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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 5/500-80

    (215 ILCS 5/500-80)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 500-80. Commissions.
    (a) An insurer or insurance producer may not pay a commission, service fee, brokerage, or other valuable consideration to a person for selling, soliciting, or negotiating insurance in this State if that person is required to be licensed under this Article and is not so licensed at the time of selling, soliciting, or negotiating the insurance.
    (b) A person may not accept a commission, service fee, brokerage, or other valuable consideration for selling, soliciting, or negotiating insurance in this State if that person is required to be licensed under this Article and is not so licensed.
    (c) Renewal or other deferred commissions may be paid to a person for selling, soliciting, or negotiating insurance in this State if the person was required to be licensed under this Article at the time of the sale, solicitation, or negotiation and was so licensed at that time.
    (d) An insurer or insurance producer may pay or assign commissions, service fees, brokerages, or other valuable consideration to an insurance agency or to persons who do not sell, solicit, or negotiate insurance in this State, unless the payment would violate Section 151 of this Code.
    (e) When an insurance producer or business entity charges any fee or compensation separate from commissions deductible from, or directly attributable to, premiums on insurance policies or contracts, it must comply with all of the following:
        (1) It must provide written disclosure to the
    
consumer or contracting party that clearly specifies the amount or extent of the compensation or fee prior to the delivery of the corresponding policy. A copy of the written disclosure must be maintained by the producer or business entity that collects the compensation or fee for a period of 7 years.
        (2) If the combined compensation or fee exceeds 10%
    
of a directly attributable premium amount of a corresponding contract or policy, the disclosure must also include the signature of the consumer or contracting party acknowledging the compensation or fee.
        (3) If an insurance policy or contract is cancelled
    
for any reason within 90 days following the inception date, the producer or business entity shall refund to the consumer a prorated portion of the fee or compensation within 30 days after the producer or business entity receives proper documentation that the corresponding insurance policy or contract has been cancelled. At no time shall a producer or business entity charge the consumer a fee or compensation for cancellation of any insurance policy or contract.
        (4) If the policy file contains documentation that
    
the producer performed a service corresponding to the applicable coverage or policy and the written disclosure stated that the fees were fully earned, then those fees shall be fully earned at inception of the disclosure's execution.
(Source: P.A. 92-386, eff. 1-1-02; 92-587, eff. 6-26-02.)

215 ILCS 5/500-85

    (215 ILCS 5/500-85)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 500-85. Notification of termination; immunity; confidentiality.
    (a) An insurer or authorized representative of an insurer that terminates the appointment, employment, contract, or other insurance business relationship with a producer must notify the Director within 30 days following the effective date of the termination, using a format prescribed by the Director, if the reason for termination is one of the reasons set forth in Section 500-70 or the insurer has knowledge the producer was found by a court, government body, or self-regulatory organization authorized by law to have engaged in any of the activities in Section 500-70. Upon written request by the Director, the insurer must provide additional information, documents, records, or other data pertaining to the termination or activity of the producer.
    (b) The insurer or the authorized representative of the insurer must promptly notify the Director in a format acceptable to the Director if, upon further review or investigation, the insurer discovers additional information that would have been reportable to the Director in accordance with subsection (a) had the insurer then known of its existence.
    (c) Within 15 days after making the notification required by subsections (a) and (b), the insurer must mail a copy of the notification to the producer at his or her last known address. If the producer is terminated for cause for any of the reasons listed in Section 500-70, the insurer must provide a copy of the notification to the producer at his or her last known address by certified mail, return receipt requested, postage prepaid or by overnight delivery using a nationally recognized carrier.
    Within 30 days after the producer has received the original or additional notification, the producer may file written comments concerning the substance of the notification with the Director. The producer must, by the same means, simultaneously send a copy of the comments to the reporting insurer, and the comments shall become a part of the Director's file and accompany every copy of a report distributed or disclosed for any reason about the producer as permitted under this Code.
    (d) There shall be no liability on the part of, nor shall a cause of action of any nature arise against, an insurer, the authorized representative of the insurer, a producer, the Director, or an organization of which the Director is a member for any information, documents, records, or statements provided pursuant to this Section.
    (e) An insurer, the authorized representative of the insurer, or a producer that fails to report as required under the provisions of this Section or that is found to have reported with malicious intent by a court of competent jurisdiction may, after notice and hearing, have its license or certificate of authority suspended or revoked and may be subjected to a civil penalty.
(Source: P.A. 92-386, eff. 1-1-02.)

215 ILCS 5/500-90

    (215 ILCS 5/500-90)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 500-90. Reciprocity.
    (a) The Director shall waive any requirements for a nonresident license applicant with a valid license from his or her home state, except the requirements imposed by Section 500-40 of this Article, if the applicant's home state awards nonresident licenses to residents of this State on the same basis.
    (b) A nonresident producer's satisfaction of his or her home state's continuing education requirements for licensed insurance producers shall constitute satisfaction of this State's continuing education requirements if the non-resident producer's home state recognizes the satisfaction of its continuing education requirements imposed upon producers from this State on the same basis.
(Source: P.A. 92-386, eff. 1-1-02.)

215 ILCS 5/500-95

    (215 ILCS 5/500-95)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 500-95. Reporting of actions. An individual who, while licensed as an insurance producer, is convicted of a felony, must report the conviction to the Director within 30 days after the entry date of the judgment. Within that 30-day period, the individual must also provide the Director with a copy of the judgment, the probation or commitment order, and any other relevant documents.
(Source: P.A. 92-386, eff. 1-1-02.)

215 ILCS 5/500-100

    (215 ILCS 5/500-100)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 500-100. Limited lines producer license.
    (a) An individual who is at least 18 years of age and whom the Director considers to be competent, trustworthy, and of good business reputation may obtain a limited lines producer license for one or more of the following classes:
        (1) travel insurance, as defined in Section 500-10 of
    
this Article;
        (2) industrial life insurance, as defined in Section
    
228 of this Code;
        (3) industrial accident and health insurance, as
    
defined in Section 368 of this Code;
        (4) insurance issued by a company organized under the
    
Farm Mutual Insurance Company Act of 1986;
        (5) legal expense insurance;
        (6) enrollment of recipients of public aid or
    
medicare in a health maintenance organization;
        (7) a limited health care plan issued by an
    
organization having a certificate of authority under the Limited Health Service Organization Act;
        (8) credit life and credit accident and health
    
insurance and other credit insurance policies approved or permitted by the Director; a credit insurance company must conduct a training program in which an applicant shall receive basic instruction about the credit insurance products that he or she will be selling.
    (b) The application for a limited lines producer license must be submitted on a form prescribed by the Director by a designee of the insurance company, health maintenance organization, or limited health service organization appointing the limited insurance representative. The insurance company, health maintenance organization, or limited health service organization must pay the fee required by Section 500-135.
    (c) A limited lines producer may represent more than one insurance company, health maintenance organization, or limited health service organization.
    (d) An applicant who has met the requirements of this Section shall be issued a perpetual limited lines producer license.
    (e) A limited lines producer license shall remain in effect as long as the appointing insurance company pays the respective fee required by Section 500-135 prior to January 1 of each year, unless the license is revoked or suspended pursuant to Section 500-70. Failure of the insurance company to pay the license fee or to submit the required documents shall cause immediate termination of the limited line insurance producer license with respect to which the failure occurs.
    (f) A limited lines producer license may be terminated by the insurance company or the licensee.
    (g) A person whom the Director considers to be competent, trustworthy, and of good business reputation may be issued a car rental limited line license. A car rental limited line license for a rental company shall remain in effect as long as the car rental limited line licensee pays the respective fee required by Section 500-135 prior to the next fee date unless the car rental license is revoked or suspended pursuant to Section 500-70. Failure of the car rental limited line licensee to pay the license fee or to submit the required documents shall cause immediate suspension of the car rental limited line license. A car rental limited line license for rental companies may be voluntarily terminated by the car rental limited line licensee. The license fee shall not be refunded upon termination of the car rental limited line license by the car rental limited line licensee.
    (g-5) A business entity may be issued a limited lines producer license for credit life and credit accident and health insurance and other credit insurance policies approved or permitted by the Director, provided that:
        (1) application for the limited lines producer
    
license for credit insurance is made on a form specified by the Director;
        (2) the appointing insurance company has paid the
    
application fee amount required by the Director for the business entity's application; and
        (3) the business entity has designated an individual
    
with an in force limited license producer license issued under paragraph (8) of subsection (a) of this Section to be responsible for the business entity's compliance with the insurance laws and regulations of this State related to credit life and credit accident and health insurance and other credit insurance policies approved or permitted by the Director that are offered or sold by that business entity.
    Except as specifically authorized by paragraph (8) of subsection (a) of this Section or this subsection (g-5), a business entity holding a limited lines license under this subsection (g-5) may not advertise, represent, or otherwise hold itself or any of its employees out as licensed insurers, insurance producers, insurance agents, or insurance brokers.
    (h) A limited lines producer issued a license pursuant to this Section is not subject to the requirements of Section 500-30.
    (i) A limited lines producer license must contain the name, address and personal identification number of the licensee, the date the license was issued, general conditions relative to the license's expiration or termination, and any other information the Director considers proper. A limited line producer license, if applicable, must also contain the name and address of the appointing insurance company.
(Source: P.A. 98-159, eff. 8-2-13; 98-756, eff. 7-16-14; 98-1165, eff. 6-1-15; 99-161, eff. 1-1-16.)

215 ILCS 5/500-105

    (215 ILCS 5/500-105)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 500-105. Car rental limited line license for rental companies.
    (a) A rental company must obtain a producer license or obtain a car rental limited line license before offering or selling insurance in connection with and incidental to the rental of vehicles. The sale of the insurance may occur at the rental office or by preselection of coverage in a master, corporate, group rental, or individual agreement. The following general categories of coverage may be offered or sold:
        (1) personal accident insurance covering the risks of
    
travel including, but not limited to, accident and health insurance that provides coverage, as applicable, to renters and other rental vehicle occupants for accidental death or dismemberment and reimbursement for medical expenses resulting from an accident that occurs during the rental period;
        (2) liability insurance, including uninsured and
    
underinsured motorist coverage, that provides coverage, as applicable, to renters and other authorized drivers of rental vehicles for liability arising from the operation of the rental vehicle;
        (3) personal effects insurance that provides
    
coverage, as applicable, to renters and other vehicle occupants for the loss of, or damage to, personal effects that occurs during the rental period;
        (4) roadside assistance and emergency sickness
    
protection programs; and
        (5) any other travel or auto-related coverage that a
    
rental company offers in connection with and incidental to the rental of vehicles.
    (b) Insurance may not be offered by a car rental limited line producer pursuant to this Section unless:
        (1) the rental company has applied for and obtained a
    
car rental limited line license;
        (2) the rental period of the rental agreement does
    
not exceed 30 consecutive days;
        (3) at every rental location where rental agreements
    
are executed, brochures or other written materials are readily available to the prospective renter that:
            (A) summarize clearly and correctly, the material
        
terms of coverage offered to renters, including the identity of the insurer;
            (B) disclose that the coverage offered by the
        
rental company may provide a duplication of coverage already provided by a renter's personal automobile insurance policy, homeowner's insurance policy, personal liability insurance policy, or other source of coverage;
            (C) state that the purchase by the renter of the
        
kinds of coverage specified in this Section is not required in order to rent a vehicle; and
            (D) describe the process for filing a claim in
        
the event the renter elects to purchase coverage and in the event of a claim; and
        (4) evidence of coverage in the rental agreement is
    
disclosed to every renter who elects to purchase such coverage.
    (c) Car rental company franchisees must apply for a car rental limited line license independent of the franchisor if insurance provided pursuant to this Section is offered by the franchisee.
    (d) A car rental limited line license issued under this Section shall also authorize any employee of the car rental limited line licensee to act individually on behalf and under the supervision of the car rental limited line licensee with respect to the kinds of coverage specified in this Section.
    (e) A rental company licensed pursuant to this Section must conduct a training program in which employees being trained shall receive basic instruction about the kinds of coverage specified in this Section and offered for purchase by prospective renters of rental vehicles.
    (f) Notwithstanding any other provision of this Section or any rule adopted by the Director, a car rental limited line producer pursuant to this Section is not required to treat moneys collected from renters purchasing insurance when renting vehicles as funds received in a fiduciary capacity, provided that the charges for coverage shall be itemized and be ancillary to a rental transaction.
    (g) The sale of insurance not in conjunction with a rental transaction shall not be permitted.
    (h) A car rental limited line producer under this Section may not advertise, represent, or otherwise hold itself or any of its employees out as licensed insurers, insurance producers, insurance agents, or insurance brokers.
    (i) Direct commissions may not be paid to rental car company employees by the insurer or the customer purchasing insurance products. The rental car company may include insurance products in an overall employee performance compensation incentive program.
    (j) An application for a car rental limited line license must be made on a form specified by the Director.
(Source: P.A. 92-386, eff. 1-1-02.)

215 ILCS 5/500-107

    (215 ILCS 5/500-107)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 500-107. Self-service storage facility limited line license for self-storage facilities.
    (a) Except as permitted by subsection (j) of this Section, a self-service storage facility must obtain a producer license or obtain a self-service storage facility limited line license before offering or selling insurance in connection with and incidental to the rental of storage space provided by a self-service storage facility. The sale of insurance may occur at the rental office or by preselection of coverage in a master, corporate, group rental, or individual agreement. The following general categories of coverage may be offered or sold:
        (1) insurance that provides hazard insurance coverage
    
to renters for the loss of, or damage to, tangible personal property in storage or in transit during the rental period; or
        (2) any other coverage the Director may approve as
    
meaningful and appropriate in connection with the rental of storage space.
    (b) Insurance may not be offered by a self-service storage limited line producer pursuant to this Section unless:
        (1) the self-service storage facility has applied for
    
and obtained a self-service storage facility limited line license;
        (2) at every rental location where rental agreements
    
are executed, brochures or other written materials are readily available to the prospective renter that:
            (A) summarize clearly and correctly the material
        
terms of coverage offered to renters, including the identity of the insurer;
            (B) disclose that the coverage offered by the
        
self-service storage facility may provide a duplication of coverage already provided by the renter's personal homeowner's insurance policy, automobile insurance policy, personal liability insurance policy, or other source of coverage;
            (C) state that the purchase by the renter of the
        
kinds of coverage specified in this Section is not required in order to rent storage space; and
            (D) describe the process for filing a claim in
        
the event the consumer elects to purchase coverage and in the event of a claim; and
        (3) evidence of coverage is provided to each renter
    
who elects to purchase the coverage.
    (c) A self-service storage facility limited line license issued under this Section shall also authorize any employee of the self-service storage facility limited line licensee to act individually on behalf and under the supervision of the self-service storage facility limited line licensee with respect to the kinds of coverage specified in this Section.
    (d) A self-service storage facility licensed pursuant to this Section must conduct a training program in which employees being trained shall receive basic instruction about the kinds of coverage specified in this Section and offered for purchase by prospective renters of storage space.
    (e) Notwithstanding any other provision of this Section or any rule adopted by the Director, a self-service storage facility limited line producer pursuant to this Section is not required to treat moneys collected from renters purchasing insurance when renting storage space as funds received in a fiduciary capacity, provided that the charges for coverage shall be itemized and ancillary to a rental transaction.
    (f) The sale of insurance not in conjunction with a rental transaction shall not be permitted.
    (g) A self-service storage facility limited line producer under this Section may not advertise, represent, or otherwise hold itself or any of its employees out as licensed insurers, insurance producers, insurance agents, or insurance brokers.
    (h) Direct commissions may not be paid to self-service storage facility employees by the insurer or the customer purchasing insurance products. The self-service storage facility may include insurance products in an overall employee performance compensation incentive program.
    (i) An application for a self-service storage facility limited line license must be made on a form specified by the Director.
    (j) Nothing contained in this Section shall prohibit an unlicensed person from enrolling, issuing, or otherwise distributing certificates of insurance under a group master policy lawfully issued in this or another state when:
        (1) the enrollment or distribution is by an employee
    
of the group master policyholder;
        (2) no commission is paid for such enrollment or
    
distribution;
        (3) the distribution is incidental and ancillary to
    
the primary rental business of the group master policyholder; and
        (4) the group master policy is sold to the group
    
master policyholder by a licensed producer.
    (k) Nothing in this Section applies to or affects common carriers regulated by the Illinois Commerce Commission.
(Source: P.A. 93-288, eff. 1-1-04.)

215 ILCS 5/500-108

    (215 ILCS 5/500-108)
    Sec. 500-108. (Repealed).
(Source: P.A. 98-1165, eff. 6-1-15. Repealed by P.A. 102-212, eff. 10-28-21.)

215 ILCS 5/500-110

    (215 ILCS 5/500-110)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 500-110. Regulatory examinations.
    (a) The Director may examine any applicant for or holder of an insurance producer license, limited line producer license or temporary insurance producer license or any business entity.
    (b) All persons being examined, as well as their officers, directors, insurance producers, limited lines producers, and temporary insurance producers must provide to the Director convenient and free access, at all reasonable hours at their offices, to all books, records, documents, and other papers relating to the persons' insurance business affairs. The officers, directors, insurance producers, limited lines producers, temporary insurance producers, and employees must facilitate and aid the Director in the examinations as much as it is in their power to do so.
    (c) The Director may designate an examiner or examiners to conduct any examination under this Section. The Director or his or her designee may administer oaths and examine under oath any individual relative to the business of the person being examined.
    (d) The examiners designated by the Director under this Section may make reports to the Director. A report alleging substantive violations of this Article or any rules prescribed by the Director must be in writing and be based upon facts ascertained from the books, records, documents, papers, and other evidence obtained by the examiners or from sworn or affirmed testimony of or written affidavits from the person's officers, directors, insurance producers, limited lines producer, temporary insurance producers, or employees or other individuals, as given to the examiners. The report of an examination must be verified by the examiners.
    (e) If a report is made, the Director must either deliver a duplicate of the report to the person being examined or send the duplicate by certified or registered mail to the person's address of record. The Director shall afford the person an opportunity to demand a hearing with reference to the facts and other evidence contained in the report. The person may request a hearing within 14 calendar days after he or she receives the duplicate of the examination report by giving the Director written notice of that request, together with a written statement of the person's objections to the report. The Director must, if requested to do so, conduct a hearing in accordance with Sections 402 and 403 of this Code. The Director must issue a written order based upon the examination report and upon the hearing, if a hearing is held, within 90 days after the report is filed, or within 90 days after the hearing if a hearing is held. If the report is refused or otherwise undeliverable, or a hearing is not requested in a timely fashion, the right to a hearing is waived. After the hearing or the expiration of the time period in which a person may request a hearing, if the examination reveals that the person is operating in violation of any law, rule, or prior order, the Director in the written order may require the person to take any action the Director considers necessary or appropriate in accordance with the report or examination hearing. The order is subject to review under the Administrative Review Law.
    (f) The Director may adopt reasonable rules to further the purposes of this Section.
    (g) A person who violates or aids and abets any violation of a written order issued under this Section shall be guilty of a business offense and his or her license may be revoked or suspended pursuant to Section 500-70 of this Article and he or she may be subjected to a civil penalty of not more than $20,000.
(Source: P.A. 92-386, eff. 1-1-02; 93-32, eff. 7-1-03.)

215 ILCS 5/500-115

    (215 ILCS 5/500-115)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 500-115. Financial responsibilities.
    (a) Any money that an insurance producer, limited line producer, temporary insurance producer, business entity, or surplus line producer receives for soliciting, negotiating, effecting, procuring, renewing, continuing, or binding policies of insurance shall be held in a fiduciary capacity and shall not be misappropriated, converted, or improperly withheld. An insurance company that delivers to any insurance producer in this State a policy or contract for insurance pursuant to the application or request of an insurance producer, authorizes the producer to collect or receive on its behalf payment of any premium that is due on the policy or contract for insurance at the time of its issuance or delivery and any premium that becomes due on the policy or contract not more than 90 days thereafter.
    (b) An insurer that issues a policy of insurance shall be deemed to have received payment of the premium if the insured paid any insurance producer requesting the coverage. The insurer shall be responsible to the insured for any return premium.
    (c) In the case of open accounts receivable with the balance payable to an insurance producer within a specified period of 90 days or less, where the balance is not fully paid within that period, a late charge not exceeding 1.5% per month may be added by the insurance producer to the unpaid balance to induce payment of the premium.
    (d) If an insurance producer or surplus line producer knowingly misappropriates or converts to his or her own use or illegally withholds fiduciary moneys in the amount of $150 or less, he or she is guilty of a Class A misdemeanor for a first offense and a Class 4 felony for subsequent conversions, misappropriations, and withholdings of that nature. If an insurance producer or surplus line producer knowingly misappropriates or converts to his or her own use or illegally withholds premiums in excess of $150, he or she is guilty of a Class 3 felony.
(Source: P.A. 92-386, eff. 1-1-02.)

215 ILCS 5/500-120

    (215 ILCS 5/500-120)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 500-120. Conflicts of interest; inactive status.
    (a) A person, partnership, association, or corporation licensed by the Department who, due to employment with any unit of government that would cause a conflict of interest with the holding of that license, notifies the Director in writing on forms prescribed by the Department and, subject to rules of the Department, makes payment of applicable licensing renewal fees, may elect to place the license on an inactive status.
    (b) A licensee whose license is on inactive status may have the license restored by making application to the Department on such form as may be prescribed by the Department. The application must be accompanied with a fee of $100 plus the current applicable license fee.
    (c) A license may be placed on inactive status for a 2-year period, and upon request, the inactive status may be extended for a successive 2-year period not to exceed a cumulative 4-year inactive period. After a license has been on inactive status for 4 years or more, the licensee must meet all of the standards required of a new applicant before the license may be restored to active status.
    (d) If requests for inactive status are not renewed as set forth in subsection (c), the license will be taken off the inactive status and the license will lapse immediately.
(Source: P.A. 92-386, eff. 1-1-02; 93-32, eff. 7-1-03.)

215 ILCS 5/500-125

    (215 ILCS 5/500-125)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 500-125. Controlled business.
    (a) An insurance producer license may not be granted or extended to any person if the Director has reasonable cause to believe:
        (1) that during either of the 2 calendar years
    
immediately preceding the extension date of the license the aggregate amount of premiums on insurance represented by controlled business exceeded the aggregate amount of premiums on all other insurance business of the licensee; or
        (2) that during the 12-month period immediately
    
following the issuance or extension of the license, if so issued or extended, the aggregate amount of premiums on controlled business would exceed the aggregate amount of premiums on all other insurance business of the applicant or licensee.
    (b) Controlled business means insurance procured or to be procured by or through the person upon:
        (1) his own life, person, property or risks, or those
    
of his spouse; or
        (2) the life, person, property, or risks of his
    
employer or his own business.
(Source: P.A. 92-386, eff. 1-1-02.)

215 ILCS 5/500-130

    (215 ILCS 5/500-130)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 500-130. Bond required of insurance producers.
    (a) An insurance producer who places insurance either directly or indirectly with an insurer with which the insurance producer does not have an agency contract must maintain in force while licensed a bond in favor of the people of the State of Illinois executed by an authorized surety company and payable to any party injured under the terms of the bond. The bond shall be continuous in form and in the amount of $2,500 or 5% of the premiums brokered in the previous calendar year, whichever is greater, but not to exceed $50,000 total aggregate liability. The bond shall be conditioned upon full accounting and due payment to the person or company entitled thereto, of funds coming into the insurance producer's possession as an incident to insurance transactions under the license or surplus line insurance transactions under the license as a surplus line producer.
    (b) Authorized insurance producers of a business entity may meet the requirements of this Section with a bond in the name of the business entity, continuous in form, and in the amounts set forth in subsection (a) of this Section. Insurance producers may meet the requirements of this Section with a bond in the name of an association. An individual producer remains responsible for assuring that a producer bond is in effect and is for the correct amount. The association must have been in existence for 5 years, have common membership, and been formed for a purpose other than obtaining a bond.
    (c) The surety may cancel the bond and be released from further liability thereunder upon 30 days' written notice in advance to the principal. The cancellation does not affect any liability incurred or accrued under the bond before the termination of the 30-day period.
    (d) The producer's license may be revoked if the producer acts without a bond that is required under this Section.
    (e) If a party injured under the terms of the bond requests the producer to provide the name of the surety and the bond number, the producer must provide the information within 3 working days after receiving the request.
    (f) An association may meet the requirements of this Section for all of its members with a bond in the name of the association that is continuous in form and in the amounts set forth in subsection (a) of this Section.
(Source: P.A. 102-135, eff. 7-23-21.)

215 ILCS 5/500-135

    (215 ILCS 5/500-135)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 500-135. Fees.
    (a) The fees required by this Article are as follows:
        (1) a fee of $215 for a person who is a resident of
    
Illinois, and $380 for a person who is not a resident of Illinois, payable once every 2 years for an insurance producer license;
        (2) a fee of $50 for the issuance of a temporary
    
insurance producer license;
        (3) a fee of $150 payable once every 2 years for a
    
business entity;
        (4) an annual $50 fee for a limited line producer
    
license issued under items (1) through (8) of subsection (a) of Section 500-100;
        (5) a $50 application fee for the processing of a
    
request to take the written examination for an insurance producer license;
        (6) an annual registration fee of $1,000 for
    
registration of an education provider;
        (7) a certification fee of $50 for each certified
    
pre-licensing or continuing education course and an annual fee of $20 for renewing the certification of each such course;
        (8) a fee of $215 for a person who is a resident of
    
Illinois, and $380 for a person who is not a resident of Illinois, payable once every 2 years for a car rental limited line license;
        (9) a fee of $200 payable once every 2 years for a
    
limited lines license other than the licenses issued under items (1) through (8) of subsection (a) of Section 500-100, a car rental limited line license, or a self-service storage facility limited line license;
        (10) a fee of $50 payable once every 2 years for a
    
self-service storage facility limited line license.
    (a-5) Beginning on July 1, 2021, an amount equal to the additional amount of revenue collected under paragraphs (1) and (8) of subsection (a) as a result of the increase in the fees under this amendatory Act of the 102nd General Assembly shall be transferred annually, with 10% of that amount paid into the State Police Training and Academy Fund and 90% of that amount paid into the Law Enforcement Training Fund.
    (b) Except as otherwise provided, all fees paid to and collected by the Director under this Section shall be paid promptly after receipt thereof, together with a detailed statement of such fees, into a special fund in the State Treasury to be known as the Insurance Producer Administration Fund. The moneys deposited into the Insurance Producer Administration Fund may be used only for payment of the expenses of the Department in the execution, administration, and enforcement of the insurance laws of this State, and shall be appropriated as otherwise provided by law for the payment of those expenses with first priority being any expenses incident to or associated with the administration and enforcement of this Article.
(Source: P.A. 102-16, eff. 6-17-21.)

215 ILCS 5/500-140

    (215 ILCS 5/500-140)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 500-140. Injunctive relief. A person required to be licensed under this Article but failing to obtain a valid and current license under this Article constitutes a public nuisance. The Director may report the failure to obtain a license to the Attorney General, whose duty it is to apply forthwith by complaint on relation of the Director in the name of the people of the State of Illinois, for injunctive relief in the circuit court of the county where the failure to obtain a license occurred to enjoin that person from failing to obtain a license. Upon the filing of a verified petition in the court, the court, if satisfied by affidavit or otherwise that the person is required to have a license and does not have a valid and current license, may enter a temporary restraining order without notice or bond, enjoining the defendant from acting in any capacity that requires such license. A copy of the verified complaint shall be served upon the defendant, and the proceedings shall thereafter be conducted as in other civil cases. If it is established that the defendant has been, or is engaged in any unlawful practice, the court may enter an order or judgment perpetually enjoining the defendant from further engaging in such practice. In all proceedings brought under this Section, the court, in its discretion, may apportion the costs among the parties, including the cost of filing the complaint, service of process, witness fees and expenses, court reporter charges, and reasonable attorney fees. In case of the violation of any injunctive order entered under the provisions of this Section, the court may summarily try and punish the offender for contempt of court. The injunctive relief available under this Section is in addition to and not in lieu of all other penalties and remedies provided in this Code.
(Source: P.A. 92-386, eff. 1-1-02.)

215 ILCS 5/500-145

    (215 ILCS 5/500-145)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 500-145. Rules. The Director may, in accordance with Section 401 of this Code, promulgate reasonable rules as are necessary or proper to carry out the purposes of this Article.
(Source: P.A. 92-386, eff. 1-1-02.)

215 ILCS 5/500-150

    (215 ILCS 5/500-150)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 500-150. Severability. The provisions of this Article are severable under Section 1.31 of the Statute on Statutes.
(Source: P.A. 92-386, eff. 1-1-02.)

215 ILCS 5/500-155

    (215 ILCS 5/500-155)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 500-155. Disclosure. A policy the solicitation of which involves an insurance producer, limited insurance representative, or temporary insurance producer must identify the name of the producer, representative, or firm. An individual life or accident and health application and a master policy application for life or accident and health group coverages must bear the name and signature of the licensee who solicited and wrote the application.
(Source: P.A. 97-207, eff. 7-28-11.)

215 ILCS 5/500.1

    (215 ILCS 5/500.1) (from Ch. 73, par. 1065.47-1)
    Sec. 500.1. (Repealed).
(Source: P.A. 85-334. Repealed by P.A. 92-386, eff. 1-1-02.)

215 ILCS 5/501.2

    (215 ILCS 5/501.2) (from Ch. 73, par. 1065.48-2)
    Sec. 501.2. (Repealed).
(Source: P.A. 83-801. Repealed by P.A. 92-386, eff. 1-1-02.)

215 ILCS 5/502.2

    (215 ILCS 5/502.2) (from Ch. 73, par. 1065.49-2)
    Sec. 502.2. (Repealed).
(Source: P.A. 83-801. Repealed by P.A. 92-386, eff. 1-1-02.)

215 ILCS 5/503.1

    (215 ILCS 5/503.1) (from Ch. 73, par. 1065.50-1)
    Sec. 503.1. (Repealed).
(Source: P.A. 83-801. Repealed by P.A. 92-386, eff. 1-1-02.)

215 ILCS 5/504

    (215 ILCS 5/504) (from Ch. 73, par. 1065.51)
    Sec. 504. (Repealed).
(Source: P.A. 83-1007. Repealed by P.A. 92-386, eff. 1-1-02.)

215 ILCS 5/504.1

    (215 ILCS 5/504.1) (from Ch. 73, par. 1065.51-1)
    Sec. 504.1. (Repealed).
(Source: P.A. 83-1299. Repealed by P.A. 92-386, eff. 1-1-02.)

215 ILCS 5/505.1

    (215 ILCS 5/505.1) (from Ch. 73, par. 1065.52-1)
    Sec. 505.1. (Repealed).
(Source: P.A. 91-234, eff. 1-1-00. Repealed by P.A. 92-386, eff. 1-1-02.)

215 ILCS 5/505.2

    (215 ILCS 5/505.2) (from Ch. 73, par. 1065.52-2)
    Sec. 505.2. (Repealed).
(Source: P.A. 86-905. Repealed by P.A. 92-386, eff. 1-1-02.)

215 ILCS 5/506.1

    (215 ILCS 5/506.1) (from Ch. 73, par. 1065.53-1)
    Sec. 506.1. (Repealed).
(Source: P.A. 83-1299. Repealed by P.A. 92-386, eff. 1-1-02.)

215 ILCS 5/507.1

    (215 ILCS 5/507.1) (from Ch. 73, par. 1065.54-1)
    Sec. 507.1. (Repealed).
(Source: P.A. 88-313. Repealed by P.A. 92-386, eff. 1-1-02.)

215 ILCS 5/507.2

    (215 ILCS 5/507.2)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 507.2. Policyholder information and exclusive ownership of expirations.
    (a) As used in this Section, "expirations" means all information relative to an insurance policy including, but not limited to, the name and address of the insured, the location and description of the property insured, the value of the insurance policy, the inception date, the renewal date, and the expiration date of the insurance policy, the premiums, the limits and a description of the terms and coverage of the insurance policy, and any other personal and privileged information, as defined by Section 1003 of this Code, compiled by a registered firm or furnished by the insured to the insurer or any agent, contractor, or representative of the insurer.
    For purposes of this Section only, a registered firm also includes a sole proprietorship that transacts the business of insurance as an insurance agency.
    (b) All "expirations" as defined in subsection (a) of this Section shall be mutually and exclusively owned by the insured and the registered firm. The limitations on the use of expirations as provided in subsections (c) and (d) of this Section shall be for mutual benefit of the insured and the registered firm.
    (c) Except as otherwise provided in this Section, for purposes of soliciting, selling, or negotiating the renewal or sale of insurance coverage, insurance products, or insurance services or for any other marketing purpose, a registered firm shall own and have the exclusive use of expirations, records, and other written or electronically stored information directly related to an insurance application submitted by, or an insurance policy written through, the registered firm. No insurance company, managing general agent, surplus lines insurance broker, wholesale broker, group self-insurance fund, third-party administrator, or any other entity, other than a financial institution as defined in Section 1402 of this Code, shall use such expirations, records, or other written or electronically stored information to solicit, sell, or negotiate the renewal or sale of insurance coverage, insurance products, or insurance services to the insured or for any other marketing purposes, either directly or by providing such information to others, without, separate from the general agency contract, the written consent of the registered firm. However, such expirations, records, or other written or electronically stored information may be used for any purpose necessary for placing such business through the insurance producer including reviewing an application and issuing or renewing a policy and for loss control services.
    (d) With respect to a registered firm, this Section shall not apply:
        (1) when the insured requests either orally or in
    
writing that another registered firm obtain quotes for insurance from another insurance company or when the insured requests in writing individually or through another registered firm, that the insurance company renew the policy;
        (2) to policies in the Illinois Fair Plan, the
    
Illinois Automobile Insurance Plan, or the Illinois Assigned Risk Plan for coverage under the Workers' Compensation Act and the Workers' Occupational Diseases Act;
        (3) when the insurance producer is employed by or has
    
agreed to act exclusively or primarily for one company or group of affiliated insurance companies or to a producer who submits to the company or group of affiliated companies that are organized to transact business in this State as a reciprocal company, as defined in Article IV of this Code, every request or application for insurance for the classes and lines underwritten by the company or group of affiliated companies;
        (4) to policies providing life and accident and
    
health insurance;
        (5) when the registered firm is in default for
    
nonpayment of premiums under the contract with the insurer or is guilty of conversion of the insured's or insurer's premiums or its license is revoked by or surrendered to the Department;
        (6) to any insurance company's obligations under
    
Sections 143.17 and 143.17a of this Code; or
        (7) to any insurer that, separate from a producer or
    
registered firm, creates, develops, compiles, and assembles its own, identifiable expirations as defined in subsection (a).
    For purposes of this Section, an insurance producer shall be deemed to have agreed to act primarily for one company or a group of affiliated insurance companies if the producer (i) receives 75% or more of his or her insurance related commissions from one company or a group of affiliated companies or (ii) places 75% or more of his or her policies with one company or a group of affiliated companies.
    Nothing in this Section prohibits an insurance company, with respect to any items herein, from conveying to the insured or the registered firm any additional benefits or ownership rights including, but not limited to, the ownership of expirations on any policy issued or the imposition of further restrictions on the insurance company's use of the insured's personal information.
    (e) Nothing in this Section prevents a financial institution, as defined in Section 1402 of this Code, from obtaining from the insured, the insurer, or the registered firm the expiration dates of an insurance policy placed on collateral or otherwise used as security in connection with a loan made or serviced by the financial institution when the financial institution requires the expiration dates for evidence of insurance.
    (f) For purposes of this Section, "financial institution" does not include an insurance company, registered firm, managing general agent, surplus lines broker, wholesale broker, group self-funded insurance fund, or third-party administrator.
    (g) The Director may adopt rules in accordance with Section 401 of this Code for the enforcement of this Section.
    (h) This Section applies to the expirations relative to all policies of insurance bound, applied for, sold, renewed, or otherwise taking effect on or after the effective date of this amendatory Act of the 92nd General Assembly.
(Source: P.A. 92-5, eff. 6-1-01.)

215 ILCS 5/508.1

    (215 ILCS 5/508.1) (from Ch. 73, par. 1065.55-1)
    Sec. 508.1. (Repealed).
(Source: P.A. 85-334. Repealed by P.A. 92-386, eff. 1-1-02.)

215 ILCS 5/508.2

    (215 ILCS 5/508.2) (from Ch. 73, par. 1065.55-2)
    Sec. 508.2. (Repealed).
(Source: P.A. 91-234, eff. 1-1-00. Repealed by P.A. 92-386, eff. 1-1-02.)

215 ILCS 5/509.1

    (215 ILCS 5/509.1) (from Ch. 73, par. 1065.56-1)
    Sec. 509.1. (Repealed).
(Source: P.A. 91-234, eff. 1-1-00. Repealed by P.A. 92-386, eff. 1-1-02.)

215 ILCS 5/510.2

    (215 ILCS 5/510.2) (from Ch. 73, par. 1065.57-2)
    Sec. 510.2. (Repealed).
(Source: P.A. 91-234, eff. 1-1-00. Repealed by P.A. 92-386, eff. 1-1-02.)

215 ILCS 5/511.1

    (215 ILCS 5/511.1) (from Ch. 73, par. 1065.58-1)
    Sec. 511.1. (Repealed).
(Source: P.A. 84-548. Repealed by P.A. 92-386, eff. 1-1-02.)

215 ILCS 5/Art. XXXI.25

 
    (215 ILCS 5/Art. XXXI.25 heading)
ARTICLE XXXI 1/4. THIRD PARTY ADMINISTRATORS
(Article scheduled to be repealed on January 1, 2027)

215 ILCS 5/511.100

    (215 ILCS 5/511.100) (from Ch. 73, par. 1065.58-100)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 511.100. Purpose. The purpose of this Article is to recognize and provide reasonable public supervision and licensing of persons who provide administrative services in connection with insurance or alternatives to insurance.
(Source: P.A. 84-887.)

215 ILCS 5/511.101

    (215 ILCS 5/511.101) (from Ch. 73, par. 1065.58-101)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 511.101. Definitions. For the purpose of this Article:
    (a) "Administrator" means any person who on behalf of a plan sponsor or insurer receives or collects charges, contributions or premiums for, or adjusts or settles claims on residents of this State in connection with any type of life or accident or health benefit provided through or as an alternative to insurance within the scope of Class 1(a), 1(b) or 2(a) of Section 4 of this Code, other than any of the following:
        (1) A corporation, association, trust or partnership
    
which is administering a plan (i) on behalf of the employees of such corporation, association, trust or partnership or (ii) for the employees of one or more subsidiaries or affiliated corporations or affiliated associations, trusts or partnerships;
        (2) A union administering a plan for its members;
        (3) A plan sponsor administering its own plan;
        (4) An insurer or dental service plan to the extent
    
regulated by this Code;
        (5) A producer licensed in this State whose insurance
    
activities are limited to the scope of such license;
        (6) A trust and its trustees and employees acting
    
pursuant to its trust agreement established in conformity with 29 U.S.C. 186;
        (7) A person who adjusts or settles claims in the
    
normal course of such person's practice or employment as an attorney-at-law, and who does not collect contributions or premiums in connection with life or accident or health coverage;
        (8) A person who administers only self-insured
    
workers' compensation plans, or single employer self insured life or accident or health benefit plans;
        (9) A credit card issuing company which advances for
    
and collects premiums or charges from its credit card holders who have authorized such collection, if such company does not adjust or settle claims;
        (10) A creditor on behalf of its debtors with respect
    
to insurance covering a debt between the creditor and its debtors.
    (b) "Covered Individual" means any individual eligible for life or accident or health benefits under a plan.
    (c) "Contributions" means any money charged a covered individual, plan sponsor or other entity to fund the self-insured portion of any plan in accordance with written provisions of the plan or contracts of insurance. Contributions shall include administrative fees charged to a covered individual. Administrative fee means any compensation paid by a covered individual for services performed by the administrator.
    (d) "Premiums" means any money charged a covered individual, plan sponsor or other entity to provide life or accident or health insurance under a plan. The term premium shall include amounts paid by or charged to a covered individual plan sponsor or other entity for stop loss or excess insurance.
    (e) "Charges" means any compensation paid by a plan sponsor or insurer for services performed by the administrator.
    (f) "Administrator Trust Fund", hereinafter referred to as "ATF", means a special fiduciary account established and maintained by an administrator pursuant to Section 511.112 in which contributions and premiums are deposited.
    (g) "Claims Administration Services Account", hereinafter referred to as "CASA", means a special fiduciary account established and maintained by an administrator pursuant to Section 511.112 of this Code from which claims and claims adjustment expenses are disbursed.
    (h) "Plan Sponsor" means any person other than an insurer, who establishes or maintains a plan covering residents of this State, including but not limited to plans established or maintained by 2 or more employers or jointly by one or more employers and one or more employee organizations, the association, committee, joint board of trustees, or other similar group of representatives of the parties who establish or maintain the plan.
    Provided, however, that "Plan Sponsor" shall not include:
        (1) The employer in the case of a plan established or
    
maintained by a single employer; or
        (2) The employee organization in the case of a plan
    
established or maintained by an employee organization.
    No plan sponsor covered in whole by provisions of the Employee Retirement Income Security Act of 1974 (ERISA) shall be covered by any of the provisions of this Act to the extent that such provisions are inconsistent with or in conflict with any provisions of ERISA as now or hereafter amended.
    (i) "Financial Institution" means any federal or state chartered bank or savings and loan institution which is insured by the Federal Deposit Insurance Corporation (FDIC) or the Federal Savings and Loan Insurance Corporation (FSLIC).
    (j) "Plan" means any plan, fund or program established or maintained by a plan sponsor or insurer to the extent that such plan, fund or program was established or is maintained to provide through insurance or alternatives to insurance any type of life or accident or health benefit within the scope of Class 1(a), 1(b) or 2(a) of Section 4 of the Illinois Insurance Code.
    (k) "Insurer" means any person who transacts insurance or health care service business authorized under the laws of this State.
    (l) "Quasi-resident" means a nonresident licensee who produces 50% or more of his contributions and premium volume during a calendar year from residents of this State.
(Source: P.A. 101-108, eff. 1-1-20.)

215 ILCS 5/511.102

    (215 ILCS 5/511.102) (from Ch. 73, par. 1065.58-102)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 511.102. License required.
    (a) No person may act as or hold himself out to be an administrator after July 1, 1986 unless duly licensed in accordance with this Article. An administrator doing business in this State on July 1, 1986 shall apply for a license within 90 days thereafter.
    (b) In addition to any other penalty set forth in this Article, any person violating subsection (a) above is guilty of a Class A misdemeanor.
(Source: P.A. 84-887.)

215 ILCS 5/511.103

    (215 ILCS 5/511.103) (from Ch. 73, par. 1065.58-103)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 511.103. Application. The applicant for a license shall file with the Director an application upon a form prescribed by the Director, which shall include or have attached the following:
        (1) The names, addresses and official positions of
    
the individuals who are responsible for the conduct of the affairs of the administrator, including but not limited to all members of the board of directors, board of trustees, executive committee, or other governing board or committee, the principal officers in the case of a corporation or the partners in the case of a partnership; and
        (2) A non-refundable filing fee of $200 which shall
    
become the initial administrator license fee should the Director issue an administrator license.
(Source: P.A. 93-32, eff. 7-1-03.)

215 ILCS 5/511.104

    (215 ILCS 5/511.104) (from Ch. 73, par. 1065.58-104)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 511.104. Bond requirements for administrators.
    (a) Every applicant for an administrator's license shall file with the application and shall thereafter maintain in force while so licensed, a fidelity bond in favor of the people of the State of Illinois executed by a surety company and payable to any party injured under the terms of the bond. The bond shall be continuous in form and in one of the following amounts:
        (1) For an administrator which maintains an ATF but
    
does not maintain a CASA, the greater of $50,000 or 5% of contributions and premiums projected to be received or collected in the ATF for the forthcoming plan year from Illinois residents, but not to exceed $1,000,000;
        (2) For an administrator which maintains a CASA but
    
does not maintain an ATF, the greater of $50,000 or 5% of the claims and claim expenses projected to be held in the CASA for the forthcoming year to pay claims and claim expenses for Illinois residents, but not to exceed $1,000,000;
        (3) For an administrator which maintains both an ATF
    
and a CASA, the greater of the amounts in subparagraphs (1) or (2) above, but not to exceed $1,000,000.
    Such bond is required of an administrator who maintains or should maintain funds in a fiduciary capacity as set forth in Section 511.112 of this Code unless the administrator is contracted with the insurer as an administrator and if the plan is fully insured by the insurer on whose behalf the funds are held.
    (b) Such bond shall remain in force and effect until the surety is released from liability by the Director or until the bond is cancelled by the surety. The surety may cancel the bond and be released from further liability thereunder upon 30 days' written notice in advance to the Director. Such cancellation shall not affect any liability incurred or accrued thereunder before the termination of the 30-day period. Upon receipt of any notice of cancellation, the Director shall immediately notify the licensee.
    (c) The license required by Section 511.102 shall automatically terminate if the bond required by this Section is not in force. Within 30 days thereafter, the administrator shall return the license to the Director for cancellation.
(Source: P.A. 84-1431.)

215 ILCS 5/511.105

    (215 ILCS 5/511.105) (from Ch. 73, par. 1065.58-105)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 511.105. License.
    (a) The Director shall cause a license to be issued to each applicant that has demonstrated to the Director's satisfaction compliance with the requirements of this Article.
    (b) Each administrator license shall remain in effect as long as the holder of the license maintains in force and effect the bond required by Section 511.104 and pays the annual fee of $200 prior to the anniversary date of the license, unless the license is revoked or suspended pursuant to Section 511.107.
    (c) Each license shall contain the name, business address and identification number of the licensee, the date the license was issued and any other information the Director considers proper.
(Source: P.A. 93-32, eff. 7-1-03.)

215 ILCS 5/511.106

    (215 ILCS 5/511.106) (from Ch. 73, par. 1065.58-106)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 511.106. Administrator requirements.
    (a) Each administrator shall identify to the Director any ownership interest or affiliation of any kind with any plan sponsor or insurer responsible directly or through reinsurance for providing benefits to any plan for which it provides services as an administrator.
    (b) An administrator shall provide services as an administrator pursuant to a written agreement. The written agreement shall be between the administrator and the plan sponsor or insurer and shall be retained as part of the official records of the administrator for the duration of said agreement and for 5 years thereafter.
    (c) An administrator shall maintain in its principal office for the duration of the written agreement with any plan sponsor or insurer and for 5 years thereafter adequate books and records of all transactions involving a plan sponsor or insurer and covered individuals or beneficiaries. Such books and records shall be maintained in accordance with generally accepted standards of business recordkeeping. An administrator is not required to maintain copies of books and records if such originals are returned to the plan sponsor or insurer prior to the end of such 5 year period. The administrator shall maintain evidence of the return of the originals for the balance of the 5 year period.
    (d) The administrator shall file with the Director the names and addresses of the insurers and plan sponsors with whom the administrator has written agreements. If an insurer or plan sponsor does not assume or bear the risk, the administrator must disclose the name and address of the ultimate risk bearer. This filing requirement shall apply to the initial application for an administrator's license and the renewal of such license.
    (e) An administrator shall use only advertising pertaining to the plan which has been approved in advance by the plan sponsor or insurer.
    (f) Upon receipt of instructions from the plan sponsor or insurer, an administrator shall deliver promptly to covered individuals or beneficiaries all policies, certificate booklets, termination notices or other written communications.
    (g) An administrator shall not receive compensation from a plan sponsor or insurer which is contingent upon the loss ratio of the plan. This subsection shall not, however, prevent the administrator from engaging in cost containment activities with a plan sponsor or insurer.
    (h) An administrator shall not receive from any plan sponsor, insurer, covered individual or beneficiary under a plan any compensation or other payments except as expressly set forth in the written agreement between the administrator and the plan sponsor or insurer.
    (i) Upon request of the Director, an administrator shall make available for examination, either in the City of Springfield or at the licensee's principal place of business, all basic organizational documents including but not limited to articles of incorporation, articles of association, partnership agreement, trade name certificate, trust agreement, shareholder agreement and other applicable documents and all amendments thereto, bylaws, rules and regulations or similar documents regulating the conduct of its internal affairs.
(Source: P.A. 84-887.)

215 ILCS 5/511.107

    (215 ILCS 5/511.107) (from Ch. 73, par. 1065.58-107)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 511.107. License suspension, revocation or denial.
    (a) Any license issued under this Article may be suspended or revoked, after notice to the licensee and an opportunity for hearing, and any application for a license may be denied, after notice and an opportunity for hearing, if the Director finds that the licensee or applicant:
        (1) has wilfully violated any applicable provisions
    
of the Illinois Insurance Code or applicable Part of Title 50 of the Illinois Administrative Code; or
        (2) has intentionally made a material misstatement in
    
its application for a license; or
        (3) has obtained or attempted to obtain a license
    
through misrepresentation or fraud; or
        (4) has misappropriated or converted to its own use,
    
or improperly withheld, money required to be held in a fiduciary capacity; or
        (5) has, in the transaction of business under its
    
license, used fraudulent, coercive or dishonest practices, or has demonstrated incompetence, untrustworthiness or financial irresponsibility; or is not of good personal and business reputation; or
        (6) has been, within the past 3 years, convicted of a
    
felony, unless the individual demonstrates to the Director sufficient rehabilitation to warrant the public trust; or
        (7) has failed to appear without reasonable cause or
    
excuse in response to a subpoena, examination warrant or any other order lawfully issued by the Director; or
        (8) is using such methods or practices in the conduct
    
of its business so as to render its further transaction of business in this State hazardous or injurious to covered individuals or the public; or
        (9) is affiliated with and is under the same general
    
management as another administrator which transacts business in this State without being licensed under this Article; or
        (10) has had its license suspended or revoked or its
    
application denied in any other state, district, territory or province on grounds similar to those stated in this Section; or
        (11) has failed to report under Section 511.108 a
    
felony conviction.
    (b) Denial of an application or suspension or revocation of a license, pursuant to this Section shall be by written order sent to the applicant or licensee by certified or registered mail at the address specified in the records of the Department. The written order shall state the grounds, charges or conduct on which denial, suspension or revocation is based. The applicant or licensee may in writing request a hearing within 30 days from the date of mailing. Upon receipt of a written request, the Director shall issue an order setting (i) a specific time for the hearing, which may not be less than 20 nor more than 30 days after receipt of the request and (ii) a specific place for the hearing, which may be in either the City of Springfield or in the county in Illinois where the applicant's or licensee's principal place of business is located. If no written request is received by the Director, such order shall be final upon the expiration of said 30 days.
    (c) Upon revocation of a license, the licensee or other person having possession or custody of such license shall deliver it to the Director in person or by mail within 30 days of such revocation.
    (d) Any administrator whose license is revoked or whose application is denied pursuant to this Section shall be ineligible to reapply for any license for 2 years. A suspension pursuant to this Section may be for a period of up to 2 years.
(Source: P.A. 84-887.)

215 ILCS 5/511.108

    (215 ILCS 5/511.108) (from Ch. 73, par. 1065.58-108)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 511.108. Felony convictions. Any administrator and any individual listed on the application as required by Section 511.103, who is convicted of a felony shall report such conviction to the Director within 30 days of the entry date of the judgment. Within that 30-day period, the administrator shall also provide the Director with a copy of the judgment, the probation or commitment order and any other relevant documents.
(Source: P.A. 96-328, eff. 8-11-09.)

215 ILCS 5/511.109

    (215 ILCS 5/511.109) (from Ch. 73, par. 1065.58-109)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 511.109. Examination.
    (a) The Director or his designee may examine any applicant for or holder of an administrator's license.
    (b) Any administrator being examined shall provide to the Director or his designee convenient and free access, at all reasonable hours at their offices, to all books, records, documents and other papers relating to such administrator's business affairs.
    (c) The Director or his designee may administer oaths and thereafter examine any individual about the business of the administrator.
    (d) The examiners designated by the Director pursuant to this Section may make reports to the Director. Any report alleging substantive violations of this Article, any applicable provisions of the Illinois Insurance Code, or any applicable Part of Title 50 of the Illinois Administrative Code shall be in writing and be based upon facts obtained by the examiners. The report shall be verified by the examiners.
    (e) If a report is made, the Director shall either deliver a duplicate thereof to the administrator being examined or send such duplicate by certified or registered mail to the administrator's address specified in the records of the Department. The Director shall afford the administrator an opportunity to request a hearing to object to the report. The administrator may request a hearing within 30 days after receipt of the duplicate of the examination report by giving the Director written notice of such request together with written objections to the report. Any hearing shall be conducted in accordance with Sections 402 and 403 of this Code. The right to hearing is waived if the delivery of the report is refused or the report is otherwise undeliverable or the administrator does not timely request a hearing. After the hearing or upon expiration of the time period during which an administrator may request a hearing, if the examination reveals that the administrator is operating in violation of any applicable provision of the Illinois Insurance Code, any applicable Part of Title 50 of the Illinois Administrative Code or prior order, the Director, in the written order, may require the administrator to take any action the Director considers necessary or appropriate in accordance with the report or examination hearing. If the Director issues an order, it shall be issued within 90 days after the report is filed, or if there is a hearing, within 90 days after the conclusion of the hearing. The order is subject to review under the Administrative Review Law.
(Source: P.A. 84-887.)

215 ILCS 5/511.110

    (215 ILCS 5/511.110) (from Ch. 73, par. 1065.58-110)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 511.110. Administrative fine.
    (a) If the Director finds that one or more grounds exist for the revocation or suspension of a license issued under this Article, the Director may, in lieu of or in addition to such suspension or revocation, impose a fine upon the administrator.
    (b) With respect to any knowing and wilful violation of a lawful order of the Director, any applicable portion of the Illinois Insurance Code or Part of Title 50 of the Illinois Administrative Code, or a provision of this Article, the Director may impose a fine upon the administrator in an amount not to exceed $10,000 for each such violation. In no event shall such fine exceed an aggregate amount of $50,000 for all knowing and wilful violations arising out of the same action.
(Source: P.A. 93-32, eff. 7-1-03.)

215 ILCS 5/511.111

    (215 ILCS 5/511.111) (from Ch. 73, par. 1065.58-111)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 511.111. Insurance Producer Administration Fund. All fees and fines paid to and collected by the Director under this Article shall be paid promptly after receipt thereof, together with a detailed statement of such fees, into a special fund in the State Treasury to be known as the Insurance Producer Administration Fund. The monies deposited into the Insurance Producer Administration Fund shall be used only for payment of the expenses of the Department and shall be appropriated as otherwise provided by law for the payment of such expenses. Moneys in the Insurance Producer Administration Fund may be transferred to the Professions Indirect Cost Fund, as authorized under Section 2105-300 of the Department of Professional Regulation Law of the Civil Administrative Code of Illinois.
(Source: P.A. 98-463, eff. 8-16-13.)

215 ILCS 5/511.112

    (215 ILCS 5/511.112) (from Ch. 73, par. 1065.58-112)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 511.112. Fiduciary accounts and duties.
    (a) Administrators shall hold in a fiduciary capacity all contributions and premiums received or collected on behalf of a plan sponsor or insurer. Such funds shall not be used as general operating funds of the administrator. All contributions and premiums received or collected by the administrator from residents of this State, which the Administrator holds more than 15 days or deposits into an account which is not under the control of the plan sponsor or insurer, shall be placed in a special fiduciary account, which account shall be designated an "Administrator Trust Fund Account" ("ATF"). All resident and quasi-resident licensees required to maintain an ATF pursuant to this Section shall maintain such ATF with one or more financial institutions located within the State of Illinois and subject to jurisdiction of the Illinois courts. Funds belonging to 2 or more plans may be held in the same ATF, provided the administrator's records clearly indicate the funds belonging to each plan. Checks drawn on the ATF shall indicate on their face that they are drawn on the ATF of the administrator.
    (b) The administrator may make the following disbursements from the ATF:
        (1) contributions and premiums due insurers or other
    
persons providing life, accident and health coverage for a plan;
        (2) return contributions and premiums to a plan or
    
covered individual;
        (3) commissions or administrative fees due to the
    
administrator when earned pursuant to written agreement; and
        (4) transfers into the CASA of the administrator.
    (c) For each plan where an ATF is required, the balance in the ATF shall at all times be the amount deposited plus accrued interest, if any, less authorized disbursements. If the balance at the financial institution with respect to the ATF is less than the amount deposited plus accrued interest, if any, less authorized disbursements, the administrator shall be deemed to have misappropriated fiduciary funds and to have acted in a financially irresponsible manner.
    (d) If the ATF is interest bearing or income producing, the full nature of the account must first be disclosed to the plan sponsors or insurers on whose behalf the funds are or will be held. The administrator must secure written consent and authorization from the plan sponsors or insurers for the investment of the money and disposition of the interest or earnings. No investment shall be made which assumes any risk other than the risk that the obligor shall not pay the principal when due. The use of specialized techniques or strategies which incur additional risks to generate higher returns or to extend maturities is not permitted. Such techniques would include, but not be limited to, the following: Use of financial futures or options, buying on margins and pledging of ATF balances.
    (e) Administrators may place ATF funds in interest bearing or income producing investments and retain the interest or income thereon, providing the administrator obtains the prior written authorization of the plan sponsors or insurers on whose behalf the funds are to be held. In addition to savings and checking accounts, an administrator may invest in the following:
        (1) direct obligations of the United States of
    
America or U.S. Government agency securities with maturities of not more than one year;
        (2) certificates of deposit, with a maturity of not
    
more than one year, issued by financial institutions which are insured by the Federal Deposit Insurance Corporation (FDIC) or Federal Savings and Loan Insurance Corporation (FSLIC), so long as any such deposit does not exceed the maximum level of insurance protection provided to certificates of deposits held by such institutions;
        (3) repurchase agreements with financial institutions
    
or government securities dealers recognized as primary dealers by the Federal Reserve System provided:
            (A) the value of the repurchase agreement is
        
collateralized with assets which are allowable investments for ATF funds; and
            (B) the collateral has a market value at the time
        
the repurchase agreement is entered into at least equal to the value of the repurchase agreement; and
            (C) the repurchase agreement does not exceed 30
        
days.
        (4) commercial paper, provided the commercial paper
    
is rated at least P-1 by Moody's Investors Service, Inc. or at least A-1 by Standard & Poor's Corporation;
        (5) money market funds, provided the money market
    
fund invests exclusively in assets which are allowable investments pursuant to (1) through (4) above for ATF funds;
        (6) each investment transaction must be made in the
    
name of the administrator's ATF. The administrator must maintain evidence of any such investments. Each investment transaction must flow through the administrator's ATF.
    (f) The administrator shall hold in a fiduciary capacity all moneys which the administrator receives to pay claims and claim adjustment expenses. All resident and quasi-resident licensees shall place all such money for claims and claim adjustment expenses for residents of this State, whether received from a plan sponsor or insurer or from the ATF of the administrator, in a special fiduciary account in a financial institution located in this State. The account shall be designated a "Claims Administration Service Account" ("CASA"). Funds belonging to 2 or more plans may be held in the same CASA, provided the administrator's records clearly indicate the funds belonging to each plan. Checks drawn on the CASA shall indicate on their face that they are drawn on the CASA of the administrator.
    (g) No deposit shall be made into a CASA and no disbursement shall be made from a CASA except for claims and claims adjustment expenses. For each plan where a CASA is required, the balance in the CASA shall at all times be the amount deposited less claims and claims adjustment expenses paid. If the CASA balance is less than such amount, the administrator shall be deemed to have misappropriated fiduciary funds and to have acted in a financially irresponsible manner.
    (h)(1) Administrators shall maintain detailed books and records which reflect all transactions involving the receipt and disbursement of:
        (i) contributions and premiums received on behalf of
    
a plan sponsor or insurer; and
        (ii) claims and claim adjustment expenses received
    
and paid on behalf of a plan sponsor or insurer.
    (2) The detailed preparation, journalizing and posting of such books and records must be maintained on a timely basis and all journal entries for receipts and disbursements shall be supported by evidential matter, which must be referenced in the journal entry so that it may be traced for verification. Administrators shall prepare and maintain monthly financial institution account reconciliations of any ATF and CASA established by the administrator. The minimum detail required shall be as follows:
        (i) The sources, amounts and dates of any moneys
    
received and deposited by the administrator.
        (ii) The date and person to whom a disbursement is
    
made. If the amount disbursed does not agree with the amount billed or authorized, the administrator shall prepare a written record as to the reason.
        (iii) A description of the disbursement in such
    
detail to identify the source document substantiating the purpose of the disbursement.
    (i) Failure to maintain accurately and timely the books and records required above shall be deemed untrustworthy, hazardous or injurious to participants in the plan or the public and financially irresponsible.
    (j) This Section shall not apply to nonresident administrators who are subject to substantially similar requirements in their state of domicile.
(Source: P.A. 84-1431.)

215 ILCS 5/511.113

    (215 ILCS 5/511.113) (from Ch. 73, par. 1065.58-113)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 511.113. Unauthorized Activities. Nothing in this Article shall be construed to permit any person or entity to receive, or collect charges, contributions or premiums for, or adjust or settle claims in connection with any type of life or accident or health benefit unless such person or entity is authorized through the insurance laws of a state or the ERISA of 1974, 29 USC par. 1001 et seq. as amended, to provide such benefits.
(Source: P.A. 84-887.)

215 ILCS 5/511.114

    (215 ILCS 5/511.114)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 511.114. Drug formulary; notice. All administrators must comply with Section 155.37 of this Code.
(Source: P.A. 92-440, eff. 8-17-01.)

215 ILCS 5/511.118

    (215 ILCS 5/511.118)
    (Section scheduled to be repealed on January 1, 2027)
    Sec. 511.118. Managed Care Reform and Patient Rights Act. All administrators are subject to the provisions of Sections 55 and 85 of the Managed Care Reform and Patient Rights Act.
(Source: P.A. 91-617, eff. 1-1-00.)

215 ILCS 5/Art. XXXI.5

 
    (215 ILCS 5/Art. XXXI.5 heading)
ARTICLE XXXI 1/2.
THIRD PARTY PRESCRIPTION PROGRAMS

215 ILCS 5/512-1

    (215 ILCS 5/512-1) (from Ch. 73, par. 1065.59-1)
    Sec. 512-1. Short Title. This Article shall be known and may be cited as the "Third Party Prescription Program Act".
(Source: P.A. 82-1005.)

215 ILCS 5/512-2

    (215 ILCS 5/512-2) (from Ch. 73, par. 1065.59-2)
    Sec. 512-2. Purpose. It is hereby determined and declared that the purpose of this Article is to regulate certain practices engaged in by third-party prescription program administrators.
(Source: P.A. 82-1005.)

215 ILCS 5/512-3

    (215 ILCS 5/512-3) (from Ch. 73, par. 1065.59-3)
    Sec. 512-3. Definitions. For the purposes of this Article, unless the context otherwise requires, the terms defined in this Article have the meanings ascribed to them herein:
    (a) "Third party prescription program" or "program" means any system of providing for the reimbursement of pharmaceutical services and prescription drug products offered or operated in this State under a contractual arrangement or agreement between a provider of such services and another party who is not the consumer of those services and products. Such programs may include, but need not be limited to, employee benefit plans whereby a consumer receives prescription drugs or other pharmaceutical services and those services are paid for by an agent of the employer or others.
    (b) "Third party program administrator" or "administrator" means any person, partnership or corporation who issues or causes to be issued any payment or reimbursement to a provider for services rendered pursuant to a third party prescription program, but does not include the Director of Healthcare and Family Services or any agent authorized by the Director to reimburse a provider of services rendered pursuant to a program of which the Department of Healthcare and Family Services is the third party.
(Source: P.A. 95-331, eff. 8-21-07.)