s) For each certificate of deposit, or valuation, or
| | compliance or surety certificate, $20.
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|
(t) For copies of papers or records per page, $1.
(u) For each certification to copies of papers or
| |
(v) For multiple copies of documents or certificates
| | listed in subparagraphs (r), (s), and (u) of paragraph (1) of this Section, $10 for the first copy of a certificate of any type and $5 for each additional copy of the same certificate requested at the same time, unless, pursuant to paragraph (2) of this Section, the Director finds these additional fees excessive.
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|
(w) For issuing a permit to sell shares or increase
| |
(i) in connection with a public stock offering,
| |
(ii) in any other case, $100.
(x) For issuing any other certificate required or
| | permissible under the law, $50.
|
|
(y) For filing a plan of exchange of the stock of a
| | domestic stock insurance company, a plan of demutualization of a domestic mutual company, or a plan of reorganization under Article XII, $2,000.
|
|
(z) For filing a statement of acquisition of a
| | domestic company as defined in Section 131.4 of this Code, $2,000.
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|
(aa) For filing an agreement to purchase the business
| | of an organization authorized under the Dental Service Plan Act or the Voluntary Health Services Plans Act or of a health maintenance organization or a limited health service organization, $2,000.
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|
(bb) For filing a statement of acquisition of a
| | foreign or alien insurance company as defined in Section 131.12a of this Code, $1,000.
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|
(cc) For filing a registration statement as required
| | in Sections 131.13 and 131.14, the notification as required by Sections 131.16, 131.20a, or 141.4, or an agreement or transaction required by Sections 124.2(2), 141, 141a, or 141.1, $200.
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|
(dd) For filing an application for licensing of:
(i) a religious or charitable risk pooling trust
| | or a workers' compensation pool, $1,000;
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|
(ii) a workers' compensation service company,
| |
(iii) a self-insured automobile fleet, $200; or
(iv) a renewal of or amendment of any license
| | issued pursuant to (i), (ii), or (iii) above, $100.
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|
(ee) For filing articles of incorporation for a
| | syndicate to engage in the business of insurance through the Illinois Insurance Exchange, $2,000.
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|
(ff) For filing amended articles of incorporation for
| | a syndicate engaged in the business of insurance through the Illinois Insurance Exchange, $100.
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|
(gg) For filing articles of incorporation for a
| | limited syndicate to join with other subscribers or limited syndicates to do business through the Illinois Insurance Exchange, $1,000.
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|
(hh) For filing amended articles of incorporation for
| | a limited syndicate to do business through the Illinois Insurance Exchange, $100.
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|
(ii) For a permit to solicit subscriptions to a
| | syndicate or limited syndicate, $100.
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(jj) For the filing of each form as required in
| | Section 143 of this Code, $50 per form. Informational and advertising filings shall be $25 per filing. The fee for advisory and rating organizations shall be $200 per form.
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|
(i) For the purposes of the form filing fee,
| | filings made on insert page basis will be considered one form at the time of its original submission. Changes made to a form subsequent to its approval shall be considered a new filing.
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|
(ii) Only one fee shall be charged for a form,
| | regardless of the number of other forms or policies with which it will be used.
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|
(iii) Fees charged for a policy filed as it will
| | be issued regardless of the number of forms comprising that policy shall not exceed $1,500. For advisory or rating organizations, fees charged for a policy filed as it will be issued regardless of the number of forms comprising that policy shall not exceed $2,500.
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|
(iv) The Director may by rule exempt forms from
| |
(kk) For filing an application for licensing of a
| | reinsurance intermediary, $500.
|
|
(ll) For filing an application for renewal of a
| | license of a reinsurance intermediary, $200.
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|
(mm) For filing a plan of division of a domestic
| | stock company under Article IIB, $10,000.
|
| (nn) For filing all documents submitted by a
| | foreign or alien company to be a certified reinsurer in this State, except for a fraternal benefit society, $1,000.
|
| (oo) For filing a renewal by a foreign or alien
| | company to be a certified reinsurer in this State, except for a fraternal benefit society, $400.
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| (pp) For filing all documents submitted by a
| | reinsurer domiciled in a reciprocal jurisdiction, $1,000.
|
| (qq) For filing a renewal by a reinsurer domiciled
| | in a reciprocal jurisdiction, $400.
|
| (rr) For registering a captive management company
| | (2) When printed copies or numerous copies of the same paper or records
are furnished or certified, the Director may reduce such fees for copies
if he finds them excessive. He may, when he considers it in the public
interest, furnish without charge to state insurance departments and persons
other than companies, copies or certified copies of reports of examinations
and of other papers and records.
(3) The expenses incurred in any performance
examination authorized by law shall be paid by the company or person being
examined. The charge shall be reasonably related to the cost of the
examination including but not limited to compensation of examiners,
electronic data processing costs, supervision and preparation of an
examination report and lodging and travel expenses.
All lodging and travel expenses shall be in accord
with the applicable travel regulations as published by the Department of
Central Management Services and approved by the Governor's Travel Control
Board, except that out-of-state lodging and travel expenses related to
examinations authorized under Section 132 shall be in accordance with
travel rates prescribed under paragraph 301-7.2 of the Federal Travel
Regulations, 41 C.F.R. 301-7.2, for reimbursement of subsistence expenses
incurred during official travel. All lodging and travel expenses may be reimbursed directly upon authorization of the
Director. With the exception of the
direct reimbursements authorized by the
Director, all performance examination charges collected by the
Department shall be paid
to the Insurance Producer Administration Fund,
however, the electronic data processing costs
incurred by the Department in the performance of any examination shall be
billed directly to the company being examined for payment to the Technology Management
Revolving Fund.
(4) At the time of any service of process on the Director
as attorney for such service, the Director shall charge and collect the
sum of $40, which may be recovered as taxable costs by
the party to the suit or action causing such service to be made if he prevails
in such suit or action.
(5) (a) The costs incurred by the Department of Insurance
in conducting any hearing authorized by law shall be assessed against the
parties to the hearing in such proportion as the Director of Insurance may
determine upon consideration of all relevant circumstances including: (1)
the nature of the hearing; (2) whether the hearing was instigated by, or
for the benefit of a particular party or parties; (3) whether there is a
successful party on the merits of the proceeding; and (4) the relative levels
of participation by the parties.
(b) For purposes of this subsection (5) costs incurred shall
mean the hearing officer fees, court reporter fees, and travel expenses
of Department of Insurance officers and employees; provided however, that
costs incurred shall not include hearing officer fees or court reporter
fees unless the Department has retained the services of independent
contractors or outside experts to perform such functions.
(c) The Director shall make the assessment of costs incurred as part of
the final order or decision arising out of the proceeding; provided, however,
that such order or decision shall include findings and conclusions in support
of the assessment of costs. This subsection (5) shall not be construed as
permitting the payment of travel expenses unless calculated in accordance
with the applicable travel regulations of the Department
of Central Management Services, as approved by the Governor's Travel Control
Board. The Director as part of such order or decision shall require all
assessments for hearing officer fees and court reporter fees, if any, to
be paid directly to the hearing officer or court reporter by the party(s)
assessed for such costs. The assessments for travel expenses of Department
officers and employees shall be reimbursable to the
Director of Insurance for
deposit to the fund out of which those expenses had been paid.
(d) The provisions of this subsection (5) shall apply in the case of any
hearing conducted by the Director of Insurance not otherwise specifically
provided for by law.
(6) The Director shall charge and collect an annual financial
regulation fee from every domestic company for examination and analysis of
its financial condition and to fund the internal costs and expenses of the
Interstate Insurance Receivership Commission as may be allocated to the State
of Illinois and companies doing an insurance business in this State pursuant to
Article X of the Interstate Insurance Receivership Compact. The fee shall be
the greater fixed amount based upon
the combination of nationwide direct premium income and
nationwide reinsurance
assumed premium
income or upon admitted assets calculated under this subsection as follows:
(a) Combination of nationwide direct premium income
| | and nationwide reinsurance assumed premium.
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|
(i) $150, if the premium is less than $500,000
| | and there is no reinsurance assumed premium;
|
|
(ii) $750, if the premium is $500,000 or more,
| | but less than $5,000,000 and there is no reinsurance assumed premium; or if the premium is less than $5,000,000 and the reinsurance assumed premium is less than $10,000,000;
|
|
(iii) $3,750, if the premium is less than
| | $5,000,000 and the reinsurance assumed premium is $10,000,000 or more;
|
|
(iv) $7,500, if the premium is $5,000,000 or
| | more, but less than $10,000,000;
|
|
(v) $18,000, if the premium is $10,000,000 or
| | more, but less than $25,000,000;
|
|
(vi) $22,500, if the premium is $25,000,000 or
| | more, but less than $50,000,000;
|
|
(vii) $30,000, if the premium is $50,000,000 or
| | more, but less than $100,000,000;
|
|
(viii) $37,500, if the premium is $100,000,000 or
| |
(b) Admitted assets.
(i) $150, if admitted assets are less than
| |
(ii) $750, if admitted assets are $1,000,000 or
| | more, but less than $5,000,000;
|
|
(iii) $3,750, if admitted assets are $5,000,000
| | or more, but less than $25,000,000;
|
|
(iv) $7,500, if admitted assets are $25,000,000
| | or more, but less than $50,000,000;
|
|
(v) $18,000, if admitted assets are $50,000,000
| | or more, but less than $100,000,000;
|
|
(vi) $22,500, if admitted assets are $100,000,000
| | or more, but less than $500,000,000;
|
|
(vii) $30,000, if admitted assets are
| | $500,000,000 or more, but less than $1,000,000,000;
|
|
(viii) $37,500, if admitted assets are
| |
(c) The sum of financial regulation fees charged to
| | the domestic companies of the same affiliated group shall not exceed $250,000 in the aggregate in any single year and shall be billed by the Director to the member company designated by the group.
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|
(7) The Director shall charge and collect an annual financial regulation
fee from every foreign or alien company, except fraternal benefit
societies, for the
examination and analysis of its financial condition and to fund the internal
costs and expenses of the Interstate Insurance Receivership Commission as may
be allocated to the State of Illinois and companies doing an insurance business
in this State pursuant to Article X of the Interstate Insurance Receivership
Compact.
The fee shall be a fixed amount based upon Illinois direct premium income
and nationwide reinsurance assumed premium income in accordance with the
following schedule:
(a) $150, if the premium is less than $500,000 and
| | there is no reinsurance assumed premium;
|
|
(b) $750, if the premium is $500,000 or more, but
| | less than $5,000,000 and there is no reinsurance assumed premium; or if the premium is less than $5,000,000 and the reinsurance assumed premium is less than $10,000,000;
|
|
(c) $3,750, if the premium is less than $5,000,000
| | and the reinsurance assumed premium is $10,000,000 or more;
|
|
(d) $7,500, if the premium is $5,000,000 or more, but
| |
(e) $18,000, if the premium is $10,000,000 or more,
| | but less than $25,000,000;
|
|
(f) $22,500, if the premium is $25,000,000 or more,
| | but less than $50,000,000;
|
|
(g) $30,000, if the premium is $50,000,000 or more,
| | but less than $100,000,000;
|
|
(h) $37,500, if the premium is $100,000,000 or more.
The sum of financial regulation fees under this subsection (7)
charged to the foreign or alien companies within the same affiliated group
shall not exceed $250,000 in the aggregate in any single year
and shall be
billed by the Director to the member company designated by the group.
(8) Beginning January 1, 1992, the financial regulation fees imposed
under subsections (6) and (7)
of this Section shall be paid by each company or domestic affiliated group
annually. After January
1, 1994, the fee shall be billed by Department invoice
based upon the company's
premium income or admitted assets as shown in its annual statement for the
preceding calendar year. The invoice is due upon
receipt and must be paid no later than June 30 of each calendar year. All
financial
regulation fees collected by the Department shall be paid to the Insurance
Financial Regulation Fund. The Department may not collect financial
examiner per diem charges from companies subject to subsections (6) and (7)
of this Section undergoing financial examination
after June 30, 1992.
(9) In addition to the financial regulation fee required by this
Section, a company undergoing any financial examination authorized by law
shall pay the following costs and expenses incurred by the Department:
electronic data processing costs, the expenses authorized under Section 131.21
and
subsection (d) of Section 132.4 of this Code, and lodging and travel expenses.
Electronic data processing costs incurred by the Department in the
performance of any examination shall be billed directly to the company
undergoing examination for payment to the Technology Management Revolving
Fund. Except for direct reimbursements authorized by the Director or
direct payments made under Section 131.21 or subsection (d) of Section
132.4 of this Code, all financial regulation fees and all financial
examination charges collected by the Department shall be paid to the
Insurance Financial Regulation Fund.
All lodging and travel expenses shall be in accordance with applicable
travel regulations published by the Department of Central Management
Services and approved by the Governor's Travel Control Board, except that
out-of-state lodging and travel expenses related to examinations authorized
under Sections 132.1 through 132.7 shall be in accordance
with travel rates prescribed
under paragraph 301-7.2 of the Federal Travel Regulations, 41 C.F.R. 301-7.2,
for reimbursement of subsistence expenses incurred during official travel.
All lodging and travel expenses may be
reimbursed directly upon the authorization of the Director.
In the case of an organization or person not subject to the financial
regulation fee, the expenses incurred in any financial examination authorized
by law shall be paid by the organization or person being examined. The charge
shall be reasonably related to the cost of the examination including, but not
limited to, compensation of examiners and other costs described in this
subsection.
(10) Any company, person, or entity failing to make any payment of $150
or more as required under this Section shall be subject to the penalty and
interest provisions provided for in subsections (4) and (7)
of Section 412.
(11) Unless otherwise specified, all of the fees collected under this
Section shall be paid into the Insurance Financial Regulation Fund.
(12) For purposes of this Section:
(a) "Domestic company" means a company as defined in
| | Section 2 of this Code which is incorporated or organized under the laws of this State, and in addition includes a not-for-profit corporation authorized under the Dental Service Plan Act or the Voluntary Health Services Plans Act, a health maintenance organization, and a limited health service organization.
|
|
(b) "Foreign company" means a company as defined in
| | Section 2 of this Code which is incorporated or organized under the laws of any state of the United States other than this State and in addition includes a health maintenance organization and a limited health service organization which is incorporated or organized under the laws of any state of the United States other than this State.
|
|
(c) "Alien company" means a company as defined in
| | Section 2 of this Code which is incorporated or organized under the laws of any country other than the United States.
|
|
(d) "Fraternal benefit society" means a corporation,
| | society, order, lodge or voluntary association as defined in Section 282.1 of this Code.
|
|
(e) "Mutual benefit association" means a company,
| | association or corporation authorized by the Director to do business in this State under the provisions of Article XVIII of this Code.
|
|
(f) "Burial society" means a person, firm,
| | corporation, society or association of individuals authorized by the Director to do business in this State under the provisions of Article XIX of this Code.
|
|
(g) "Farm mutual" means a district, county and
| | township mutual insurance company authorized by the Director to do business in this State under the provisions of the Farm Mutual Insurance Company Act of 1986.
|
|
(Source: P.A. 102-775, eff. 5-13-22.)
(Text of Section after amendment by P.A. 103-75 )
Sec. 408. Fees and charges.
(1) The Director shall charge, collect and
give proper acquittances for the payment of the following fees and charges:
(a) For filing all documents submitted for the
| | incorporation or organization or certification of a domestic company, except for a fraternal benefit society, $2,000.
|
|
(b) For filing all documents submitted for the
| | incorporation or organization of a fraternal benefit society, $500.
|
|
(c) For filing amendments to articles of
| | incorporation and amendments to declaration of organization, except for a fraternal benefit society, a mutual benefit association, a burial society or a farm mutual, $200.
|
|
(d) For filing amendments to articles of
| | incorporation of a fraternal benefit society, a mutual benefit association or a burial society, $100.
|
|
(e) For filing amendments to articles of
| | incorporation of a farm mutual, $50.
|
|
(f) For filing bylaws or amendments thereto, $50.
(g) For filing agreement of merger or consolidation:
(i) for a domestic company, except for a
| | fraternal benefit society, a mutual benefit association, a burial society, or a farm mutual, $2,000.
|
|
(ii) for a foreign or alien company, except for a
| | fraternal benefit society, $600.
|
|
(iii) for a fraternal benefit society, a mutual
| | benefit association, a burial society, or a farm mutual, $200.
|
|
(h) For filing agreements of reinsurance by a
| |
(i) For filing all documents submitted by a foreign
| | or alien company to be admitted to transact business or accredited as a reinsurer in this State, except for a fraternal benefit society, $5,000.
|
|
(j) For filing all documents submitted by a foreign
| | or alien fraternal benefit society to be admitted to transact business in this State, $500.
|
|
(k) For filing declaration of withdrawal of a foreign
| |
(l) For filing annual statement by a domestic
| | company, except a fraternal benefit society, a mutual benefit association, a burial society, or a farm mutual, $200.
|
|
(m) For filing annual statement by a domestic
| | fraternal benefit society, $100.
|
|
(n) For filing annual statement by a farm mutual, a
| | mutual benefit association, or a burial society, $50.
|
|
(o) For issuing a certificate of authority or renewal
| | thereof except to a foreign fraternal benefit society, $400.
|
|
(p) For issuing a certificate of authority or renewal
| | thereof to a foreign fraternal benefit society, $200.
|
|
(q) For issuing an amended certificate of authority,
| |
(r) For each certified copy of certificate of
| |
(s) For each certificate of deposit, or valuation, or
| | compliance or surety certificate, $20.
|
|
(t) For copies of papers or records per page, $1.
(u) For each certification to copies of papers or
| |
(v) For multiple copies of documents or certificates
| | listed in subparagraphs (r), (s), and (u) of paragraph (1) of this Section, $10 for the first copy of a certificate of any type and $5 for each additional copy of the same certificate requested at the same time, unless, pursuant to paragraph (2) of this Section, the Director finds these additional fees excessive.
|
|
(w) For issuing a permit to sell shares or increase
| |
(i) in connection with a public stock offering,
| |
(ii) in any other case, $100.
(x) For issuing any other certificate required or
| | permissible under the law, $50.
|
|
(y) For filing a plan of exchange of the stock of a
| | domestic stock insurance company, a plan of demutualization of a domestic mutual company, or a plan of reorganization under Article XII, $2,000.
|
|
(z) For filing a statement of acquisition of a
| | domestic company as defined in Section 131.4 of this Code, $2,000.
|
|
(aa) For filing an agreement to purchase the business
| | of an organization authorized under the Dental Service Plan Act or the Voluntary Health Services Plans Act or of a health maintenance organization or a limited health service organization, $2,000.
|
|
(bb) For filing a statement of acquisition of a
| | foreign or alien insurance company as defined in Section 131.12a of this Code, $1,000.
|
|
(cc) For filing a registration statement as required
| | in Sections 131.13 and 131.14, the notification as required by Sections 131.16, 131.20a, or 141.4, or an agreement or transaction required by Sections 124.2(2), 141, 141a, or 141.1, $200.
|
|
(dd) For filing an application for licensing of:
(i) a religious or charitable risk pooling trust
| | or a workers' compensation pool, $1,000;
|
|
(ii) a workers' compensation service company,
| |
(iii) a self-insured automobile fleet, $200; or
(iv) a renewal of or amendment of any license
| | issued pursuant to (i), (ii), or (iii) above, $100.
|
|
(ee) For filing articles of incorporation for a
| | syndicate to engage in the business of insurance through the Illinois Insurance Exchange, $2,000.
|
|
(ff) For filing amended articles of incorporation for
| | a syndicate engaged in the business of insurance through the Illinois Insurance Exchange, $100.
|
|
(gg) For filing articles of incorporation for a
| | limited syndicate to join with other subscribers or limited syndicates to do business through the Illinois Insurance Exchange, $1,000.
|
|
(hh) For filing amended articles of incorporation for
| | a limited syndicate to do business through the Illinois Insurance Exchange, $100.
|
|
(ii) For a permit to solicit subscriptions to a
| | syndicate or limited syndicate, $100.
|
|
(jj) For the filing of each form as required in
| | Section 143 of this Code, $50 per form. Informational and advertising filings shall be $25 per filing. The fee for advisory and rating organizations shall be $200 per form.
|
|
(i) For the purposes of the form filing fee,
| | filings made on insert page basis will be considered one form at the time of its original submission. Changes made to a form subsequent to its approval shall be considered a new filing.
|
|
(ii) Only one fee shall be charged for a form,
| | regardless of the number of other forms or policies with which it will be used.
|
|
(iii) Fees charged for a policy filed as it will
| | be issued regardless of the number of forms comprising that policy shall not exceed $1,500. For advisory or rating organizations, fees charged for a policy filed as it will be issued regardless of the number of forms comprising that policy shall not exceed $2,500.
|
|
(iv) The Director may by rule exempt forms from
| |
(kk) For filing an application for licensing of a
| | reinsurance intermediary, $500.
|
|
(ll) For filing an application for renewal of a
| | license of a reinsurance intermediary, $200.
|
|
(mm) For filing a plan of division of a domestic
| | stock company under Article IIB, $10,000.
|
| (nn) For filing all documents submitted by a
| | foreign or alien company to be a certified reinsurer in this State, except for a fraternal benefit society, $1,000.
|
| (oo) For filing a renewal by a foreign or alien
| | company to be a certified reinsurer in this State, except for a fraternal benefit society, $400.
|
| (pp) For filing all documents submitted by a
| | reinsurer domiciled in a reciprocal jurisdiction, $1,000.
|
| (qq) For filing a renewal by a reinsurer domiciled
| | in a reciprocal jurisdiction, $400.
|
| (rr) For registering a captive management company
| | (ss) For filing an insurance business transfer plan
| | under Article XLVII, $25,000.
|
| (2) When printed copies or numerous copies of the same paper or records
are furnished or certified, the Director may reduce such fees for copies
if he finds them excessive. He may, when he considers it in the public
interest, furnish without charge to state insurance departments and persons
other than companies, copies or certified copies of reports of examinations
and of other papers and records.
(3) The expenses incurred in any performance
examination authorized by law shall be paid by the company or person being
examined. The charge shall be reasonably related to the cost of the
examination including but not limited to compensation of examiners,
electronic data processing costs, supervision and preparation of an
examination report and lodging and travel expenses.
All lodging and travel expenses shall be in accord
with the applicable travel regulations as published by the Department of
Central Management Services and approved by the Governor's Travel Control
Board, except that out-of-state lodging and travel expenses related to
examinations authorized under Section 132 shall be in accordance with
travel rates prescribed under paragraph 301-7.2 of the Federal Travel
Regulations, 41 C.F.R. 301-7.2, for reimbursement of subsistence expenses
incurred during official travel. All lodging and travel expenses may be reimbursed directly upon authorization of the
Director. With the exception of the
direct reimbursements authorized by the
Director, all performance examination charges collected by the
Department shall be paid
to the Insurance Producer Administration Fund,
however, the electronic data processing costs
incurred by the Department in the performance of any examination shall be
billed directly to the company being examined for payment to the Technology Management
Revolving Fund.
(4) At the time of any service of process on the Director
as attorney for such service, the Director shall charge and collect the
sum of $40, which may be recovered as taxable costs by
the party to the suit or action causing such service to be made if he prevails
in such suit or action.
(5) (a) The costs incurred by the Department of Insurance
in conducting any hearing authorized by law shall be assessed against the
parties to the hearing in such proportion as the Director of Insurance may
determine upon consideration of all relevant circumstances including: (1)
the nature of the hearing; (2) whether the hearing was instigated by, or
for the benefit of a particular party or parties; (3) whether there is a
successful party on the merits of the proceeding; and (4) the relative levels
of participation by the parties.
(b) For purposes of this subsection (5) costs incurred shall
mean the hearing officer fees, court reporter fees, and travel expenses
of Department of Insurance officers and employees; provided however, that
costs incurred shall not include hearing officer fees or court reporter
fees unless the Department has retained the services of independent
contractors or outside experts to perform such functions.
(c) The Director shall make the assessment of costs incurred as part of
the final order or decision arising out of the proceeding; provided, however,
that such order or decision shall include findings and conclusions in support
of the assessment of costs. This subsection (5) shall not be construed as
permitting the payment of travel expenses unless calculated in accordance
with the applicable travel regulations of the Department
of Central Management Services, as approved by the Governor's Travel Control
Board. The Director as part of such order or decision shall require all
assessments for hearing officer fees and court reporter fees, if any, to
be paid directly to the hearing officer or court reporter by the party(s)
assessed for such costs. The assessments for travel expenses of Department
officers and employees shall be reimbursable to the
Director of Insurance for
deposit to the fund out of which those expenses had been paid.
(d) The provisions of this subsection (5) shall apply in the case of any
hearing conducted by the Director of Insurance not otherwise specifically
provided for by law.
(6) The Director shall charge and collect an annual financial
regulation fee from every domestic company for examination and analysis of
its financial condition and to fund the internal costs and expenses of the
Interstate Insurance Receivership Commission as may be allocated to the State
of Illinois and companies doing an insurance business in this State pursuant to
Article X of the Interstate Insurance Receivership Compact. The fee shall be
the greater fixed amount based upon
the combination of nationwide direct premium income and
nationwide reinsurance
assumed premium
income or upon admitted assets calculated under this subsection as follows:
(a) Combination of nationwide direct premium income
| | and nationwide reinsurance assumed premium.
|
|
(i) $150, if the premium is less than $500,000
| | and there is no reinsurance assumed premium;
|
|
(ii) $750, if the premium is $500,000 or more,
| | but less than $5,000,000 and there is no reinsurance assumed premium; or if the premium is less than $5,000,000 and the reinsurance assumed premium is less than $10,000,000;
|
|
(iii) $3,750, if the premium is less than
| | $5,000,000 and the reinsurance assumed premium is $10,000,000 or more;
|
|
(iv) $7,500, if the premium is $5,000,000 or
| | more, but less than $10,000,000;
|
|
(v) $18,000, if the premium is $10,000,000 or
| | more, but less than $25,000,000;
|
|
(vi) $22,500, if the premium is $25,000,000 or
| | more, but less than $50,000,000;
|
|
(vii) $30,000, if the premium is $50,000,000 or
| | more, but less than $100,000,000;
|
|
(viii) $37,500, if the premium is $100,000,000 or
| |
(b) Admitted assets.
(i) $150, if admitted assets are less than
| |
(ii) $750, if admitted assets are $1,000,000 or
| | more, but less than $5,000,000;
|
|
(iii) $3,750, if admitted assets are $5,000,000
| | or more, but less than $25,000,000;
|
|
(iv) $7,500, if admitted assets are $25,000,000
| | or more, but less than $50,000,000;
|
|
(v) $18,000, if admitted assets are $50,000,000
| | or more, but less than $100,000,000;
|
|
(vi) $22,500, if admitted assets are $100,000,000
| | or more, but less than $500,000,000;
|
|
(vii) $30,000, if admitted assets are
| | $500,000,000 or more, but less than $1,000,000,000;
|
|
(viii) $37,500, if admitted assets are
| |
(c) The sum of financial regulation fees charged to
| | the domestic companies of the same affiliated group shall not exceed $250,000 in the aggregate in any single year and shall be billed by the Director to the member company designated by the group.
|
|
(7) The Director shall charge and collect an annual financial regulation
fee from every foreign or alien company, except fraternal benefit
societies, for the
examination and analysis of its financial condition and to fund the internal
costs and expenses of the Interstate Insurance Receivership Commission as may
be allocated to the State of Illinois and companies doing an insurance business
in this State pursuant to Article X of the Interstate Insurance Receivership
Compact.
The fee shall be a fixed amount based upon Illinois direct premium income
and nationwide reinsurance assumed premium income in accordance with the
following schedule:
(a) $150, if the premium is less than $500,000 and
| | there is no reinsurance assumed premium;
|
|
(b) $750, if the premium is $500,000 or more, but
| | less than $5,000,000 and there is no reinsurance assumed premium; or if the premium is less than $5,000,000 and the reinsurance assumed premium is less than $10,000,000;
|
|
(c) $3,750, if the premium is less than $5,000,000
| | and the reinsurance assumed premium is $10,000,000 or more;
|
|
(d) $7,500, if the premium is $5,000,000 or more, but
| |
(e) $18,000, if the premium is $10,000,000 or more,
| | but less than $25,000,000;
|
|
(f) $22,500, if the premium is $25,000,000 or more,
| | but less than $50,000,000;
|
|
(g) $30,000, if the premium is $50,000,000 or more,
| | but less than $100,000,000;
|
|
(h) $37,500, if the premium is $100,000,000 or more.
The sum of financial regulation fees under this subsection (7)
charged to the foreign or alien companies within the same affiliated group
shall not exceed $250,000 in the aggregate in any single year
and shall be
billed by the Director to the member company designated by the group.
(8) Beginning January 1, 1992, the financial regulation fees imposed
under subsections (6) and (7)
of this Section shall be paid by each company or domestic affiliated group
annually. After January
1, 1994, the fee shall be billed by Department invoice
based upon the company's
premium income or admitted assets as shown in its annual statement for the
preceding calendar year. The invoice is due upon
receipt and must be paid no later than June 30 of each calendar year. All
financial
regulation fees collected by the Department shall be paid to the Insurance
Financial Regulation Fund. The Department may not collect financial
examiner per diem charges from companies subject to subsections (6) and (7)
of this Section undergoing financial examination
after June 30, 1992.
(9) In addition to the financial regulation fee required by this
Section, a company undergoing any financial examination authorized by law
shall pay the following costs and expenses incurred by the Department:
electronic data processing costs, the expenses authorized under Section 131.21
and
subsection (d) of Section 132.4 of this Code, and lodging and travel expenses.
Electronic data processing costs incurred by the Department in the
performance of any examination shall be billed directly to the company
undergoing examination for payment to the Technology Management Revolving
Fund. Except for direct reimbursements authorized by the Director or
direct payments made under Section 131.21 or subsection (d) of Section
132.4 of this Code, all financial regulation fees and all financial
examination charges collected by the Department shall be paid to the
Insurance Financial Regulation Fund.
All lodging and travel expenses shall be in accordance with applicable
travel regulations published by the Department of Central Management
Services and approved by the Governor's Travel Control Board, except that
out-of-state lodging and travel expenses related to examinations authorized
under Sections 132.1 through 132.7 shall be in accordance
with travel rates prescribed
under paragraph 301-7.2 of the Federal Travel Regulations, 41 C.F.R. 301-7.2,
for reimbursement of subsistence expenses incurred during official travel.
All lodging and travel expenses may be
reimbursed directly upon the authorization of the Director.
In the case of an organization or person not subject to the financial
regulation fee, the expenses incurred in any financial examination authorized
by law shall be paid by the organization or person being examined. The charge
shall be reasonably related to the cost of the examination including, but not
limited to, compensation of examiners and other costs described in this
subsection.
(10) Any company, person, or entity failing to make any payment of $150
or more as required under this Section shall be subject to the penalty and
interest provisions provided for in subsections (4) and (7)
of Section 412.
(11) Unless otherwise specified, all of the fees collected under this
Section shall be paid into the Insurance Financial Regulation Fund.
(12) For purposes of this Section:
(a) "Domestic company" means a company as defined in
| | Section 2 of this Code which is incorporated or organized under the laws of this State, and in addition includes a not-for-profit corporation authorized under the Dental Service Plan Act or the Voluntary Health Services Plans Act, a health maintenance organization, and a limited health service organization.
|
|
(b) "Foreign company" means a company as defined in
| | Section 2 of this Code which is incorporated or organized under the laws of any state of the United States other than this State and in addition includes a health maintenance organization and a limited health service organization which is incorporated or organized under the laws of any state of the United States other than this State.
|
|
(c) "Alien company" means a company as defined in
| | Section 2 of this Code which is incorporated or organized under the laws of any country other than the United States.
|
|
(d) "Fraternal benefit society" means a corporation,
| | society, order, lodge or voluntary association as defined in Section 282.1 of this Code.
|
|
(e) "Mutual benefit association" means a company,
| | association or corporation authorized by the Director to do business in this State under the provisions of Article XVIII of this Code.
|
|
(f) "Burial society" means a person, firm,
| | corporation, society or association of individuals authorized by the Director to do business in this State under the provisions of Article XIX of this Code.
|
|
(g) "Farm mutual" means a district, county and
| | township mutual insurance company authorized by the Director to do business in this State under the provisions of the Farm Mutual Insurance Company Act of 1986.
|
|
(Source: P.A. 102-775, eff. 5-13-22; 103-75, eff. 1-1-25.)
|
215 ILCS 5/408.1
(215 ILCS 5/408.1) (from Ch. 73, par. 1020.1)
Sec. 408.1.
Fee for valuation of life insurance policies.
Upon the effective date of this amendatory Act of 1998, all actions to
collect life insurance policy valuation fees or to transfer such fees to the
General Revenue Fund from any protest account established under the State
Officers and Employees Money Disposition Act shall cease and any such protested
life insurance policy valuation fee payments shall be returned to the taxpayer
who initiated the protest.
(Source: P.A. 90-583, eff. 5-29-98.)
|
215 ILCS 5/408.2
(215 ILCS 5/408.2) (from Ch. 73, par. 1020.2)
Sec. 408.2. Statistical services. Any public record, or any data obtained
by the Department of Insurance, which is subject to public inspection or
copying and which is maintained on a computer processible medium, may be
furnished in a computer processed or computer processible medium upon the
written request of any applicant and the payment of a reasonable fee
established by the Director sufficient to cover the total cost of the
Department for processing, maintaining and generating such computer
processible records or data, except to the extent of any salaries or
compensation of Department officers or employees.
The Director of Insurance is specifically authorized to contract with
members of the public at large, enter waiver agreements, or otherwise enter
written agreements for the purpose of assuring public access to the
Department's computer processible records or data, or for the purpose of
restricting, controlling or limiting such access where necessary to protect
the confidentiality of individuals, companies or other entities identified
by such documents.
All fees collected by the Director under this Section 408.2 shall be
deposited in the Technology Management Revolving Fund and credited to the
account of the Department of Insurance. Any surplus funds remaining in
such account at the close of any fiscal year shall be delivered to the
State Treasurer for deposit in the Insurance Financial Regulation Fund.
(Source: P.A. 100-23, eff. 7-6-17.)
|
215 ILCS 5/408.3
(215 ILCS 5/408.3) (from Ch. 73, par. 1020.3)
Sec. 408.3. Insurance Financial Regulation Fund; uses. The monies
deposited into the Insurance Financial
Regulation Fund shall be used only for (i) payment of the expenses of the
Department, including related administrative expenses, incurred in
analyzing, investigating and examining the financial condition or control
of insurance companies and other entities licensed or seeking to be
licensed by the Department, including the collection, analysis and
distribution of information on insurance premiums, other income, costs and
expenses, and (ii) to pay internal costs and expenses of the Interstate
Insurance Receivership Commission allocated to this State and authorized and
admitted companies doing an insurance business in this State under Article X of
the Interstate Receivership Compact. All distributions and payments from the
Insurance Financial Regulation Fund shall be subject to appropriation as
otherwise provided by law for
payment of such expenses.
Sums appropriated under clause (ii) of the preceding paragraph shall be
deemed to satisfy, pro tanto, the obligations of insurers doing business in
this
State under Article X of the Interstate Insurance Receivership Compact.
Nothing in this Code shall prohibit the General Assembly from
appropriating funds from the General Revenue Fund to the Department for the
purpose of administering this Code.
No fees collected pursuant to Section 408 of this Code shall be used
for the regulation of pension funds or activities by the Department in the
performance of its duties under Article 22 of the Illinois Pension Code.
If at the end of a fiscal year the balance in the Insurance Financial
Regulation Fund which remains unexpended or unobligated exceeds the amount
of funds that the Director may certify is needed for the purposes
enumerated in this Section, then the General Assembly may appropriate that
excess amount for purposes other than those enumerated in this Section.
(Source: P.A. 98-609, eff. 1-1-14.)
|
215 ILCS 5/408.4
(215 ILCS 5/408.4)
Sec. 408.4.
Receipt and use grants.
(a) The Department is authorized to accept, receive, and use, for and in
behalf of the State, any grant of money given to further the purposes of the
insurance laws of this State by the federal government as may be offered
unconditionally or under conditions, agreements, covenants, or terms that, in
the judgment of the Department, are proper and consistent with the provisions
of subsection (b). All moneys so received shall be deposited into the
Insurance Producer Administration Fund.
(b) The moneys deposited into the Insurance Producer Administration Fund
under
this Section shall be accounted for separately and shall be expended, pursuant
to appropriation, only in accordance with the conditions, agreements,
covenants, or terms, if any, under which they were accepted and must be used to
disseminate and provide insurance related information or assistance to senior
citizens.
(Source: P.A. 88-313.)
|
215 ILCS 5/409
(215 ILCS 5/409) (from Ch. 73, par. 1021)
Sec. 409. Annual privilege tax payable by
companies. (1) As of January 1, 1999 for all health maintenance organization premiums
written; as of July 1, 1998 for all premiums written as accident and health
business, voluntary health service plan business, dental service plan business,
or limited health service organization business; and as of January 1, 1998
for all other types of insurance premiums written, every company doing any form
of insurance business in this
State, including, but not limited to, every risk retention group, and excluding
all fraternal benefit societies, all farm mutual companies, all religious
charitable risk pooling trusts, and excluding all statutory residual market and
special purpose entities in which companies are statutorily required to
participate, whether incorporated or otherwise, shall pay, for the privilege of
doing business in this State, to the Director for the State treasury a State
tax equal to 0.5% of the net taxable premium written, together with any amounts
due under Section 444 of this Code, except that the tax to be paid on any
premium derived from any accident and health insurance or on any insurance
business written by any company operating as a health maintenance organization,
voluntary health service plan, dental service plan, or limited health service
organization shall be equal to 0.4% of such net taxable premium written,
together with any amounts due under Section 444. Upon the failure of any
company to pay any such tax due, the Director may, by order, revoke or
suspend the company's certificate of authority after giving 20 days written
notice to the company, or commence proceedings for the suspension of business
in this State under the procedures set forth by Section 401.1 of this Code.
The gross taxable premium written shall be the gross amount of premiums
received on direct business during the calendar year on contracts covering
risks in this State, except premiums on annuities, premiums on which State
premium taxes are prohibited by federal law, premiums paid by the State for
health care coverage for Medicaid eligible insureds as described in Section
5-2 of the Illinois Public Aid Code, premiums paid for health care services
included as an element of tuition charges at any university or college owned
and operated by the State of Illinois, premiums on group insurance contracts
under the State Employees Group Insurance Act of 1971, and except premiums for
deferred compensation plans for employees of the State, units of local
government, or school districts. The net taxable premium shall be the gross
taxable premium written reduced only by the following:
(a) the amount of premiums returned thereon which | | shall be limited to premiums returned during the same preceding calendar year and shall not include the return of cash surrender values or death benefits on life policies including annuities;
|
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(b) dividends on such direct business that have been
| | paid in cash, applied in reduction of premiums or left to accumulate to the credit of policyholders or annuitants. In the case of life insurance, no deduction shall be made for the payment of deferred dividends paid in cash to policyholders on maturing policies; dividends left to accumulate to the credit of policyholders or annuitants shall be included as gross taxable premium written when such dividend accumulations are applied to purchase paid-up insurance or to shorten the endowment or premium paying period.
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(2) The annual privilege tax payment due from a company under subsection (4)
of
this Section may be reduced by: (a) the excess amount, if any, by which the
aggregate income taxes paid by the company, on a cash basis, for the preceding
calendar year under Sections 601 and 803 of the Illinois
Income Tax Act exceed 1.5% of the company's net taxable premium written for
that prior calendar year, as determined under subsection (1) of this Section;
and (b) the amount of any fire department taxes paid by the company during the
preceding calendar year under Section 11-10-1 of the Illinois Municipal Code.
Any deductible amount or offset allowed under items (a) and (b) of this
subsection for any calendar year will not be allowed as a deduction or offset
against the company's privilege tax liability for any other taxing period or
calendar year.
(3) If a company survives or was formed by a merger, consolidation,
reorganization, or reincorporation, the premiums received and amounts returned
or paid by all companies party to the merger, consolidation, reorganization,
or reincorporation shall, for purposes of determining the amount of the tax
imposed by this Section, be regarded as received, returned, or paid by the
surviving
or new company.
(4)(a) All companies subject to the provisions of this Section shall make an
annual return for the preceding calendar year on or before March 15 setting
forth such information on such forms as the Director may reasonably require.
Payments of quarterly installments of the taxpayer's total estimated tax for
the current calendar year shall be due on or before April 15, June 15,
September 15, and December 15 of such year, except that all companies
transacting insurance in this State whose annual tax for the immediately
preceding calendar year was less than $5,000 shall make only an annual return.
Failure of a company to make the annual payment, or to make the quarterly
payments, if required, of at least 25% of either (i) the total tax paid during
the
previous calendar year or (ii) 80% of the actual tax for the current calendar
year shall subject it to the penalty provisions set forth in Section 412 of
this Code.
(b) Notwithstanding the foregoing provisions, no annual return shall be
required or made on March 15, 1998, under this subsection. For the calendar
year 1998:
(i) each health maintenance organization shall have
| | no estimated tax installments;
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(ii) all companies subject to the tax as of July 1,
| | 1998 as set forth in subsection (1) shall have estimated tax installments due on September 15 and December 15 of 1998 which installments shall each amount to no less than one-half of 80% of the actual tax on its net taxable premium written during the period July 1, 1998, through December 31, 1998; and
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(iii) all other companies shall have estimated tax
| | installments due on June 15, September 15, and December 15 of 1998 which installments shall each amount to no less than one-third of 80% of the actual tax on its net taxable premium written during the calendar year 1998.
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In the year 1999 and thereafter all companies shall make annual and
quarterly installments of their estimated tax as provided by paragraph (a) of
this subsection.
(5) In addition to the authority specifically granted under Article XXV of
this Code, the Director shall have such authority to adopt rules and establish
forms as may be reasonably necessary
for purposes of determining the allocation of Illinois corporate income taxes
paid under subsections (a) through (d) of Section 201 of the Illinois Income
Tax Act amongst members of a business group that files an Illinois corporate
income tax return on a unitary basis, for purposes of regulating the amendment
of tax returns, for purposes of defining terms, and for purposes of enforcing
the provisions of
Article XXV of
this Code. The Director shall also have authority to defer, waive, or abate
the tax
imposed by this Section if in his opinion the company's solvency and ability to
meet its insured obligations would be immediately threatened by payment of the
tax due.
(6) This Section is subject to the provisions of Section 10 of the New Markets Development Program Act.
(Source: P.A. 97-813, eff. 7-13-12; 98-1169, eff. 1-9-15.)
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215 ILCS 5/410
(215 ILCS 5/410) (from Ch. 73, par. 1022)
Sec. 410.
Reports
and statements for purpose of auditing retaliatory and privilege tax returns.
(1) For the purpose of enabling the Director to audit the retaliatory and
privilege tax
calculation of a company liable for such tax under the provisions of
Sections 409, 444 and 444.1, every such company, in addition to all other
statements and
reports required by law, shall file a report in writing with the Director
not later than March 1 of each year, in the form prescribed by the
Director, signed and sworn to by its president, vice president, secretary,
treasurer or manager.
(2) In every such return the reporting of premiums for tax purposes
shall be on a written basis or on a paid for basis, consistent with the
basis required by the annual statement of the insurer filed with the
Director pursuant to Section 136.
(3) The Director may require at any time verified supplemental
statements with reference to any matter pertinent to the proper calculation
of the tax.
(Source: P.A. 82-767.)
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215 ILCS 5/412 (215 ILCS 5/412) (from Ch. 73, par. 1024) Sec. 412. Refunds; penalties; collection. (1)(a) Whenever it appears to the satisfaction of the Director that because of some mistake of fact, error in calculation, or erroneous interpretation of a statute of this or any other state, any authorized company, surplus line producer, or industrial insured has paid to him, pursuant to any provision of law, taxes, fees, or other charges in excess of the amount legally chargeable against it, during the 6-year period immediately preceding the discovery of such overpayment, he shall have power to refund to such company, surplus line producer, or industrial insured the amount of the excess or excesses by applying the amount or amounts thereof toward the payment of taxes, fees, or other charges already due, or which may thereafter become due from that company until such excess or excesses have been fully refunded, or upon a written request from the authorized company, surplus line producer, or industrial insured, the Director shall provide a cash refund within 120 days after receipt of the written request if all necessary information has been filed with the Department in order for it to perform an audit of the tax report for the transaction or period or annual return for the year in which the overpayment occurred or within 120 days after the date the Department receives all the necessary information to perform such audit. The Director shall not provide a cash refund if there are insufficient funds in the Insurance Premium Tax Refund Fund to provide a cash refund, if the amount of the overpayment is less than $100, or if the amount of the overpayment can be fully offset against the taxpayer's estimated liability for the year following the year of the cash refund request. Any cash refund shall be paid from the Insurance Premium Tax Refund Fund, a special fund hereby created in the State treasury. (b) As determined by the Director pursuant to paragraph (a) of this subsection, the Department shall deposit an amount of cash refunds approved by the Director for payment as a result of overpayment of tax liability collected under Sections 121-2.08, 409, 444, 444.1, and 445 of this Code into the Insurance Premium Tax Refund Fund. (c) Beginning July 1, 1999, moneys in the Insurance Premium Tax Refund Fund shall be expended exclusively for the purpose of paying cash refunds resulting from overpayment of tax liability under Sections 121-2.08, 409, 444, 444.1, and 445 of this Code as determined by the Director pursuant to subsection 1(a) of this Section. Cash refunds made in accordance with this Section may be made from the Insurance Premium Tax Refund Fund only to the extent that amounts have been deposited and retained in the Insurance Premium Tax Refund Fund. (d) This Section shall constitute an irrevocable and continuing appropriation from the Insurance Premium Tax Refund Fund for the purpose of paying cash refunds pursuant to the provisions of this Section. (2)(a) When any insurance company fails to file any tax return required under Sections 408.1, 409, 444, and 444.1 of this Code or Section 12 of the Fire Investigation Act on the date prescribed, including any extensions, there shall be added as a penalty $400 or 10% of the amount of such tax, whichever is greater, for each month or part of a month of failure to file, the entire penalty not to exceed $2,000 or 50% of the tax due, whichever is greater. In this paragraph, "tax due" means the full amount due for the applicable tax period under Section 408.1, 409, 444, or 444.1 of this Code or Section 12 of the Fire Investigation Act. (b) When any industrial insured or surplus line producer fails to file any tax return or report required under Sections 121-2.08 and 445 of this Code or Section 12 of the Fire Investigation Act on the date prescribed, including any extensions, there shall be added: (i) as a late fee, if the return or report is | | received at least one day but not more than 15 days after the prescribed due date, $50 or 5% of the tax due, whichever is greater, the entire fee not to exceed $1,000;
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| (ii) as a late fee, if the return or report is
| | received at least 16 days but not more than 30 days after the prescribed due date, $100 or 5% of the tax due, whichever is greater, the entire fee not to exceed $2,000; or
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| (iii) as a penalty, if the return or report is
| | received more than 30 days after the prescribed due date, $100 or 5% of the tax due, whichever is greater, for each month or part of a month of failure to file, the entire penalty not to exceed $500 or 30% of the tax due, whichever is greater.
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| In this paragraph, "tax due" means the full amount due for the applicable tax period under Section 121-2.08 or 445 of this Code or Section 12 of the Fire Investigation Act. A tax return or report shall be deemed received as of the date mailed as evidenced by a postmark, proof of mailing on a recognized United States Postal Service form or a form acceptable to the United States Postal Service or other commercial mail delivery service, or other evidence acceptable to the Director.
(3)(a) When any insurance company fails to pay the full amount due under the provisions of this Section, Sections 408.1, 409, 444, or 444.1 of this Code, or Section 12 of the Fire Investigation Act, there shall be added to the amount due as a penalty an amount equal to 10% of the deficiency.
(a-5) When any industrial insured or surplus line producer fails to pay the full amount due under the provisions of this Section, Sections 121-2.08 or 445 of this Code, or Section 12 of the Fire Investigation Act on the date prescribed, there shall be added:
(i) as a late fee, if the payment is received at
| | least one day but not more than 7 days after the prescribed due date, 10% of the tax due, the entire fee not to exceed $1,000;
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| (ii) as a late fee, if the payment is received at
| | least 8 days but not more than 14 days after the prescribed due date, 10% of the tax due, the entire fee not to exceed $1,500;
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| (iii) as a late fee, if the payment is received at
| | least 15 days but not more than 21 days after the prescribed due date, 10% of the tax due, the entire fee not to exceed $2,000; or
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| (iv) as a penalty, if the return or report is
| | received more than 21 days after the prescribed due date, 10% of the tax due.
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| In this paragraph, "tax due" means the full amount due for the applicable tax period under this Section, Section 121-2.08 or 445 of this Code, or Section 12 of the Fire Investigation Act. A tax payment shall be deemed received as of the date mailed as evidenced by a postmark, proof of mailing on a recognized United States Postal Service form or a form acceptable to the United States Postal Service or other commercial mail delivery service, or other evidence acceptable to the Director.
(b) If such failure to pay is determined by the Director to be willful, after a hearing under Sections 402 and 403, there shall be added to the tax as a penalty an amount equal to the greater of 50% of the deficiency or 10% of the amount due and unpaid for each month or part of a month that the deficiency remains unpaid commencing with the date that the amount becomes due. Such amount shall be in lieu of any determined under paragraph (a) or (a-5).
(4) Any insurance company, industrial insured, or surplus line producer that fails to pay the full amount due under this Section or Sections 121-2.08, 408.1, 409, 444, 444.1, or 445 of this Code, or Section 12 of the Fire Investigation Act is liable, in addition to the tax and any late fees and penalties, for interest on such deficiency at the rate of 12% per annum, or at such higher adjusted rates as are or may be established under subsection (b) of Section 6621 of the Internal Revenue Code, from the date that payment of any such tax was due, determined without regard to any extensions, to the date of payment of such amount.
(5) The Director, through the Attorney General, may institute an action in the name of the People of the State of Illinois, in any court of competent jurisdiction, for the recovery of the amount of such taxes, fees, and penalties due, and prosecute the same to final judgment, and take such steps as are necessary to collect the same.
(6) In the event that the certificate of authority of a foreign or alien company is revoked for any cause or the company withdraws from this State prior to the renewal date of the certificate of authority as provided in Section 114, the company may recover the amount of any such tax paid in advance. Except as provided in this subsection, no revocation or withdrawal excuses payment of or constitutes grounds for the recovery of any taxes or penalties imposed by this Code.
(7) When an insurance company or domestic affiliated group fails to pay the full amount of any fee of $200 or more due under Section 408 of this Code, there shall be added to the amount due as a penalty the greater of $100 or an amount equal to 10% of the deficiency for each month or part of a month that the deficiency remains unpaid.
(8) The Department shall have a lien for the taxes, fees, charges, fines, penalties, interest, other charges, or any portion thereof, imposed or assessed pursuant to this Code, upon all the real and personal property of any company or person to whom the assessment or final order has been issued or whenever a tax return is filed without payment of the tax or penalty shown therein to be due, including all such property of the company or person acquired after receipt of the assessment, issuance of the order, or filing of the return. The company or person is liable for the filing fee incurred by the Department for filing the lien and the filing fee incurred by the Department to file the release of that lien. The filing fees shall be paid to the Department in addition to payment of the tax, fee, charge, fine, penalty, interest, other charges, or any portion thereof, included in the amount of the lien. However, where the lien arises because of the issuance of a final order of the Director or tax assessment by the Department, the lien shall not attach and the notice referred to in this Section shall not be filed until all administrative proceedings or proceedings in court for review of the final order or assessment have terminated or the time for the taking thereof has expired without such proceedings being instituted.
Upon the granting of Department review after a lien has attached, the lien shall remain in full force except to the extent to which the final assessment may be reduced by a revised final assessment following the rehearing or review. The lien created by the issuance of a final assessment shall terminate, unless a notice of lien is filed, within 3 years after the date all proceedings in court for the review of the final assessment have terminated or the time for the taking thereof has expired without such proceedings being instituted, or (in the case of a revised final assessment issued pursuant to a rehearing or review by the Department) within 3 years after the date all proceedings in court for the review of such revised final assessment have terminated or the time for the taking thereof has expired without such proceedings being instituted. Where the lien results from the filing of a tax return without payment of the tax or penalty shown therein to be due, the lien shall terminate, unless a notice of lien is filed, within 3 years after the date when the return is filed with the Department.
The time limitation period on the Department's right to file a notice of lien shall not run during any period of time in which the order of any court has the effect of enjoining or restraining the Department from filing such notice of lien. If the Department finds that a company or person is about to depart from the State, to conceal himself or his property, or to do any other act tending to prejudice or to render wholly or partly ineffectual proceedings to collect the amount due and owing to the Department unless such proceedings are brought without delay, or if the Department finds that the collection of the amount due from any company or person will be jeopardized by delay, the Department shall give the company or person notice of such findings and shall make demand for immediate return and payment of the amount, whereupon the amount shall become immediately due and payable. If the company or person, within 5 days after the notice (or within such extension of time as the Department may grant), does not comply with the notice or show to the Department that the findings in the notice are erroneous, the Department may file a notice of jeopardy assessment lien in the office of the recorder of the county in which any property of the company or person may be located and shall notify the company or person of the filing. The jeopardy assessment lien shall have the same scope and effect as the statutory lien provided for in this Section. If the company or person believes that the company or person does not owe some or all of the tax for which the jeopardy assessment lien against the company or person has been filed, or that no jeopardy to the revenue in fact exists, the company or person may protest within 20 days after being notified by the Department of the filing of the jeopardy assessment lien and request a hearing, whereupon the Department shall hold a hearing in conformity with the provisions of this Code and, pursuant thereto, shall notify the company or person of its findings as to whether or not the jeopardy assessment lien will be released. If not, and if the company or person is aggrieved by this decision, the company or person may file an action for judicial review of the final determination of the Department in accordance with the Administrative Review Law. If, pursuant to such hearing (or after an independent determination of the facts by the Department without a hearing), the Department determines that some or all of the amount due covered by the jeopardy assessment lien is not owed by the company or person, or that no jeopardy to the revenue exists, or if on judicial review the final judgment of the court is that the company or person does not owe some or all of the amount due covered by the jeopardy assessment lien against them, or that no jeopardy to the revenue exists, the Department shall release its jeopardy assessment lien to the extent of such finding of nonliability for the amount, or to the extent of such finding of no jeopardy to the revenue. The Department shall also release its jeopardy assessment lien against the company or person whenever the amount due and owing covered by the lien, plus any interest which may be due, are paid and the company or person has paid the Department in cash or by guaranteed remittance an amount representing the filing fee for the lien and the filing fee for the release of that lien. The Department shall file that release of lien with the recorder of the county where that lien was filed.
Nothing in this Section shall be construed to give the Department a preference over the rights of any bona fide purchaser, holder of a security interest, mechanics lienholder, mortgagee, or judgment lien creditor arising prior to the filing of a regular notice of lien or a notice of jeopardy assessment lien in the office of the recorder in the county in which the property subject to the lien is located. For purposes of this Section, "bona fide" shall not include any mortgage of real or personal property or any other credit transaction that results in the mortgagee or the holder of the security acting as trustee for unsecured creditors of the company or person mentioned in the notice of lien who executed such chattel or real property mortgage or the document evidencing such credit transaction. The lien shall be inferior to the lien of general taxes, special assessments, and special taxes levied by any political subdivision of this State. In case title to land to be affected by the notice of lien or notice of jeopardy assessment lien is registered under the provisions of the Registered Titles (Torrens) Act, such notice shall be filed in the office of the Registrar of Titles of the county within which the property subject to the lien is situated and shall be entered upon the register of titles as a memorial or charge upon each folium of the register of titles affected by such notice, and the Department shall not have a preference over the rights of any bona fide purchaser, mortgagee, judgment creditor, or other lienholder arising prior to the registration of such notice. The regular lien or jeopardy assessment lien shall not be effective against any purchaser with respect to any item in a retailer's stock in trade purchased from the retailer in the usual course of the retailer's business.
(Source: P.A. 102-775, eff. 5-13-22; 103-426, eff. 8-4-23; 103-718, eff. 7-19-24.)
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215 ILCS 5/413
(215 ILCS 5/413) (from Ch. 73, par. 1025)
Sec. 413.
Privilege
Tax Payable on Admission of Foreign or Alien Company.
(1) Every foreign or alien company applying for a certificate of
authority to transact business in this State shall pay to the Director a
tax for the privilege of transacting business in this State in accordance
with Section 409.
(2) If during all or any part of the 3 year period next preceding the
date of application for a certificate of authority the company had a
certificate of authority to transact business in this State, or if it
survives or was formed by a merger, consolidation, reorganization or
reincorporation, and one or more of the parties thereto was a foreign or
alien company authorized to transact business in this State during all or
any part of such 3 year period, then the tax shall be determined in
accordance with Section 409 on the basis of the last entire calendar year
during which the company or any one of the foreign or alien companies
parties to the merger, consolidation, reorganization or reincorporation was
authorized to transact business in this State, or if none was authorized
during any entire calendar year, then on the basis of the last partial
calendar year during which any of such companies were authorized to
transact business in this State.
(Source: P.A. 77-2087.)
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215 ILCS 5/414a
(215 ILCS 5/414a) (from Ch. 73, par. 1026a)
Sec. 414a.
Notwithstanding the provisions of this or any other Act, the
tax authorized by Section 414 of this Act shall not be imposed after January
1, 1979; provided that this Section shall not prohibit the collection after
January 1, 1979 of any taxes levied under Section 414 prior to January
1, 1979, on property subject to assessment and taxation under Section 414
of this Act prior to January 1, 1979. For the purpose of replacing the revenue
lost by taxing districts, as defined in Section 1-150 of the Property Tax
Code, as a result of the abolition of ad
valorem taxes on personal property after January 1, 1979, there shall be
imposed the taxes described in Section 201(c) and (d) of the Illinois
Income Tax Act, Section 2a.1 of the Messages Tax Act,
Section 2a.1 of the Gas Revenue Tax Act, Section 2a.1 of
the Public Utilities Revenue Act, and Section 1 of the Water Company Invested
Capital Tax Act. Such replacement taxes owed
within one year of the effective date of the taxes established by
this amendatory Act of 1979 shall replace the personal property tax levies of
1979. The replacement taxes owed in each succeeding year shall replace the
personal property tax that could have been levied in each succeeding year.
(Source: P.A. 88-670, eff. 12-2-94.)
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215 ILCS 5/415
(215 ILCS 5/415) (from Ch. 73, par. 1027)
Sec. 415.
No taxes to be imposed by political subdivisions.
The fees, charges and taxes provided for by this Article
shall be in lieu of all license fees or privilege or occupation taxes or
other fees levied or assessed by any municipality, county or other political
subdivision of this State, and no municipality, county or other political
subdivision of this State shall impose any license fee or privilege or
occupation tax or fee upon any domestic, foreign or alien company, or upon any
of its agents, for the privilege of doing an insurance business therein, except
the tax authorized by Division 10 of Article 11 of the Illinois Municipal Code,
as heretofore and hereafter amended. This Section shall not be construed to
prohibit the levy and collection of:
(a) State, county or municipal taxes upon the real | | and personal property of such a company, including the tax imposed by Section 414 of this Code, and
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(b) taxes for the purpose of maintaining the Office
| | of the State Fire Marshal and paying the expenses incident thereto.
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(Source: P.A. 91-357, eff. 7-29-99.)
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215 ILCS 5/416 (215 ILCS 5/416) Sec. 416. Illinois Workers' Compensation Commission Operations Fund Surcharge. (a) As of July 30, 2004 (the effective date of Public Act 93-840), every company licensed or authorized by the Illinois Department of Insurance and insuring employers' liabilities arising under the Workers' Compensation Act or the Workers' Occupational Diseases Act shall remit to the Director a surcharge based upon the annual direct written premium, as reported under Section 136 of this Act, of the company in the manner provided in this Section. Such proceeds shall be deposited into the Illinois Workers' Compensation Commission Operations Fund as established in the Workers' Compensation Act. If a company survives or was formed by a merger, consolidation, reorganization, or reincorporation, the direct written premiums of all companies party to the merger, consolidation, reorganization, or reincorporation shall, for purposes of determining the amount of the fee imposed by this Section, be regarded as those of the surviving or new company. (b) Beginning on July 30, 2004 (the effective date of Public Act 93-840) and on July 1 of each year thereafter through 2023, the Director shall charge an annual Illinois Workers' Compensation Commission Operations Fund Surcharge from every company subject to subsection (a) of this Section equal to 1.01% of its direct written premium for insuring employers' liabilities arising under the Workers' Compensation Act or Workers' Occupational Diseases Act as reported in each company's annual statement filed for the previous year as required by Section 136. Within 15 days after the effective date of this amendatory Act of the 103rd General Assembly and on July 1 of each year thereafter, the Director shall charge an annual Illinois Workers' Compensation Commission Operations Fund Surcharge from every company subject to subsection (a) of this Section equal to 1.092% of its direct written premium for insuring employers' liabilities arising under the Workers' Compensation Act or Workers' Occupational Diseases Act as reported in each company's annual statement filed for the previous year as required by Section 136. The Illinois Workers' Compensation Commission Operations Fund Surcharge shall be collected by companies subject to subsection (a) of this Section as a separately stated surcharge on insured employers at the rate of 1.092% of direct written premium for the surcharge due in 2024 and each year thereafter. The Illinois Workers' Compensation Commission Operations Fund Surcharge shall not be collected by companies subject to subsection (a) of this Section from any employer that self-insures its liabilities arising under the Workers' Compensation Act or Workers' Occupational Diseases Act, provided that the employer has paid the Illinois Workers' Compensation Commission Operations Fund Fee pursuant to Section 4d of the Workers' Compensation Act. All sums collected by the Department of Insurance under the provisions of this Section shall be paid promptly after the receipt of the same, accompanied by a detailed statement thereof, into the Illinois Workers' Compensation Commission Operations Fund in the State treasury. (b)(2) (Blank). (c) In addition to the authority specifically granted under Article XXV of this Code, the Director shall have such authority to adopt rules or establish forms as may be reasonably necessary for purposes of enforcing this Section. The Director shall also have authority to defer, waive, or abate the surcharge or any penalties imposed by this Section if in the Director's opinion the company's solvency and ability to meet its insured obligations would be immediately threatened by payment of the surcharge due. (d) When a company fails to pay the full amount of any annual Illinois Workers' Compensation Commission Operations Fund Surcharge of $100 or more due under this Section, there shall be added to the amount due as a penalty an amount equal to 10% of the deficiency for each month or part of a month that the deficiency remains unpaid. (e) The Department of Insurance may enforce the collection of any delinquent payment, penalty, or portion thereof by legal action or in any other manner by which the collection of debts due the State of Illinois may be enforced under the laws of this State. (f) Whenever it appears to the satisfaction of the Director that a company has paid pursuant to this Act an Illinois Workers' Compensation Commission Operations Fund Surcharge in an amount in excess of the amount legally collectable from the company, the Director shall issue a credit memorandum for an amount equal to the amount of such overpayment. A credit memorandum may be applied for the 2-year period from the date of issuance, against the payment of any amount due during that period under the surcharge imposed by this Section or, subject to reasonable rule of the Department of Insurance including requirement of notification, may be assigned to any other company subject to regulation under this Act. Any application of credit memoranda after the period provided for in this Section is void. (g) Annually, the Governor may direct a transfer of up to 2% of all moneys collected under this Section to the Insurance Financial Regulation Fund. (Source: P.A. 102-775, eff. 5-13-22; 103-590, eff. 6-5-24.) |
215 ILCS 5/Art. XXVI
(215 ILCS 5/Art. XXVI heading)
ARTICLE XXVI.
UNFAIR METHODS OF COMPETITION AND UNFAIR AND DECEPTIVE ACTS
AND PRACTICES
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215 ILCS 5/421
(215 ILCS 5/421) (from Ch. 73, par. 1028)
Sec. 421.
Declaration of purpose.
The purpose of this article is to regulate trade practices in the
business of insurance in accordance with the intent of Congress as
expressed in the Act of Congress of March 9, 1945 (Public Law 15, 79th
Congress), by defining, or providing for the determination of, all such
practices in this State which constitute unfair methods of competition or
unfair or deceptive acts or practices and by prohibiting the trade
practices so defined or determined.
(Source: Laws 1959, p. 734.)
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215 ILCS 5/422
(215 ILCS 5/422) (from Ch. 73, par. 1029)
Sec. 422.
Definitions.
When used in this Article, "Person" shall mean any individual,
partnership, association, corporation, society, order, firm, company,
aggregation of individuals, reciprocal exchange, inter-insurer, Lloyds
insurer, fraternal benefit society, and any other legal entity to which any
article of this Code is applicable, or which is subject to examination,
visitation or supervision by the Director under any provision of this Code
or under any law of this State, or which is engaged or engaging in or
proposing or attempting to engage in or is representing that it is doing an
insurance or surety business in this State, or which is in process of
organization for the purpose of doing such business, including agents,
brokers, adjusters and solicitors.
(Source: Laws 1959, p. 734.)
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215 ILCS 5/423
(215 ILCS 5/423) (from Ch. 73, par. 1030)
Sec. 423.
Unfair
methods of competition or unfair and deceptive acts or practices
prohibited.
(1) No person shall engage in this State in any trade practice which is
defined in this Article as, or determined pursuant to this Article to be an
unfair method of competition or an unfair or deceptive act or practice in
the business of insurance.
(2) No person domiciled in or resident of this State shall engage in any
other State, Territory, Province, Possession, Country or District in which
he is not licensed or otherwise authorized to transact business in any
trade practice which is defined in this Article as, or determined pursuant
to this Article to be an unfair method of competition or an unfair or
deceptive act or practice in the business of insurance.
(Source: Laws 1967, p. 990.)
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215 ILCS 5/424
(215 ILCS 5/424) (from Ch. 73, par. 1031)
Sec. 424. Unfair methods of competition and unfair or deceptive acts or
practices defined. The following are hereby defined as unfair methods of
competition and unfair and deceptive acts or practices in the business of
insurance:
(1) The commission by any person of any one or more | | of the acts defined or prohibited by Sections 134, 143.24c, 147, 148, 149, 151, 155.22, 155.22a, 155.42, 236, 237, 364, 469, and 513b1 of this Code.
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(2) Entering into any agreement to commit, or by any
| | concerted action committing, any act of boycott, coercion or intimidation resulting in or tending to result in unreasonable restraint of, or monopoly in, the business of insurance.
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(3) Making or permitting, in the case of insurance of
| | the types enumerated in Classes 1, 2, and 3 of Section 4, any unfair discrimination between individuals or risks of the same class or of essentially the same hazard and expense element because of the race, color, religion, or national origin of such insurance risks or applicants. The application of this Article to the types of insurance enumerated in Class 1 of Section 4 shall in no way limit, reduce, or impair the protections and remedies already provided for by Sections 236 and 364 of this Code or any other provision of this Code.
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(4) Engaging in any of the acts or practices defined
| | in or prohibited by Sections 154.5 through 154.8 of this Code.
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|
(5) Making or charging any rate for insurance against
| | losses arising from the use or ownership of a motor vehicle which requires a higher premium of any person by reason of his physical disability, race, color, religion, or national origin.
|
|
(6) Failing to meet any requirement of the Unclaimed
| | Life Insurance Benefits Act with such frequency as to constitute a general business practice.
|
| (Source: P.A. 102-778, eff. 7-1-22.)
|
215 ILCS 5/425
(215 ILCS 5/425) (from Ch. 73, par. 1032)
Sec. 425.
Power of
Director.
The Director shall have power to examine and investigate into the
affairs of every person engaged in the business of insurance in this State
and to examine and investigate into the affairs of any person domiciled in
or resident of this State engaged in the business of insurance in any other
State, Territory, Province, Possession, Country or District in which he is
not licensed or otherwise authorized to transact business in order to
determine whether such person has been or is engaged in any unfair method
of competition or in any unfair or deceptive act or practice prohibited by
Section 424.
(Source: Laws 1967, p. 990.)
|
215 ILCS 5/426
(215 ILCS 5/426) (from Ch. 73, par. 1033)
Sec. 426.
Hearings.
(1) Whenever the Director shall have reason to believe that any such
person has been engaged or is engaging in this State in any unfair method
of competition or any unfair or deceptive act or practice defined in
Section 424, or that any person domiciled in or resident of this State
has been engaged or is engaging in any other State, Territory, Province,
Possession, Country or District in which he is not licensed or otherwise
authorized to transact business in any unfair method of competition or any
unfair or deceptive act or practice defined in Section 424, and that a
proceeding by him in respect thereto would be to the interest of the
public, he shall issue and serve upon such person or persons domiciled in
or resident of this State a statement of the charges in that respect and a
notice of a hearing thereon to be held at a time and place fixed in the
notice, which shall not be less than 10 days after the date of the service
thereof.
(2) At the time and place fixed for such hearing, such person shall have
an opportunity to be heard in person or by counsel and to show cause why an
order should not be made by the Director requiring such persons to cease
and desist from the acts, methods or practices so complained of. Upon good
cause shown, before the commencement of such hearing, the Director shall
permit any person to intervene, appear and be heard at such hearing by
counsel or in person.
(3) The Director, upon such hearing, may, and upon the request of any
party shall, cause to be made a stenographic record of all the evidence and
all the proceedings had at such hearing. If no stenographic record is made
and if a judicial review is sought, the Director shall prepare a statement
of the evidence and proceeding for use on review.
(Source: Laws 1967, p. 990.)
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215 ILCS 5/427
(215 ILCS 5/427) (from Ch. 73, par. 1034)
Sec. 427.
Cease and
desist orders and modifications thereof.
(1) If, after such hearing, the Director shall determine that the method
of competition or the act or practice in question is defined in Section
424 and that the person complained of has engaged in such method of
competition, act or practice in violation of this article, he shall reduce
his findings to writing and shall issue and cause to be served upon the
person charged with the violation an order requiring such person to cease
and desist from engaging in such method of competition, act or practice.
(2) Until the expiration of the time allowed under Section 407 of this
Code for filing a complaint for review if no such complaint has been duly
filed within such time or, if a complaint for review has been filed within
such time, then until the answer in the proceeding has been filed in the
court, as provided in said section, the Director may at any time, upon such
notice and in such manner as he shall deem proper, modify or set aside in
whole or in part any order issued by him under this section.
(3) After the expiration of the time allowed for filing such a complaint
for review if no such complaint has been duly filed within such time, the
Director may at any time, after notice and opportunity for hearing, reopen
and alter, modify or set aside, in whole or in part, any order issued by
him under this section, whenever in his opinion conditions of fact or of
law have so changed as to require such action or if the public interest
shall so require.
(Source: Laws 1959, p. 734.)
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215 ILCS 5/428
(215 ILCS 5/428) (from Ch. 73, par. 1035)
Sec. 428.
Procedure
on review.
(1) To the extent that the order of the Director is affirmed, the court
shall thereupon enter its own order commanding obedience to the terms of
the order of the Director. If either party applies to the court for
leave to adduce additional evidence, and shows to the satisfaction of
the court that such additional evidence is material and that there were
reasonable grounds for the failure to adduce such evidence in the
proceeding before the Director, the court may order such additional
evidence to be taken before the Director and to be adduced upon the hearing
in such manner and upon such terms and conditions as to the court may seem
proper. The Director, may modify his or her findings of fact, or make new findings
by reason of the additional evidence so taken, and he or she shall file such
modified or new findings as well as any modification of the original order
reached as a result of hearing such additional evidence.
(2) A cease and desist order issued by the Director under Section 427
shall become final.
(a) Upon the expiration of the time allowed for filing a complaint for
review if no such complaint has been duly filed within such time; but
the Director may thereafter modify or set aside his or her order to the
extent provided in Section 427 (2); or
(b) Upon the entry of a final decision, order or judgment of the
court.
(3) No order of the Director under this Article or order of a court to
enforce the same shall in any way relieve or absolve any person affected by
such order from any liability under any other laws of this State.
(Source: P.A. 84-1308.)
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215 ILCS 5/429
(215 ILCS 5/429) (from Ch. 73, par. 1036)
Sec. 429. Procedure
as to unfair methods of competition and unfair or deceptive acts or
practices which are not defined. (1) Whenever the Director shall have reason to believe (a) that any
person engaged in the business of insurance is engaging in this State in
any method of competition or in any act or practice in the conduct of such
business which is not defined in Section 424, as an unfair method of
competition or an unfair or deceptive act or practice or that any person
domiciled in or resident of this State engaged in the business of insurance
is engaging in any other state, territory, province, possession, country,
or district in which he or she is not licensed or otherwise authorized to transact
business in any method of competition or in any act or practice in the
conduct of such business which is not defined in Section 424, as an unfair
method of competition or an unfair or deceptive act or practice, and (b)
that such method of competition is unfair or that such act or practice is
unfair or deceptive, or (c) that such unfair method of competition or such
unfair or deceptive act or practice violates any of the provisions of this Code or any other law of this State, or (d) that a proceeding
by him or her in respect thereto would be to the interest of the public,
he or she may
issue and serve upon such person a statement of the charges in that respect
and a notice of a hearing thereon to be held at a time and place fixed in
the notice, which shall not be less than 10 days after the date of the
service thereof. Each such hearing shall be conducted in the same manner as
the hearings provided for in Section 426. The Director shall, after such
hearing, make a report in writing in which he or she shall state his
or her findings as
to the facts, and he or she shall serve a copy thereof upon such person.
(2) If such report charges a violation of this Article and if such
method of competition, act, or practice has not been discontinued, the
Director may, through the Attorney General of this State, at any time after
the service of such report cause a complaint to be filed in the Circuit
Court of Sangamon County or in the Circuit Court of this State within the
county wherein the person resides or has his principal place of business,
to enjoin and restrain such person from engaging in such method, act, or
practice. The court shall have jurisdiction of the proceeding and shall
have power to make and enter appropriate orders in connection therewith and
to enter such orders as are ancillary to its jurisdiction
or are necessary
in its judgment to prevent injury to the public pendente lite.
(3) A transcript of the proceedings before the Director including all
evidence taken and the report and findings shall be filed with such
complaint. If either party shall apply to the court for leave to adduce
additional evidence and shall show, to the satisfaction of the court, that
such additional evidence is material and there were reasonable grounds for
the failure to adduce such evidence in the proceedings before the Director
the court may order such additional evidence to be taken before the
Director and to be adduced upon the hearing in such manner and upon such
terms and conditions as to the court may seem proper. The Director may
modify his or her findings of fact or make new findings by reason of the
additional evidence so taken, and he or she shall file such modified or new
findings with the return of such additional evidence.
(4) If the court finds (a) that the method of competition complained of
is unfair or that the act or practice complained of is unfair or deceptive,
or (b) that such unfair method of competition or such unfair or deceptive
act or practice is in violation of this Code or any other law of
this State and (c) that the proceeding by the Director with respect thereto
is to the interest of public and (d) that the findings of the Director are
supported by the evidence, it shall enter an order enjoining and
restraining the continuance of such method of competition, act, or practice.
(Source: P.A. 100-863, eff. 8-14-18.)
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215 ILCS 5/430
(215 ILCS 5/430) (from Ch. 73, par. 1037)
Sec. 430.
Judicial review by intervenor.
If the report of the Director
does not charge a violation of this
Article, then any party in interest who was an intervenor in the
proceedings before the Director may within 35 days after the service of
such report, cause a complaint to be filed in the Circuit Court of Sangamon
County for a review of such report. Upon such review, the court shall have
authority to issue appropriate orders and judgment in connection therewith,
including, if the court finds that it is to the interest of the public,
orders enjoining and restraining the continuance of any method of
competition, act or practice which it finds, notwithstanding such report of
the Director, constitutes a violation of this Article.
(Source: P.A. 79-1362.)
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215 ILCS 5/431
(215 ILCS 5/431) (from Ch. 73, par. 1038)
Sec. 431.
Penalty.
Any person who violates a cease and desist order of the Director under
Section 427, after it has become final, and while such order is in
effect, or who violates an order of the Circuit Court under Section 429,
shall, upon proof thereof to the satisfaction of the court, forfeit and pay
to the State of Illinois, a sum not to exceed $1,000, which may be
recovered
in a civil action, for each violation.
(Source: P.A. 93-32, eff. 7-1-03.)
|
215 ILCS 5/432
(215 ILCS 5/432) (from Ch. 73, par. 1039)
Sec. 432.
Provisions additional to existing law.
The powers vested in the Director by this Article shall be additional to
any other powers to enforce any penalties, fines or forfeitures authorized
by law with respect to the methods, acts and practices hereby declared to
be unfair or deceptive.
(Source: Laws 1959, p. 734.)
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215 ILCS 5/433
(215 ILCS 5/433) (from Ch. 73, par. 1040)
Sec. 433.
Immunity
from prosecution.
If any person shall ask to be excused from attending and testifying or
from producing any books, papers, records, correspondence or other
documents at any hearing on the ground that the testimony or evidence
required of him may tend to incriminate him or subject him to a penalty or
forfeiture, and shall notwithstanding be directed to give such testimony or
produce such evidence, he must none the less comply with such direction,
but he shall not thereafter be prosecuted or subjected to any penalty or
forfeiture for or on account of any transaction, matter or thing concerning
which he may testify or produce evidence pursuant thereto, and no testimony
so given or evidence produced shall be received against him upon any
criminal action, investigation or proceeding, provided, however, that no
such individual so testifying shall be exempt from prosecution or
punishment for any perjury committed by him while so testifying and the
testimony or evidence so given or produced shall be admissible against him
upon any criminal action, investigation or proceeding concerning such
perjury, nor shall he be exempt from the refusal, revocation or suspension
of any license, permission or authority conferred, or to be conferred,
pursuant to the insurance laws of this State. Any such individual may
execute, acknowledge and file in the office of the Director a statement
expressly waiving such immunity or privilege in respect to any transaction,
matter or thing specified in such statement and thereupon the testimony of
such person or such evidence into such transaction, matter or thing may be
received or produced before any judge or justice, court, tribunal, grand
jury or otherwise, and if so received or produced such individual shall not
be entitled to any immunity or privilege on account of any testimony he may
so give or evidence so produced.
(Source: Laws 1959, p. 734.)
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215 ILCS 5/434
(215 ILCS 5/434) (from Ch. 73, par. 1041)
Sec. 434.
Separability provision.
If any provision of this Article, or the application of such provision
to any person or circumstances, shall be held invalid, the remainder of the
Article, and the application of such provision to persons or circumstances
other than those as to which it is held invalid, shall not be affected
thereby.
(Source: Laws 1959, p. 734.)
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215 ILCS 5/Art. XXVIII
(215 ILCS 5/Art. XXVIII heading)
ARTICLE XXVIII.
FINAL PROVISIONS
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215 ILCS 5/441
(215 ILCS 5/441) (from Ch. 73, par. 1053)
Sec. 441.
General
corporate powers.
(1) In order to carry out the purpose for which it is organized, each
company under the laws of the State and subject to the provisions of this
Code shall have
(a) perpetual succession by its corporate name unless a limited period
of duration is stated in its articles of incorporation;
(b) power in its corporate name to sue and be sued, to contract and be
contracted with, to own, hold, sell, convey, mortgage, pledge, lease and
otherwise dispose of real and personal property;
(c) power to adopt by-laws not in conflict with the provisions of this
Code, and to adopt and use a seal and to alter the same at pleasure;
(d) power to make donations in reasonable amounts for the public welfare
or for charitable, scientific, religious or educational purposes;
(e) such other powers as shall be needful to accomplish the purposes of
its organization.
(2) Such power shall be exercised subject to the provisions and
restrictions of this Code and other laws of this State.
(3) No conveyance or transfer by or to any company of property, real or
personal, of any kind or description, shall be invalid or fail because in
making such conveyance or transfer or in acquiring such property, real or
personal, the company, its board of directors, trustees or other governing
body, or any of its officers, acting within the scope of the actual or
apparent authority given to them by its board of directors, trustees or
other governing body, have in so doing exceeded any of the purposes or
powers of the company.
(Source: Laws 1959, p. 151.)
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215 ILCS 5/442
(215 ILCS 5/442) (from Ch. 73, par. 1054)
Sec. 442.
Validation of illegally issued policies.
Any contract or policy of insurance or any application, endorsement or
rider form used in connection therewith issued in violation of any section
of this Code requiring certain provisions to be inserted therein or the
inclusion of provisions prohibited, or issued without submitting same for
approval by the Director in accordance with section 143, shall
nevertheless be held valid but shall be construed in accordance with the
requirements of the section that the said policy, application, endorsement
or rider violates, and when any provision in such contract, application,
endorsement or rider is in conflict with any provision of this Code, the
rights, and obligations of the company thereunder shall not be less
favorable to the holder of the contract and the beneficiary or annuitant
thereunder than is required by the provisions of this Code applicable
thereto.
(Source: Laws 1937, p. 696.)
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215 ILCS 5/443
(215 ILCS 5/443) (from Ch. 73, par. 1055)
Sec. 443.
Reciprocity.
The policies of a company, not organized under the laws of this State,
may contain any provision which the law of the state or country under which
the company is organized prescribes shall be in such policies when issued
in this State, and the policies of such insurance company organized under
the laws of this State may, when issued or delivered in any other state or
country, contain any provisions required by the laws of the state or
country in which the same are issued, anything in this Code to the contrary
notwithstanding.
(Source: Laws 1937, p. 696.)
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215 ILCS 5/444
(215 ILCS 5/444) (from Ch. 73, par. 1056)
Sec. 444. Retaliation.
(1) Whenever the existing or future laws of any other state or country
shall
require of companies incorporated or organized under the laws of this State
as a condition precedent to their doing business in such other state or
country, compliance with laws, rules, regulations, and prohibitions more
onerous or burdensome than the rules and regulations imposed by this State
on foreign or alien companies, or shall require any deposit of securities
or other obligations in such state or country, for the protection of
policyholders or otherwise or require of such companies or agents thereof
or brokers the payment of penalties, fees, charges, or taxes greater than
the penalties, fees, charges, or taxes required in the aggregate for like
purposes by this Code or any other law of this State, of foreign or alien
companies, agents thereof or brokers, then such laws, rules, regulations,
and prohibitions of said other state or country shall apply to companies
incorporated or organized under the laws of such state or country doing
business in this State, and all such companies, agents thereof, or brokers
doing business in this State, shall be required to make deposits, pay
penalties, fees, charges, and taxes, in amounts equal to those required in
the aggregate for like purposes of Illinois companies doing business in
such state or country, agents thereof or brokers. Whenever any other state
or country shall refuse to permit any insurance company incorporated or
organized under the laws of this State to transact business according to
its usual plan in such other state or country, the director may, if
satisfied that such company of this State is solvent, properly managed, and
can operate legally under the laws of such other state or country,
forthwith suspend or cancel the license of every insurance company doing
business in this State which is incorporated or organized under the laws of
such other state or country to the extent that it insures in this State
against any of the risks or hazards which are sought to be insured against
by the company of this State in such other state or country.
(2) The provisions of this Section shall not apply to residual market
or special purpose assessments or guaranty fund or guaranty association
assessments, both under the laws of this State and under the laws of any other
state
or country, and any tax offset or credit for any such assessment shall, for
purposes of this Section, be treated as a tax paid both under the laws of this
State and under the laws of any other state or country.
(3) The terms "penalties", "fees", "charges", and "taxes" in subsection
(1) of this
Section
shall include: the penalties, fees, charges, and taxes collected on a cash basis under State
law
and
referenced within Article XXV exclusive of any items referenced by
subsection
(2) of this Section, but including any tax offset allowed under Section 531.13
of this Code; the aggregate Illinois corporate income taxes paid under Sections 601 and 803
of the Illinois Income Tax Act during the calendar year for which the retaliatory tax calculation is being made, less the recapture of any Illinois corporate income tax cash refunds to the extent that the amount of tax refunded was reported as part of the Illinois basis in the calculation of the retaliatory tax for a prior tax year, provided that such recaptured refund shall not exceed the amount necessary for equivalence of the Illinois basis with the state of incorporation basis in such tax year, and after
any tax offset allowed under Section 531.13 of this Code;
income or personal property taxes imposed by other states or countries;
penalties, fees, charges, and taxes of other states
or countries imposed for purposes like those of the penalties, fees, charges,
and taxes
specified in Article XXV of this Code exclusive of any item referenced in
subsection (2) of this Section; and any penalties, fees, charges, and taxes
required as
a
franchise, privilege, or licensing tax for
conducting the business of insurance whether calculated as a percentage of
income, gross receipts, premium, or otherwise.
(4) Nothing contained in this Section or Section 409 or Section 444.1 is
intended to authorize or expand any power of local governmental units or
municipalities to impose taxes, fees, or charges.
(5) This Section is subject to the provisions of Section 10 of the New Markets Development Program Act. (Source: P.A. 98-1169, eff. 1-9-15.)
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215 ILCS 5/444.1
(215 ILCS 5/444.1) (from Ch. 73, par. 1056.1)
Sec. 444.1. Payment of retaliatory taxes.
(1) Every foreign or alien
company doing insurance business in this State shall pay the Director the
retaliatory tax determined in accordance with Section 444.
(2) (a) All companies subject to the provisions of this Section shall
make an
annual return for the preceding calendar year on or before March 15 setting
forth such information on such forms as the Director may reasonably require.
Payments of quarterly installments of the taxpayer's total estimated
retaliatory tax for the current calendar year shall be due on or before April
15, June 15, September 15, and December 15 of such year, except that all
companies
transacting insurance business in this State whose annual tax for the
immediately
preceding calendar year was less than $5,000 shall make only an annual
return. Failure of a company to make the annual payment, or to make the
quarterly payments, if required, of at least one-fourth of either (i) the total
tax paid during the previous calendar year or (ii) 80% of the actual tax for
the current calendar year shall subject it to the penalty provisions set forth
in Section 412 of this Code.
(b) Notwithstanding the foregoing provisions of paragraph (a) of this
subsection, the retaliatory tax liability of companies under Section 444 of
this Code for the calendar year ended December 31, 1997 shall be
determined in accordance with this amendatory Act of 1998 and shall include in
the aggregate comparative tax burden for the State of Illinois, any tax offset
allowed under Section 531.13 of this Code and any income
taxes paid for the year 1997 under subsections (a) through (d) of Section 201
of the Illinois Income Tax Act after any tax offset allowed under Section
531.13 of this Code.
(i) Any annual retaliatory tax returns and payments | | made for the year ended December 31, 1997 and any quarterly installments of the taxpayer's total estimated 1998 retaliatory tax liability paid prior to the effective date of this Amendatory Act of 1998 that do not include the items specified by subsection (1) of this Section shall be amended and restated, at the taxpayer's election, on forms prepared by the Director so as to provide for the inclusion of such items. An amended and restated return for the year ended December 31, 1997 filed under this subparagraph shall treat any payment of estimated privilege taxes under Section 409 as in effect prior to October 23, 1997 as a payment of estimated retaliatory taxes for the year ended December 31, 1997.
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|
(ii) Any overpayment resulting from such amended
| | return and restated tax liability shall be allowed as a credit against any subsequent privilege or retaliatory tax obligations of the taxpayer.
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|
(iii) In the year 1999 and thereafter all companies
| | shall make annual and quarterly installments of their estimated tax as provided by paragraph (a) of this subsection.
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|
(3) Any tax payment made under this Section and any tax returns prepared
in compliance with Section 410 shall give full consideration to the impact
of any future reduction in or elimination of a taxpayer's liability under
Section 409, whether such reduction or elimination is due to an operation
of law or an Act of the General Assembly.
(4) Any foreign or alien taxpayer who makes, under protest, a tax payment
required by Section 409 shall, at the time of payment, file a retaliatory
tax return sufficient to disclose the full amount of retaliatory taxes which
would be due and owing for the tax period in question if the protest were
upheld. Notwithstanding the provisions of the State Officers and Employees
Money Disposition Act or any other laws of this State, the protested
payment, to the extent of the retaliatory tax so disclosed, shall be deposited
directly in the General Revenue Fund; and the balance of the payment, if
any, shall be deposited in a protest account pursuant to the provisions
of the aforesaid Act, as now or hereafter amended.
(5) The failure of a company to make the annual payment or to make the
quarterly payments, if required,
of at least one-fourth of either (i) the total tax paid
during the preceding
calendar year or (ii) 80% of the actual tax for the current calendar
year shall subject it to the penalty provisions set forth in Section
412 of this Code.
(6) This Section is subject to the provisions of Section 10 of the New Markets Development Program Act.
(Source: P.A. 95-1024, eff. 12-31-08.)
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215 ILCS 5/445
(215 ILCS 5/445) (from Ch. 73, par. 1057)
Sec. 445. Surplus line.
(1) Definitions. For the purposes of this Section:
"Affiliate" means, with respect to an insured, any entity that controls, is controlled by, or is under common control with the insured. For the purpose of this definition, an entity has control over another entity if: (A) the entity directly or indirectly or acting | | through one or more other persons owns, controls, or has the power to vote 25% or more of any class of voting securities of the other entity; or
|
| (B) the entity controls in any manner the election of
| | a majority of the directors or trustees of the other entity.
|
| "Affiliated group" means any group of entities that are all affiliated.
"Authorized insurer" means an insurer that holds a certificate of
authority
issued by the Director but, for the purposes of this Section, does not
include a
domestic surplus line insurer as defined in Section 445a or any
residual market
mechanism.
"Exempt commercial purchaser" means any person purchasing commercial insurance that, at the time of placement, meets the following requirements:
(A) The person employs or retains a qualified risk
| | manager to negotiate insurance coverage.
|
| (B) The person has paid aggregate nationwide
| | commercial property and casualty insurance premiums in excess of $100,000 in the immediately preceding 12 months.
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| (C) The person meets at least one of the following
| | (I) The person possesses a net worth in excess of
| | $20,000,000, as such amount is adjusted pursuant to the provision in this definition concerning percentage change.
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| (II) The person generates annual revenues in
| | excess of $50,000,000, as such amount is adjusted pursuant to the provision in this definition concerning percentage change.
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| (III) The person employs more than 500 full-time
| | or full-time equivalent employees per individual insured or is a member of an affiliated group employing more than 1,000 employees in the aggregate.
|
| (IV) The person is a not-for-profit organization
| | or public entity generating annual budgeted expenditures of at least $30,000,000, as such amount is adjusted pursuant to the provision in this definition concerning percentage change.
|
| (V) The person is a municipality with a
| | population in excess of 50,000 persons.
|
| Effective on January 1, 2015 and each fifth January 1 occurring thereafter, the amounts in subitems (I), (II), and (IV) of item (C) of this definition shall be adjusted to reflect the percentage change for such 5-year period in the Consumer Price Index for All Urban Consumers published by the Bureau of Labor Statistics of the Department of Labor.
"Home state" means the following:
(A) With respect to an insured, except as provided
| | in item (B) of this definition:
|
| (I) the state in which an insured maintains its
| | principal place of business or, in the case of an individual, the individual's principal residence; or
|
| (II) if 100% of the insured risk is located out
| | of the state referred to in subitem (I), the state to which the greatest percentage of the insured's taxable premium for that insurance contract is allocated.
|
| (B) If more than one insured from an affiliated group
| | are named insureds on a single surplus line insurance contract, then "home state" means the home state, as determined pursuant to item (A) of this definition, of the member of the affiliated group that has the largest percentage of premium attributed to it under such insurance contract.
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| If more than one insured from a group that is not
| | affiliated are named insureds on a single surplus line insurance contract, then:
|
| (I) if individual group members pay 100% of the
| | premium for the insurance from their own funds, "home state" means the home state, as determined pursuant to item (A) of this definition, of each individual group member; each individual group member's coverage under the surplus line insurance contract shall be treated as a separate surplus line contract for the purposes of this Section;
|
| (II) otherwise, "home state" means the home
| | state, as determined pursuant to item (A) of this definition, of the group.
|
| Nothing in this definition shall be construed to alter the terms of the surplus line insurance contract.
"Master policy" means a surplus line insurance contract with a single set of general contractual terms that are designed to apply on a group basis to multiple insureds who may or may not be affiliated and who may be added to or removed from the contract throughout the course of the contract period. A master policy may include certain provisions that vary for each insured depending on the insured's characteristics and the coverage sought.
"Multi-State risk" means a risk with insured exposures in more than one State.
"NAIC" means the National Association of Insurance Commissioners or any successor entity.
"Personal lines insurance" means insurance as defined in subsection (a), (b), or (c) of Section 143.13 of this Code.
"Premium" means any amount designated as premium on the declarations page or elsewhere in a policy and on any endorsement, but does not include taxes, the Surplus Line Association of Illinois recording fee, or any other fee.
"Program business" means a clearly defined group of insurance contracts procured by a licensed surplus line producer from an unauthorized insurer, under a single agreement between the producer and insurer, for insureds with the same or similar characteristics and containing the same or similar contract terms.
"Qualified risk manager" means, with respect to a policyholder of commercial insurance, a person who meets all of the following requirements:
(A) The person is an employee of, or third-party
| | consultant retained by, the commercial policyholder.
|
| (B) The person provides skilled services in loss
| | prevention, loss reduction, or risk and insurance coverage analysis, and purchase of insurance.
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| (C) With regard to the person:
(I) the person has:
(a) a bachelor's degree or higher from an
| | accredited college or university in risk management, business administration, finance, economics, or any other field determined by the Director or his designee to demonstrate minimum competence in risk management; and
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| (b) the following:
(i) three years of experience in risk
| | financing, claims administration, loss prevention, risk and insurance analysis, or purchasing commercial lines of insurance; or
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| (ii) alternatively has:
(AA) a designation as a Chartered
| | Property and Casualty Underwriter (in this subparagraph (ii) referred to as "CPCU") issued by the American Institute for CPCU/Insurance Institute of America;
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| (BB) a designation as an Associate in
| | Risk Management (ARM) issued by the American Institute for CPCU/Insurance Institute of America;
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| (CC) a designation as Certified Risk
| | Manager (CRM) issued by the National Alliance for Insurance Education & Research;
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| (DD) a designation as a RIMS Fellow
| | (RF) issued by the Global Risk Management Institute; or
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| (EE) any other designation,
| | certification, or license determined by the Director or his designee to demonstrate minimum competency in risk management;
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| (II) the person has:
(a) at least 7 years of experience in risk
| | financing, claims administration, loss prevention, risk and insurance coverage analysis, or purchasing commercial lines of insurance; and
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| (b) has any one of the designations specified
| | in subparagraph (ii) of paragraph (b);
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| (III) the person has at least 10 years of
| | experience in risk financing, claims administration, loss prevention, risk and insurance coverage analysis, or purchasing commercial lines of insurance; or
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| (IV) the person has a graduate degree from an
| | accredited college or university in risk management, business administration, finance, economics, or any other field determined by the Director or his or her designee to demonstrate minimum competence in risk management.
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| "Residual market mechanism" means an association, organization, or other
entity described in Article XXXIII of this Code or Section 7-501 of the
Illinois Vehicle Code or any similar association, organization, or other
entity.
"State" means any state of the United States, the District of Columbia, the Commonwealth of Puerto Rico, Guam, the Northern Mariana Islands, the Virgin Islands, and American Samoa.
"Surplus line insurance" means insurance on a risk:
(A) of the kinds specified in Classes 2 and 3 of
| | Section 4 of this Code; and
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| (B) that is procured from an unauthorized insurer
| | after the insurance producer representing the insured or the surplus line producer is unable, after diligent effort, to procure the insurance from authorized insurers; and
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| (C) where Illinois is the home state of the insured,
| | for policies effective, renewed or extended on July 21, 2011 or later and for multiyear policies upon the policy anniversary that falls on or after July 21, 2011; and
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| (D) that is located in Illinois, for policies
| | effective prior to July 21, 2011.
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| "Taxable premium" means a premium for any risk that is located in or attributed to any state.
"Unauthorized insurer" means an insurer that does not hold a valid
certificate of authority issued by the Director but, for the purposes of this
Section, shall also include a domestic surplus line insurer as defined in
Section 445a.
(1.5) Procuring surplus line insurance; surplus line insurer requirements.
(a) License required. Insurance producers may procure
| | surplus line insurance only if licensed as a surplus line producer under this Section.
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| (b) Domestic and foreign insurer eligibility.
| | Licensed surplus line producers may procure surplus line insurance from an unauthorized insurer domiciled in any state only if the insurer:
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(i) is permitted in its domiciliary jurisdiction
| | to write the type of insurance involved; and
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(ii) has, based upon information available to the
| | surplus line producer, a policyholders surplus of not less than $15,000,000 determined in accordance with the laws of its domiciliary jurisdiction; and
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(iii) has standards of solvency and management
| | that are adequate for the protection of policyholders.
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|
Where an unauthorized insurer does not meet the
| | standards set forth in (ii) and (iii) above, a surplus line producer may, if necessary, procure insurance from that insurer only if prior written warning of such fact or condition is given to the insured by the insurance producer or surplus line producer.
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|
(c) Alien insurer eligibility. Licensed surplus line
| | producers may procure surplus line insurance from an unauthorized insurer not domiciled in any state only if the insurer meets the standards for unauthorized insurers domiciled in any state in paragraph (b) of this subsection (1.5) or is listed on the Quarterly Listing of Alien Insurers maintained by the International Insurers Department of the NAIC at the time of procurement. The Director shall make the Quarterly Listing of Alien Insurers available to surplus line producers without charge.
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| (d) Prohibited transactions. Insurance producers
| | shall not procure from an unauthorized insurer an insurance policy:
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| (i) that is designed to satisfy the proof of
| | financial responsibility and insurance requirements in any Illinois law where the law requires that the proof of insurance is issued by an authorized insurer or residual market mechanism;
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| (ii) that covers the risk of accidental injury to
| | employees arising out of and in the course of employment according to the provisions of the Workers' Compensation Act; or
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| (iii) that insures any Illinois personal lines
| | risk that is eligible for residual market mechanism coverage, unless the insured or prospective insured requests limits of liability greater than the limits provided by the residual market mechanism. In the course of making a diligent effort to procure insurance from authorized insurers, an insurance producer shall not be required to submit a risk to a residual market mechanism when the risk is not eligible for coverage or exceeds the limits available in the residual market mechanism.
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| Where there is an insurance policy issued by an
| | authorized insurer or residual market mechanism insuring a risk described in item (i), (ii), or (iii) above, nothing in this paragraph shall be construed to prohibit a surplus line producer from procuring from an unauthorized insurer a policy insuring the risk on an excess or umbrella basis where the excess or umbrella policy is written over one or more underlying policies.
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| (e) Exempt commercial purchaser diligent effort.
| | Licensed surplus line producers may procure surplus line insurance from an unauthorized insurer for an exempt commercial purchaser without making the required diligent effort to procure the insurance from authorized insurers if:
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| (i) the producer has disclosed to the exempt
| | commercial purchaser that such insurance may or may not be available from authorized insurers that may provide greater protection with more regulatory oversight; and
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| (ii) the exempt commercial purchaser has
| | subsequently in writing requested the producer to procure such insurance from an unauthorized insurer.
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| (f) Commercial wholesale transaction diligent
| | effort. A licensed surplus line producer may procure a surplus line insurance contract, other than a personal lines insurance contract, from an unauthorized insurer without making the required diligent effort to procure the insurance from authorized insurers if the risk was referred to the surplus line producer by an Illinois-licensed insurance producer who is not affiliated with the surplus line producer.
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| (g) Master policy diligent effort. For a master
| | policy insurance contract, a licensed surplus line producer may make the required diligent effort to procure the insurance from authorized insurers annually for the master policy rather than individually for each insured that is added during the policy period. The diligent effort shall include all variable provisions of the master policy.
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| (h) Program business diligent effort. For program
| | business, a licensed surplus line producer may make the required diligent effort to procure the insurance from authorized insurers annually for the program rather than individually for each contract. The diligent effort shall include all variable provisions of the master policy.
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| (2) Surplus line producer; license. Any licensed producer who is a
resident of this State, or any nonresident who qualifies under Section
500-40, may be licensed as a surplus line producer upon payment of an annual license fee of $400.
A surplus line producer so licensed shall keep a separate
account of
the business transacted thereunder for 7 years from the policy effective date which shall be open at all times to the
inspection of the Director or his representative.
No later than July 21, 2012, the State of Illinois shall participate in the national insurance producer database of the NAIC, or any other equivalent uniform national database, for the licensure of surplus line producers and the renewal of such licenses.
(3) Taxes and reports.
(a) Surplus line tax and penalty for late payment.
| | The surplus line tax rate for a surplus line insurance policy or contract is determined as follows:
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| (i) 3% for policies or contracts with an
| | effective date prior to July 1, 2003;
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| (ii) 3.5% for policies or contracts with an
| | effective date of July 1, 2003 or later.
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| A surplus line producer shall file with the Director
| | on or before February 1 and August 1 of each year a report in the form prescribed by the Director on all surplus line insurance procured from unauthorized insurers and submitted to the Surplus Line Association of Illinois during the preceding 6 month period ending December 31 or June 30 respectively, and on the filing of such report shall pay to the Director for the use and benefit of the State a sum equal to the surplus line tax rate multiplied by the gross taxable premiums less returned taxable premiums upon all surplus line insurance submitted to the Surplus Line Association of Illinois during the preceding 6 months.
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Any surplus line producer who fails to pay the full
| | amount due under this subsection is liable, in addition to the amount due, for such late fee, penalty, and interest charges as are provided for under Section 412 of this Code. The Director, through the Attorney General, may institute an action in the name of the People of the State of Illinois, in any court of competent jurisdiction, for the recovery of the amount of such taxes, late fees, interest, and penalties due, and prosecute the same to final judgment, and take such steps as are necessary to collect the same.
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|
(b) Fire Marshal Tax. Each surplus line producer
| | shall file with the Director on or before February 1 of each year a report in the form prescribed by the Director on all fire insurance procured from unauthorized insurers and submitted to the Surplus Line Association of Illinois during the previous year that is subject to tax under Section 12 of the Fire Investigation Act and shall pay to the Director the fire marshal tax required thereunder.
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(c) Taxes and fees charged to insured. The taxes
| | imposed under this subsection and the recording fees charged by the Surplus Line Association of Illinois may be charged to and collected from surplus line insureds.
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(4) (Blank).
(5) Submission of documents to Surplus Line Association of Illinois.
A surplus line producer shall submit every insurance contract and premium-bearing endorsement
issued
under his or her license to the Surplus Line Association of Illinois for
recording. The submission and recording may be
effected through electronic means. The submission shall set
forth:
(a) the name of the insured;
(b) the description and location of the insured
| |
(c) (blank);
(d) the gross premiums charged or returned;
(e) the name of the unauthorized insurer from whom
| | coverage has been procured;
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|
(f) the kind or kinds of insurance procured; and
(g) amount of premium subject to tax required by
| | Section 12 of the Fire Investigation Act.
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|
Proposals, endorsements, and other documents which are
incidental to the insurance but which do not affect the premium
charged
are exempted from the submission and recording requirements.
The submission of insuring contracts
to the Surplus Line Association of
Illinois constitutes a certification by the surplus line producer or by the insurance producer who presented the risk to the surplus line producer for
placement as a surplus line risk that
after diligent effort, where required, the required insurance could not be procured from
authorized insurers and that
such procurement was otherwise in accordance with the surplus line law.
(6) Evidence of recording required. It shall be unlawful for an insurance
producer to deliver any unauthorized insurer
contract or premium-bearing endorsement unless it contains evidence of recording by the Surplus Line Association of
Illinois.
(7) Inspection of records. A surplus line producer shall
maintain
separate records of the business transacted under his or her license for 7 years from the policy effective date,
including complete copies of surplus line insurance contracts maintained on
paper or by electronic means, which
records shall be open at all times for inspection by the Director and by
the Surplus Line Association of Illinois.
(8) Violations and penalties. The Director may suspend or revoke or
refuse to renew a surplus line producer license for any violation of this Code.
In addition to or in lieu of suspension or revocation, the Director may
subject a surplus line producer
to a civil penalty of up to $2,000 for each cause for suspension
or
revocation. Such penalty is enforceable under subsection (5) of Section
403A of this Code.
Whenever it appears to the satisfaction of the Director that a surplus line producer has made a documented good faith determination of the home state for a surplus line insurance contract and has paid the surplus line taxes to a state other than Illinois, and the Director determines that the producer's good faith determination was incorrect and the home state is Illinois, the surplus line producer may, at the discretion of the Director, be required to submit the contract to the Surplus Line Association of Illinois and pay applicable taxes and recording fees, but there shall be no penalty, interest, or late fee assessed.
(9) Director may declare insurer ineligible. If the
Director determines
that the further assumption of risks might be hazardous to the
policyholders of an unauthorized insurer, the Director may
order the
Surplus Line Association of
Illinois not to accept and record insurance contracts evidencing insurance in
such insurer and order surplus line producers to cease
procuring insurance
from such insurer.
(10) Service of process upon Director. Insurance contracts
delivered under this Section from unauthorized insurers, other than domestic
surplus line insurers as defined in Section 445a,
shall contain a
provision designating the
Director and his successors in office the true and lawful attorney of the
insurer upon whom may be served all lawful process in any
action, suit or
proceeding arising out of such insurance.
Service of process made upon the Director to be valid hereunder must state
the name of the insured, the name of the unauthorized insurer
and identify
the contract of insurance. The Director at his option is authorized to
forward a copy of the process to the Surplus Line Association of Illinois
for delivery to the unauthorized insurer or the Director may deliver the process to the
unauthorized insurer by other means which he considers to be
reasonably
prompt and certain.
(10.5) Required notice to policyholder. Insurance contracts delivered under this Section from unauthorized insurers, other than domestic surplus line insurers as defined in Section 445a, shall have stamped or imprinted on the first page thereof in not less than 12-pt. bold face type the following legend: "Notice to Policyholder: This contract is issued, pursuant to Section 445 of the Illinois Insurance Code, by a company not authorized and licensed to transact business in Illinois and as such is not covered by the Illinois Insurance Guaranty Fund." Insurance contracts delivered under this Section from domestic surplus line insurers as defined in Section 445a shall have stamped or imprinted on the first page thereof in not less than 12-pt. bold face type the following legend: "Notice to Policyholder: This contract is issued by a domestic surplus line insurer, as defined in Section 445a of the Illinois Insurance Code, pursuant to Section 445, and as such is not covered by the Illinois Insurance Guaranty Fund."
(11) Marine, aviation, and transportation. The Illinois Surplus Line law does not apply to insurance of
property and operations of railroads or aircraft engaged in interstate or
foreign commerce, insurance of vessels, crafts or hulls, cargoes, marine
builder's risks, marine protection and indemnity, or other risks including
strikes and war risks insured under ocean or wet marine forms of policies.
(12) Applicability of Illinois Insurance Code. Surplus line insurance procured under this Section, including
insurance procured from a domestic surplus line insurer, is not subject
to the provisions of the Illinois Insurance Code other than Sections 123,
123.1, 401, 401.1, 402, 403, 403A, 408, 412, 445, 445a, 445.1, 445.2, 445.3,
445.4, and all of the provisions of Article XXXI to the extent that the
provisions of Article XXXI are not inconsistent with the terms of this Act.
(Source: P.A. 102-224, eff. 1-1-22 .)
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215 ILCS 5/445a
(215 ILCS 5/445a)
Sec. 445a. Domestic surplus line insurer.
(a) A domestic insurer possessing
policyholder surplus of at least $15,000,000 may pursuant to a resolution by
its board of directors, and with the written approval of the Director, be
designated as a "domestic surplus line insurer".
(b) A domestic surplus line insurer may insure in this State an
Illinois risk only if procured from a surplus line producer pursuant to Section 445 of
this Code.
(c) A domestic surplus line insurer must agree not to issue a policy
designed to satisfy the financial responsibility requirements of the Illinois
Vehicle Code, the Workers' Compensation Act, or the Workers' Occupational
Diseases Act. A domestic surplus line insurer is not subject to the provisions
of Articles XXXIII, XXXIII 1/2, XXXIV, XXXVIIIA, Section 468, or Section
478.1 of this Code.
(d) For the purposes of the federal Nonadmitted and Reinsurance Reform Act of 2010 (15 USC 8201 et seq.), a domestic surplus line insurer shall be considered a nonadmitted insurer, as the term is defined in the Act, with respect to risks insured in this State. (Source: P.A. 97-955, eff. 8-14-12.)
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215 ILCS 5/445.1
(215 ILCS 5/445.1) (from Ch. 73, par. 1057.1)
Sec. 445.1. Surplus Line Association of Illinois. There is hereby created a
non-profit association to be known as the Surplus Line Association of
Illinois. All surplus line producers shall be and must remain individual
members of the Association as a condition of their holding a license as a
surplus line producer in this State. The Association must perform its
functions under the plan of operation established and approved under
Section 445.3 and must exercise its powers through a board of directors
established under Section 445.2 of this Code. The Association shall be
supervised by the Director and is subject to the applicable provisions of
the Illinois Insurance Code. The Association shall be authorized and have the
duty to:
(1) receive and record all surplus line insurance | | contracts that surplus line producers are required to file with the Association under subsection (5) of Section 445;
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|
(2) prepare monthly reports for the Director on
| | surplus line insurance procured by its members during the preceding month in such form and providing such information as the Director may prescribe;
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|
(3) prepare and deliver to the Director and, at the
| | discretion of the Director, to each licensee the reports of surplus line business prescribed in subsection (3) of Section 445;
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|
(4) assess its members for costs of operations in
| | accordance with a schedule adopted by the Board of Directors of the Association and approved by the Director;
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|
(5) employ and retain such persons as are necessary
| | to carry out the duties of the Association;
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|
(6) borrow money as necessary to effect the purposes
| |
(7) enter contracts as necessary to effect the
| | purposes of the Association;
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|
(8) perform such other acts as will facilitate and
| | encourage compliance by its members with the surplus line law of this State and rules promulgated thereunder; and
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|
(9) provide such other services to its members as are
| | incidental or related to the purposes of the Association.
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| Nothing in this Act shall be
construed as giving the Association any discretionary authority to enforce
this Act or to withhold or decline acceptance and recording of insurance contracts that meet
the requirements of subsection (5) of Section 445.
(Source: P.A. 102-224, eff. 1-1-22 .)
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215 ILCS 5/445.2
(215 ILCS 5/445.2) (from Ch. 73, par. 1057.2)
Sec. 445.2.
Board of Directors.
The Association shall function through
a Board of Directors elected by the Association members, and officers who
shall be elected by the Board of Directors.
The Board of Directors of the Association shall consist of not less than
5 nor more than 9 persons serving terms as established in the plan of
operation. The plan of operation shall provide for the election of a Board
of Directors by the members of the Association from its membership. The
plan of operation shall fix the manner of voting and may weigh each
member's vote to reflect the annual surplus line insurance premium written
by the member. Members employed by the same or affiliated employers may
consolidate their premiums written and delegate an individual officer or
partner to represent the member in the exercise of Association affairs,
including service on the Association Board of Directors.
The Director shall appoint an interim Board of Directors for the sole purpose
of conducting an election of Directors. If no Board of Directors is elected
within 90 days after the effective date of this amendatory Act of 1984,
the Director shall appoint the initial members of the Board of Directors.
The Board of Directors shall elect such officers as may be provided in
the plan of operation.
(Source: P.A. 83-1300.)
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215 ILCS 5/445.3
(215 ILCS 5/445.3) (from Ch. 73, par. 1057.3)
Sec. 445.3.
Plan of Operation.
(1) The Association shall submit to
the Director a plan of operation and any amendments thereto to provide
operating procedures for the
administration of the Association. The plan of operation and any amendments
thereto shall become effective upon approval in writing by the Director.
(2) If the Association fails to submit a suitable plan of operation within
180 days following the effective date of this amendatory Act of 1984, or
if at any time thereafter the Association fails to submit required amendments
to the plan of operation, the Director shall, after notice and hearing pursuant
to Sections 401, 402 and 403 of this Code, adopt and promulgate such rules
as are necessary or advisable to effectuate the provisions of this Act.
Such rules shall
continue in force until modified by the Director or superseded by a plan
of operation submitted by the Association and approved by the Director.
(3) All Association members must comply with the plan of operation.
(Source: P.A. 83-1300.)
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215 ILCS 5/445.4
(215 ILCS 5/445.4) (from Ch. 73, par. 1057.4)
Sec. 445.4. Examination. The Director shall, at such times as he deems
necessary, make or cause to be made an examination of the Association.
The reasonable cost of any such examination shall be paid by the Association
upon presentation to it by the Director of a detailed account of such cost.
During the course of such examination, the directors, officers, members, agents and
employees of the Association may be examined under oath regarding the operation
of the Association and shall make available all books, records, accounts,
documents and agreements pertaining thereto. The Director shall furnish
a copy of the examination report to the Association. Within 20 days after
receipt of the report, the Association may request a hearing on the report
or any facts or recommendations therein. If the Director finds the Association
or any of its members to be in violation of this Act, he may issue an order
requiring discontinuance of such violation. The Association shall annually provide for an independent financial audit of the books and records of the Association by a certified public accountant and shall provide a copy of the audit report to the Director.
(Source: P.A. 98-978, eff. 1-1-15 .)
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215 ILCS 5/445.5
(215 ILCS 5/445.5) (from Ch. 73, par. 1057.5)
Sec. 445.5.
Immunity.
There shall be no liability on the part of and
no causes of action of any nature shall arise against the Association, its
directors, officers, agents or employees, or the Director of Insurance or
his representatives for any action taken or omitted by them in the performance
of their powers and duties under this Act.
(Source: P.A. 83-1300.)
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215 ILCS 5/446
(215 ILCS 5/446) (from Ch. 73, par. 1058)
Sec. 446.
Penalties.
Any person who violates any of the provisions of this Code, or fails to
comply with any duty imposed upon him or it by any provision of this law,
for which violation or failure no penalty is elsewhere provided by the laws
of this State, shall be guilty of a petty offense.
(Source: P.A. 77-2699.)
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