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90_HB3766
215 ILCS 5/4 from Ch. 73, par. 616
Amends the Illinois Insurance Code. Provides that the
offer or sale of a collision damage waiver in conjunction
with the rental of a vehicle is not the sale of insurance.
Effective immediately.
LRB9010260JSmg
LRB9010260JSmg
1 AN ACT to amend the Illinois Insurance Code by changing
2 Section 4.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Illinois Insurance Code is amended by
6 changing Section 4 as follows:
7 (215 ILCS 5/4) (from Ch. 73, par. 616)
8 Sec. 4. Classes of insurance. Insurance and insurance
9 business shall be classified as follows:
10 Class 1. Life, Accident and Health.
11 (a) Life. Insurance on the lives of persons and every
12 insurance appertaining thereto or connected therewith and
13 granting, purchasing or disposing of annuities. Policies of
14 life or endowment insurance or annuity contracts or contracts
15 supplemental thereto which contain provisions for additional
16 benefits in case of death by accidental means and provisions
17 operating to safeguard such policies or contracts against
18 lapse, to give a special surrender value, or special benefit,
19 or an annuity, in the event, that the insured or annuitant
20 shall become totally and permanently disabled as defined by
21 the policy or contract, or which contain benefits providing
22 acceleration of life or endowment or annuity benefits in
23 advance of the time they would otherwise be payable, as an
24 indemnity for long term care which is certified or ordered by
25 a physician, including but not limited to, professional
26 nursing care, medical care expenses, custodial nursing care,
27 non-nursing custodial care provided in a nursing home or at a
28 residence of the insured, or which contain benefits providing
29 acceleration of life or endowment or annuity benefits in
30 advance of the time they would otherwise be payable, at any
31 time during the insured's lifetime, as an indemnity for a
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1 terminal illness shall be deemed to be policies of life or
2 endowment insurance or annuity contracts within the intent of
3 this clause.
4 Also to be deemed as policies of life or endowment
5 insurance or annuity contracts within the intent of this
6 clause shall be those policies or riders that provide for the
7 payment of up to 25% of the face amount of benefits in
8 advance of the time they would otherwise be payable upon a
9 diagnosis by a physician licensed to practice medicine in all
10 of its branches that the insured has incurred one of the
11 covered conditions listed in the policy or rider.
12 Every such policy or rider shall contain a majority of
13 the following covered conditions:
14 Heart Attack;
15 Stroke;
16 Coronary Artery Surgery;
17 Life Threatening Cancer;
18 Renal Failure;
19 Alzheimer's Disease;
20 Paraplegia;
21 Major Organ Transplantation.
22 The Director may issue rules that specify prohibited
23 policy provisions, not otherwise specifically prohibited by
24 law, which in the opinion of the Director are unjust, unfair
25 or unfairly discriminatory to the policyholder, any person
26 insured under the policy or beneficiary.
27 (b) Accident and health. Insurance against bodily
28 injury, disablement or death by accident and against
29 disablement resulting from sickness or old age and every
30 insurance appertaining thereto, including stop-loss
31 insurance. Stop-loss insurance is insurance against the risk
32 of economic loss issued to a single employer self-funded
33 employee disability benefit plan or an employee welfare
34 benefit plan as described in 29 U.S.C. 100 et seq.
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1 (c) Legal Expense Insurance. Insurance which involves
2 the assumption of a contractual obligation to reimburse the
3 beneficiary against or pay on behalf of the beneficiary, all
4 or a portion of his fees, costs, or expenses related to or
5 arising out of services performed by or under the supervision
6 of an attorney licensed to practice in the jurisdiction
7 wherein the services are performed, regardless of whether the
8 payment is made by the beneficiaries individually or by a
9 third person for them, but does not include the provision of
10 or reimbursement for legal services incidental to other
11 insurance coverages. The insurance laws of this State,
12 including this Act do not apply to:
13 (i) Retainer contracts made by attorneys at law
14 with individual clients with fees based on estimates of
15 the nature and amount of services to be provided to the
16 specific client, and similar contracts made with a group
17 of clients involved in the same or closely related legal
18 matters;
19 (ii) Plans owned or operated by attorneys who are
20 the providers of legal services to the plan;
21 (iii) Plans providing legal service benefits to
22 groups where such plans are owned or operated by
23 authority of a state, county, local or other bar
24 association;
25 (iv) Any lawyer referral service authorized or
26 operated by a state, county, local or other bar
27 association;
28 (v) The furnishing of legal assistance by labor
29 unions and other employee organizations to their members
30 in matters relating to employment or occupation;
31 (vi) The furnishing of legal assistance to members
32 or dependents, by churches, consumer organizations,
33 cooperatives, educational institutions, credit unions, or
34 organizations of employees, where such organizations
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1 contract directly with lawyers or law firms for the
2 provision of legal services, and the administration and
3 marketing of such legal services is wholly conducted by
4 the organization or its subsidiary;
5 (vii) Legal services provided by an employee
6 welfare benefit plan defined by the Employee Retirement
7 Income Security Act of 1974;
8 (viii) Any collectively bargained plan for legal
9 services between a labor union and an employer negotiated
10 pursuant to Section 302 of the Labor Management Relations
11 Act as now or hereafter amended, under which plan legal
12 services will be provided for employees of the employer
13 whether or not payments for such services are funded to
14 or through an insurance company.
15 Class 2. Casualty, Fidelity and Surety.
16 (a) Accident and health. Insurance against bodily
17 injury, disablement or death by accident and against
18 disablement resulting from sickness or old age and every
19 insurance appertaining thereto, including stop-loss
20 insurance. Stop-loss insurance is insurance against the risk
21 of economic loss issued to a single employer self-funded
22 employee disability benefit plan or an employee welfare
23 benefit plan as described in 29 U.S.C. 1001 et seq.
24 (b) Vehicle. Insurance against any loss or liability
25 resulting from or incident to the ownership, maintenance or
26 use of any vehicle (motor or otherwise), draft animal or
27 aircraft. The offer or sale of a collision damage waiver to
28 a person who rents a motor vehicle as part of the motor
29 vehicle rental transaction is not the offer or sale of
30 vehicle insurance or insurance. Any policy insuring against
31 any loss or liability on account of the bodily injury or
32 death of any person may contain a provision for payment of
33 disability benefits to injured persons and death benefits to
34 dependents, beneficiaries or personal representatives of
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1 persons who are killed, including the named insured,
2 irrespective of legal liability of the insured, if the injury
3 or death for which benefits are provided is caused by
4 accident and sustained while in or upon or while entering
5 into or alighting from or through being struck by a vehicle
6 (motor or otherwise), draft animal or aircraft, and such
7 provision shall not be deemed to be accident insurance.
8 (c) Liability. Insurance against the liability of the
9 insured for the death, injury or disability of an employee or
10 other person, and insurance against the liability of the
11 insured for damage to or destruction of another person's
12 property.
13 (d) Workers' compensation. Insurance of the obligations
14 accepted by or imposed upon employers under laws for workers'
15 compensation.
16 (e) Burglary and forgery. Insurance against loss or
17 damage by burglary, theft, larceny, robbery, forgery, fraud
18 or otherwise; including all householders' personal property
19 floater risks.
20 (f) Glass. Insurance against loss or damage to glass
21 including lettering, ornamentation and fittings from any
22 cause.
23 (g) Fidelity and surety. Become surety or guarantor for
24 any person, copartnership or corporation in any position or
25 place of trust or as custodian of money or property, public
26 or private; or, becoming a surety or guarantor for the
27 performance of any person, copartnership or corporation of
28 any lawful obligation, undertaking, agreement or contract of
29 any kind, except contracts or policies of insurance; and
30 underwriting blanket bonds. Such obligations shall be known
31 and treated as suretyship obligations and such business shall
32 be known as surety business.
33 (h) Miscellaneous. Insurance against loss or damage to
34 property and any liability of the insured caused by accidents
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1 to boilers, pipes, pressure containers, machinery and
2 apparatus of any kind and any apparatus connected thereto, or
3 used for creating, transmitting or applying power, light,
4 heat, steam or refrigeration, making inspection of and
5 issuing certificates of inspection upon elevators, boilers,
6 machinery and apparatus of any kind and all mechanical
7 apparatus and appliances appertaining thereto; insurance
8 against loss or damage by water entering through leaks or
9 openings in buildings, or from the breakage or leakage of a
10 sprinkler, pumps, water pipes, plumbing and all tanks,
11 apparatus, conduits and containers designed to bring water
12 into buildings or for its storage or utilization therein, or
13 caused by the falling of a tank, tank platform or supports,
14 or against loss or damage from any cause (other than causes
15 specifically enumerated under Class 3 of this section) to
16 such sprinkler, pumps, water pipes, plumbing, tanks,
17 apparatus, conduits or containers; insurance against loss or
18 damage which may result from the failure of debtors to pay
19 their obligations to the insured; and insurance of the
20 payment of money for personal services under contracts of
21 hiring.
22 (i) Other casualty risks. Insurance against any other
23 casualty risk not otherwise specified under Classes 1 or 3,
24 which may lawfully be the subject of insurance and may
25 properly be classified under Class 2.
26 (j) Contingent losses. Contingent, consequential and
27 indirect coverages wherein the proximate cause of the loss is
28 attributable to any one of the causes enumerated under Class
29 2. Such coverages shall, for the purpose of classification,
30 be included in the specific grouping of the kinds of
31 insurance wherein such cause is specified.
32 (k) Livestock and domestic animals. Insurance against
33 mortality, accident and health of livestock and domestic
34 animals.
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1 (l) Legal expense insurance. Insurance against risk
2 resulting from the cost of legal services as defined under
3 Class 1(c).
4 Class 3. Fire and Marine, etc.
5 (a) Fire. Insurance against loss or damage by fire,
6 smoke and smudge, lightning or other electrical disturbances.
7 (b) Elements. Insurance against loss or damage by
8 earthquake, windstorms, cyclone, tornado, tempests, hail,
9 frost, snow, ice, sleet, flood, rain, drought or other
10 weather or climatic conditions including excess or deficiency
11 of moisture, rising of the waters of the ocean or its
12 tributaries.
13 (c) War, riot and explosion. Insurance against loss or
14 damage by bombardment, invasion, insurrection, riot, strikes,
15 civil war or commotion, military or usurped power, or
16 explosion (other than explosion of steam boilers and the
17 breaking of fly wheels on premises owned, controlled,
18 managed, or maintained by the insured.)
19 (d) Marine and transportation. Insurance against loss or
20 damage to vessels, craft, aircraft, vehicles of every kind,
21 (excluding vehicles operating under their own power or while
22 in storage not incidental to transportation) as well as all
23 goods, freights, cargoes, merchandise, effects,
24 disbursements, profits, moneys, bullion, precious stones,
25 securities, chooses in action, evidences of debt, valuable
26 papers, bottomry and respondentia interests and all other
27 kinds of property and interests therein, in respect to,
28 appertaining to or in connection with any or all risks or
29 perils of navigation, transit, or transportation, including
30 war risks, on or under any seas or other waters, on land or
31 in the air, or while being assembled, packed, crated, baled,
32 compressed or similarly prepared for shipment or while
33 awaiting the same or during any delays, storage,
34 transshipment, or reshipment incident thereto, including
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1 marine builder's risks and all personal property floater
2 risks; and for loss or damage to persons or property in
3 connection with or appertaining to marine, inland marine,
4 transit or transportation insurance, including liability for
5 loss of or damage to either arising out of or in connection
6 with the construction, repair, operation, maintenance, or use
7 of the subject matter of such insurance, (but not including
8 life insurance or surety bonds); but, except as herein
9 specified, shall not mean insurances against loss by reason
10 of bodily injury to the person; and insurance against loss or
11 damage to precious stones, jewels, jewelry, gold, silver and
12 other precious metals whether used in business or trade or
13 otherwise and whether the same be in course of transportation
14 or otherwise, which shall include jewelers' block insurance;
15 and insurance against loss or damage to bridges, tunnels and
16 other instrumentalities of transportation and communication
17 (excluding buildings, their furniture and furnishings, fixed
18 contents and supplies held in storage) unless fire, tornado,
19 sprinkler leakage, hail, explosion, earthquake, riot and
20 civil commotion are the only hazards to be covered; and to
21 piers, wharves, docks and slips, excluding the risks of fire,
22 tornado, sprinkler leakage, hail, explosion, earthquake, riot
23 and civil commotion; and to other aids to navigation and
24 transportation, including dry docks and marine railways,
25 against all risk.
26 (e) Vehicle. Insurance against loss or liability
27 resulting from or incident to the ownership, maintenance or
28 use of any vehicle (motor or otherwise), draft animal or
29 aircraft, excluding the liability of the insured for the
30 death, injury or disability of another person. The offer or
31 sale of a collision damage waiver to a person who rents a
32 motor vehicle as part of the motor vehicle rental transaction
33 is not the offer or sale of vehicle insurance or insurance.
34 (f) Property damage, sprinkler leakage and crop.
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1 Insurance against the liability of the insured for loss or
2 damage to another person's property or property interests
3 from any cause enumerated in this class; insurance against
4 loss or damage by water entering through leaks or openings in
5 buildings, or from the breakage or leakage of a sprinkler,
6 pumps, water pipes, plumbing and all tanks, apparatus,
7 conduits and containers designed to bring water into
8 buildings or for its storage or utilization therein, or
9 caused by the falling of a tank, tank platform or supports or
10 against loss or damage from any cause to such sprinklers,
11 pumps, water pipes, plumbing, tanks, apparatus, conduits or
12 containers; insurance against loss or damage from insects,
13 diseases or other causes to trees, crops or other products of
14 the soil.
15 (g) Other fire and marine risks. Insurance against any
16 other property risk not otherwise specified under Classes 1
17 or 2, which may lawfully be the subject of insurance and may
18 properly be classified under Class 3.
19 (h) Contingent losses. Contingent, consequential and
20 indirect coverages wherein the proximate cause of the loss is
21 attributable to any of the causes enumerated under Class 3.
22 Such coverages shall, for the purpose of classification, be
23 included in the specific grouping of the kinds of insurance
24 wherein such cause is specified.
25 (i) Legal expense insurance. Insurance against risk
26 resulting from the cost of legal services as defined under
27 Class 1(c).
28 (Source: P.A. 88-364.)
29 Section 99. Effective date. This Act takes effect upon
30 becoming law.